Mortgage financing inter-urban First Nations

Harry DeLeeuw, Co- Chair of Manitoba Tipi Mitawa says a partnership between the Manitoba Real Estate Association and the Assembly of Manitoba Chiefs operating with funding for a pilot project is putting home ownership into First Nation hands in Winnipeg, Manitoba, with a project that promises province-wide participation. “We have six families settled in homes in Winnipeg and two more are currently looking for their ideal home,” says Harry DeLeeuw, of the program three years in the making. 

 

“We based the program on how to convert rental subsidies into mortgage subsidies. The goal is to provide family stability where the applicants can choose the area in which they wish to live with no restrictions. Home ownership equates to stability and community values.” DeLeeuw says, “This program is has been well received, both locally and nationally. Our initial goal is for 40 homes in the Province. The province requested a pilot project of five homes and then supplied partial funding for an additional 5-7 homes. The Provincial and Federal Governments, through the HomeWorks initiative provide the major funding for the down payments and the mortgage subsidies, while the Manitoba Real Estate Association provided over $300,000 for the down payments as well as providing the staff and initial administration expenses.

Harry DeLeeuw says, “The government is committed to the benefits of home ownership where needed. The project is considered as a possible national program for financing home purchases for aboriginal families in urban areas. The provincial and federal governments cooperated on HomeWorks jointly. A newly announce program called Frameworks will provide a further $62 million over 3 years and replaces HomeWorks. These are funds provided by both the Provincial and Federal governments.” 

 

DeLeeuw says, “We provide a 15 percent down payment with a monthly subsidy of mortgage averaging $440 per month over a locked-in 10-year mortgage. The payments remain constant over the full ten years so that the families can properly budget. Applicants must attend a 10 week financial management program provided by SEED Winnipeg and go through a CMHC home maintenance program. In addition, they must qualify for mortgage financing with Assiniboine Credit Union.” 

DeLeeuw notes that the program has parameters required by Manitoba Housing. “Currently, the maximum house price cannot exceed $180,000 and total family income qualifications fall between $25000 and $54,000 per year.” Manitoba Tipi Mitawa is a provincial organization and the goal is to provide homeownership in all Manitoba urban centres. “In conjunction with Seed Winnipeg, Manitoba Tipi Mitawa is looking to provide the financial management course via the internet in the foreseeable future as this has been an impediment to bringing the program province wide..”

The program is designed to break the cycle of poverty by using home ownership as an equity builder. In additions, the program takes advantage of all the benefits of home ownership including  family stability, pride of ownership, capacity building, financial management and self image.

Housing inspection services coming to First Nations communities

A national non-profit organization is fighting in the trenches of First Nation housing. First Nations National Building Officers Association (FNNBOA) is a volunteer organization that represents a profession offering technical services in residential construction and renovation on-reserve.
     

FNNBOA members are qualified to deal with house plan reviews, inspections, recommendation of repairs, and they provide technical advocacy and advisory services for on-reserve housing.

     

Chief Keith Maracle, Tyendinaga, Ontario, is secretary of the volunteer board, “There are approximately 250 to 300 employed in this sector,” a small number in relation to the number of First Nation Indian Act-governed communities in Canada, no less than 700 inhabited Indian Reservations.
     

FNNBOA faces a peculiar challenge to expand the role of its officers in First Nation housing, “We are seen as regulatory,” said Chief Maracle, and regulations are apparently not something to be desired in the fractious world of First Nation housing.
     

FNNBOA members are qualified to inspect housing construction, “We have occupational standards, a code of ethics, and certification procedures to inspect houses on reserve.” Chief Maracle says FNNBOA members are qualified to support CMHC and mortgage approvals, INAC leasehold guarantee programs, and reports to Environment Canada.
    

 Richard ‘Bud’ Jobin is co-President of FNNBOA who hails from central Alberta. Since 2002 when they laid the organizational groundwork, these two men have been advocates of professional First Nation housing services, “Certified inspection of First Nation housing is becoming a compliance issue,” says Bud, “which impacts on mortgage and insurance.”
     

It may not be here but the age of reason is coming over First Nation housing policy and FNNBOA intends to have First Nation housing inspection services in the ready. They have training affiliations with George Brown University, Humber College, NAIT, and Vancouver Island University to produce qualified First Nation Housing inspectors.
     

Bank creating viable housing market
     

Royal Bank of Canada illustrates the growing importance of certified inspection services in First Nation housing. RBC introduced a program this spring to help First Nations capitalize on economic growth opportunities.
     

RBC announced a new mortgage program called the Leasehold Mortgage Program to, “provide First Nations members with greater flexibility and choice when it comes to financing the purchase or construction of a home.” It also helps create marketable housing in reserve communities.
     

“RBC has worked with First Nations leaders/governments for many years to find and provide options for financing a home in the same manner that is offered off a reserve,” said David Cutway, manager, Residential Mortgages Policy, RBC.
     

“This new CMHC default-insured program . . . allows qualified borrowers on qualified reserve lands to obtain a home mortgage, benefitting both the purchaser and the First Nation community.”
     

Financing of on-reserve housing has been limited in the past, said Mr. Cutway. “For example, First Nations members had to obtain a band or Ministerial Loan Guarantee (MLG) to secure a loan to purchase a home on reserve land. In addition, the First Nation government was responsible for the construction, maintenance and repair of these homes.”
     

The Leasehold Mortgage Program can help First Nations improve economic development through the construction of new homes, renovations to existing homes, purchases of new or existing homes, and construction of duplexes to four-plexes.
    

 First Nations communities may also use the program to attract non-Aboriginal homebuyers to properties developed on leasehold land, such as the housing development projects undertaken by the Westbank and Tzeachten First Nations, both of which are located in British Columbia.