The undeveloped hole at Queen and Bagot streets could be filled next year by a nine-storey condominium development with a unique financing twist.
Options for Homes, which helps buyers by covering a portion of their mortgage cost, hopes to start construction on the 117-unit building next year, with occupancy in 2013.
"We're a new hybrid species in the world of real estate," said Options for Homes eastern regional manager Alex Heath.
"We are the antithesis of a gated community. We like to build a mixed community. There's a public good -- an altruistic side."
Condo prices at the Anna Lane project will range from the low-$120,000s to the high-$200,000s.
Among the unique features being offered are a car co-opera-t ive and condominium sizes ranging from 400-square-foot bachelors to a 1,000-square-foot penthouse.
Heath said all of the units come "modestly finished," leaving buyers with the option to upgrade as they wish.
"Our goal is cost-effectiveness," he said. "For first-time home buyers, hardwood flooring is not a priority, (but) we give people an option. (Buyers) are free to soup it up as much as they want.
"If they want gold taps, they can have gold taps."
Options for Homes opened its first project in the early 1990s in Toronto's Distillery district. The organization's main website says that the program is especially attractive to people with incomes ranging from $40,000 to $100,000.
Heath used the example of a $200,000, two-bedroom condo unit to explain the financing model.
The buyer can purchase the unit, make a down payment and take out a mortgage to cover the full amount.
Or they can let Options buy in for 15%, which counts as part of the down payment. The buyer is only required to come up with 5% of the market price, or $10,000.
"We put in $30,000, you put in $10,000, which means you have to come up with (a mortgage for) $160,000," Heath explained.
The condo owner can buy out Options in whole or in part at any time.
There are two main stipulations:
* If the unit is sold, Options takes 15% of the sale price;
* If the owner decides to rent out the unit, after two years Options will buy it back in order to maintain a high owner occupancy rate in the building.
The eastern Ontario branch of Options for Homes has broken ground on a 136-unit project in Kemptville and is finalizing a deal for Ottawa. Another proposal is being considered for Brock - ville.
"We make our money through our financing," he said. "So there's a huge pool of money now to seed projects."
The recession has been good for business, Heath said.
"When people are more careful with their money, they're more likely to sign up with us."
Not all of the major banks have taken to the new approach, though Options for Homes won an award in 2002 from the Canada Mortgage and Housing Corporation.
"The banks are familiar, but only a couple will partner," Heath said. "It's unconventional. Banks are conventional. It has a proven track record. Now after 15 years, there are major banks and credit unions happy to do business with us."
The company plans to open a sales office near the corner of Queen and Bagot in January. People will be given a "priority reservation number" on a first-come, first-served basis.
"When the time comes to buy, you've got a place in line," he said.
Options for Homes will also be soliciting comments and suggestions from interested buyers.
"The design of the building is still in draft form. We want to hear from as many prospective purchasers as possible to hear what they're looking for," said Heath.
pschliesmann@thewhig.com
