Yänonhchia’s
purpose
Yänonhchia’ acts in complement to other actors in the housing funding ecosystem, promoting harmonious collaboration to maximize benefits to First Nation communities.
A solution designed by and for First Nation
Providing affordable capital
Yänonhchia’ provides loans to its network of lenders at accessible and affordable rates.
Supporting partners
Yänonhchia’ supports its members to enable them to operate autonomously with their clients.
Providing a toolbox
Yänonhchia’ provides a customized toolbox for lenders and borrowers.
Proven First Nation solution to the housing crisis
This innovative solution reshapes housing by combining early adopter homeowner finance with a shift in housing culture, transforming the way housing is planned and accessed.
Supported by an experienced national Indigenous Financial network, it moves beyond short-term relief efforts, offering a long-term approach to addressing core housing needs.
Frequently Asked
Questions
What is Yänonhchia’ Housing Financing Network?
Yänonhchia’ is an First Nation-designed and -led institutional solution to the housing crisis, built on the principle that all stakeholders share responsibility for housing outcomes. It proposes a network central that develops lending policies, guidelines, best practices and a capital fund to provide housing loans to First Nations individuals on reserve. To do so, it will bring together a network of experienced Indigenous Financial Institutions (IFIs) that understand and know their communities well.
What experience does this initiative build on?
Yänonhchia’ builds on demonstrated success from the National Aboriginal Capital Corporations Association (NACCA) commercial lending approach with its member Indigenous Financial Institutions. It also builds on the success of the Aboriginal Savings Corporation Canada’s (ABSCAN) on-reserve housing lending programs as well on the success of communities that instituted revolving loan funds in their communities.
How is Yänonhchia’ able to provide loans without Band guarantees or Ministerial Loan Guarantees?
Yänonhchia’ relies – like all mainstream banks in the off-reserve context – on individual credit strength and capacity to repay the housing loan. Because of Indian Act restrictions, it cannot take land or homes as security. Instead, it relies on a tripartite arrangement that has been successfully used in First Nations for over 30 years.
This tripartite arrangement involves an agreement between the lender, the borrower, and the First Nation. It provides for the Band Council to emit a resolution approving the use of the land lot by the occupant for housing purposes, with the condition that the occupant reimburse any loan taken to purchase or build a house; and that, in case of payment default, the property may be transferred by Council to another member willing to take over the loan payments.
How many loans, defaults and losses has ABSCAN experienced with their housing initiative?
In Quebec, the Aboriginal Savings Corporation of Canada (ABSCAN) has invested $28M in loans, drawing on capital raised through First Nations savings bonds and private market sources. 300 homes (renovations and construction) have resulted from these in investments without the need for any First Nations guarantees or Ministerial Loan Guarantees. ABSCAN has only encountered two default situations requiring intervention, in all of its years of operations and both tied to COVID aftermath. They were resolved with no loss to ABSCAN, demonstrating the efficiency of the tripartite agreement it uses.
If you have any questions or require further information, please don’t hesitate to reach out to our team.
