Additional Funding for Affordable Homeownership Development

Archived Bulletin

Additional Funding for Affordable Homeownership Development

TORONTO, ON- The Government of Canada, the Government of Ontario, the City of Toronto, Options for Homes and Home Ownership Alternatives Non-Profit Corporation (HOA) announced today additional funding for 108 affordable condominium units for Village by High Park. The project is supported by an additional $2.5 million in funding through the Canada-Ontario Affordable Housing Program.

The Village by High Park project will include condominium units for low-to-moderate income households. The development is funded in part under the Canada-Ontario Affordable Housing Program and in part by the City of Toronto through a partnership with Home Ownership Alternatives Non-Profit Corporation and Options for Homes.

A total of 108 home buyers at the Village by High Park, a development located at 403 Keele Street in Toronto, will receive $2.5 million in down payment assistance through a joint investment under the Canada-Ontario Affordable Housing Program. This funding builds on the $1.6 million for Village by High Park as announced in September 2009.The Homeownership component of the Canada-Ontario Affordable Housing Program aims to ease the demand for rental housing by assisting individuals with low-to-moderate incomes to purchase newly-built affordable homes.

The Canada-Ontario Affordable Housing Program Agreement comprises a commitment of $301 million from each of the two senior levels of government. In total, the federal, provincial and municipal governments will invest at least $734 million in the program, which will provide affordable housing for up to 20,000 households in Ontario.

In 2008, the Government of Canada committed more than $1.9 billion over five years to improve and build new affordable housing and to help the homeless. Canada's Economic Action Plan builds on this with an additional one-time investment of more than $2 billion over two years in new and existing social housing and up to another $2 billion in loans to municipalities for housing-related infrastructure. Combined for Ontario, this means a further $1.2 billion joint investment under the amended Canada-Ontario Affordable Housing Program Agreement. The federal and provincial governments are contributing equally to this overall investment.

In 2009, Ontario allocated a combined federal and provincial investment of $704 million for the renovation of social housing, and $540 million for the creation of new affordable housing. This investment is part of the Open Ontario plan, and is creating an estimated 23,000 jobs over the course of the program, while strengthening local economies across the province. To date, Ontario has approved more than $483 million for construction-ready projects, which will provide affordable housing for low-income families, senior citizens, and persons with disabilities, and $361.5 million for repairs benefiting some 150,054 social housing units. To find out more about affordable housing in Ontario, visit ontario.ca/housing.

The City of Toronto has adopted a 10-year plan to assist 257,700 households struggling with high housing costs or inadequate accommodation. The Housing Opportunities Toronto Action Plan 2010-2020 focuses on upgrading existing private and social housing, creating 1,000 new affordable rental homes annually and making home ownership more affordable. To learn more visit www.toronto.ca/housingportal.

Home Ownership Alternatives is a non-profit financial corporation dedicated to financing affordable ownership housing developments and assisting low- and moderate-income families to purchase a new home. The innovative HOA Second Mortgage improves affordability as it requires no monthly payments. HOA has financed more than 2,500 homes and the average income of purchaser families is below $50,000 per year. To find out more visit www.hoacorp.ca

Options For Homes is a non-profit housing corporation dedicated to providing cost-effective home ownership opportunities to everyone. Since 1993, the Options model has created over 2,500 homes for families and individuals across the province.

To find out more about how the Government of Canada and CMHC are working to build stronger homes and communities for all Canadians, call CMHC at 1-800-668-2642 or visit www.cmhc.ca/housingactionplan. For more information on Canada's Economic Action Plan, call 1-800-O Canada or visit www.actionplan.gc.ca.

Additional Resources

Quotes

“The Government of Canada is proud to have contributed funding for this project. These new units will provide quality, affordable housing for low income households and benefit the economic and social well-being of the entire community.”

The honourable Jim Flaherty

Minister of Finance

Jim Bradley

“The McGuinty government is pleased to be helping people reach their dream of owning their own home. As part of our Open Ontario plan, this investment is helping to stimulate the economy by creating jobs in construction and renovation, while improving the lives of people with low-incomes.”

Jim Bradley

Minister of Municipal Affairs and Housing

“This investment will allow more people to realize their dream of owning a home which is a key ingredient of the City's 10-year affordable housing action plan. It's another example of the importance of the partnership between Toronto and the provincial and federal governments.”

Councillor Gord Perks

Ward 14 Parkdale-High Park

“The beauty of the HOA Second Mortgage is that it allows us to seamlessly combine support from each level of government and HOA and customize the help we provide to purchase a home to each individual family's income. With $16 million available for eligible families at this development, the average HOA Second Mortgage will be more than $53,000.”

Joe Deschênes Smith

Vice-President of Home Ownership Alternatives

“Options' goal is to get people into home ownership 10 years earlier than they otherwise would. This additional funding allows us to do it for more moderate-income households than we otherwise could.”

Michael Labbe

President and CEO of Options for Homes

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