A former mayor of North Battleford called on the City of North Battleford to reverse its controversial Residential Down Payment Grant Program Monday night.
Wayne Ray wants the City to rescind the resolution passing the Residential Down Payment Grant Program policy, and to instead explore other alternatives to participate in the provincial Headstart on a Home program without a direct cash incentive to home buyers.
Ray suggested in his submissions the City utilize the residential development incentive policy already in place, which would provide a property tax incentive instead of a grant.
The down payment grant has been controversial ever since being adopted earlier this fall, According to the policy, a grant would be provided of $5,000 to assist qualified purchasers in achieving the necessary down payment for an entry-level home. The program is tailored to the HeadStart on a Home program introduced by the provincial government. The grants are available only to those with household incomes under $65,000 and is an alternative to the two-year tax exemption that could be available.
The policy change was brought in advance of a proposal for a 21-unit condominium in Killdeer Park. That project was approved for funding under the new program at the last council meeting.
The grants have been cited by supporters as spurring development and creating more affordable housing units in the city. However, the grant program has also received criticism. Councillors Brad Pattinson and Trent Houk vocally opposed the idea of taxpayers' money being used to provide home buyers with down payments on new condominiums and voted against the policy.
Monday night, Ray repeated many of those same concerns expressed by Pattinson and Houk, suggesting the City would be forced to acquire the funds for the grant program from taxpayers.
Ray also repeated a previous criticism raised by Pattinson that responsibility for social housing is being downloaded onto municipalities. In his submission, Ray said, "when an economy is moving fast, some say booming, one can get caught up in the boom and forget about what a municipal government's responsibilities really are and social housing is not one of them. Provincial and federal governments love to download those responsibilities through partnership programs."
The program council passed "begins to move our city into social housing - now and into the future. And it comes under the guise of economic development which is a significant change in our city's philosophy," repeated Ray.
Ray raised the spectre the City would be stuck with mounting costs for social housing into the future, suggesting mill rates would have to go up to support it. Ray said the program "leads our city into a future of social housing and potential unmanageable grants on the citizens of North Battleford."
He went on the state that while development in the community is normally welcomed news, the main concern was about the grant of $5,000. Ray said feedback he received ranged from ages under 30 to persons over 65, with many concerns raised about the home grant policy.
Whether Ray's calls for a reversal of council's decision would be heeded remains to be seen. Positions on the issue seemed to remain entrenched Monday night, with Councillor Ron Crush once again voicing support for the down payment grant program while Houk again sided with Ray in opposing the grants.
