SASKATOON, June 15, 2012 /CNW/ - Construction of two new condominium developments is underway in Yorkton and will be celebrated with ribbon-cutting ceremonies today. These two developments will receive $3.4 million in financing from the Government of Saskatchewan through the HeadStart on a Home Program (HeadStart).
"The construction of these projects is wonderful news for the citizens of Yorkton and surrounding area," said Yorkton MLA Greg Ottenbreit on behalf of Social Services Minister and Minister responsible for Saskatchewan Housing Corporation June Draude. "As our Province continues to grow and prosper, and more people are calling Saskatchewan home, finding an entry-level home that is affordable in today's market can be challenging. I am pleased that HeadStart is helping to address this issue, and that developers and home purchasers are expressing interest in the program."
At 10:30 a.m. today, a ribbon-cutting ceremony will be held at 205 Good Spirit Crescent, a 14-unit project by Deneschuk Homes Ltd, which will receive $2.4 million in financing under HeadStart on a Home (HeadStart). Each 1,148 sq. ft. three-bedroom unit is priced at $235,861. Comprised of seven semi-detached bungalows, this project is under construction in the new Riverside Terrace subdivision at 167-205 Good Spirit Crescent. Occupancy is expected to begin in November 2012.
Following the ceremony at Good Spirit Crescent, a second ribbon-cutting will be held at Fifth Avenue Estates, a 6-unit project by Terra Developments Inc., which will receive $972,000 in financing under HeadStart. Each 1,116-1,138 sq. ft. three-bedroom two-storey detached townhouse is priced at $239,750. Located at 164 Fifth Avenue South, occupancy is expected to begin in Fall 2012.
The HeadStart on a Home Program, a $200 million initiative announced by the government in 2011, will finance the construction of at least 1,000 new, entry-level homes over the next five years. With municipalities as the program applicants, builders and developers are eligible for construction loans of up to 90 per cent of the cost to bring new homes to market. Financing is provided without the requirement of pre-sales of housing units and at an interest rate of four per cent per annum.
The target sale price for homes constructed through HeadStart on a Home will be at or below the MLS average sale price in each community, expected to range from $180,000 to $300,000. The homes may include condominiums, multi-unit, single family dwellings, modular homes, or ready-to-move units.
The program is delivered by Westcap Mgt. Ltd. (Westcap) with its twelve Credit Union partners: Advantage, Affinity, Conexus, Cornerstone, Diamond North, Innovation, North Valley, Plainsview, Prairie Centre, Synergy, Spectra, and Weyburn.
"HeadStart on a Home is a made in Saskatchewan solution that will help sustain our current growth and prosperity in this province," President and CEO of Westcap Mgt. Ltd. Grant Kook said. "As the fund manager of HeadStart, working closely with our credit union partners, we are very pleased to have approved over $57 million in entry-level projects to date, including these two projects in collaboration with the City of Yorkton."
As Saskatchewan's largest private venture capital fund manager, Westcap has over $500 million in capital under management. Westcap specializes in the development, launch, and fund management of niche funds that address capital funding gaps in Saskatchewan. Westcap's history and experience in delivering new funds and programs throughout Saskatchewan, such as the well-known Golden Opportunities Fund Inc., is integral to the success of the program.
As leaders in Saskatchewan's financial industry, Westcap and its Credit Union Partners will ensure that the program reaches all communities across Saskatchewan.
For more information about HeadStart on a Home, visit the website at: www.headstartonahome.ca.
For further information:
Westcap Mgt. Ltd.