A little utilized City incentive program tied to the HeadStart on a Home Program received an update Monday in hopes of boosting its uptake.
“Under HeadStart on a Home Program policy, the City offers first-time home buyers a one-time $5,000 equity grant to assist with their down payment on a mortgage. Qualified applicants are also subject to maximum household income levels, to be first time home buyers and to have previously been renting for at least six months. The City re-directs the municipal portion of property taxes to repayment of the grant, over a maximum period of six years. The money is repayable to the city if the grantee sells the home before the taxes have fully funded the grant,” explained Michael Eger, Director of Planning, Building & Development at the regular meeting of Yorkton Council Monday.
The program however has been little-used said Eger.
“Since the program’s inception in 2011, the City has received only one grant application out of the 35 units that have been endorsed for Province-backed financing (29 of those units have been constructed),” he said.
Eger said changes were suggested.
“As a result, Westcap Management, operator of the Province’s HeadStart on a Home Program, has requested that the City raise the maximum household income level stipulated in its HeadStart policy. The current policy establishes an income limit for qualified applicants at $60,000 annually. Westcap has advised that this level is so low that most qualified applicants would not be able to cover the mortgage costs of a new, entry-level home,” he told Council.
“Westcap believes that an increase in the income limit will facilitate more applications for the City grant and
help to better meet the goals of the provincial HeadStart on a Home Program. To facilitate this, Westcap is recommending that the City’s maximum household income be tied to that of Saskatchewan Housing Corporation. For 2015, this would raise the City’s limit to $78,400. This rate is reviewed annually by Sask Housing, eliminating the need for the City to do the same.”
Council passed the changes unanimously.
