Saskatchewan's newest affordable housing program is one step closer today with 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 says. "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 says. "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.
"On behalf of the six lead Credit Unions: Affinity, Conexus, Cornerstone, Innovation, Spectra and Synergy, we are pleased to be community champions on this important program at the grass roots level in Saskatchewan," Chief Operating Officer of Affinity Credit Union Mark Lane says. "Working in partnership with Westcap and all levels of government to improve access to suitable entry level housing helps build a solid foundation on which to secure employment, raise families and build strong communities; core values important to our members."
In the months ahead the Credit Unions will announce a complementary program to help new home buyers purchase a new home constructed by the HeadStart on a Home program.
Westcap Mgt Ltd. will be making a further announcement in the fall on program details and selecting 3-5 projects for investment before the end of 2011.
