Habitat for Humanity, TSAG team up to provide affordable homes

Habitat for Humanity and the First Nations Technical Services Advisory Group have struck a significant partnership that will see 10 homes built for First Nations people in Edmonton over the next few years.

Habitat has for a long time encouraged First Nations to become Habitat home owners, explained Alfred Nikolai, president and CEO of Habitat for Humanity, Edmonton.
“Habitat has a wonderful brand name and good relationship with corporate sponsors who see the need for First Nations housing,” said Nikolai.

Enbridge sponsored the first home currently under construction in Anderson Gardens in northeast Edmonton with a contribution of $100,000.

Jeremy Makokis, manager of Housing Initiatives at TSAG, said the partnership began as a concept. Governed and managed by a steering committee of chiefs from Treaties 6, 7 and 8, the Housing Cooperative of TSAG was mandated to provide home ownership opportunities for First Nations people living off reserves.

According to Makokis, over the years TSAG went after different requests for proposals looking for funding and was unsuccessful due to a lack of capacity and experience. This lack of success led TSAG to focus on partners with a shared vision such as Habitat. Aiming to train and teach off-reserve people to become home buyers, TSAG led three sessions to provide options to those of low, mid-level and high income. As there had been no opportunities for those living off-reserve to learn about the mainstream financial world and home ownership, all three sessions were filled to capacity.

Habitat proved to work well for the low income group, specifically. Habitat’s model of people helping each other out proved to be a “perfect fit” culturally, said Makokis, a model that goes “back to their roots.” TSAG has raised enough money to build two homes this year. Money raised goes directly to the cost of building the homes, including supplies and materials. Habitat also receives donations of materials to bring costs down. With the amassed power of thousands of volunteers Habitat will build 16 houses at once, one of which is designated to a TSAG family.

The partnership enables First Nations people to build home equity. Families apply to Habitat’s regular program to meet criteria for selection. The chosen family rents for one year with the option to buy and over time purchase the homes at 100 per cent of the market value, but with no bank fees, no interest and no down payment. Monthly payments, based on 25 to 30 per cent of earnings, go directly to the principal of the house. The down payment is a commitment of 500 volunteer hours.

“It is an affordable, safe, decent way to get immediate benefit,” said Nikolai.

The partnership and coordinated effort works great, said Makokis.

“It is Habitat’s cultural way of working on a home for our people that brings more value to the project and more care,” he said.

“It is a wonderful way to use home ownership to create dignity, self-esteem, financial freedom and hope for the future,” said Nikolai. “Pride in home ownership works.”