Seeking Fairness and Equality from Habitat for Humanity Victoria
This website has been created to shed light on the inequitable treatment my family has experienced while we have been part of the Habitat for Humanity Victoria Homeownership Program. While I firmly believe in the mission of Habitat for Humanity, and the power of affordable homeownership, as I am facing eviction by Habitat, both myself and my lawyer have tried tirelessly to work with the CEO of Habitat for Humanity, Scott Dutchak, for a reasonable solution; however, I feel I have been left with no other option than to share this publicly and rely on the support of the community to help save my family's home.
Summary and Key Facts
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On June 3, 2024, Habitat for Humanity Victoria issued my family, a single mom and two young kids, a 30-day eviction notice.
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Habitat Victoria arbitrarily decided that my family did not meet their definition of "Ability to Pay" since I am not currently able to immediately qualify for an interest-bearing mortgage with VanCity.
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I lost my job at the end of January and have been trying to get employment since.
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Despite losing my job, I have consistently made ALL my monthly occupancy payments - no defaults.
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My family has been living in our home for 3.5 years and have never missed a payment.*
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HFHV CEO, Scott Dutchak, stated the urgency for me to purchase the home is that HFHV needs funding for the upcoming Ferguson project.
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HFHV's Ferguson Project is designed to provide families in the "missing middle" (annual incomes between $96,000 and $126,000) the opportunity of homeownership.
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This diverts from Habitat Canada's mission to provide homeownership to low-income families.
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This diverts from HFHV's previous low-income threshold of less than $75,000*
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Previously (in 2021) when I was asked if it was possible to remain in the program if I went back to school, I was told by the Director of Family Services that if I didn't qualify for a mortgage I could remain in occupancy*** until I was able.
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Upon discovering that I had posted in a private Facebook group that I was looking for employment (to prevent eviction), HFHV changed their definition of "Ability to Partner" (which previously was defined by completing 500 volunteer hours) and stated that since I was speaking out that meant I was not acting as an advocate for the Society.
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HFHV has also sent a cease-and-desist letter demanding I take this website down immediately, and has since threatened legal action.
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Our family is about to lose all our home, all of our pre-payments (equity with HFHV), and face crippling unaffordable rents because we cannot immediately qualify for the funding that HFHV needs to provide families with HIGHER annual incomes home ownership.
We are desperately asking that the HFHV Board of Directors immediately reconsider their decision to evict us and allow us to remain in the Homeownership program.
*In 2020, the qualifying low-income threshold for a 3-bedroom home was $45,000 to $75,000.
**HFHV want to argue that I have "skipped" payments to support their claims of "Inability to Pay"; however, these "skipped" payments were permitted and approved by the CEO - email evidence in "Timeline" below. If these reduced payments were not approved, it would have resulted in my family paying MORE than 30% of my household income, which would have put HFHV in violation of their "affordability" policy.
*** Remaining "in occupancy" means I would remain in the program and continue to make payments (30% of my income) until I was able to qualify for an interest-bearing mortgage to purchase the house.
About my family:
I am a single mom of two kiddos who has lived in the Victoria region for over 20 years. Both my kids are high-level karate athletes (which is amazing as they are both still in middle school) with both kids on the BC Provincial Team, and my son on Canada's Junior National Team.
Becoming a Habitat for Humanity Partner Family back in 2020 meant everything to us. It was a way that we could finally get some stability in our lives (after previously being evicted due to the landlord selling our home.) However, we are now faced with eviction again - this time by Habitat for Humanity - during a particularly vulnerable time. The issue is not that I am not able to make my monthly payments, I have always made my payments, it's the timing. With the new Habitat project (Ferguson) in the works, I have been forced to either get back to work - or lose my house.
On June 3, 2024, the CEO sent my family a 30-day eviction notice.
We now have just 13 days to leave.
My family and I are pleading for the Board of Directors to:
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Immediately halt the eviction process and to give me more time to first heal (they allowed another Homeowner a full year) so that I can return to work; and,
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To uphold the price offering they led me to believe they would be transacting the sale of my house at.
Letter's to the HFHV Board from my kids:
(click on photos)
Timeline
April 2020
After going through the rigorous background and financial checks (providing all bank information and transactions for the last 3 months, credit check, employment check, etc.) my family was welcomed into the program and I signed a Letter of Intent.
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At this time the income thresholds for a 3 bedroom home were $45k/yr to $75k/yr.
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The Letter of Intent specified taking out a traditional retail mortgage of roughly 25% of the purchase price of the home.
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HFH would provide a 0% mortgage of no more than 80% of the purchase price of the home.
