The Government of Saskatchewan has released A Strong Foundation - The Housing Strategy for Saskatchewan 2011-12 and the 2011-12 Provincial Action Plan.
The twin documents outline the government's key activities for the strategy's first year of implementation of the housing strategy.
"The strategy involves the entire housing sector and promotes a housing environment where all Saskatchewan people have access to homes which enhance their well-being, build local communities and contribute to a growing province," detailed a provincial government release.
"This strategy is an eight-year plan that is truly a collaborative community, industry and government-driven initiative needed to build a strong housing environment for Saskatchewan people," Social Services Minister and Minister responsible for Saskatchewan Housing Corporation June Draude said in the release. "This plan goes beyond what the Government of Saskatchewan can do alone. It serves as a roadmap for us, as we work together to make Saskatchewan the best place to live, work and raise a family."
Yorkton Mayor James Wilson said the program holds little in the way of surprises.
"Certainly there's no surprises. As a municipality we've been working with the provincial government the last eight-to-10 months, so we were aware of what was coming forward."
That knowledge has been important said Wilson as it has allowed the City to establish the Yorkton Housing Committee, which has brought together those involved in housing in the city to develop a plan for Yorkton which dovetails with the provincial effort.
"We were looking forward to having a plan for the city," said Wilson, adding they wanted to be close to "spade ready," with the release of the provincial details.
Wilson said moving forward it will take a co-operative approach for any housing initiative to be successful.
"It needs participation from both levels of government, and private enterprise," he said.
Wilson said he has high expectations "we will see something come out of this," with construction starting before year-end.
Since 2006, Saskatchewan has been experiencing unprecedented economic and population growth that is expected to continue for years to come. One of the challenges of this growth has been increased pressure on housing supply and affordability. In March and April 2011, the Saskatchewan Housing Corporation (SHC) held strategy consultations with more than 350 housing stakeholders throughout the province to tackle these issues and set out tangible solutions.
These discussions resulted in five broad strategic priorities:
Increase the housing supply;
Improve housing affordability;
Support individuals and families in greatest housing need;
Enhance strategic planning for housing; and
Collaborate, communicate and educate.
Across the province, housing experts stated that every member of the housing sector has a role in providing housing solutions. Under the Housing Strategy for Saskatchewan, the Government of Saskatchewan will create annual Provincial Action Plans that will outline activities that will yield immediate results, as well as actions that will require work over multiple years. It is anticipated that everyone in the housing sector will fulfill their respective roles in creating solutions to Saskatchewan's housing challenges.
An earlier government announcement had detailed the appointment of Saskatoon's Westcap Mgt Ltd. as the fund manager in charge of delivering the program.
Headstart on a Home will finance construction of at least 1,000 new, entry-level homes over the next five years. Builders and developers will be eligible for loans of 90 per cent of the construction cost of the homes, including land, at an interest rate of four per cent.
"Headstart on a Home is an important component of our affordable housing plan," Social Services Minister June Draude said in a release dated Aug. 3. "We will be increasing the housing inventory for people with modest incomes so they can buy their own homes. By working with the municipalities and community partners this program can ensure projects are tailored to meet each community's specific needs."
The target price for the homes will be at or below the MLS average for the respective municipalities, likely ranging from $180,000 to $300,000. The homes may include condominiums, multi-unit, single family dwellings, modular homes, ready-to-move, etc.
Westcap has partnered with the lead credit unions, including Affinity, Conexus, Innovation, Cornerstone, Synergy and Spectra, to build on their presence in the communities delivering the program. Throughout the summer, they will begin contacting municipalities, builders and developers to develop a list of "shovel ready" projects.
"Westcap Mgt. Ltd is very excited to have been selected as the fund manager for Headstart on a Home Program, which will have a tremendous economic impact across Saskatchewan communities and also help to attract new workers," President and CEO Grant Kook said in the Aug. 3 release. "We look forward to working with provincial and municipal governments, builders and developers and our partnering Credit Unions. This fund is a natural extension to the family of funds we manage today which are focused on building Saskatchewan."
Municipalities will apply for the loans on behalf of builders and developers. There is more than $200 million in funding available for the program through the federal Immigrant Investor Program, which will flow through the Saskatchewan Immigrant Investor Fund Inc. (SIIF), managed by Westcap Mgt Ltd. SIIF is a subsidiary of Crown Investments Corporation.
In Yorkton Wilson said they have met with licensed home builders to see what they can do to build houses which fit under the program. He added to help achieve costs which fit within the parametres of affordable housing the City is moving to develop areas within the city with smaller lot sizes to reduce costs.
The area which was part of the former C.J. Houston School property is basically ready to, said Wilson, and the plan for York Colony development east of SGI is complete, so it could move forward quickly.
Under the 2011-12 Provincial Action Plan, the province also announced that $5 million in additional funding will be provided for SHC's popular Affordable Home Ownership Program (AHOP) and Rental Construction Incentive (RCI) program. More than 3,800 units have been approved under the programs (847 AHOP units and 2,965 RCI units). This already exceeds the number of units outlined in the Saskatchewan Advantage Housing Plan released on March 28, 2011.
AHOP provides financial assistance to help municipalities stimulate homeownership by reimbursing participating municipalities an amount up to the equivalent of five years of the education portion of the property tax to provide homeowners assistance with the purchase of a home. RCI helps municipalities to develop new purposely-built rental housing by providing municipalities with a provincial grant of up to $5,000 to match municipal grants or incentives to an owner for each eligible new rental unit constructed.
Copies of the Housing Strategy for Saskatchewan and the 2011-12 Provincial Action Plan are available on Saskatchewan Housing Corporation's website at www.socialservices.gov.sk.ca/housing-strategy.
