Six Nations tackles housing problem head on

Like many First Nation communities across the country, there is a housing shortage on Six Nations of the Grand River Territory. But the situation would be more severe if the First Nation hadn't started working on ways to help address the shortage on its own, instead of waiting for government to fill the breach.

Providing housing for everyone living on reserve is especially challenging for Six Nations, which boasts the largest population of any First Nation in Canada. The membership, drawn from the Mohawk, Cayuga, Tuscarora, Oneida, Onondaga and Seneca Nations, sits at around 24,000, about half of whom live on reserve.

"We've got, I know, for our new construction waiting list alone, we have 654," said Shelda Johnson, director of housing. "And we have waiting lists for an apartment, for a rent to own home in a subdivision, for renovations. We have waiting lists galore, because of the big population ... I think there's like 1,200 people waiting all together."

According to Johnson the First Nation has been running a revolving loan program on reserve since 1968 that helps members build their own homes.

"At first we were loaning out $7,000, which was the amount of the subsidy we got from Indian Affairs. They were to contribute $125,000 a year for five years to run this program. And as our repayments increased, the amount that we were able to loan out increased. So today, we loan out $105,000 at seven per cent simple interest."

While the initial money to run the program came from INAC, and the department still contributes about $200,000 a year, the program is now more or less self-sustaining, thanks to the $2 million or so a year that comes in through loan repayments.

Six Nations issues Certificates of Possession to its members, which allow them to possess land on reserve. In order to qualify for a loan through the First Nation-run program, members must own at least half an acre of land on which to build their house, Johnson said.

While the loan program provided members with an option, more needed to be done to try to reduce the waiting lists for housing. In 1995, Johnson approached the Royal Bank located on reserve to see if they could play a role.

"Before that, we were into the Section 10 loans where the individuals could go to a bank and we would have to apply for a ministerial guarantee," Johnson said. "Well, I wasn't happy with that process. It was too complicated and it took too long because we were involved with CMHC and Indian Affairs and the banks, you know? So I just cut all that out and I went right to the Royal and asked, because they were located on reserve, and asked them if they would consider allowing our membership to obtain a loan through the bank with council providing the guarantee. And it took about a year to research everything and they finally came back and said yes they would, so we started that then."

A few years later a similar arrangement was made with the Bank of Montreal, Johnson said, "So the members have two different banks they can go to and council will guarantee their loan against default.
Today we've guaranteed like $18 million to both of the banks combined. But we still have this horrendous waiting list."

Part of the problem is that, although they have an option to get financing through a bank, a number of people would rather wait and get their financing through the program run by the First Nation.

"A lot of people are waiting for our program, because it is simple interest at seven per cent. You know, you can't beat it. It's written that your down payment is five per cent, but we allow two-and-a-half per cent as sweat equity. So you only have to pay down two-and-a-half-per cent of the loan amount."

While the terms of the program run by Six Nations housing may be more favorable, financing through a bank has one obvious advantage, Johnson explained. The wait is a lot shorter.

"With our programs, they're waiting over 10 years for a new construction loan, where if they go to the bank, they can have that completed within a month. So it's a good option."

Having these options available have certainly made a difference on Six Nations, where Johnson estimates about 95 per cent of close to 3,000 homes on reserve are owned by individuals.

Johnson knows support for on-reserve home ownership isn't universal, but she sees it as a positive thing for First Nations and their members.

"I know a lot of First Nations don't feel that their members should be paying rent or paying a loan, but I think if we didn't have it, I don't know where we would be, because there's simply no money coming from the government to help everybody. I look at it as the community helping ourselves. They make a payment and those dollars go into another pot and they're used to help someone else. So, you know, it's a good way to help with the housing situation."

Home ownership loans, whether through the First Nations or through the banks, aren't the end of the story on Six Nations, where efforts are also focused on such things as supporting renovation projects and creating rental options for low income families. Still there are so many people waiting.

A decision by INAC to focus its funding on upgrading infrastructure on First Nations, rather than funding expansion projects is part of the problem.

The funding source that helped Six Nations in the infrastructure for its residential subdivisions in the past has dried up.

"So we haven't been able to develop another subdivision. If we had a subdivision we could again access CMHC's Section 95 program and build more homes or apartments," Johnson said.

Johnson would like to see a change in the way INAC provides funding for housing. Under the current system, the housing money is included in the minor capital funding received by First Nations, and that money must be divvied up amongst all First Nation's departments.

"I think housing, it's such a basic need. It should be a separate allocation every year that every First Nation gets to try to address the housing needs in their community," she said.