(rdnewsNOW file photo)

By Josh Hall (Twitter: @Vancan19)

"healthy organization"

Habitat for Humanity Red Deer won’t be asking families to pay interest

Jan 23, 2020 | 3:20 PM

Habitat for Humanity Red Deer will not be altering its mortgage model any time soon.

If it ever does — hypothetically speaking, its CEO says — it will only be for future partner families, not those who’ve already signed contracts.

The organization, which is separate from affiliates in other municipalities, is clearing the air following a recent CBC report that families are experiencing issues with Habitat for Humanity agreements in Edmonton.

The report details how families who were originally under the impression they could pay their Habitat mortgage entirely interest free, are now being forced to pay half the mortgage through the bank with interest.

“We have no plans to change our model away from that interest-free, no down payment model,” says Habitat Red Deer’s Karen Vavrek, who also wants the public to understand they don’t just give away homes for free.

Prevention, Access, Recovery, and Coordination

Safe Harbour officially hands over shelter keys, establishes accessible navigation hub

15h ago

lacombe and sylvan lake

December 2025 (un)employment data released for Alberta sub-regions

16h ago

21 years with WCPS

Darcy Blum appointed principal of Lacombe Outreach School

17h ago

“Families have to amass 500 hours of volunteer sweat equity in order to move into a home and become a homeowner, among other criteria,” she explains.

Partner families typically foot no more than 30 per cent of their income towards monthly payments, though the Red Deer outfit has attempted to bring that down to 25 per cent where possible.

Habitat Edmonton CEO Karen Stone also said in the CBC story that their current no-interest model is not sustainable. Vavrek says the situation in Red Deer is different largely because they do fewer builds each year compared to their Edmonton counterparts.

“The way we approach financing our builds is that we’ve never borrowed to build,” she explains. “We rely on revenue from government grants, private sources, some third-party events, proceeds through our ReStore, and we have our mortgage proceeds from other families that go into our building fund, which then allows us to ‘build it forward.’”

There’s also the TeamBUILD program whereby corporate or community teams can help build for a day with a $1500 contribution.

Vavrek notes that Edmonton does many of these types of things as well.

Each build, Vavrek says, can cost up to $300,000 per unit; and as far as liabilities are concerned, Habitat Red Deer is debt-free.

Habitat for Humanity Red Deer is currently preparing for a four-unit build on Vista Trail in northwest Blackfalds, which will mark the organization’s 40^th home build in central Alberta. One of the units in the latest project will be totally barrier-free.

“Habitat Red Deer is a healthy organization. We have a very busy and active ReStore which helps sustain and support what we do,” Vavrek states. “We’re really looking forward to working with the Town of Blackfalds to help support this upcoming build, and we’re eager to get started.”

Information sessions for the project in Blackfalds are coming up on Jan. 27 and Feb. 3. They start at 6:30 p.m. and take place in the program room at the Abbey Centre. You can also find more information by visiting HabitatRedDeer.ca, by calling 403-309-6080 (ext 101), or by emailing Janelle.duffin@habitatreddeer.ca.