The Housing as a Business website (haab.ca) is designed to provide First Nation housing professionals with current information, tools, templates and resources relating to housing as a business. All of the information available on this site is accessible for free. We simply ask that you register with us by completing the registration box to the right.
The HaaB Concept
Housing as a Business (HaaB) is a proven “business model” that encourages private home ownership and profitable rental housing regimes on a First Nation. It incorporates mortgage spreads through a revolving loan fund (e.g. the revolving fund borrows money at 2% and lends it out at 5%).
Furthermore, HaaB provides opportunities for additional housing-related spin-off businesses both in the private and public sectors.
Capital for HaaB
The capitalization of the revolving fund can come capital raised from the private sector or from internal First Nation capital.
For example, private capital can be raised from money markets such as pension funds, insurance funds, bonds, or through the First Nation Financial Management Board.
First Nations can also self-finance through minor capital, land claims, casino funds, community business profits, or resource revenue.
Alternatively, several loan backstop organizations exist such as the First Nation Market Housing Fund, Canada Mortgage and Housing Corporation, and MLG.
Finally, traditional third party lenders such as banks, credit unions, and Aboriginal Financial Institutions can be accessed for capital.
1. Community decision making and control will be maintained.
2. Quality and fair price (including a reasonable profit) are required.
3. Needs-based and affordability-based housing are both required (e.g. larger, more expensive homes should be available to members that qualify for large mortgages).
4. The title to land and home ownership must be clear (e.g. Certificate of Possession, First Nation allocation, or some sort of land management system).
5. Traditional housing construction and financing methods will be practiced and modified where appropriate; however, new and innovative practices will be promoted.