Habitat Edmonton apologizes, strikes agreement with families over mortgages
Clients elated, lawyer for families says
Habitat for Humanity Edmonton has apologized to and reached an agreement with a group of low-income tenant families who had pursued legal action after the organization changed the terms of their mortgages.
The group of 57 families had planned to sue the charity alleging it reneged on a promised interest-free housing plan. The conflict could have resulted in some families losing their homes, but earlier this month Habitat agreed in mediation to the tenants' requests.
"They exceeded our expectations," said tenant Said Kahssay. "They started with an apology. That was a very good opening, and they offered what we were asking for."
Kahssay said his wife and three children were sad at the prospect of not only losing their "dream home" where they've lived since 2018, but also their community of neighbours and friends.
"This is the end of our long struggle … to get our rights," he said.
- Habitat International calls on Edmonton affiliate to halt action against 57 families
- Habitat for Humanity, heavily in debt in Edmonton, asks low-income families to pay interest
Avnish Nanda, the lawyer who represented the families, said Monday Habitat will allow the families to continue with the zero-interest mortgages that were originally promised to them, as well as other options should the families' circumstances change due to the pandemic.
"These steps really put the families and Habitat on a better footing, a footing that allows for a more meaningful and stronger relationship so that both parties can achieve their goals," he said.
Originally, the families said, Habitat promised them zero-interest mortgages once they performed 500 hours of what the charity calls "sweat equity" — unpaid work in lieu of down payments — and successfully completed a 12-month tenancy.
Before the families could sign the zero-interest mortgage contract, Habitat put forward a new mortgage model. Under the new plan, the families would have to pay interest on half the mortgage, financed by a credit union.
The families say they were told to either sign the agreement or leave their homes.
Chris Bruce, chair of Habitat for Humanity Edmonton's board of directors, said Monday the group is happy it got a chance to work with the families to keep as many of them as possible in their homes.
"They made it very clear to us when we started the mediation process last week that we have some work to do to regain their trust and confidence," he said.
Heavily in debt, Habitat Edmonton had sought to change the mortgage agreements as part of an effort to stay financially sustainable. Prior to mediation, Bruce said his organization reviewed its finances and said they will still be able to meet their financial obligations but that it will take longer.
Bruce said an interim CEO for Habitat Edmonton will be announced later this week, after previous CEO Karen Stone stepped down last month, just days after Habitat International criticized the local Edmonton society for its handling of the charged legal dispute.
In its sharp rebuke, the international Christian housing charity called on Habitat Edmonton to appoint an independent mediator to the case and stop any further action against the families.