How do you write a community housing policy on reserve?

A community housing policy is the written rulebook for who gets a home, what they pay, how a rental can become owned, what happens when payments fall behind, and what the tenancy agreement says. CMHC calls it a "living document", and its guide walks through seven steps from deciding whether you need one to revising it. The sections that matter most are allocation, tenure options, arrears and the agreement itself, and each one must be something your housing department can actually carry out.

This article is general information for housing managers and councils, not legal advice. Confirm program requirements with CMHC or ISC, and have your lawyer review anything that touches eviction or ownership.

Why write the policy down at all?

Under the 1996 On-Reserve Housing Policy, ISC says First Nations play "a key role in how, where and when housing funds are invested," and the policy's principles include First Nations control and shared responsibilities. ISC also states plainly that it "does not cover the full cost of housing," and that communities and residents are expected to draw on other sources, including shelter charges. A written policy is how a community turns that control and that shared responsibility into rules members can see.

CMHC's On-Reserve Non-Profit Housing Program (Section 95) Operations Guide says adopting a housing policy is "strongly recommended" and explains why: once members understand the rules, "people will know how the housing portfolio works and how decisions are made." For communities with Section 95 units, it goes further: First Nations "must have a community-based policy" that keeps them in compliance with CMHC program requirements, and CMHC may ask for a copy.

CMHC's decision checklist is a quick test of whether your community is ready. Are members asking the same questions over and over, such as "What do I need to do to get a new house?" Are staff making decisions with nothing to guide them? Are some families held to a higher standard than others? CMHC adds that a policy must be realistic: it has a better chance if leadership is committed, those affected will follow it, and you have the funding and the staff to carry it out.

The work also fits a wider direction. The Assembly of First Nations describes its National First Nations Housing and Related Infrastructure Strategy as advancing "First Nations care, control, and management of housing." A clear, consistently applied housing policy is one practical building block of that management capacity at the community level.

How should allocation and the waitlist work?

Allocation is where policies are tested hardest, because there are always more applicants than homes. The Section 95 guide says communities "establish criteria to manage the list of members who are waiting," that many require written housing applications so staff can "review and prioritize applications," and that some communities reserve Section 95 units for specific client groups while encouraging a private market for members with greater means. For Section 95 units, the selection criteria are set by Band Council Resolution, shared with members and CMHC, and changed only by another BCR.

Policies differ, but a waitlist section usually needs to answer these questions in writing:

• Who can apply, and what goes on the application form. CMHC's tenant records page says council should develop the application form, "guided by your housing policy and in consultation with the community."
• How applications are ranked. If you use need-based factors (crowding, health, safety, household size), define each one and how it is weighed so two staff members would rank the same file the same way.
• How the list is kept current, for example an annual confirmation that applicants still want and need housing, and what happens if they do not respond.
• How decisions are communicated. CMHC calls it "good practice to provide written notice of placement decisions to anyone who applies."
• Who decides, and how a household can ask for a review of a decision it disagrees with.
• How exceptions are handled, such as an emergency after a house fire. CMHC's writing guide lists "Exceptions" as a standard section of a policy.

Expect pressure. CMHC's implementation chapter uses tenant selection as its example of a policy that "results in some people receiving housing while others do not," and warns that "applying a policy inconsistently or unfairly can actually be worse than having no policy at all." When leadership resists an outcome, CMHC says the housing manager should explain the consequences to chief and council, who can then amend the policy or let it be enforced as written.

Rental, rent-to-own or ownership: what should the policy cover?

ISC's evaluation of the On-Reserve Housing program found that "challenges exist in establishing a variety of housing tenures such as rentals and private ownership on reserve." Respondents saw value in a mix, noting that charging rent for band-managed homes "means some portion of the rent can be set aside for repairs." They also described real limits: an expectation in some communities that housing is free, and "the low incomes of many households on reserve." Your policy should say which tenures your community offers and set separate rules for each.

Rental. Set out how rent is calculated, what it includes (utilities, appliances), when it is due and how it can be paid, and how often it is reviewed. If rent is tied to income, say what income proof is needed and how often it is updated.

Rent-to-own. CMHC's tenant records page lists "how ownership of rent-to-own agreements can be transferred (if applicable)" as a typical lease item, and the Section 95 guide notes that some councils add a lease clause on what happens "once the loan on the house is fully repaid," such as conditions for transfer of ownership. That clause "should be consistent with the First Nation's housing policy." Check program rules before you promise anything: the same guide says Section 95 projects must continue to operate "as a social housing rental project" for the full term of the operating agreement, and selling a Section 95 unit needs CMHC's prior approval. Spell out in the policy what counts toward ownership, what happens if payments stop, and what happens if the household moves out early.

