Homeownership will become affordable to 20 unit owners in a new subsidized housing development touted for Rutland.
A non-profit entity, the YeYe Housing Society, championed by retiring Kelowna-Lake Country MLA Norm Letnick is behind the development, calling for 20 stacked townhouse units on a lot currently occupied by a rental four-plex at the corner of Houghton and Fleming, about a block from Ben Lee Park.
The society prototype being followed is a similar project that started in Banff in the '90s when Letnick was living there and serving on the community's municipal council.
"Banff council started this non-profit housing society concept, it is the prototype for what we are trying to do in Kelowna," Letnick said.
"In Banff, we were able to build more than 200 homes over the first five years."
Under the Rutland housing ownership proposal, homeowners will be responsible for 100 per cent of all costs associated with a unit incurred by YeYe. The land and developer's profit are not included in the cost calculation.
Before the acquisition, a formula of unit cost divided by market value will be used to measure the percentage of market home buyers pay for. For example, if a two-bedroom unit cost is $288,700 and the market value is $400,000, the percentage split would be 72 per cent for the home buyer and 28 per cent for YeYe.
When the home is eventually sold by the original purchaser, the revenue will be divided as per the percentage split as calculated at the time of original occupancy. So if a home sold for $500,000 several years later, the original home purchaser will keep 72 per cent of the $500,000 sale, minus normal selling costs.
Once the home resells for the first time and YeYe receives its percentage sale share, subsequent sales will be subject to normal market costs with no subsidies attached.
Letnick says while government initiatives have encouraged developers to build more rental units, he believes it is equally if not more important to offer subsidy opportunities for people who otherwise can't afford it to enter the real estate market as homeowners and build equity to move up the housing ladder.
The Rutland development will consist of 10 one-bedroom, four three-bedroom and six two-bedroom units.
"It will look like an apartment building but each home will have its own front door. So there will be 20 front doors," he said.
For more information, check out the YeYe Society website at .
The project is now in the design phase, being reviewed by the City of Kelowna planning department prior to consideration from city council.
Beyond his commitment to the society, Letnick, who turns 67 in December, retirement from politics after serving as an MLA in 2009, and on city councils in Kelowna (2005-2008) and Banff (1992-98) will involve more opportunities to travel with his wife Helene and spend time with his three kids and three grandchildren, who all live in Kelowna.
"I think there will be babysitting duties with them (the grandkids) and hiking with them and other stuff," he said.
