Social/Environmental benefit
Access to home ownership for those who would not qualify for assistance with traditional lenders. Their unique home-owner partnership model has proven an effective way for seniors to own homes and create inter-generational housing for their families.
Profile
Burton Hicks® helps families buy affordable homes. They locate and purchase under-valued starter homes which can quickly and easily gain value with basic improvements such as a new furnace, replacement windows, flooring, and basic redecorating.
Using private funding, they provide financing for the purchase, so that the new homeowner does not have to go through the channels and structures associated with a mortgage from an institutional lender. Burton Hicks keeps front end down payments low (about $1,900) and ongoing interest rates competitive with banks or financial institutions that offer traditional first mortgages.
Burton Hicks typically transitions buyers from their financing to a regular bank mortgage within five years, after the buyers have built sufficient equity in their home and have built up a consistent payment history and positive credit record. They also encourage homeowners to continue to make further improvements on the house to build more value, and will arrange cash back to help fund these upgrades.
Jim Henry, President of Burton Hicks Inc. and his partner since 2006, Rae Nafziger, President of BHN Properties Inc., both built their reputations through well over 30 years of experience in the not-for-profit housing, long-term care, and social service sectors, in addition to developing their residential housing program. They have a large contact network, coupled with a solid reputation for honest, fair dealing in Southwestern Ontario and a growing list of families that they have helped to purchase their own homes with their innovative program.
Since home ownership is the bedrock of personal financial stability, Burton Hicks helps families build a financial foundation for their future. The financial benefits go beyond the equity in a home and often mean access to credit with banks, credit card companies, car dealers, and utility companies.
BurtonHicks, through the operation of its for-profit business, is achieving its social mission to help more families own their homes and establish that financial foundation. They accomplish this by providing access to home ownership for those who would not qualify for assistance with traditional lenders. Their unique home-owner partnership model has proven an effective way for seniors to own homes and create inter-generational housing for their families
Currently Henry and Nafziger are establishing a broader program that is designed to enable non-profit organizations develop social housing projects through new financing options. The program, called BLEND (Building Local Equity for Non-profit Development) specifically applies to smaller projects in rural Ontario. The BLEND concept has the potential to enable delivery of affordable housing in more areas of the province, because the program is built on the concept of social equity inputs from local community partners for initial financing.
One of the key elements in this type of housing is the maintenance of individuals in their own homes for as long as possible using resident supports (meals, wellness programs, transportation, etc.) delivered by a local provider. By providing these key help components, individuals may avoid being prematurely institutionalized due to a lack of options to serve their specific needs.
Burton Hicks is currently seeking a partner organization to facilitate a pilot project that proves the effectiveness of the BLEND concept. They have received some expressions of interest from the local MPP and are working on a multi-Ministry brief to raise awareness in the provincial government.
