Classic Construction Ltd (Classic) was founded in 2002 by (Murray Prokosch,
Gerald Pahl, along with wives Margaret Prokosch and Rose Pahl) with
the vision of developing and building attractive, affordable homes for
average Albertans. Initially, our approach centered on creating unique,
efficient designs in order to reduce building costs and arrive at a
lower priced product. However, we realized just how great the demand
for entry-level homes was and set out to develop more innovative ways
to make home ownership attainable.Our single greatest innovation has
been our approach to the affordability problem. Rather than lowering
quality standards, Classic proposed a revolutionary solution: simply
help customers with the costs of home ownership.
Classic will help families purchase their homes
by:
• Selling the home for less than the appraised market value
• Contributing significant money toward the down payment
• Contribute an even more significant amount of money toward the
home buyers’ monthly expenses by providing a monthly subsidy that
is not repaid. “In 2003, CMHC introduced enhancements to its mortgage
loan insurance products designed to encourage the creation of affordable
housing. In 2005 CMHC offered additional enhancements to facilitate
more housing options. CMHC recognizes that it is the intent of Classic
Construction Ltd to: • provide affordable and modest housing below
market value of similar and comparable housing form • to assist
homeowners with down payment assistance • provide funding for
ongoing mortgage payment assistance.”* *CMHC quote taken from
letter received dated Nov 21, 2006 from John McWilliam, Manager Special
Projects. Prairie, Nunavut & NWT Region. Previous “affordable
housing” proposals were based on the contractor maintaining their
profit margins by providing smaller and lower quality housing. Murray
Prokosch committed to CCL providing this support without penalizing
the home owner. This commitment has not gone unnoticed.
CMHC has used the Classic Attainable Ownership Initiative model as a
“best practice”, one to be replicated elsewhere. In 2005,
CCL was recognized by the Alberta Government “…for creating
sustainable housing solutions that help meet community needs in Medicine
Hat. This recognition, in the form of a chrome shovel, was presented
by the then Minister of Alberta Seniors and Community Supports, Yvonne
Fritz and The Hon. Rob Renner who was the Municipal Affairs Minister
at the time.
Two years later a representative for the Honourable Monte Solberg,
Federal Minister for Human Resources and
Social Development and Cypress-Medicine Hat MLA Len Mitzel presented
a plaque to Murray and CCL “…for creating sustainable housing
solutions that meet community needs in Medicine Hat.” In a past
issue of the Calgary Sun, City of Calgary Alderman Joe Ceci (ward 9)
is quoted as stating “The private sector must step up and find
a way to make a profit in building low-income housing”. With CMHC’s
recognized mortgage qualifications lowering the household income for
qualification by as much as $20,000 home ownership is attainable now,
for people who otherwise might never find the chance to own their own
home. Classic has done this for the people of Medicine Hat & High
River. Classic has acquired land and will be doing this for the people
of Brooks & Canmore. Classic wants to do this for people throughout
Western Canada. CCL has accepted repeat acknowledgements on Alberta
Venture Magazine’s Fast 50 List. In 2007 CCL was ranked 8th overall
among companies with gross revenues below $20 million. CCL was the only
construction company on this list. In 2008 CCL eclipsed this feat by
ranking 10th overall among companies with gross revenues above $20 million.
In this category there were numerous construction companies, but none
ranked higher than Classic Construction Ltd. Keep in mind that this
success came predominantly by providing affordable housing to lower
income Albertans. Recognized as a leader in affordable housing discussions,
Murray Prokosch has become a highly sought speaker addressing representatives
of the Cities of Lethbridge, St. Albert and Edmonton. The Alberta Housing
Coalition; Canada Mortgage & Housing Corporation; the Alberta Urban
Municipalities Association and the CMHC National Conference on Affordable
Home Ownership are also among those who have invited and/or received
Murray. He was also invited to speak directly and publicly to the Municipal
Affairs and Housing’s Affordable Housing Task Force. Murray is
also an active member of the Alberta Secretariat for Action on Homelessness.
The Canadian Housing & Renewal Association celebrated their 39th
Annual Congress with a National Convention held in Calgary, Alberta
in May of 2007. During which, the Honourable Monte Solberg, Minister,
Human Resources & Social Development made a keynote address. During
that same address, Minister Solberg specifically used Classic Communities
as an example of what a successful private sector company is capable
of accomplishing for attainable ownership in Canada. 2007 saw Classic
recognized for their contributions and presented with a plaque jointly
from the Federal & Provincial Government “for creating sustainable
housing solutions that help meet community needs in Medicine Hat”.
The plaque was presented on behalf of the Honorable Monte Solberg, Minister,
Human Resources & Social Development, Nicole Shupe from the Ministers
staff, and the Hon. Len Mitzel, local MLA on May 18th, 2007 at our Northlands
Pointe Ribbon Cutting. CMHC recently selected 6 partnerships in Canada
to highlight as Success Stories in Affordable Housing. Classic Communities
is honoured to be one of those six success stories.