Company helps many realize home ownership dream
October 10, 2009
I might have missed it myself, as well as a rare trip to church on a Monday, if not for an invitation from Home Ownership Alternatives, a local company that is doing tremendously good work providing affordable home ownership to low and moderate income families.
Not to be confused with Habitat for Humanity, World Habitat Day was conceived by the United Nations as a day to reflect on the state of our towns and cities and the basic right of all to adequate shelter, which is as lofty as it gets.
The global celebration of World Habitat Day in cities around the world was spearheaded from Washington, D.C. in a series of events, including the presentation of the World Habitat Awards, hosted by the U.S. Department for Housing and Urban Development.
As it happens, locally based Home Ownership Alternatives was selected as a finalist for these very prestigious awards, and their invitation opened my eyes to the bigger picture of World Habitat Day, as well as the important local role that HOA is playing in serving a market niche somewhere between pure non-profit housing and pure market housing.
Home Ownership Alternatives is a non-profit corporation working to help low and moderate income households to own their home. HOA provides families down payment assistance in the form of second mortgage loans. These second mortgage loans are payable on resale of the home and no payments of principal and interest are required until the home is resold.
Many HOA developments have been located in the Toronto area where average house prices exceed $350,000 and most families need an annual income greater than $75,000 to purchase a home. Two thirds of recent HOA homebuyers have an average income below $60,000.
Not surprisingly, the HOA award submission, "A New Financial Paradigm for Affordable Home Ownership," describes HOA's novel combination of several financial tools that allow low and moderate income families to become homeowners.
From among more than 300 global submissions, HOA made the top 10, which is obviously quite an achievement. That success was celebrated at the Berkley Church, a converted event venue on Queen St. in Toronto, which is how I came to be in church on a Monday.
The unique venue caused Ontario Municipal Affairs and Housing Minister Jim Watson to quip that he had never been in a church with a disco ball or a bar, let alone both. On a more serious note, the minister stated that "groups like HOA and Habitat for Humanity are helping to lift people out of social housing and into their own homes – opening up more rental units for those on the waiting list."
"When Ontarians build equity through homeownership they can save for the future – for their children's education and for their retirement," Watson added.
Watson paid tribute to the folks at Home Ownership Alternatives noting "they are working with Ontarians who want a hand up; who want to ensure a better live for themselves and their children." I would echo the minister's comments and invite readers who want to learn more about Home Ownership Alternatives to visit www.hoacorp.ca for more information.
Stephen Dupuis is president and CEO of the Building Industry and Land Development Association. The views expressed are those of the president.
Email: president@bildgta.ca.