New source of housing funding opens ownership possibilities

Sound financial management and transparent government have opened the doors to new housing opportunities for a southern First Nation.

Siksika is the only First Nation in Alberta to qualify for housing dollars under the First Nation Market Housing Fund, which has agreements with over 70 other First Nations across the country.
Now, instead of having to depend solely on funding from the federal government, Siksika has access to $200 million to assist members in their housing needs.

“We do have a growth model that’s helping the Nation to move forward and qualify for these types of funds,” said Councillor Carlon Big Snake.

Qualification under the program is not easy, says Deborah Taylor, spokesperson for First Nation Market Housing Fund. First off, a housing payment program must already be established. First Nations must meet FNMHF’s three pillars, which are financial management, good governance, and community commitment and a willingness to pay for housing.

“Siksika has demonstrated that they meet all three of these pillars,” said Taylor.

This fund will provide more opportunities for home ownership on the First Nation, says Big Snake, who notes that some members do own homes right now.

“It’s up to the First Nation how they want to structure the financing and creating a value for their homes. At this point in time we do have our technicians with our staff developing some form of initiative to allow that value,” he said.

Taylor points out that the loans are guaranteed by Siksika chief and council “because they are the only entity that can act in the event of nonpayment.”

The funding can be used in a variety of ways including as mortgages, allowing members to own their homes. And one plan on the table is to make a portion of the mortgage forgivable once the entire amount has been paid back. For those who already own their homes, they may be able to opt into the new program to refinance their mortgages. The money may also be made available to local developers to build townhouses and condominiums or the band itself could build rental properties.
With more building possible on the First Nation, Big Snake expects spin off opportunities to occur as well and notes a lumberyard is one of those possibilities.

Siksika has also accessed FNMHF funding for capacity building and Big Snake says that money will be used to train staff and create policies that will allow the Nation to move forward.

Taylor says FNMHF is working with four other First Nations in Alberta to help them build capacity in order to qualify for market-based housing funding. Among the work undertaken is to establish a land management system, establish a housing policy with a payment system, and to strengthen financial policies.

“In Alberta, there are a number of First Nations where over time the housing has been provided by the First Nation government free of charge…. There is change underway. Some First Nations are finding that is not affordable, not sustainable for them … so some are working with us to try and establish a payment system with the intent of then qualifying for loans,” said Taylor.

Big Snake says Siksika’s qualification under the program is something he is “very proud” of.

“In today’s society, it is the modern way of doing finances. We need to keep tabs on what the government is doing.
Transparency is there, the support system is there from leadership,” he said.