Our Projects

The Problem

Muskoka faces an urgent housing crisis, with 60% of renters spending over 30% of their income on rent and utility costs, leaving little for other essential needs. The region’s economy, heavily reliant on seasonal tourism and service jobs, results in median incomes 21% lower than the Ontario average, with 39% of jobs being part-time or seasonal. This, combined with a housing vacancy rate below 2%, makes affordable housing scarce and pushes many low-income residents into poverty and housing insecurity.

What and Why?

Generation Homes is a pioneering social enterprise by Habitat for Humanity Ontario Gateway North (OGN), aimed at addressing Muskoka’s critical affordable housing shortage. This social enterprise introduces a sustainable, scalable model to increase affordable housing availability in the region, allowing Habitat OGN to go beyond traditional homeownership and include below-market rental options. By leveraging grants, government partnerships, and private investment, Habitat OGN can establish a unified funding vehicle that generates cash flow to support long-term affordability. Generation Homes first piloted in Huntsville in 2022, with a 4 unit affordable rental complex. In partnership with Community Living as our operating partner, our proof of concept is thriving! We are now building on the success of our pilot project and are planning Generation Homes Gravenhurst (GHG) to serve even more people in our community.

How It Works: A Sustainable Model for Affordable Housing

GHG project employs an innovative approach to make affordable housing viable and sustainable. Key elements of the model include:

Secure Subsidization and Exemptions

To ensure financial sustainability, the project incorporates critical subsidies such as a $900,000 forgivable municipal loan. Habitat is also seeking key property tax exemptions which will decrease overall expenditure. These measures help lower project costs, making below-market rental rates feasible for low-income tenants.

Construction Mortgage and Private Impact Investments

Habitat has secured a $525,000 construction mortgage and is seeking $1 million in private impact investment. These funds will be structured to generate financial and social returns, creating an attractive opportunity for investors while directly contributing to the project’s mission.

Operating Partnership

Habitat will partner with a local operating organization experienced in tenant selection and property management to ensure the smooth operation of the complex. This partnership allows Habitat to focus on housing development, while the operating partner manages day-to-day operations, tenant support, and community engagement.

Project Details

Project Type: Modular 6-unit rental complex

Units: One bedroom, one bath

Funding:
• Municipal Subsidy: $900,000 forgivable loan (payable installments on agreed milestones)
• Construction Mortgage: $525,000 secured (payable installments on agreed milestones)
• Private Investment: $1,000,000 needed

Location: Gravenhurst, Muskoka

Target Population: Lower-income individuals and small families, including seniors, veterans, newcomers, and women seeking independence.

Affordable rental rates: 56% of market rental rates

Timeline: Ground-breaking in May 2025; Project construction completion December 2025