It’s been nearly a year since Habitat for Humanity made an Okotoks family’s dream come true, but the organization is having difficulty finding them a neighbour.
In January 2019 the Tano family of four moved into their new home in the D’Arcy development. Habitat for Humanity Foothills has been searching for a second family for the duplex ever since.
“When we opened up the application process in 2018 we had a tremendous level of interest from Okotoks families,” said Marilyn Boake, executive director of Habitat for Humanity Foothills. “But what we’re seeing is that there continues to be huge debt levels with families who are applying – which isn’t all that surprising considering Alberta has the highest debt ratio in Canada.”
Not surprising, but it’s an issue for families trying to achieve the dream of owning their own home through Habitat for Humanity. The organization takes debt levels seriously when considering applications in order to ensure its families are set up for success, she said.
A Habitat mortgage will be 25 per cent of a family’s income, and that combined with its total debt owing cannot exceed 40 per cent of its income, she said. It’s to make sure people aren’t struggling once they’ve moved in, she said.
“As you move from a rental situation to home ownership there are new expenses that come along, like home maintenance, home insurance, property taxes,” said Boake. “If you move into a Habitat home you’d probably pay less on a mortgage payment than what you were paying for rent, but you have to give consideration to these new expenses you wouldn’t have incurred before.”
That’s why Habitat for Humanity looks closely at a family’s income and debt level, she said.
Besides debt levels, there are other specific requirements for people considering an application to own a Habitat home, she said.
The organization looks for Canadian citizen or permanent-resident families with children that do not already own real estate, with at least one person in the home working full-time with a two-year employment history. The family must also fall within a certain income bracket based on the Alberta Core Need Income Threshold, she said.
“Generally we’re looking at a family income between $45,000 and $65,000 a year, depending on how many children you have,” said Boake.
She said applications have slowed in the last couple of months, and Habitat for Humanity is encouraging anyone who fits the criteria to consider applying. The duplex is move-in-ready for the right family, she said.
She said it’s not a situation unique to Okotoks. Other chapters of Habitat have faced the same issues in their communities.
“Through our whole southern Alberta operating area, in Olds, Medicine Hat, Brooks, it’s not a unique story to Okotoks,” said Boake. “It’s just the southern Alberta economy.”
She said the home needs to be occupied as soon as possible, because for the time being Habitat for Humanity is paying utilities, property taxes and other costs to keep the home empty.
Once a family is approved it may still take some time for then to get their keys, as a requirement of the organization is that homeowners put in 500 volunteer hours prior to taking possession, she said.
“If a family was approved they probably need several months to go through their volunteer hour commitment,” said Boake.
There are many options for satisfying the volunteer hours – working at other Habitat builds in Calgary, at the Habitat for Humanity ReStore, or in the community through churches, schools and other organizations, she said.
Boake hopes the right family will come forward soon. Applicants can be Okotoks or Foothills residents, she said.
“It’s been frustrating, because there are so many people in need but mounting debt levels don’t really make it ideal for a family to move into taking on a mortgage, so that’s where our struggle is,” she said.
The three-bedroom home is at 33 Willow Crescent in the D’Arcy community.
For more information or to take a pre-qualification quiz, visit www.habitatsouthernab.ca. Once the quiz is complete, someone from Habitat for Humanity will be in touch, said Boake.
To speak to someone from Habitat for Humanity, call 403-253-9331 ext 272 and leave a message.
