BRAMPTON, ON, Feb. 3, 2014 /CNW/ - On Friday, the board of directors of Mondragon Co-operative Homes Inc. closed a new first mortgage with Alterna Savings to buy out the remainder of their government mortgage and finance renovations and replacements to 78 affordable but aging homes.
Mondragon has signed a refinancing agreement with Alterna Savings for $4.5 million to buy out their existing $2 million CMHC mortgage and pay for $2.5 million in renovations to siding, foundation walls, roadways and driveways as recommended in an engineer's report commissioned in 2011. Renovations will commence in spring 2014.
"Our members are happy that we will have a renovated co-op that will continue to be a great place for people to live," said Mondragon president Murray Eaton. "We were worried that some of these aging homes were beginning to fall apart, but now we don't have that worry anymore."
Mondragon is one of several housing co-ops participating in a refinancing partnership between the Co-operative Housing Federation of Canada (CHF Canada) and Canada's credit unions. Hundreds of other housing co-ops across the country that were set-up with federal funding in the 1970s and 80s are interested in how this partnership could help them restore their aging homes.
"It's great to see Mondragon sign this loan as good stewards of their housing, for their own sake and for generations of co-op members to come," said CHF Canada's Director of Corporate Affairs Nick Sidor. "We thank the federal government and Canada Mortgage and Housing Corporation for clearing the way for this innovative solution. Many thanks as well to the co-op's property manager, Homestarts Inc., and to the credit unions engaged in this refinancing program that will ultimately help many more housing co-ops across Canada."
"We're proud to be part of this new refinancing program," said Alterna Savings' Director, Commercial Services Nikos Patiniotis. "Not only does such a loan product make good business sense, but it's great to be doing business with another co-op like ourselves. And it's certainly gratifying to be supporting the preservation of quality, affordable housing in our local community."
CHF Canada is the national voice of the Canadian co-operative housing movement. Its members include over 900 non-profit housing co-operatives and other organizations across Canada. More than a quarter of a million Canadians live in housing co-ops, in every province and territory.
SOURCE: Co-operative Housing Federation of Canada
For further information:
Nick Sidor, Director, Corporate Affairs, CHF Canada, 613-297-5139, [email protected]
Murray Eaton, President, Mondragon Co-operative Homes, 905-846-1287
Pamela Stewart, VP and Chief Marketing Officer, Alterna Savings, 416-213-7900 ext.7703, [email protected]
Scott Jackson, Program Manager, National Communications, CHF Canada, 1-877-533-2667 x.122 [email protected]