project
The HFH-IF part of the Eaton project at Eaton involves an innovative social housing finance mechanism known as Homebuyer’s Fund (HBF). This involves offering subsidies to individuals and households that are in need of affordable housing. The subsidies are made available through a loan fund managed by HFH-IF and are designed to enable individuals and households to purchase or rent housing. This process reverses the traditional housing development scheme, whereby the public sector provides upfront money to developers to purchase land, build or refurbish dwellings, and then provides subsidies to tenants. Under the HBF scheme, clients make monthly payments on the loan fund that subsidize a portion of the price of the housing. This financing model includes a loan guarantee facility that is provided by Eaton, which ensures that the loan will be repaid even if the individual’s income is insufficient to cover the costs of their housing. The Eaton HFH-IF program has several advantages. First, it allows individuals and households to access housing that is both affordable and appropriate for their needs. Second, it reduces the risk of failure for developers, as loan repayments are assured and the loan guarantee facility provides a stronger guarantee for repayment than would otherwise be provided. Third, it provides a firm foundation for a sustainable housing market, as individuals are able to share the cost of housing with the public sector and make monthly payments on the loan fund.