Equity Co-op Ownership Housing

in Nova Scotia

HSC 2014 Regeneration Forum

Tim Welch Consulting Inc.

February 10, 2014

Nova Scotia Housing Strategy

• Released spring 2013

• Focus on innovative approaches to financing

as a path to home ownership

• Importance of building equity for purchasers

– Sub-goal of retaining out of province university

students

Market: Halifax

• HRM Population 390,000

– growing 4.7% 2006 -2011

– Need 60,000 new dwellings by 2031

• Average price $267,000

– Increasing 4.6% annually over 5 years

• 6,000 new apartments (condo and rental) in

past five years

• Average 2 bdrm rent in central Halifax $1,165

Condo Prices• Average condos $218,000

• New condos in central Halifax high $200,000+

• $284,900 large one bedroom

Policy Goals

• Build at cost

• Downpayment assistance

• Co-operative community

• Central location/transit/walkability

• Ongoing affordable price

• Building equity

Build at Cost

• Use of existing public land

• Non-profit development consultant

• Advocate for waived/deferred municipal

charges and fees

Downpayment Assistance

• Roll land value, municipal fee deferral,

absence of developer profit into a 15 -20%

below market price

• Restrictive covenant on resale to keep price

below market for subsequent purchasers (tied

to average home price increase)

• reduce/eliminate CMHC insurance premium

• Potential to add further downpayment

assistance with extended IAH

Purchasers

• Purchasers income ceiling of 120% of median

income ($91,800)

• Purchaser education would be offered

• Purchaser would still need to qualify for first

mortgage

Co-operative Community

• Co-op structure, ownership and membership

linked

• All units owner occupied

• 50 - 60 units, good size for building sense of

community

• Support from co-operative sector through

development and operations

Location Goals

• Walkable neighbourhood – services/retail

• Good transit

• Modest parking requirements

• 3 options -2 north end, one central Dartmouth

Ongoing Affordability and

Building Equity

• Below market price continues to next

purchaser: goal of keeping price 15 – 20%

below market

• Still gives opportunity of building equity

through paying down first mortgage and

market appreciation (i.e. Over five years could

build $59,000 in equity)

565 Margaret St.-

Tim Welch: twelch@twcinc.ca

Phone (519) 624-9271 x234

Social Impact PlatformJanuary 2014

Agenda

TAS’s Affiliations

Four Pillars of SustainabilityTM

Community and Partnership Framework

Food Security Framework

Affordable Homeownership Framework

#ShapingBeautifulCities

#ShapingBeautifulCities

TAS believes that great cities are shaped by a strong

vision, one that continuously pushes the boundaries

of innovation. As city builders, we are in a position to

positively contribute to the neighbourhoods in which

we build, and to the greater city as a whole. By

connecting diverse partners and investing in socially

innovative enterprises, we’re creating positive impacts

beyond the physical footprints of our buildings.

TAS’s Affiliations

“Bullfrogpowered”

head office

Certified Benefit

Corporation

Listed on Social

Venture Exchange

TAS’s Four Pillars of Sustainability™

Economic Cultural Social Ecological

Community & Partnership Framework

Our mission is to be the most sought-after corporate

partner for effective neighbourhood engagement, and

an established resource for others engaging in cross-

sector city building partnerships in Toronto.

Our Partnerships

Sponsorships

Site

Activations

and

Community

Engagement

Project-specific

Partnerships

Corporate

Partnerships

Rooftop garden

BIA sponsorship

and engagement

Mass yoga on

build site

Junction Flea on

build Site

Design installation

for T.O. design fest

The Farm Lot on

King West

Ryerson Affordable

Homeownership Report

Food Security Framework

Our vision is to become an industry leader in the

advancement of community food security in the

neighbourhoods where we build, and

throughout the wider city as a whole.

Food Security Areas of Focus

1) Create spaces for urban agriculture on

our existing rooftops and properties.

2) Provide TAS homeowners with balcony

and/or rooftop growing space.

3) Support food-based social enterprises.

4) Create food-focused mixed-use

buildings.

Affordable Homeownership Framework

To continually explore ways to create affordable

homeownership opportunities within TAS

developments and to be a voice in the wider

conversation on affordable housing issues in Toronto.

Affordable Homeownership Initiatives

1) Studio collaboration with Ryerson University’s

School of Urban and Regional Planning.

2) Partnership with Trillium Housing.

3) Partnership with Artscape Foundation.

Thank you

tasdesignbuild.com

@tasdesignbuild

#ShapingBeautifulCities

HSC Regeneration Forum February 2014

AFFORDABLE HOME OWNERSHIP PROGRAM Presented by: Bryan Lutes, President The Affordable Home Ownership Program offered by Wood Buffalo Housing & Development Corporation (WBHDC) was established in 2004. Since that time, 275 families and individuals have realized their dreams of owning a home.

To qualify for the program, applicants must:

• be a current resident of Fort McMurray; • have a gross household income less than the maximum (varies by project); • be a first time homeowner in the Municipality (with the exception of joint property

ownership in a previous marriage or common law relationship); • qualify for the first mortgage amount from a lender.

The Purchase price is based on 90% of the appraised market value and is divided into two parts:

• The First Mortgage is provided by a conventional lender and recovers WBHDC’s costs to construct.

• The Second Mortgage, used to assist in the purchase, is held by WBHDC and divided into the Equity Loan and Affordability Loan, with the Equity Loan portion (10% of the purchase price) satisfying the requirement for the down payment.

• Both the Equity Loan and the Affordability Loan are registered as a charge on title. • The Affordability Loan is repayable to WBHDC, interest only, at a rate that varies

dependent on income. • Both portions of the Second Mortgage are repayable to WBHDC upon resale of the unit.

Restrictions are placed on the re-sale of units to prevent speculation and to preserve affordability for future buyers. If the owner wishes to resell their home within the first 3 years of ownership, WBHDC has the first right to purchase the property at the original purchase price. This first right of purchase is a caveat registered on title. After 3 years, the home may be sold on the open market. If the market declines and the house can only be sold at a loss; the loss will be absorbed to a maximum of the amount of the second mortgage.

Units can be re-financed at any time. Should the borrower’s income increase to the point where they can assume a larger mortgage, they have the option to refinance and remain in the unit as residents. If the home is never sold or refinanced, the borrower will pay only interest on the Affordability Loan. If the first mortgage is paid off, the second mortgage will be amortized and payments of principal and interest will be made to WBHDC by the owner.