Presentation

Wood Buffalo Housing &
Development Corporation
WHO WE ARE &
WHAT WE DO
We Build Communities
Mission, Vision, Strategic Goals
VISION STATEMENT
A Region where all citizens have
access to affordable Housing
STRATEGIC GOALS
• Sustainable Finances
• Strategic Partnerships
MISSION STATEMENT
We will provide
affordable housing alternatives
to citizens in need within the
Regional Municipality of Wood Buffalo
• Effective Communication
• Community Development
• Corporate Excellence
Who We Are
Wood Buffalo Housing & Development
Corporation
(WBHDC) is a Part IX, Not-For-Profit corporation
established in 2001 to address affordable housing
alternatives in the Regional Municipality of Wood Buffalo
What We Do
WBHDC operates in a similar manner to any
for profit development and property management
company with all residuals reinvested into affordable
housing
WBHDC is able to offer a continuum of
housing options from a homeless shelter through
several levels of rental (including Seniors) into
Affordable Home Ownership
At the end of 2008, WBHDC had over 1,100
units of rental and ownership housing its Property
Management Portfolio
There are over 2,400 units in the planning and
design stage to be built over the next eight years
The Regional Municipality of Wood Buffalo
•
The RMWB is larger
than two Canadian
provinces and over 100
countries
•
Between 2001 – 06 the
population of RMWB
increased 47.4%
•
Fort McMurray is
surrounded by Crown
Land
•
Housing prices are the
highest in the country,
according to CMHC
How We Do It
Land Release
•
Access Land
•
If land requires subdivision – enter into a
Development Agreement with the RMWB and
subdivision plan required.
How We Do It
Plan for Construction of Units
•
Review site to determine type of units are
feasible
ƒ Review waitlist to determine type of units required
to address waitlist
ƒDevelop project pro forma
ƒEngage Architect to begin design
™Submit development application
™Prepare pre-tender estimate and budget
™Receive approvals from WBHDC Board and RMWB
™Tender project to general contractor
ƒ Begin Construction of Project
ƒ Substantial completion and turn over to Family
Housing for use
How We Do It
Budgeting and Financing
•
Obtain Land
•
Access Affordable Housing Grants
•
Access conventional funding through lending
institutions.
How We Do It
Projects must be “self supporting”
•
Rentals or sales revenues need to support the
borrowing amounts for the mortgage
•
Sales amounts need to cover the construction
costs of the project
Our Track Record
Developed a 100 acre residential
subdivision, including 300 single family lots, 3
multi-family lots in two years
Since 2003, WBHDC has built and/or
added 800 rental homes to its portfolio and will
add an additional 2,400 homes by 2017
Since 2005, WBHDC has planned and is
in the process of completing a 354 unit
condominium project
Under Development
•Sandpiper Cove - Rental apartments and
172
townhouses
• The Shores – Rental Apartments
38
• Cascades – Rental Apartments
40
• Hawthorne Heights – Home Ownership
apartments and townhouses
128
TOTAL UNITS
378
Available Rental Programs
Rental programs offered by WBHDC include:
9Homeless Shelter
9Transitional Housing
9Seniors Housing
9Subsidized Housing; and
9Affordable Housing
Affordable Home Ownership
Program
Program began in 2004
QUALIFYING CRITERIA
Applicants must:
141
families
and
individuals have realized
their dreams of owning a
home
WBHDC
plans
additional 120 units
delivery in 2010
an
for
9Be a resident of Fort
McMurray for at least one
year
9Have a gross family
income less than
maximum
9Be a first time
homeowner in the RMWB
9Be able to qualify for the
first mortgage amount from
a lender.
Affordable Home Ownership
Program
Financing
• Purchase price is based on appraised market value
• Purchase price divided into two parts:
• First Mortgage
• This amount is provided by a conventional
lender and effectively recovers WBHDC’s
costs to construct
• Second Mortgage
• Used to assist in the purchase
• Held by WBHDC and further divided into
the Equity Loan and Affordability Loan
Affordable Home Ownership
Program
Financing
• Equity Loan
• Does not bear or accrue interest
• Repayable at the time of re-sale or re-financing
• Affordability Loan
• Repayable – interest only
• Interest rate varies dependant of income
Affordable Home Ownership
Program
Re-Sale
• Within first 5 years of ownership
o Home is offered for sale back to WBHDC
for the original price
• After 5 years
o Home can be sold on the open market
Affordable Home Ownership
Program
Re-Financing
• Unit can be re-financed at any time
• If borrower’s income increased to the point
where they can assume a larger mortgage, they
have the option to refinance and remain in the unit
as residents
• The 5 year re-sale caveat remains registered on
title, meaning the unit cannot be sold except to
WBHDC who is no longer on title as a mortgagor
Affordable Home Ownership
Program
Loss on Sale
•
If the market declines and the house can only be
sold at a loss, the loss will be absorbed to a maximum
of the amount of the second mortgage
Amortization of Second Mortgage
• If the home is never sold or refinanced, the
borrower will pay only interst on the Affordability Loan;
• If the first mortgage is paid off, the second
mortgage will be amortized and payments of principal
and interest will be made to WBHDC by the owner.
Evergreen Village I - 2005
Home Ownership Program
• 17 Single Family entry level homes
ƒ Market value
$240,000
ƒ 1st Mortgage through Bank
$140,000
ƒ 2nd Mortgage through WBHDC $100,000
Parry Crescent - 2006
Small Business Partnership
• In 2005, 26 lots sold to Small Business owners to
house their employees at $30,000 below market
• Home Ownership Program
ƒ WBHDC built 24 single family houses, 2 and 3
bedroom bi-level and 2 store homes
o Market Value
$340,000
o 1st Mortgage through Bank
$190,000
o 2nd Mortgage through WBHDC
$135,000
o Down payment by Employer
$ 15,000
Home Ownership
In 2007, WBHDC broke ground on two home
ownership projects in the 20 acre Meadow Creek
Village Site
“The Springs” is a 32 unit townhouse condominium
development which was occupied in August 2008
“The Oxbow” is a 35 unit townhouse condominium
development which was occupied in December 2008
“Hawthorne Heights” is a 128 unit apartment and
townhouse condominium development that will have
homes occupied in 2010
Questions?