HeadStart on a Home is one of the most successful social housing programs in Canada.
In the budget delivered Tuesday February 11, 2014, the Federal Government announced the termination of the Federal Immigrant Investor Program which is the source of capital for the Province’s HeadStart on a Home Program.
We are pleased to report that HeadStart will not only continue here in Saskatchewan without interruption, but has been expanded to include construction of units for the rental market in addition to owner-occupied units.
As the Program has matured over the first two years of activity, the need for multi-purpose projects in some communities has been identified. The Government of Saskatchewan has broadened HeadStart’s lending parameters and expanded the owner-occupied clause to include a minimum of 75% owner-occupied units thereby allowing builders to sell units for the purpose of rental. This change will apply to new and previously approved HeadStart on a Home projects.
Expanding HeadStart to include multi-purpose projects will increase the Program’s impact in high growth communities with low vacancy rates and the need for both rental and owner-occupied housing. With the success of the Program, and expansion of the mandate, HeadStart has increased its initial goal of constructing 1,000 units over the Program’s first five years to a new goal of constructing at least 1,500 units by the end of 2016.
“With the provincial government’s expansion of the Program, HeadStart will now be able to better address the need for entry-level housing in high-growth communities where both owner-occupied and rental housing are required, deepening the Program’s impact across the province and effectively addressing the entry-level housing gap in Saskatchewan,” said Grant Kook, President & CEO of Westcap Mgt. Ltd.
HeadStart was announced in March 2011 to finance the construction of entry-level homes in Saskatchewan. Builders and developers are eligible for construction loans of up to 90 per cent of the construction cost of the homes including land, at an interest rate of four per cent. The target sale price for homes constructed through HeadStart is at or below the MLS average sale price for similar units in each community.
To date, HeadStart on a Home has seen tremendous success with $226 million in financing approved to construct 1339 homes across Saskatchewan. Municipalities may apply for the loans on behalf of builders and developers.
HeadStart is managed by Westcap Mgt. Ltd. and partners with Saskatchewan credit unions (Affinity, Conexus, Cornerstone, Diamond North, Innovation, North Valley, Plainsview, Prairie Centre, Synergy, and Weyburn), which have committed up to $10 million to offer HeadStart Equity Builder ProgramTM down payment loans for new HeadStart homeowners.
Builders who are interested in HeadStart on a Home can contact Westcap Mgt. Ltd. directly.
For more information, contact:
Rhonda Young, Senior Director
Headstart on a Home
Westcap Mgt. Ltd.