**My family was the first family welcomed into the Homeownership Program under the "New Mortgage Model" - however, Habitat did not have the policy figured out. They knew they wanted homeowners to take out a traditional retail mortgage for a portion of the house price as that cash would help them with cashflow to fund future builds. As homeowners are not able to sell their homes on the open market (all homes are sold back to Habitat at the same price, so there is NO financial gain on the sale of the home) the question was what would fair compensation to the homeowners would be since they are the ones paying all the interest on the funding for Habitat. Habitat assured me (and the subsequent families entered into the program) that they would soon have the policy established.
April 2020 - November 2020
Despite all the Covid restrictions, I diligently started to complete my volunteer hours (500 in total) and by October 2020 I had 250 hours completed which meant I could move into my house. My house was completed in late November 2020.
At this time, the Mortgage Policy was still not finalized, so my monthly payments (which were 30% of my gross income) would go toward "pre-payments" of my eventual mortgage with Habitat.
**During this time, more families were welcomed into the program and were matched with the Bakerview project. We were all kept apprised of progress with the Mortgage Policy, which we were told was still being worked on.
December 2020
My family and I excitedly moved into our new home. My kids were thrilled to each have their own room and we began to settle in. I purchased appliances (washer, dryer, dishwasher, etc.) and other household items like a lawn mower, weedwhacker, etc. I signed an Occupancy Agreement that also included terms that I would be taking out a retail mortgage of no more than 30% of the purchase price of the home.
**One of the things my home did not have was a backsplash in the kitchen (this was agreed to by the previous CEO as I asked if I could install a tile backsplash) and when I moved in I was warned to not splash around the sink as the countertops could get ruined. Clearly, this just needed to be done so I spent the money and time and installed a tile backsplash (it's beautiful!) As other families were working on their homes to accrue volunteer hours, I hoped that the time I took to tile the backsplash would be counted toward my total. However, I was told that since it wasn't necessary, the time I spent wouldn't count. Habitat inconsistently applying policies and awarding volunteer hours was beginning to occur frequently, and as frustrating as it was, there really wasn't anything anyone could do as we would risk losing our housing if we spoke up.
May 31, 2021
Having not heard anything in a while from Habitat on the Mortgage Policy, I emailed the then CEO (Yolanda Meijer) to see if she had any updates.
August 9, 2021
One of the things I struggled to keep up with was watering my lawn. This wasn't for not trying, it was that the shape of the yard (a skinny "C" shape) made it challenging to water since I had to move a sprinkler five times - and this was tough to do in the morning before heading to work.
**A local company donated landscaping to Habitat for my house and I wanted to keep it lovely. I asked if I could (at my own cost) do an irrigation project and get help from the other families that needed to fulfill their volunteer hours. This was received positively (however, I was confused why the irrigation project was positively, but not the backsplash that was needed in my kitchen.)
**The Bakerview property received extensive landscaping, including irrigation system.
January 18, 2022
The Director of Family Services reached out to all the families in the program to update us that they were close to having the Mortgage Policy approved. They asked for only four more cheques as they expected we would soon be purchasing our homes.
It was said that they would first apply to the District of North Saanich for the land covenant they would place on the properties to keep the homes affordable into perpetuity (essentially stipulating the price the homes could be sold for) and that they would then apply to the District of Central Saanich and Saanich after that.
January 27, 2022
With the previous CEO leaving, and over the year many more types of volunteer hours awarded for seemingly similar activities as me doing the backsplash in my kitchen, I tried again to see if Habitat would consider the hours toward my volunteer requirement.
It was denied and I asked to be put in touch with a Board member. The interim CEO, Sandra Rath, called me and discussed the possibility of awarding partial volunteer hours, but then never followed up. On June 7, 2022 I followed up again.
At this point, I felt it was important to raise the issue of how policies were being applied inequitably and unfairly.
August 21, 2022
The President of Habitat for Humanity Victoria replied and said it was regrettable that the policies were being applied inequitably and that they would strive to do better going forward.
She also mentioned that they were still in the process of developing the mortgage model (clearly indicating that it was being designed for me and the upcoming purchase of my home.)
August 21, 2022
All of the families in the Habitat Homeowner Program (myself and the Bakerview families) were notified the draft Mortgage Policy was set and that we were invited to three zoom meetings over the coming weeks to have the mortgage policy explained.
Highlights:
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Price of our homes would be "Cost + 25%" (this excluded the cost of the land)
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For amounts that we took out as retail mortgages, they would compensate us 2% per year (compounded monthly.)
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They are now asking for up to 50% of the price of the home to come from a traditional interest bearing mortgage.
