Sherbrooke ponders downtown home ownership incentive plan
At a workshop held on September 11, Sherbrooke City Council discussed the implementation of a homeownership program for downtown Sherbrooke through financial assistance in the form of a loan, to be used as a minimum down payment for the purchase of a home. Council will take a decision on this project at its regular meeting on September 18.
The proposed program is open to new homeowners living in detached, semi-detached, or row housing units, of up to four units, condominiums, and any housing co-op. The program applies to new constructions and environments already built in the downtown core, as defined by the revised development and development plan.
This assistance to access a property in the downtown by the City consists of an interest-free loan equivalent to 10 per cent of the purchase price, up to a maximum of $25,000. A second mortgage guarantee will be filed in favor of the city.
After either 20 years, the resale of the housing unit, its refinancing, or the cessation of occupation by the owner, the loan must be repaid (in addition to10 per cent of the capital gains since its acquisition).
"This is an assistance that we hope will serve as an incentive for future homebuyers to move into a growing downtown area,” says Sherbrooke Mayor Bernard Sévigny. “We want to make it a pleasant, urban and safe environment."
If adopted, regulations will come into effect on September 21. An information campaign will follow to publicize the program to the entire population.
Downtown Revitalization Program in
the form of a tax credit Moreover, since April 2016, the City has offered a tax credit program following renovation, restoration, transformation, recycling, expansion, or new construction of a building in the downtown sector area, as defined by the revised development and development plan.
This program, which has already generated about 15 renovation or new construction projects, consists of a tax holiday of 100 percent for the first three years after completion of the work and 50 for the following two years, based on the improvements made.
For more information on this program, visit the City website at sherbrooke.ca/renovation.