Tweaks to an affordable homeownership program could help more low and moderate income households get their own home.
The City of Stratford manages a provincial program that provides up to five per cent interest free loans for a down payment, however, only four loans have been issued since the start of 2020, according to a management report presented to city council on Tuesday (Oct. 14).
Those numbers could increase after a change to ‘ministry parameters’, including a maximum household income qualification jump of 17.4 per cent, to $117,400 and a maximum purchase price increase of 12.5 per cent, to $685,286.
Per the report, the program has been amended to allow for anyone to reside in Stratford, Perth County or St. Marys, or has a job offer or current employment locally, to apply and to allow for newly built homes to qualify, which could also help local employers recruit workers.
The down payment assistance loan is interest-free and forgivable after 20 years.
The report stated that amounts recovered from repaid loans are kept in a revolving fund reserve and redistributed but there is no additional funding forthcoming and current reserves would support eight to 12 new loans, depending on purchase price.
If reserves run out, the program would pause until more funding becomes available through repayment.
Council voted to approve the staff recommendation to receive the report as information, with no discussion at last night’s meeting.
