Residential Real EstateCanadian Real Estate Partnerships fight Homelessness
As the megacity"s colourful Mayor Mel Lastman prepares to announce a Call for
Proposals to build much-needed affordable housing in Toronto, at the other end
of Canada, one Canadian real estate corporation has already joined forces with a
British Columbia nonprofit organization to keep people in their homes and off
Vancouver"s streets. Other groups across Canada, such as the Ontario Realtors
and a Toronto nonprofit that teamed up to buy homes for the homeless, have also
formed public-private alliances to fight homelessness.
To launch the next phase of Toronto"s battle to shelter it"s growing homeless
population, The megacity will provide four properties which can be developed for
affordable housing. The city hopes to encourage creation of development
partnerships between nonprofits and alliances with for-profit developers in the
process. These relationships work because partners have complimentary goals yet
target the same consumer groups which enables them to share expertise and save
time and money. Nonprofits have "built-in" clientel they wish to see housed
adequately and strong communication networks to reach out into the community.
For-profits gain market credibility by association with the nonprofit. This
allows them to earn financial returns and strengthens their community image at
the same time.
Toronto"s Call for Proposals is expected to allow groups approximately three
weeks to create housing and community development proposals that meet the, as
yet unannounced, housing guidelines.
On the west coast, homelessness is also a growing concern. Vancouver"s downtown
eastside has been experiencing a "face lift" that continues to cost people their
homes. Upscale renovations of the area"s old hotels have shortened the list of
affordable rental housing, especially for long-term residents on fixed incomes.
As part of an investigation into the business potential of nonprofit housing,
Can-West Developments, a private Canadian real estate developer, teamed up with
Vancouver"s Downtown Eastside Resident"s Association (DERA), a nonprofit
neighbourhood advocacy group with experience creating and managing more than 560
units of affordable housing. Together they formed a corporation that came to the
rescue of low-income singles who called the Metropole Hotel home.
Can-West put $300,000 towards the purchase and renovation of the hotel and
engineered the $1.9 million mortgage. DERA manages the building and hopes
eventually to buy out Can-West.
This project has not only saved the 60-year-old hotel from transformation to a
chic tourist hotel but it also allowed renovation of the 64 hotel rooms to
create 64 small bachelor suites, each with its own bathroom and kitchen.
In Toronto, real estate professionals joined forces with a nonprofit group to
fight homelessness by doing what they do best. The 18,000-member The
Toronto Real Estate Board (TREB), Canada"s largest real estate board, has used
member "money smarts"to raise $1 million so that Toronto"s Homes First Society
can buy homes for the homeless. Homes First, a nonprofit umbrella group for
organizations working with the homeless, not only develops and manages housing
but encourages the displaced to participate in the creation of their own homes.
Facing a Canadian winter with a roof over your head may be a challenge, but
winter on the street is a nightmare. "Hats off" to our many readers who
volunteer and support these Vancouver and Toronto groups and similar
organizations across Canada.
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