A First Nation led solution to increase access to housing financing in communities across Canada.
Multiple studies of the on-reserve housing context have highlighted severe housing shortages and overcrowding; a high number of homes that require major renovations or that are in a state of disrepair; and barriers for First Nation members and communities to access innovative solutions to meet their housing needs. In a recent report, the housing gap was estimated by the Assembly of First Nations at $135 Billion in Capital investments.
What about the First Nation housing crisis?
This crisis is as real as ever! Many people live in inadequate housing, especially in remote communities like those in the North. On reserve First Nations people are nearly twice as likely to live in overcrowded housing as those living off reserve.
The First Nations housing crisis is caused in part, by a lack of access to capital resulting from Indian Act restrictions on using land as security for loans. Other factors include slower economic development, limited jobs, inadequate land and property regimes, lack of local markets for housing, and concentration of all housing resources in government assisted housing solutions, with few options for individual initiative. These factors reinforce each other in ways that perpetuate the problem. Funding from the federal government will never be sufficient to support communities. In many First Nations—especially those where needs are highest—each new home further increases the community’s financial deficit and eats into its capacity to invest in economic opportunities.
Our approach
Yänonhchia’ Housing Finance: A First Nation Solution
Yänonhchia’ Housing Finance (Yänonhchia’) is an institution created by and for First Nations that aims to increase access to housing financing for individuals and First Nation communities across Canada.
Our mission
Yänonhchia’ Housing Finance’s (Yänonhchia’) mission is to leverage an existing network of experienced Indigenous lenders to promote and foster the economic and social development of Canada’s First Nations and their members by providing them with products and services to access financing for private housing on reserve.
Our vision
Yänonhchia’ is an institutional solution to the housing crisis, promoting access to private home ownership through an established network of Indigenous financial institutions. Homeownership is an important lever for economic and social development in communities. Access to capital provides a way out of the housing crisis among First Nations.
Our approach
Anchored in respect and partnership, Yänonhchia’ fosters mutually beneficial relationships with communities, First Nation financial institutions, various levels of government, and other partners. Yänonhchia’ acts in complement to other actors in the funding ecosystem, promoting harmonious collaboration to maximize benefits to Indigenous communities.
Our Core Values
At the heart of everything we do lies a deep commitment to our core values. These guide our actions, shape our decisions, and define our approach.
Contributing to the well-being and autonomy of our customers
Leadership
Innovation
Impact
Efficiency
Customer service
First Nation community member responsibility
The benefits
01
Activates personal and entrepreneurial responsibility for First Nation’s housing.
02
Transforms housing systems, culture, policies, and incentives.
03
Increases home longevity and builds family wealth through homeownership.
04
Reduces dependence on federal subsidies and eases band financial pressures.
05
Creates business opportunities and jobs in housing construction and renovation.
06
Provides access to market capital for affordable First Nation housing loans.
07
Enables a shift from government-managed housing to diverse public and private housing solutions.
08
Frees community finances from contingent liabilities tied to housing loans.
09
Supports access to business loans backed by home equity for First Nation homeowners.
10
Develops a market instrument that adapts to changing circumstances and First Nation community priorities.
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A bit of history
Yänonhchia’s approach builds on the proven success of ABSCAN in Quebec. Explore the origins of this solution, designed by and for First Nation.
The Aboriginal Savings Corporation of Canada (ABSCAN) was founded in 2005 by the leadership and executives of the Native Commercial Credit Corporation (SOCCA). After nearly 25 years of providing financing to Indigenous-controlled businesses, the SOCCA team recognized that First Nations and their members had unmet financial needs in the areas of savings and lending.
This led to the creation of a new idea: « to collect savings from individual First Nations members and institutional investors and invest it to meet the financing needs of First Nations and their members, particularly in the housing sector. »
As of March 31, 2024, ABSCAN has carried out 35 bond issues, raising just over $68 million in capital. During the same period, ABSCAN has issued loans totaling $71 million, of which $21 million was invested in First Nations housing.
Towards a National Approach
ABSCAN’s work to date has also confirmed the need to continue to expand, and for central tools to securitize loans and access fresh capital. This, in turn, requires a larger base of loans to securitize.
In order to expand, ABSCAN reached out to other Indigenous Financial Institutions (IFIs) that use the same loan approach for small businesses in communities they know well. All are members of the National Aboriginal Capital Corporations Association (NACCA). NACCA has produced a concept paper to explore options in 2020.
The paper proposed a coalition of IFI housing lenders, each responding to regional circumstances in their own way but agreeing on common discipline and standards.
Yänonhchia’ is the outcome of this process!
Yänonhchia’ aims to maximize and strengthen the existing network of Indigenous financial institutions.
