The HeadStart on a Home Program moved one step closer to bringing new, affordable houses to Yorkton at the June 15 ribbon cutting ceremonies.
Twenty Yorkton families will become homeowners by the end of the year with the help of the housing program.
Two housing projects received low-interest loans using funds provided by the government through the Saskatchewan Immigrant Investor Fund (SIIF).
Deneschuk Homes will build a 14-unit project in Good Spirit Crescent. Construction on the seven semi-detached bungalows is scheduled to finish in November. Each home is priced at $235,861.
Lesa and Ryan Bent, who moved to Canada from Jamaica about five years ago, will become first-time homeowners when the housing is ready. A major benefit of going from renting to owning is having a yard and more space for her family of five, said Lesa.
Fifth Avenue Estates also received funding through HeadStart. Six separate two-storey townhouses, built by Terra Developments, are expected to be complete by fall of 2012.
"It's long been my belief that what people want is the white picket fence. They want their own house, their own yard. We put our thinking caps on to come up with a product that would give people as close to their own single-family home," said Doug Rogers, president of Terra Developments.
The HeadStart program is managed by Westcap Mgt to ease the difficulty of building and purchasing entry-level housing. The 20 modest homes in Yorkton target families who no longer want to rent but cannot afford to buy in the current housing market.
To make this possible, companies and municipalities created a plan for housing that is below the average sale price in the area. So far in Saskatchewan over nine different projects met the program requirements, two of them in Yorkton.
"No one has been as aggressive and supportive," of the proposed housing projects as Yorkton, said Wanda Hunchak, Vice President of Westcap Mgt.
The HeadStart program will use $200 million to help build over 1000 homes in Saskatchewan over five years. The Deneschuk project received $2.4 million and the Terra Development project will receive $972,000.
The fund manager, Westcap, provides a four per cent interest loan to these projects through the SIIF.
The loans made it possible to start construction before buyers were found for each unit.
"One of the stumbling blocks has been the pre-sales. So when this program came along for us it was a perfect fit," said Rogers. "We could get going on the project and start right away."
The Fifth Avenue project will see 32 similar units built in following years. The unit price will remain attainable as entry-level housing, said Rogers. The price will not raise drastically from the $239,750 price of the first six units.
"We'll be watching the market and we'll be pricing our houses accordingly," he said.
Cornerstone Credit Union partnered with the program to make homeownership possible for Yorkton families.
The price of the down payment is an obstacle for some buyers, explained Sheena Soke of Cornerstone Credit Union. The Credit Union offers down payment assistance for purchasers of HeadStart homes. Qualifying buyers receive a prime rate on a five per cent down payment loan.
Visiting the bank is an important first step for those looking at purchasing a home, said Soke.
"What I encourage people to do is bring in their information, sit down and look at their situation. See what they can afford or what type of avenue would work best for them," she said.
Those interested in purchasing a HeadStart home can visit Cornerstone Credit Union