The plan was for HFHV to go to the District of North Saanich to apply to for a land covenant (which places specifics on how the land will be used and the homes can be sold for - to ensure they remain affordable), and they would then apply to Central Saanich.
**Note - having the municipality approve the land covenant is not required for HFHV to sell the home at "cost + 25%", the land covenant creates a legislated requirement for how much the house would be sold at in the future (limited by the formula HFHV proposed) and BC Assessment would be notified so property taxes would be adjusted accordingly.
November 24, 2022 through
January 3, 2023
Having been about three months after the mortgage policy presentations, I reached out to see if there were any updates and if the home sales were getting closer. In November, I was again reassured that HFHV was going to first go to the District of North Saanich (for the Bakerview properties) and then would apply to the District of Central Saanich (for my property.) I was given an estimate of 3-6 months.
In January 2023, I reached out again, and was provided the same response and informed they were still working on the covenant with the District of North Saanich but expected once that was approved that the process would move quickly for the remaining municipalities.
February 6, 2023
The District of North Saanich council approved the 1st, 2nd and 3rd readings of Bylaw 1556 (the covenant HFHV applied to the municipality for.)
Schedule B (pg 19 of 20) details the first sale "cost + 25%" calculation in the District of North Saanich's Bylaw 1556.
**This is the covenant that HFHV officials were telling me for years that they would then be applying to the District of Central Saanich for.
February 21, 2023
The Director of Family Services reached out to let me know that the covenant was going for final reading at the District of North Saanich and that they were hopeful the covenant for Central Saanich would not take as long.
February 28, 2023
The Mortgage Policy (that we all were waiting for) was finally approved by the Board of Directors. The Director of Family Services reached out and sent me a copy of the policy. She noted that there were no substantial changes and that it was what had been discussed all along.
On page 13 of the Mortgage Policy (approved February 24, 2023) it says:
"The purchase price of a Habitat home (at any point in time that such value is required) will be equal to the Adjusted Value... For further clarity the Adjusted Value does not equal the Fair Market Value as commonly defined by professional appraisal firms."
The mortgage policy then goes on to define what "Adjusted Value" means:
"The Adjusted Value of a Habitat Home on the sale of the Habitat Home to the Homeowner by Habitat Victoria will be calculated as follows:
For non strata lots: the Adjusted Value will equal the total cost to Habitat Victoria for the Habitat Home (e.g. soft and hard construction costs, financing, landscaping, etc.) excluding the cost of the land on which the Habitat Home sits; plus a project management fee equal to 25% of the total cost to Habitat Victoria of the Habitat Home.
For strata lots: The Adjusted Value will equal the total cost to Habitat Victoria for the entire development project excluding the cost of the land divided by the total square footage of all strata lots in the strata corporation multiplied by percentage allocation for the individual Strata unit being valued plus a project management fee equal to 25% of the total cost to Habitat Victoria of the entire development project."
In both situations, the initial price would be "Cost + 25%"
April 2023 through
September 2023
Habitat Families at Bakerview purchased their homes, pursuant to the Mortgage Policy that we had all be given a year earlier, for the price of Cost + 25%. (Click on the addresses for the links to BC Assessment.)
February 6, 2024
After nearly four years of being in the program, and 3.5 years living in our house, we received an email from Tiffany Gates, Director of Family Services, announcing that Habitat was ready to sell my family our house... for $720,000. They said this was based on "Fair Market Value" at the time we moved in (December 2020.)
February 15, 2024
At no time did Habitat indicate that they were changing their mortgage policy. All communication up to this point had suggested they were in the process of applying to the District of Central Saanich to put the same land covenant on my house and then prepare to sell it to me, per the Mortgage Policy.
On February 15, 2024 I met with the CEO, Director of Family Services, and Director of Finance, and I was presented with a new offer of $553,000 to transact my house at.
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I asked what the basis was for that amount and no answer was provided.
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I was told that they could not transact at Cost +25% because my house did not have a land covenant.
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This was the covenant that HFHV had been indicating for years that they were going to go to the District of Central Saanich to put on my house.
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I made an FOI request to the District of Central Saanich and found NO evidence that HFHV ever approached the District to apply for the land covenant.
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I was told, by the CEO, that the urgency for the "call out" to transact (sell me) my house (and two others) was they needed funds they would receive (via the mortgage they would require me to take out with VanCity) from the proceeds for their upcoming Ferguson Project.
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Given my unemployed status, it was thought that 90 days would be enough for me to gain employment and a target date of May 15, 2024 was set.