Ownership. On reserve, ownership usually means a lawful right of possession rather than freehold title. Under section 20 of the Indian Act, "no Indian is lawfully in possession of land in a reserve unless, with the approval of the Minister, possession of the land has been allotted to him by the council of the band," and the Minister may issue a Certificate of Possession as evidence of that right. If your community operates under its own land code, check with your lands office how possession and transfers work there. ISC's evaluation also records that existing housing "cannot be used as collateral" for bank loans and that insurance can be hard to obtain, so "the band must take on the loan" in many cases. Your ownership section should say who is eligible, how a home moves from band-owned to member-held, and who carries insurance and maintenance afterward. For financing programs, see our funding guide.

What should an arrears section include?

Arrears decide whether a rental portfolio can sustain itself. The Section 95 guide notes that "rental arrears generally account for most accounts receivable for a housing department," that a First Nation must show that all opportunities to collect "have been exhausted prior to reporting a bad debt," and that CMHC reviews receivables for systems that ensure timely receipt of late payments. A clear arrears section protects both tenants and the housing budget.

A workable arrears section usually sets out:

1. When rent is late, and how the tenant is told (a first written notice, delivered how).
2. An offer to meet and agree a written repayment plan, with what a plan can include.
3. What follows if a plan is broken: a further notice, then referral to council or a housing committee.
4. The last step, such as ending the tenancy, and who has authority to approve it.
5. Supports to offer along the way, for example referral to income assistance or budgeting help, so the process aims to keep households housed.

For reference, the sample lease in Appendix B of the Section 95 guide provides that a notice to evict will be given "on the 5th day of the month if the rent is not paid by then," and that the First Nation may end the tenancy if payment is not received within 30 days. Treat that as a sample to adapt, not a rule. CMHC's approval chapter says a legal review is "especially" important if the policy has procedures for non-payment of rent, so ask your lawyer which laws govern ending a tenancy on your reserve before you adopt timelines.

The process also has to be something staff can run. CMHC's implementation plan chapter gives this exact example: a policy that sends letters to occupants who have not paid needs processes to record the information and "a way to track who has not paid their rent and the letters sent to them." CMHC's housing manager page links to case studies from communities that improved rent collection, which are worth reading before you draft.

What goes in the tenancy agreement?

CMHC's tenant records page says leases "aren't legally required" but are good to have because they "clearly lay out both sides' responsibilities and expectations," and it recommends meeting tenants in person to go over the lease before they get possession. For Section 95 units, the operations guide lists items each lease should include, "as applicable to the community housing policy":

• Term (the guide says not to exceed 12 months)
• Signatures of all adults living in the house
• Terms of subletting, where permitted
• Occupancy restrictions (pets, noise, unauthorized use)
• Services and utilities included
• How maintenance is reported and who handles minor maintenance
• Payment requirements: when and how much
• The eviction process

The guide adds that lease agreements "must coincide with the terms of the First Nation housing policy" and that each document "should complement the other." In practice, that means drafting the policy first and the agreement second, then checking every clause against the policy. The guide also recommends reviewing leases regularly, usually annually. Keep each tenant file complete: CMHC lists the signed application, the lease, move-in and move-out inspection reports, a record of rent payments and all correspondence.

How do you draft, approve and keep the policy current?

CMHC's First Nation Housing Policies Development Guide sets out the sequence. In practice:

1. Research. Ask other communities to share their policies, and talk with members and housing staff about how difficult situations should be handled.
2. Draft in plain language. Be brief, avoid jargon, and define key terms. A standard structure covers title, background, dates, purpose, procedures and responsibilities, key terms, implementation and exceptions.
3. Review the draft with the people who will apply it and the people affected by it. CMHC notes some First Nations translate key policies into the community's primary language.
4. Plan implementation before approval: who receives the policy, how staff are briefed, and where copies are kept so members can find them.
5. Approve in principle, then legal review, then final approval by chief and council (and the community where needed), including the date the policy takes effect.
6. Monitor and revise. CMHC says a policy "must be monitored throughout its lifetime," and revisions should follow a similar process to the original drafting, with leadership approval.

Set a review date in the policy itself, and keep a short log of the questions and exceptions that come up. Those notes are the best evidence of what to fix in the next version.

Where does a builder fit in?

A builder does not write your housing policy, select tenants or administer funding. Where a builder helps is timing: once a policy is approved, new homes can be allocated under rules members already know. Herauf Modular builds homes and community buildings as finished sections indoors in its Saskatchewan and BC plants, then delivers and sets them on site. Most builds are manufactured and delivered in about 16 weeks, with foundations, pads and services prepared on site at the same time, which leaves a clear window to confirm your allocation list and sign agreements before keys are handed over. Every unit meets or exceeds CSA A277 and the National Building Code for climate zones 6 through 8.

At Buffalo Lake Métis Settlement in Alberta, 20 homes were delivered with CMHC and government agencies and installed within days, turning an empty plot into a lived-in community. If you are planning new homes and want to line up delivery with your policy and allocation process, contact Herauf Modular. We reply within one business day.

This guide is general information, not legal or financial advice. Program rules change: confirm the details with the program, your Indigenous Services Canada regional office or CMHC before relying on them. Herauf does not administer any program or apply on a community's behalf.

• housing policy
• allocation
• arrears
• tenancy agreements
• rent-to-own