About the Business
Trillium Housing is a non-profit social enterprise that invests in the development of entry level housing and provides financing to help modest-income families own a home. Trillium stands out in the housing industry as the only organization that partners with conventional housing developments to deliver affordability.
About the Loan
Vancity Community Investment Bank (VCIB) offered Trillium Housing $68 million to build a condo townhouse development, Maxx Urban Towns, in Pickering, Ontario. To make a portion of the project’s homes affordable, Trillium Housing utilized shared appreciation second mortgages, referred to as Trillium Mortgages.
About the Impact
The GTA is facing an affordability crisis. Due to increasing rents, unprecedented population growth, and an insufficient support system, the prospect of owning a home remains out of reach for many families. To alleviate this problem, VCIB’s construction financing will support Trillium in making home ownership a reality for 41 low-income families through the Trillium Mortgage.
As long as the home is owner-occupied, the shared equity Trillium Mortgage helps buyers by reducing down payments, leverage, and carrying costs, and by eliminating monthly payments. The Trillium Mortgage is regular payment free – of either principal or interest. When the property is sold, the owner repays the Trillium Mortgage principal instead of a set interest rate, and Trillium receives its proportionate share of the home’s appreciated value. These reduced down payments allow lower-income families to own a home, build equity, and live in an inclusive community, where they would have otherwise been priced out of the market.