Adding to this, I was suffering from CPTSD related to being the victim of crime - harassment, stalking, identity fraud, and defamation - which took place during 2022 - 2023 and caused my life to become severely destabilized and caused extreme anxiety and flashbacks. I had been trying to cope, but realized I needed to deal with the trauma and had to leave my job (due to anxiety) to pursue therapy. I had funds saved that allowed me to cover my monthly payments and living costs for while I tried to recover.
The timing of all of this could not have been worse since instead of taking the time to recover from the trauma of the past few years, I've been met with an equally terrifying prospect - losing my house.
In addition to losing my house, all the "pre-payments" I had been making (approximately $60,000) would be forfeited to Habitat for Humanity. This equity was the beginning of my financial stability.
The reality is, by evicting my family, Habitat for Humanity gains all our contributions and can get a new family into our home that can immediately access the mortgage funding they want for the new Ferguson project.
The organization that claims they are here to support families NOT losing their homes is the same organization that has evicted me for not being able to find a new job fast enough (despite me making monthly payments) and during a time where my mental health is very fragile.
Habitat for Humanity is flush with cash (you can look at their Financial Statements here) and my home was funded nearly entirely by donors contributions back in 2020. The builder of my home, Gary Lunn of Walking Stick Developments, invoiced HFHV only cost ($180,000 as told to me by a Habitat for Humanity employee) - meaning, Gary Lunn and his team poured countless unpaid (volunteered) hours into my house, for me... and now HFHV is evicting my family.
Gary is truly a saint and incredibly generous.
May 15, 2024
Dutchak is characterizing me as "unable to pay"; however, this is not the case. I have been consistently making my monthly payments, I have never missed any. The issue is I can't immediately qualify for the mortgage that Dutchak was counting on for the new project: Ferguson. I was given until May 31, 2024 to have full time employment that would allow me to qualify for a mortgage. This, despite last year, HFHV allowed a Bakerview family a year to get back to full income status after the main income earner had to take a medical leave.
This is yet another example of policies NOT being applied fairly or equitably.
Even though throwing myself back into work was contraindicated for me, I was so scared to lose my family's house that I began applying everywhere. I got screened in and offered interviews and got great feedback; however, I was unable to secure employment by May 31, 2024.
On May 15, 2024, the CEO then offered me $25,000 ("compensation") and a 60-day eviction date of July 31, 2024, but in exchange I would have to sign a Non-Disclosure Agreement.
May 28, 2024
As a last ditch effort to find employment, I made a Facebook post to a private online community asking if anyone knew of anywhere I could gain employment by May 31, 2024 to save my house.
June 3, 2024
As a result of making that post, Habitat is now claiming that I am not a "Willing Partner" and has given me 30 days to evict my home.
This can't be further from the truth.
I (and other HFHV families) were approved for the program because we were in need due to the extreme vulnerability of not having access to safe, secure and affordable housing. Over the years, we have had this vulnerability used against us - we have no way to advocate for fairness or equitable treatment without the fear of losing our homes.
I have been put in such a precarious position because despite my efforts to work with HFHV they remain inflexible and unwilling to acknowledge my unemployment is temporary.
It's been my experience that HFHV continually changes their policies with no regard to the participants in the program - and the threat of "well, if this program no longer works for you, you can leave" is thrown around to silence any questioning.
My family loses everything.
June 2024
Throughout June, my lawyer tried to work with HFH Victoria - however, they were still unflexible and unwilling to acknowledge that I needed time for my mental health (and PTSD.)
The 30 days notice that they gave was not only unacceptable under Residential Tenancy Act, but at odds with HFH mission - to keep families in homes! Additionally, my kids both earned spots to compete at Nationals for karate and we were going to be in Montreal.
My lawyer worked to strike a deal to put things on "pause" until we were able to be back from Nationals. One of the requirements HFHV had was that I take down this website, and HFHV extended their eviction date by 30 more days to July 31, 2024. Oddly enough, they did not want me to pay for the month of July (which I was willing to do)... **just noting this if they again try say that I am behind on payments.
July 2024
July 24 and 26, 2024
July 30, 2024
The stress of everything exacerbated my PTSD and I was hospitalized.
I wrote to HFH Victoria on July 24 and then again on July 26, letting them know I was in the hospital, asking for options, with no reply.
On July 30, 2024 I received the following email from HFHV's lawyer, asking for proof that I was in the hospital.
I immediately provided my medical certificate indicating that I was, in fact, hospitalized.
That certificate also verified that I was NOT medically cleared to work (something that HFHV has been ignoring.) In addition to this medical certificate, my doctors have written two letters to HFH Victoria stating that I need more time to heal - these ALSO have been ignored.
