City launches an affordable housing initiative

The Down Payment Assistance Program was born out of a housing needs assessment

  • Nov. 10, 2016 7:00 a.m.

BY KALISHA MENDONSA

Lacombe Express

The City of Lacombe is working hard to promote one of their affordable housing initiatives that comes in the form of the Down Payment Assistance Program, or DPAP.

The DPAP was born out of the housing needs assessment done in recent years as a way to help those who could own homes to do so. The City of Lacombe will, through this program, cover the cost of a down payment on certain homes affiliated through the initiative, which is usually around $11,000 $13,000, according to a City official.

“If people meet the program requirements and can afford a home, but are stuck renting, we want to get them housed. That frees up rental space and gets them ownership. However, it’s not simply free money,” explained Guy Lapointe with the City of Lacombe.

“To that end, we have created the Down Payment Assistance Program (DPAP). That program assists people who are in the income bracket of $45,000-$90,000. That is for people who could probably own a home and who should be owners of a home, but who are struggling to save up for a down payment.”

Lapointe said there are many people who earn within the designated bracket and would be able to afford monthly mortgage payments, but struggle to save up for the down payment, especially in the current economic situation.

The program does have strict guidelines to help ensure its sustainability in terms of growth and continuation, and to create consequences for walking away from the home once purchased.

“It’s not free money. There is a caveat attached to the property that says if the owner decides to walk away from the property in the first five years, the City will receive back all of the down payment money,” Lapointe explained.

“It’s graduated over 20 years, and a portion of the money comes back to the City if the owner walks away from the home after five years and before 20.”

For the first five years of ownership, if the owner decides to move away from the home including keeping it as a rental property, but not physically living there themselves the City will then receive the total down payment back upon sale of the home or the date the home becomes a rental property.

After the first five years, 75 per cent of the down payment is owed to the City if the owner leaves before the 20th year.

“It’s really benefiting those who genuinely want to commit to a home and who need help with their down payment in order to do so,” Lapointe said.

He said the process to create this private/public partnership was lengthy. The program is operated through the City of Lacombe in partnership with Bethany Group and Browood Developments.

“We had a fairly lengthy process and originally hoped to have it rolled out in January 2016, but it took us until October of this year,” he said. “That is because we want to make sure the process is concrete. We want to make sure the home values match what they are priced at, and that the program meets a specific need. There has to be checks and balances in place to ensure that people don’t take advantage of the situation.”

Lapointe said he encourages those who meet the requirements to step up and apply. He said the program is a great initiative for the City because it helps to get those invested in Lacombe into homes and to help build up the community for the future.

More information is available at lacombe.ca/DPAP.

kmendonsa@lacombeexpress.com

 

Just Posted

The Government of Alberta identified 115 new COVID-19 cases Sunday, bringing the provincial total to 3,089.
(Black Press file photo)
Red Deer drops to 71 active cases of COVID-19

Province adds 127 new cases of the virus

Police officers and their dogs undergo training at the RCMP Police Dog Services training centre in Innisfail, Alta., on Wednesday, July 15, 2015. Mounties say they are searching for an armed and dangerous man near a provincial park in northern Alberta who is believed to have shot and killed a service dog during a police chase. THE CANADIAN PRESS/Jeff McIntosh
RCMP search for armed man in northern Alberta after police dog shot and killed

Cpl. Deanna Fontaine says a police service dog named Jago was shot during the pursuit

Alberta now has 2,336 active cases of COVID-19, with 237 people in hospital, including 58 in intensive care. (Black Press file photo)
Red Deer down to 73 active cases of COVID-19, lowest since early November

The Central zone has 253 active cases of the virus

The Sylvan Lake Gulls show off the home jerseys (white) and their way jerseys at the Gulls Media Day on June 17, before the season opener. Following the media day, the team took to the field for their first practise. (Photo by Megan Roth/Sylvan Lake News)
Sylvan Lake Gulls ready to throw first pitch as construction continues

The Gulls inaugural season kicks off June 18 with a game against the Edmonton Prospects

Marco Mendicino, Minister of Immigration, Refugees and Citizenship during a press conference in Ottawa on Thursday, May 13, 2021. THE CANADIAN PRESS/Sean Kilpatrick
Canada to welcome 45,000 refugees this year, says immigration minister

Canada plans to increase persons admitted from 23,500 to 45,000 and expedite permanent residency applications

A dose of the Pfizer-BioNTech COVID-19 vaccine is pictured at a vaccination site in Vancouver Thursday, March 11, 2021. THE CANADIAN PRESS/Jonathan Hayward
NACI advice to mix vaccines gets varied reaction from AstraZeneca double-dosers

NACI recommends an mRNA vaccine for all Canadians receiving a second dose of a COVID-19 vaccine

Bruce Springsteen performs at the 13th annual Stand Up For Heroes benefit concert in support of the Bob Woodruff Foundation in New York on Nov. 4, 2019. (Greg Allen/Invision/AP)
Canadians who got AstraZeneca shot can now see ‘Springsteen on Broadway’

B.C. mayor David Screech who received his second AstraZeneca dose last week can now attend the show

A lotto Max ticket is shown in Toronto on Monday Feb. 26, 2018.THE CANADIAN PRESS
No winning ticket sold for Friday’s $70 million Lotto Max jackpot

The huge jackpot has remained unclaimed for several weeks now

Canadian Prime Minister Justin Trudeau is seen during a joint news conference following the EU-Canada Summit, in Brussels, Belgium, Tuesday June 15, 2021. Trudeau says Canada is on track now to have 68 million doses delivered by the end of July, which is more than enough to fully vaccinate all 33.2 million Canadians over the age of 12. THE CANADIAN PRESS/Adrian Wyld
Vaccine deliveries enough to fully vaccinate all eligible Canadians by end of July

Three in four eligible Canadians now have their first dose, nearly one in five fully vaccinated.

Chief Public Health Officer Theresa Tam listens to a question during a news conference, in Ottawa, Tuesday, Jan. 12, 2021. The number of confirmed COVID-19 cases attributed to the highly contagious Delta variant grew in Canada this week. THE CANADIAN PRESS/Adrian Wyld
Canada’s public health agency reports spike in confirmed cases of Delta variant

More than 2,000 cases of the variant confirmed across all 10 provinces and in one territory

The federal government says it wants to ban most flavoured vaping products in a bid to reduce their appeal to youth. THE CANADIAN PRESS/AP-Craig Mitchelldyer
Health Canada proposes ban on most vaping flavours it says appeal to youth

If implemented, the regulations would restrict all e-cigarette flavours except tobacco, mint and menthol

The Montreal Police logo is seen in Montreal on Wednesday, July 8, 2020. Some Quebec politicians are calling for an investigation after a video was released that appears to show a Montreal police officer with his leg on a young Black man’s neck during an arrest. THE CANADIAN PRESS/Paul Chiasson
Probe called for after video appearing to show Montreal officer’s knee on Black youth’s neck

Politicians call for investigation after clip evokes memories of George Floyd incident

Most Read