Toronto: TCHC’s Foundation Program brings homeownership into reach
When non-profit housing residents move to homeownership, everyone wins. Community members are able to build equity and secure permanent homes for their families, and non-profit housing units are opened for new tenants to join the community.
Toronto Community Housing (TCHC), in partnership with the City of Toronto’s Affordable Housing Office, created the Foundation Program to assist TCHC residents with the cost of purchasing market-rate homes in revitalization communities.
“Part of building a vibrant, mixed-income community is ensuring that residents with a range of incomes are able to be a part of that new community,” explains TCHC Interim President and CEO Greg Spearn. “Through the Foundation Program, we are able to offer increased opportunities to purchase some of the market units being built in these communities to residents of Toronto Community Housing.”
To be eligible for the program, tenants must qualify for a mortgage of at least 65 per cent of the purchase price of the home. The Program provides a second mortgage for up to 35 per cent of the purchase price. This second mortgage, funded through federal and provincial affordable housing money, does not need to be repaid until the home is sold.
“Part of building a vibrant, mixed-income community is ensuring that residents…are able to [take] part.”
– Greg Spearn, Toronto Community Housing
If the home is sold, the value of the second mortgage, along with a corresponding portion of any increase in the home’s value, is repaid and the funds are used to assist new purchasers. If the home is not sold for 20 years, the loan is forgiven.
Priority for the program is given to residents already living in communities undergoing revitalization. Program participants must also take part in the financial planning program being run in each participating community.