August 2024
My lawyer and I received no reply from HFH Victoria (after I provided my medical certificate.)
My lawyer also wrote to Habitat Canada, seeking conflict resolution assistance (their website states that HFH Canada will get involved if disputes at the affiliate level are not resolved) - and Habitat Canada has not replied.
August 23, 5pm:
At 5pm, on August 23, 2024, I received an email from my lawyer, informing me that my family has just SIX DAYS to leave and that HFH Victoria have issued me a notice of trespassing.
HFH Victoria CEO, Scott Dutchak, has shown little to no understanding or regard for mental health.
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I tried to explain that I needed time to heal (PTSD), none was granted. Instead, I was pushed to find employment (even though it was contraindicated and my doctor wrote TWO letters to HFH Victoria pleading to give me an extension to find work.)
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I provided HFH Victoria my medical certificate stating that I was not medically cleared for work until August 30, 2024 - and yet they are STILL pushing ahead with eviction.
HFH Victoria CEO, Scott Dutchak, has also embarked on a smear campaign of me and my character and is using this as a means to justify evicting my family.
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To Global News and CBC News, he falsely reported that HFHV had assisted me through four periods of unemployment and purported that they had provided nice opportunities to support me.
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THIS IS COMPLETELY FALSE. NOT ONLY IS IT FALSE, HFHV DID NOT PROVIDE ANY SPECIFICS FOR WHAT THESE "OPPORTUNITIES" OR PERIODS OF UNEMPLOYMENT WERE.
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It's a low-blow for Dutchak to try to suggest that I am ungrateful - a statement that is meant to detract attention from his unethical and unsupported decision to evict of my family.
Economics of a Habitat Home Purchase
OLD MODEL (pre 2020)
Prior to 2020, Habitat for Humanity Victoria used to provide mortgage financing for the full cost of the home. This was at 0% interest, so essentially, all monthly payments were banked as "equity". When the homeowner wanted to leave, Habitat would buy the unit back and the homeowner would get back ONLY what they paid (via monthly payments, less property taxes, strata and any other home ownership cost.)
There is NO appreciation (unlike typical homes.)
Habitat relied on community donations (cash, goods and services) to build these homes on land (that was also donated to Habitat for Humanity.)
PROS:
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This allows families in the program to earn equity, something many in Victoria (and other areas) have no ability to do.
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As Habitat is the lender for the mortgage, and that it's 0%, they can offer features such as reduced monthly payments if a family's income is reduced (loss of work, disability, etc.)
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Since the community has provided cash donations and goods/services to build the home, Habitat is not in debt for the build costs and they can allow the homeowners to make monthly payments of 30% of their gross income.
CONS:
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Relying on community donations to fund projects means Habitat's ability to construct and provide affordable home ownership units is limited. They can only build units as fast as donations are available.
NEW MODEL (effective January 2020)
Families now must take out a traditional interest bearing mortgage with VanCity for a portion of the purchase price of the home, the remainder of financing to be provided by Habitat via their 0% interest mortgage.
Families will earn a fixed appreciation of 2% per year on the financing they take out for Habitat (via the VanCity mortgage.)
Families CANNOT sell their homes on the open market - they must sign "Right of First Refusals" to Habitat and the price of the future sale is predetermined (2% per year.)
PROS:
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Habitat now does not need to rely solely on community contributions to fund the cost to build their Affordable Homeownership units since Homeowners (via the mortgages they take out with VanCity) provide a large amount of cash to Habitat.
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In theory, Habitat can engage in projects at a faster pace, and allowing more Victoria families to become homeowners.
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Habitat Victoria has essentially secured financing at a guaranteed interest rate of 2% (via the rate of interest Habitat is paying Habitat families for the mortgages they are taking out with VanCity.)
CONS:
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Habitat Families are the ones bearing the brunt of the high interest rates as they are the ones responsible for paying the 7% and 8% mortgage financing, reimbursed just 2% per year.
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For every $100,000 of mortgage (at 7% interest over 25 years):
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Total payments made: $212,033.76
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Total interest paid: $112,033.76
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Habitat credits 2% per year (for 25 years): $64,060.60
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Net COST to homeowner for every $100,000: $62,033.76
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This is a hidden cost to families that they must pay to be part of the Homeownership program.
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The amount of interest-bearing financing that families are told to take out is not consistent and based solely on the maximum amount of financing they can access. The result is some families are having to pay more to be part of this program than others.
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Habitat's position is that since they are offering 2% appreciation on the amount of mortgage taken out that it's a "benefit" to home owners; however, at current interest rates, it's not a benefit - it's a burden.
