COLD LAKE - The City of Cold Lake council approved the Starter Home Incentive Program Policy at the Dec. 10 regular council meeting.
The policy, which was first considered during the Oct. 15, Corporate Priorities Committee meeting, aims to incentivize the construction of smaller homes within the community. The policy’s goal is to diversify the city's housing market by encouraging the development of affordable starter homes that can serve as entry points for first-time homebuyers.
Andrew Serba, Manager of Economic Development for the City of Cold Lake, spoke about the policy during the council meeting. He said local builders have been focusing on constructing larger homes priced at $500,000 and above, resulting in a lack of affordable housing options for new buyers.
To address this issue, the policy aims to incentivize both builders and buyers.
“This policy seeks to incentivize the demand for smaller starter homes by providing a municipal property tax revenue rebate to the home buyer of an eligible new build, while refunding the municipal revenue from building and development permits to the home builder,” Serba explained.
Feedback and adjustments
The policy, initially drafted with a five-year property tax rebate, was modified based on feedback from both the Corporate Priorities Committee and industry stakeholders.
"Based on feedback from the committee, administration has reduced the number of years that the rebate is received from five years to three years," Serba stated.
The original footprint and price limits for starter homes were also adjusted.
“Based on feedback that administration has received from industry, it has increased the footprint of a qualifying starter home, as the policy defines it, to a home with a footprint of 800 square feet or less, and a total above-grade living space of a maximum of 1,600 square feet or less,” Serba said.
“We have also suggested $380,000 as a maximum sale price for a starter home as defined for the purpose of this program. Those are the main changes made based on feedback received since the October meeting,” Serba said.
Incentive details
The Starter Home Incentive Policy defines a starter home as either a single detached home or a row house with a footprint of 800 square feet or less and no more than 1,600 square feet of above-grade living space.
The policy stipulates that homeowners can only access the rebate once, and the rebate will not be transferrable should the home be sold, according to information from the City.
Mayor Craig Copeland also emphasized the importance of the program, stating, “We’re looking to create more affordable home opportunities for people who are looking to buy into the housing market. Housing is a hot commodity in town, and we want to do what we can to create more opportunities for people to have affordable options.”
The policy will offer a three-year property tax rebate to the first buyer of each eligible home, which is designed to reduce the initial living cost burden. If the home is sold during the rebate period, the new owner will not be eligible for the remaining rebate, according to the City.
Council made a motion to approve the Starter Home Incentive Policy as presented.
