The City of Langford has announced plans for a new “innovative” homeownership program that will provide down payment assistance to residents hoping to buy property.
The Attainable Home Ownership Program, which was announced at a Council meeting on Monday, will provide prospective buyers with financial assistance through the City’s Affordable Housing Reserve Fund, entirely funded by contributions made by developers as a condition of rezoning.
According to a release, the homeownership program will assist Langford residents in purchasing a two-bedroom condo at a set purchase price of $450,000, where the City will provide a grant to qualifying families for a percentage of the necessary 5 per cent down payment at the time of closing.
“While affordable housing has always been a focus of Council, we are now directing our attention to attainable homeownership,” said Langford Mayor Stew Young. “This program comes at the height of a major housing crisis across the region and will assist those Langford families who could afford a mortgage payment but are struggling to save the amount necessary for a down payment. We want to see more Langford residents in a position where they can purchase their own home.”
The program is intended to serve families — defined as two or more people in a household — that have lived in Langford for at least two years and have a combined maximum annual household gross income of $125,000.
The City says that other qualifying criteria include maximum household assets of $50,000, that no member of the qualifying family owns any other real estate, is not receiving down payment assistance from any other source, and the applicant has received a pre-mortgage approval for the purchase price.
The allotted down payment grants will be on a case-by-case basis based on household income level.
“In the midst of the housing crisis, it’s encouraging to see local government working collaboratively with developers to help Langford families achieve their goal of homeownership,” said Ron Coutre, President of the West Shore Developers Association. “By providing a portion of a down payment to eligible applicants, the Attainable Home Ownership Program will help those who otherwise may not have been able to enter the market.”
Applications for the program are expected to launch in 2022 and further information can be found online at Langford.ca/WelcomeHome.