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Furthermore, Habitat families do not have a choice in how much VanCity financing they take out - Habitat forces families to take out the maximum that they can (up to 50%.. and now, it seems 60% per Scott Dutchak's interview here.)
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With the new model of hybrid financing, Habitat homeowners accrue equity at a much slower rate.
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Due to the way mortgage financing works, the majority of payments made in the first 15 years (of a 25 year amortization) are to servicing the interest on the mortgage. With the majority of homeowner payments that are made going to pay interest, equity is earned at a much slower rate.
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EXAMPLE: A Habitat family that earns $80,000/yr (30% payments would be $24,000 per year) that took out a $200,000 VanCity mortgage with an interest rate of 7%.
In this example, over a 10 year period, a Habitat Homeowner accrues just $116,905 in equity after making $240,000 in payments. With the previous model, a Habitat Homeowner would have $200,000 in equity.
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By charging families Fair Market Value for the cost of their homes, the Habitat for Humanity mortgage model no longer allows Habitat Families to achieve "Homeownership" - which, is a big part of what they advertise their program is about.
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If houses are sold to families at Fair Market Value, the program no longer offers the potential for home "ownership" since it could take over 50 years to pay off both mortgages, depending on the initial purchase price of the home.
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Example situation: Homeowner earns $80,000 per year, and 30% equates to $24,000 per year in payments ($2,000/mo.) and the Fair Market Value of the home is $720,000. Assume property taxes of $2,000 and Strata of $2,000, that leaves just $20,000 per year to go toward mortgage payments (principal and interest.)
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VanCity mortgage (50%): ~$300,000
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Total Payments (over 25 years): $636,101.28 ($212,033.76 x 3)
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Habitat mortgage: $320,000
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With contributions of $20,000/yr it would take 47.5 years to pay off $956,101.28.
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CEO Scott Dutchak acknowledged that it was admirable of me to want to eventually be mortgage free, he said, and I quote:
"It is important to note that within Habitat Victoria's Homeownership Program "affordability" is not determined by the home's price, but by ensuring that your housing payments are capped at 30% of your gross income. It may be your personal goal to pay off your mortgage, but that is not the basis upon which we set policy or make program decisions."
SUMMARY:
In essence, the way the new mortgage model is set up, it's as if Habitat for Humanity asked you to go to the bank, take out a large sum of money to loan to them (for upcoming projects) and in return, they would give you 2% per year while you paid the large sums of interest.
Now imagine, instead of doing this on an equitable basis (i.e. all purchasers of 3 bedroom units take out $100,000 of mortgage funding) they tell you to take out as much as you can - even if this is more than other families can take out.
This is what happened to the Bakerview families. Some families ended up having to take out mortgages for the full 50% (and bear the larger interest costs - impeding the rate that they can bank equity, and delaying their ability to pay off their mortgages in full) while other families that couldn't qualify for the full 50%, were given larger amounts of the 0% mortgage Habitat mortgage.
As one Habitat family said: "We had no options. Our interest bearing mortgage amount is 50% of assessed value after the land covenant. We had expected 30%, but I guess that was only if there was no covenant. There was such poor communication all the way along, and very little in writing… it was hard to get the whole picture until it was time to sign. They basically had us over a barrel, and were just thankful for somewhere to live." and "Yeah, it was definitely a bait & switch.
Frequently Asked Questions
1. Why did Habitat evict your family from your home and the Homeownership Program?
On June 3, I was sent an eviction letter that said I was no longer eligible for the Homeownership Program because Habitat deemed me as not having an "Ability to Pay" and that I didn't have a "Willingness to Partner".
2. Why is Habitat saying that you no longer have an "Ability to Pay" despite you making all of your monthly payments?
Habitat is saying that I no longer meet the criteria of "Ability to Pay" because I currently don't have employment income and therefore cannot qualify for a traditional mortgage with VanCity (their partner provider.)
As a CPA, I can take on contracts and perform bookkeeping (among other services), however, I need to have "employment" income (not "self employment income") as the lender needs record of at least three year's of self employment earnings.
The impetus for me to take out a mortgage, as stated by CEO Scott Dutchak, is Habitat needs the funding for the upcoming project in Gordon Head: Ferguson.
I had until May 31 to secure employment income, no less than $65,000/yr.
3. Why is Habitat saying that you are not "Willing to Parner"?
As a last resort, to try to find employment, I made a post in a private Facebook group asking if anyone knew of any place that was hiring and shared why - I was facing eviction.
