1. BROKENHEAD COMMUNITY SUSTAINABLE HOUSING INITIATIVE OCT. 6, 2015 1

2. Purpose of This Meeting  Describe the housing crisis in the community  Provide housing program options  Request the community for input and direction 2

3. Purpose of this Housing Discussion This discussion is to focus on key issues that affect the supply of housing for our community and the need to adapt a recovery process for the high level of rental arrears incurred by the community  There is a need for approximately 160 homes for Brokenhead members  Current allocation for housing from Federal Government approximately 1 house per year  Required is a sustainable housing strategy for BON’s growing population and demographics 3

4. Other Causes Contributing to the Demand for Housing  Brokenhead is committed to developing its local economy  Creating more employment and business opportunities in the community will increase the demand for housing  Residents who work in the community want to live here  Residents who have two household incomes may want to own their home in the community  Those who left the community to pursue post education have graduated and want to come home 4

5. Community Population Profile  Approximately 60% of the community’s population is under 30 Years old The peak demand for housing will increase within 3-5 years as this age group gets older  10% of the population is over 55 years old – more specialized housing is going to be required 5

6.  Formed a stand alone corporation - BON DEVELOPMENT CORPORATION (BON Corp)  Council has take the initiative to resolve its housing crisis cannot wait for the Government  Borrowed funds for BON Corp for the purpose to;  Seek affordable housing  Build homes in the community solely for BON members  Provide housing options for community members other than section 95 CMHC housing  Develop construction jobs and business opportunities related to housing  Very important to support and work with BON HOUSING AUTHORITY to create housing solutions What has Chief and Council Done to Address the Housing Shortage? 6

7. Issues  CHMC sets the specifications for housing not the community  Housing construction allowances are generous to contractors making these homes expensive  Difficult to attain for a Section 95 home or a mortgage on reserve for a house  Banks require the community to secure home for its members Brokenhead cannot take on this additional rental security - rental arrears are rising annually Housing Issues 7

8. Housing Strategy  Develop locally built homes - low cost high quality House options  Option 1 -Log homes  Option 2- ½ log veneer with stud wall adhering to building specifications  Both housing options engineered specifically for Brokenhead  Both housing types have additional options available  Residency for tenants and owners may include  Home Rental  Home Purchase out right  and a hybrid Rent to Own purchase plan leading to home ownership 8

9. Economic Benefit  Create a work force that is trained to continue building houses in the community-excellent source for employment  Look beyond supplying our own housing needs supply houses for other First Nation and non-First Nation communities  Create a manufacturing housing company that supplies other communities with affordable housing  Develop relationships with other First Nations for trade, partnerships that will enhance our commercial and own source revenues 9

10. Base Housing Design Options  Log Home  Log home veneer stud wall construction $122,000 $106.00/sq. ft. 10

11. Affordability - CMHC Housing costs are estimated in the range of $143.00 per square foot We need to build a house for less than $120 per square to be affordable We must also create economic value for the community – jobs and business opportunity Lifecycle – Homes to be built to standards above the minimum building codes to last and maintain family comfort. Implement a maintenance and inspection process to ensure rental units remain intact as many homes are abused and neglected requiring high repair expenditures Priority – Follow BON Housing Authority recommendations for membership priority for housing and credit eligibility process Options for Residency – Purchase to own Rent to Own Rent Housing Solution 11

12. Home Ownership  Home ownership breeds pride, self esteem, responsibility and accountability  Home owner experiences independence and is able to retain and maintain culture value  Home owners begin to establish their credit rating  Home ownership Possible Requirements  Create a partnership with external sources to train residents for minor home repairs and decorating ideas  Provide training and instruction to members to create positive credit ratings for themselves to qualify for house financing 12

13. Affordability vs. Renting 13  Key Focus of this housing initiative is to provide favourable housing costs in comparison to rental rates in nearby urban centers  Less expensive housing empowers residents to have more disposable income to improve their quality of life and standard of Living  This section is dedicated to provide the financial analysis on the options for rentals and ownership compared to renting in Selkirk and Winnipeg  The analysis also evaluates the costs of the proposed changes to CMHC home financing and the impact outcome

14. Apartments for Rent Selkirk, MB Rental TypeAverage Rent I Bedroom $993 2 Bedroom $1,143 3 Bedroom $1,495 4 Bedroom $ 1,720 Rental Averages for Selkirk 14

15. BedroomsAverageMinimumMaximum 1$866$420$2,500 2$1,041$495$2,200 3$1,448$895$1,975 Winnipeg Apartment Rental Rates - Posted by Property Owners / Managers Rental Averages For Winnipeg 15

16. Financial Options - Rent Base cost of the House - 3 Bedroom 1,144 square ft. 1/2 log veneer - stud wall construction Cost $122,000 complete Rental Option Rental per Month Loan on the house $661.00 Insurance est. $ 50.00 Repair fund $ 50.00 Estimated Rental $761.00/ month plus first and last months rent plus damage deposit WinnipegSelkirk $1,448$1,495 Comparative Rent 3 Bedroom apt. in Winnipeg and Selkirk 16

17. Financial Options – Purchase Out Right Base cost of the House - 3 Bedroom 1,144 square ft. 1/2 log veneer - stud wall constriction Cost $122,000 complete Require a 5% down payment - must be prequalified by the financier for the loan Monthly Loan payment $628 Insurance and repairs Responsibility of the homeowner WinnipegSelkirk $1,448$1,495 Comparative Rent 3 Bedroom apt. in Winnipeg and Selkirk 17

18. Financial Options- Rent to Own Base cost of the House - 3 Bedroom 1,144 square ft. 1/2 log veneer - stud wall constriction Cost $122,000 complete Rental Option Rental per Month Loan on the house $ 645.00 Insurance est. $ 50.00 Repair fund $ 50.00 Estimated Rental $745.00/ month plus $3,000 down payment plus prequalification for loan by the financier WinnipegSelkirk $1,448$1,495 Comparative Rent 3 Bedroom apt. in Winnipeg and Selkirk As the principal is paid tenant is credited the amount until the down payment is accumulated, loan is transferred to the tenant based on financier’s approval 18

19. Monthly Cost Comparison Between CMHC and Brokenhead Housing Initiative 19 Brokenhead’s housing initiative is $211.00 less expensive per month than the current CMHC housing program

20. Anticipated Outcomes  Follows and supports eligibility and housing requirements mandated by BON HOUSING AUTHORITY  Provides larger homes for lesser costs  Reduce repair costs  Rentals are more affordable than Selkirk and Winnipeg  Reduces the waiting list for homes  Creates economic benefit and employment  Project and home specifications managed by BON Corp  Greater opportunity for home ownership  Project is phased in 20 homes - first year, 20 - second year, 10 - third year 20

21. Next Steps  How do we prevent any further arrears on home rentals?  Recommendations from the community to implement BON Corp. housing program  Determine is home ownership important to the community? 21