A program designed to help low- to moderate-income families purchase their first home in St. Thomas is set to make a comeback after being put on hold in 2020 due to rising housing prices.
Plans are in motion to restart St. Thomas’s affordable homeownership program in May, an effort that was paused over five years ago because of “significant inflation in local housing prices” which exceeded the program’s guidelines, as mentioned in a report unanimously approved by city officials during Monday’s council meeting.
“I’m happy to see (the program) back as another step to work towards homeownership in our community,” St. Thomas Mayor Joe Preston expressed at the council gathering.
The affordable homeownership program offers down payment assistance “in the form of an interest-free, forgivable loan over a 20-year period” aimed at helping qualified households move from renting into owning homes, according to the report.
Qualified households in St. Thomas-Elgin can get support up to five percent of the home price, capped at $25,000, as stated in the report. Income limits for households are set at $113,900 for individuals and $135,000 for families, with an asset cap of $50,000 and a maximum property price of $500,000.
The report noted that these updated limits “reflect current housing market conditions and provincial program requirements” while still promoting attainable homeownership options within St. Thomas.
This initiative was originally funded through a one-time allocation under the Canada-Ontario Affordable Housing Program back in 2007; it has supported nearly 50 households so far and continues as a revolving fund according to the report. Properties sold during the forgiveness period must repay the original loan along with part of any capital gains accrued.
“These repayments help sustain the program as a revolving fund, ensuring that future eligible households may also benefit from AHP,” said the report while estimating that this fund could assist about 10 more households before it runs out of money.
An advocate for affordable housing, Preston mentioned on Tuesday that this program adds another way for families to secure homes in growing St. Thomas. He hopes it can not only continue but expand further.
“Ten (households) is better than zero,” he remarked. “We’re looking for every way we can. I like this one as another way of helping, especially young people with their first down payment; if we can keep doing more of it, then let’s do it.”
Additionally, Preston shared his desire for the program not to have prolonged gaps between relaunches and suggested that local government might take on a larger financial role.
“We know it’s not risk-based because it is paid back to us,” he noted. “A house sold later means we get equity back into this fund; so I’d like it prioritized higher on our list as another affordable tool.”
The expression of interest phase starts May 1st. More details about eligibility criteria can be found at www. stthomas. ca/Homeownershipprogram.
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