As a result of sharing this, the CEO has interpreted that as me not being a positive advocate for the charity. This cannot be further from the truth - I have always been a willing partner, the issue is I have been put in such a precarious position, and in watching other families be given more grace than my family has - I'm trying to do everything I can to save my family's house. I truly hope Habitat can see that and to not take this personally. There is nothing I have shared that isn't factual or that I don't have support to back it up.
Given how vulnerable housing is, and how much power Habitat has over us, another family member described it as "being bent over a barrel" (in relation to having to either go ahead with policy changes... or lose their house.)
Habitat wants to blame me for bringing "negative" press, and they have even now threated to bring legal action against me - my response to this is that instead of threatening me, why not act with integrity? More than anything, that's what the public (and donors) want to see of this organization.
As someone who has been affected by the housing crisis for the majority of my life, I can absolutely assure everyone, I very much believe in affordable homeownership - and, more than anything, I'd like Habitat for Humanity Victoria to restore my faith in them because I believe Habitat for Humanity, specifically their "Homeownership Model" is beneficial.
4. Why is Habitat saying that you have missed payments?
One of the long standing features of the Habitat for Humanity model is that homeowners pay 30% of their gross incomes, and that if a family's income is ever reduced, that they would also reduce the monthly payments (i.e. for job loss, disability, etc.)
During my four years with Habitat, I have previously asked and was approved for reduced rents.
I had no idea that in asking for reduced rent (to help manage cash flow and personal finances when my income was reduced) that this would be then used against me to support eviction.
Here are all the payments that I have made to Habitat for Humanity since I occupied my home:
5. Why was the income threshold for you set at $65,000? Isn't that a lot for a single mom?
When I qualified for the program in 2020, the household income thresholds for a 3 bedroom home was $45,000 - $75,000. One of the requirements of the program (when I signed up) was that your annual income could not drop below the minimum threshold.
Habitat has now changed their policy to "your income cannot drop below what it was when you qualified", which, puts anyone at risk of losing their home if they do ever have to take a step back, or go on disability.
Further, Habitat has changed their household income thresholds and now they are qualifying families that earn up to $120,000. This is because BC Housing has increased their thresholds.
When I was trying to find out from Tiffany how much a job needed to pay, she was evasive and didn't give me a specific amount, only saying "similar to what you qualified at". I pointed out that there were other families in Habitat that earned less than I qualified at and her response to me was that for their next project, Ferguson, they will be looking to qualify families that earn between $96,000/yr and $126,000/yr.
6. Why did Habitat give you an eviction with only 30 days notice? Don't residential tenancy rules say a minimum of two months?
In response to my lawyer's letter asking for an extension to find employment to August 31, 2024, the CEO said no, and then offered me $25,000 and an extended eviction date of July 31, 2024... but that was on the condition that I signed a Release Waiver (non-disclosure agreement.)
While two months is customary and standard (and certainly, for an organization like Habitat for Humanity you would think would be much more understanding and accommodating, especially because there are kids involved) it seems the 30 days' notice serves as a punishment for making my situation, and impending eviction, public.
When I left the rental market to join Habitat for Humanity, I left a rental that I was paying $1,500/mo. A quick search on Craigslist shows that the average market rent is now around $3,000 - $3,500/mo. In addition to this, I invested thousands of dollars - not only to finish the tile work in the kitchen, but also on landscaping, and purchasing of appliances and tools (lawn mower, etc.) Not only that, $25,000 does not come close to helping me find another place to purchase.
I wasn't going to be bought out - certainly not for $25,000. They said this $25,000 would come out of my "non-refundable" monthly payments that I have been making that were to be used as a pre-payment and become my equity (which is nearly $60,000.)
7. Why is HFHV saying they are not aware of any other family that was given a year to return to full income earning when faced with a medical crisis?
I am not sure. Last week, my friend (the person I referred to) stopped by my place to check on me because of everything that was going on. I asked him what happened last year, and he told me HFHV gave his family up to a year for him to recover and return to full income earning so they were in a good position to qualify for the VanCity mortgage. Fortunately, his insurance was able to step in for them and they were able to continue making payments.
Yesterday (June 12, 2024) HFHV served me with a Cease and Desist letter claiming my statement (about another family being permitted up to a year to return to work in order to qualify for the VanCity mortgage) was false. I attempted to reach out to my friend, to double check his understanding... and he replied with:
"Sorry I can't talk more about this issue we were advised by legal counsel not to talk to anyone about this"
I will leave it up to readers to make their own opinions on what that means.
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8. How quickly do families accrue equity by being part of the Homeownership Program - the CEO, Scott Dutchak says (here) this program helps prevent the bifurcation of Canadians into owners vs renters.
