Saskatchewan announces affordable housing plan

Over the next five years, the Province of Saskatchewan plans to add at least 4,600 new housing units to help ease the affordable housing crunch.

A new five point action plan will cost $252 million over the next five years and will focus on stimulating construction of new affordable homes and help move people out of the rental market.

The Headstart on a Home program will support the creation of at least 1,000 new entry level homes through the creation of a new capital funding pool.

Municipality approved builders and developers will receive financing and initiatives to stimulate construction of moderately priced entry-level homes. In addition, around $200 million will be available in order to make low interest loans on construction costs.

Another program is the Affordable Home Ownership Program, which will provide municipalities with financial incentives to build up to 600 new affordable homes.

This new program reimburses municipalities the education portion of the property tax, by an amount up to the equivalent of five years. New home buyers will also get help with their down payment.

The Rental Construction Incentive will see the government and municipalities join together for more new rental housing construction. A grant equal to the education property tax, up to $5,000 per new door of rental housing will be available.

Around 400 units will be built in 2011-12, and 650 more in the next five years.

In addition, $34 million will be allocated to develop more affordable rental housing in communities with a long-term housing need. The money will also rejuvenate government-funded housing across the province. Many homes and rental units need to be rehabilitated. Over 100 communities will benefit from the funding.

Habitat for Humanity and the Government of Saskatchewan will continue their work to provide home ownership opportunities for lower-income families.

This year $1.5 million will help construct up to 30 homes across the province.