Clive council wants to review Broder Developments proposal more before contributing to its proposed affordable housing initiative.
“I’m optimistic but there is no use rushing,” Mayor Anita Gillard said at council’s regular meeting July 18 about making a municipal contribution to the Creekside Subdivision Affordable Housing Program.
Broder Developments asked Clive to contribute $2,000 towards each home.
The proposed program would allow the new home buyer’s down payment to be provided by the developer in the form of a forgivable loan and qualify for Canada Mortgage and Housing Corporation (CMHC) approval, Chief Administrative Officer Carla Kenney told council in her report to council.
“Broder Developments has been building affordable housing in Clive for the last eight years,” said Jonathan Jacobson of Broder Developments. “What we’ve noticed, however, is that there is a tremendous demand for single family housing in that $270-320 range for families, but often those families don’t have the down payment available. So we chose Clive because we are already there, and the economic conditions are such that we can build single-family homes for about 10 per cent less than what folks would pay in Blackfalds/Sylvan Lake/Lacombe.”
The Village of Clive provided a letter of support for the Creekside Subdivision Affordable Housing Program to CMHC.
Jacobson said he expects to hear back from CMHC by the end of summer on whether or not he gets approval for the project.
CAO Kenney told council that the City of Lacombe is in process of launching a new Down Payment Assistance Program with Broder Developments. She added, however, that she wasn’t able to find a precedent for a program where the municipality contributes to the construction costs of homes destined for the private market but some municipalities offered discounted land deals. She cautioned council to consider the precedent that would be set with the village contributing.