To support better understanding, the development team for the Gordon Street project wanted to present the key principles of the ‘affordable ownership model’
and the ‘2nd mortgage assistance’ as they relate to DC late payment agreements:1. Home Ownership Alternatives (HOA) financing and partner financing (including City of Guelph) are provided through 2nd Mortgages and are only available to eligible households. Household income and purchase price limits are set by Ontario/CMHC under the Investment in Affordable Housing (IAH) program.
2. 2nd Mortgages contain the combined funds (including DC funds) of the various funders and are used to assist low-moderate families to purchase a home.
3. 2nd Mortgages can be paid back voluntarily during ownership but repayment is required upon sale of the home.
4. All 2nd Mortgages and therefore the funds of the partner funders are secured on title. 2nd Mortgages are administered and backed by HOA.Mountford Project Success:
1. A total of 55 households (45%) were able to become homeowners due to the DC Late Payment funding provided by the City of Guelph. Eligible households that received the DC funding had incomes ranging from as low as $19,000 up to the income limit of $68,000.
2. An overall 97% of Mountford purchasers (120/124) were eligible and received 2nd Mortgage funding (includes above mentioned 55 households).
3. Mountford homeownership has resulted in ‘pride of ownership’ (not rental), neighborhood and family economic stabilization.
4. Mountford Homeowner Testimonial http://www.youtube.com/watch?v=IGC6THk0zXcGordon Project:
The DC Late Payment Agreement funding for this project will be administered in a similar manner and will result in similar benefits for the community, Downtown Guelph and ultimately the new homeowners.
We thank you for your support and welcome every opportunity for partnership towards the provision of affordable ownership housing.JS