MINISTER DRAUDE ANNOUNCES AFFORDABLE HOUSING PLAN

Social Services Minister June Draude announced details today of a five-point action plan to add at least 4,600 new housing units over the next five years and make it easier for Saskatchewan people with modest incomes to purchase new homes. Total investments in housing from these five initiatives over the next five years will be more than $252 million.

The five housing initiatives outlined in The Saskatchewan Advantage Housing Plan include:

• Headstart on a Home;
• The Affordable Home Ownership Program
• Rental Construction Incentive
• $34 Million Investment in Rental Housing
• Habitat for Humanity Partnership

"These initiatives will add more than 4,600 new housing units over the next five years in entry-level and rental housing," Social Services Minister June Draude said. "These new measures will add to our housing supply and make it possible for all Saskatchewan citizens to build a better future."

Headstart on a Home

Headstart on a Home and The Affordable Home Ownership Program are designed to stimulate the construction of new affordable homes and support municipal efforts to assist new buyers to purchase a home. Increasing these opportunities for moderate income homebuyers will also help relieve pressure on the rental market by moving people out of existing rental units and into new homes.

Headstart on a Home will support the creation of a minimum of 1,000 new entry level homes over the next five years, through the creation of a new capital funding pool. Almost $200 million over five years will be available to make these low-interest loans. The capital pool will provide construction project financing and incentives to municipality approved builders and developers to stimulate the construction of moderately priced entry-level homes.

The Affordable Home Ownership Program

Building on successful municipal initiatives such as the City of Saskatoon's Mortgage Flexibility Program, the Affordable Home Ownership Program will see the provincial government match municipal tax incentives with a grant equal to a five-year education property tax incentive on municipally designated new homes. Municipalities can then use the provincial grant combined with their own tax incentives or similar assistance to provide the new homeowner with down payment assistance on the property. This program is expected to stimulate the development of 600 new homes over the next five years.

"Through the Affordable Home Ownership Program, we can double the impact of municipal initiatives in this area," Draude said. "This program levers the expertise of our municipalities and provides real assistance to the new home buyer in accessing a new home."

Rental Construction Incentive

Through the Rental Construction Incentive, the provincial government will partner with municipalities to increase the supply of new rental housing construction. The program will provide a grant equal to the Education Property Tax of up to $5,000 per new door of rental housing. Combined with existing projects, this incentive will deliver 300 units in 2011-12 and 650 new rental units in each of the next five years.

$34 Million Investment in Rental Housing

Nearly $34 million in new funding has been set aside to for two purposes: (1) to develop more affordable rental housing in communities with a long-term housing need; and (2) to rejuvenate government-funded housing across Saskatchewan - rehabilitating homes and rental units that would be lost to the housing market without major work. More than 100 communities across the province are expected to benefit from this funding.

Habitat for Humanity Partnership

The provincial government will continue to partner with Habitat for Humanity Saskatchewan to provide home ownership opportunities for lower-income families. In 2011, the province will provide $1.5 million to construct up to 30 homes in select communities across the province. The funding will help to increase the supply of affordable housing for low-income families at a cost of $50,000 per home. This builds on the province's commitment of $1 million to Habitat for Humanity in both 2009 and 2010.

"Maintaining existing housing stock, increasing our inventory and improving access will help to address the housing needs of a growing province," Draude said. "The initiatives in this action plan, and those that will be identified in our housing strategy, will make a real difference for Saskatchewan people in the long-term as the province moves forward."

For more information on the housing action plan and new housing programs, visit Social Services' website at www.socialservices.gov.sk.ca/housing.

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For more information, contact:

Linda Saliken
Social Services
Regina
Phone: 306-787-0246