Town aims to create $25K grant for owners & developers to build new homes

Eyeing a potential housing bubble in the coming years, the Town wants people building. 

The Town of Bonnyville is trying to incentivize building new homes in the community with a municipal grant.

First reading passed of a new bylaw called Build Bonnyville – Housing Incentive Grant, that would see a total of $2 million set aside for the program.

The grants would be up to $25,000 each for owners and developers to access for construction of a residential dwelling unit on vacant residential land.

“We have not had a new home built in the Town of Bonnyville in many, many years,” said Mayor Elisa Brosseau on The Morning After. 

“As a Town, we want to grow. We want to see that growth, and we see these big projects that could happen in our area. We talk Pathways [Pathways Alliance, carbon capture]. We talk about the hangar that’s being built out at 4 Wing. We know that there’s a great opportunity for things to boom in this area.” 

A larger conversation is happening nationwide about housing availability, and the Lakeland area is no different.

With the pressure being felt about a potential influx of construction workers to Cold Lake and area with the major 4 Wing construction coming ahead, vacancy rates are low, and a housing bubble could create huge rent costs and mortgages for residents.

How it works

This grant would be accessible on a first come, first served basis.

Currently, developers could use these funds for things like builder or buyer mortgage rate subsidies, lot price rebates, or appliance, landscaping, and garage packages.

Meanwhile, eligible owners would receive 25 per cent of the funds upon the completion of the foundation once all deficiencies have been rectified, and 75 per cent of upon the issuance of the occupancy permit by the Town.

CAO Bill Rogers explained at the regular meeting on Oct. 8, that in this case, an owner is someone that would be building to themselves, and a developer would be building for resale.

The bylaw still requires two readings until it’s passed, as conversation around the table brought up accountability for how the funds would be used.

“It’s just a measure of accountability. We don’t want strings attached. We don’t want to handcuff developers. They are handcuffed enough through regulation. But it’s just an accountability piece,” said Brosseau. 

“We’re funding this through taxpayer money. We’ve been burnt in the past with, and maybe not necessarily in the municipality, but homebuyers with developers who have left people high and dry, and I just don’t want to see that happen for residents.” 

As currently listed, the term of this program would be from September 1st, 2024, to December 31st, 2026, or until a total of 80 new dwelling units have been constructed under this bylaw.

The money would come from ID349 funds.

“This is a big picture, long game plan. We’ve got all these moving pieces, but they’re all moving to compliment one another, and this is just one of them.”

Morning After