Sweat Equity Housing Program Research Report PDF Download

Habitat for Humanity Canada (HFHC) provides homes in partnership with low income families. Participants must contribute sweat equity, either in the construction of their own home or through other tasks required by the organization. They are also responsible for making monthly payments on an interest free mortgage used to finance the cost of the property; their payment is based on 25% of their income. The intention of using this process is for homeowners to feel they have earned their new accommodation, rather than being given it (a hand up, not a handout) as well as providing funds for the construction of more homes as the mortgage loans are repaid. There are currently approximately 600 households who have moved into homes built or renovated by HFHC in Canada. While some research has been done regarding outcomes for families in the US who have moved into Habitat housing, there has been no rigorous analysis of impacts of stable affordable housing for Canadian Habitat families. As well, HFHC is interested in evaluating and improving the process used to prepare prospective homeowners for the responsibilities involved in owning a home. The goals for this study were: 1. To examine how access to a stable home ownership environment has changed outcomes for families who have been participants in the HFHC program in Canada. 2. To assess and suggest improvements to the partnership aspects of the HFHC program; how well does the partnership process between the affiliate and the applicant prepare families for home ownership? 3. To assess how the financial well being of a Habitat household changes over time after occupation of their home. Interviewees were asked about two main issues: how their lives had changed since moving into their new homes and how the counselling/partnering process worked for them in moving into their homes. A significant portion of homeowners reported improvements in their children's' grades and/or behaviour since moving. In some cases this was attributed to improved housing conditions such as greater space and more private space for each child. Some adults had returned to school since moving (30% of these to university or college) in order to improve their future job prospects; some already had better jobs since moving. The counselling/partnering process was considered very valuable by the interviewees and most Habitat partners received very high ratings. Positive responses were linked to providing good information in a timely manner and being friendly. A good partner, who responded quickly to questions and concerns raised by the homeowner during the process, greatly helped to relieve the stress involved in taking on homeownership responsibilities. The findings indicate that, while there is some room for improvement in certain areas, the Habitat program is generally working extremely well. Households are chosen for the program with the expectation that they can succeed at homeownership. While respondents said that they have to budget very carefully for the costs involved, most are able to manage and are excited about the fact that they are investing in an asset.