With the new requirement of families to obtain (interest bearing) lending, the majority of Habitat's homeowner's monthly payments (especially in the first 10-15 years) go toward paying interest.
As demonstrated in the "Economics of a Habitat Home" section, it would take a family with an income of $80,000/yr ten years to earn $117,000.
CEO, Scott Dutchak, says that the organization's hope is that all families in the program can earn enough equity in the program to eventually be able to buy a home in the open housing market.
In current markets, $117,000 might be enough for a down-payment, but a family earning $80,000 will not be able to qualify for a mortgage for the difference needed - and certainly, 10 years from now, that ability will further deteriorate.
If having families earn enough equity to one day leave and purchase a home on the open market is his goal - it's not working. It's my opinion (and the calculations back this up) that mortgaging Habitat homeowners to the point where the majority of their monthly payments go to either interest or strata fees won't help that goal. The current policy sets out a minimum of $250 to go to paying off the Habitat 0% mortgage, but this truly is so there is money available to pay property taxes.
One previous Habitat homeowner reached out to me and shared that after 5 years of being in the Habitat program, they left with just $19,000. They shared the majority of their monthly payments went to paying strata and that they feared what would happen if they had to make a major repair. They calculated the amount of time it would take to pay off their mortgage: 96 years.
While it's true that paying interest on mortgages is what all homeowner's face, homeowners in the housing market earn appreciation on their homes. HABITAT FAMILIES EARN JUST 2% PER YEAR ON THE VALUE OF THE VANCITY MORTGAGE FUNDING - the amount of interest families pay exceeds the appreciation they receive and ultimately becomes a hidden cost of being part of this program.
Keeping the price of Habitat homes affordable (i.e. cost + 25% - which was provided to families at Bakerview) at least gives families the chance to become mortgage free. Charging fair market value for homes that Habitat builds inexpensively (and funded by community donations) places an undue burden of interest on Habitat homeowners.
The fact of the matter, earning ANY equity is better than renting - and the CEO knows this is why he can change policies and move goal posts with no care for those they his is impacting. The comment "you can always exit the program if it no longer works for you" is always provided if a change is questioned.
Housing is so vital to our well-being it makes participants in the program are incredibly vulnerable.
9. What is your medical condition? Why have you not been able to find work in these three months?
I was diagnosed with complex PTSD as a result of an unfortunate situation where I was the victim of harassing, stalking and identity theft. This occurred over a year and a half and I was incredibly thankful when Central Saanich police were finally able to make an arrest and press charges.
However, this experience left me deeply destabilized and as a result, I developed CPTSD. For a few months I tried to ignore the symptoms I was experiencing (intense anxiety, nightmares, isolation, lack of trust, flash backs, etc.) it all caught up with me and I realized I wasn't okay.
I shared all of this with the Director of Family Services, trusting that Habitat for Humanity would be understanding and compassionate toward what I had gone through.
I began working with a psychiatrist and counsellor in March 2024, however, the fear over the impending eviction compromised my progress and my mental health further deteriorated.
Despite this, I kept trying to secure employment. It was a little tricky as I had the income threshold to meet, but also, quickly getting a job anywhere (that wasn't a good fit) wouldn't be a success in the long run. But, I assure you, I was applying to every job that was a good fit and that met the income threshold. I was screened into a bunch of interviews, interviewed (and received great feedback) but just wasn't the successful applicant.
In the last week, I've had three interviews. I am trying.
When the May 31 deadline was getting closer, my lawyer reached out to the CEO with a listing of all the jobs I had applied to, the status of the search, and the result and asked for an extension.
My doctor has also written a letter on my behalf, also requesting an extension.
This was denied.
For anyone that has experience with CPTSD (or PTSD) they would know that healing isn't straight forward, and that out of the blue you can be triggered and that can set you back.
Ideally, I can be offered some time to properly digest and heal from the past year, while working to find a job that would be a great fit. I've considered that finding part-time employment could be beneficial before jumping straight into full time work.
Removing the fear of losing my house, or fear of facing crippling rents, would go a long way to helping me heal and stabilize.
This, after all, is part of the reason Habitat for Humanity exists - they recognize the positive effects of stable, secure, and safe housing.
Now that I don't know the future of where my family will be living in a month, it makes it a bit harder to find housing. Also, not having a job makes it hard to find housing.
I truly don't know what I am going to do.
I am hoping for support from the community to appeal to the Board of Directors at Habitat for Humanity to act with integrity: I have years of emails, policy documents and other correspondence detailing their intention to transact at "cost + 25%" and restore our faith in the charity in fulfilling it's mission to keep families in homes by giving me time to heal and to get employment that is the right fit so I can be successful.