- Home Ownership Alternatives (“HOA”) is a non-profit corporation established to assist low and moderate income households realize home ownership.
- HOA provides down payment assistance in the form of 2nd mortgages. No payments of principal or interest are required until the home is resold, although homeowners may choose to pay them out at any time.
- When homeowners no longer need assistance (by sale or by voluntary payment) they pay out the mortgage plus a share of the increase in the value of the home.
- HOA 2nd mortgages are typically 10 to 15 per cent of the purchase price.
- The 2nd mortgage, which is equal to the difference between cost and market value of the housing, acts as an anti speculation tool as it is a disincentive to “flipping”
- When HOA mortgages are paid back, HOA uses the proceeds to create more affordable homes for new purchasers.
- HOA provides early stage “high risk” funds to developers to assist them with feasibility studies and land acquisition. When developments proceed, HOA then provides the financial guarantees needed to support construction financing.
- Since its creation 10 years ago, HOA has assisted 2,300 families purchase their first home
- In 3 recent projects, 75% of homebuyers had annual incomes below $60,000
- Through partnerships with different governments, the HOA 2nd mortgage program for qualified low income, renter families has been expanded. For three developments in Pickering, Scarborough and Markham, HOA provided an average $60,000 2nd mortgage to allow specific households with annual incomes well below $45,000 a chance to own.
- In 2007, HOA established the June Callwood Home Ownership Fund with an initial $2.5 million to fund greater assistance to lower income families with children.
- HOA’s strategic objectives are to increase new affordable housing starts to 1,000 homes annually and to increase the degree of support provided per home, especially to families requiring larger homes.
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