Kudos to Haliburton County council for putting its money where its mouth is last week.
The upper-tier municipality has agreed to go to bat for Habitat for Humanity Peterborough and Kawartha Region, applying for $15.5 million in construction financing through Infrastructure Ontario to help the non-profit bring 57 new affordable housing units to the Highlands.
Habitat has committed to building 35 one and two-bedroom condos on Peninsula Road, overlooking Grass Lake. They’ve partnered with County-based non-profit Places for People on that project, which has committed to purchasing 15 units and offering them at below-market rent, per their housing model. The rest will be sold to prospective homeowners.
Habitat is also proceeding with a deal to purchase the old Haliburton Heights timeshare on Wigamog Road. CEO Susan Zambonin said the plan is to repurpose the property into 22 condos – six studios, six one-bedroom units and 10 two-bedroom units.
There’s a fairly aggressive timeline for both projects, with Habitat committing to repaying the loan back within three years. Zambonin said the money will be recouped from selling units to people through Habitat’s homeownership model.
Contrary to what some may believe, Habitat doesn’t simply give away the homes it builds. It sells them to people who can’t get a traditional mortgage. To qualify, applicants require a household income that supports homeownership, Zambonin said, but is less than $95,000 a year; no outstanding debt; and a credit score of 600 or more. People must secure an initial mortgage through an eligible credit union,with Habitat making up the difference with a second mortgage.
Through Habitat’s model, Zambonin said people never pay more than 30 per cent of their income towards housing costs – which includes insurance, condo fees and property taxes.
These projects are a major win for the community and it’s a step in the right direction to see our councils working closely with Habitat to make these builds a reality. Dysart et al council has also been involved, though hasn’t committed any financial support.
We know there’s been discussions between Habitat and Algonquin Highlands, too, about building on vacant land the township owns along Hwy. 118. While there’s nothing immediately forthcoming there, it’s encouraging to see so many coals on the proverbial fire.
While the County deal won’t actually cost the upper-tier a dime, with Habitat committing to paying all interest charges for the duration of the loan, it would have been easy for council to play it safe and turn this proposal down, citing too much liability.
But, if we’re going to make any headway into diminishing the region’s housing crisis, it’s bold projects like this one that our municipalities have to get behind. With a depleted economy and uncertainty over raw materials such as steel and timber – both in terms of cost and availability – there aren’t too many developers stepping up to the plate to make housing happen right now. So, it’s on our councils and municipal staff to get creative.
There are other tangible benefits to all of this too. Zambonin said anyone who purchases a Habitat property will be required to complete 500 hours of community service in Haliburton County. With many of our service clubs and volunteer-driven efforts in need of additional manpower, this could create a groundswell of much-needed support and activism in our community.
A win-win all around, if you ask me.
