An affordable housing project that proponents say creates a "pathway to home ownership" moved one step closer to becoming a reality in Coquitlam.
Habitat for Humanity, which signed a memorandum of understanding with the city this week, said the unique model has already had success in Burnaby and Richmond.
"We are trying to remove people from living in substandard rental accommodations… and into a stable environment where children can thrive," said Stefani Baker, the organization's director of operations.
As part of the project, through its Housing Affordability Strategy, where Habitat for Humanity said it intends to build between 40 and 50 units.
The model being proposed for the Coquitlam site would essentially force residents to save. Chosen families will pay 30% of their income each month to live at the residence, which will be paid back to them minus a fee and the cost of any repairs when they move out.
If a family pays $1,000 a month for ten years, they would build up an account worth $120,000 and would get to keep approximately 90%, Baker said. The goal, she added, is to help generate a downpayment that allows the family to purchase their next home.
"They would take that money along with whatever they saved and use that as a cash downpayment for their own home," she said. "They can now move into a home with a traditional mortgage. We then invite the next family in and the process begins all over again."
In order for a family to qualify for the program, they must fall into the $35,000 to $55,000 income category and must be willing to volunteer 500 hours with Habitat for Humanity. They would also be subject to a screening process Baker admits is "invasive," along with annual reviews to determine income, spending and whether the family has taken on any debt over the course of the year.
While Habitat for Humanity cannot force people to use the money that has been saved to purchase a home, Baker said the screening process allows the organization to find applicants whose goals align with the program.
She added that while there are numerous non-profits helping people at the lower end of the housing spectrum, Habitat for Humanity is the only program in B.C. that gets families into a home ownership situation.
"We are the solution that moves people out of that end point of rental and into the market," she said.
Habitat has operated the model in other parts of the region.
The organization has a 27-unit townhouse development in Burnaby that has already seen five families move on to purchase their own home.
Margaret Van Essen has resided at the development since 2009 and said the program has helped stabilize her housing situation for her family.
Gamatchu Taha, a department manager at London Drugs whose family of five had been living in a one-bedroom apartment, said they were looking forward to moving into Habitat for Humanity's six-unit Richmond project.
"The security and space to live a healthy life is very important to us and particularly for my children," Taha said. "Having a safe place they recognize as their own home, where they can play inside and out, will be something that they have never had."
Baker said the project will begin to work its way through the city's development application process. She expects construction to begin early next year.
