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Jobe says the new rules have stolen what he thought would be a bright future for his family.

“The humanity aspect attracted us to sign up for the program,” said Jobe, who works as a delivery person while Susan takes care of their children. “This was a hope for us (and) now it is gone.”

Photo by Ed Kaiser Ed Kaiser / Ed Kaiser/Postmedia

But in a Dec. 13 statement of defence, Habitat denies any contractual agreement related to mortgage financing exists between Habitat and partner families.

Statements of claim and defence both contain allegations that have not been proven in court.

“Habitat specifically denies that it unilaterally altered a contractual relationship between Habitat and the partnership families,” the statement of defence says, also denying the partner families would pay more due to the new rules.

Habitat for Humanity declined to make an executive available for an interview and provided Keller’s emailed statement instead.

“Habitat continues to ensure that families have mortgage payments that are not more than 30 per cent of their household income (inclusive of taxes, insurance and condo fees) and require no down payment,” said Keller. “As this matter is the subject of ongoing litigation, we are not able to comment further at this time.”

According to Habitat’s website, the new mortgage rules will help families build credit and retain more equity from their homes if they do choose to sell in the future.

But Nanda says there are reasons families choose Habitat homes, such as financial circumstances or religious reasons that prohibit them from paying interest, like one family listed in the lawsuit.

It also means more of their money will go to servicing interest rather than paying for their home, he added.

“There’s a lot of anxiety, a lot of concern,” said Nanda.

A hearing to determine whether the claimant families may stay in their homes while the matter is heard by the courts is scheduled for April 23.

mwyton@postmedia.com

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