Maksym Yemelyanov / Depositphotos.com
After a hiatus of nearly six years, the City of St. Thomas is reviving the St. Thomas-Elgin Affordable Homeownership Program (AHP), originally launched in 2007.
The AHP was designed to assist low-to moderate-income households in purchasing their first home.
This AHP was originally funded as a one-time allocation under the Canada-Ontario Affordable Housing Program.
Since its inception, 46 households have successfully achieved homeownership through the initiative.
In her report to city council at the April 20 meeting, Ellen Hickey, Supervisor of Housing Stability Services, explained, “AHP provides down payment assistance in the form of an interest-free, forgivable loan over a 20-year period to help eligible St Thomas-Elgin households transition from renting to home ownership.
“Approved properties that are sold within the 20-year forgiveness period are required to repay the original loan and a portion of their capital gains. These repayments help to sustain the program as a revolving fund, ensuring that future eligible households may also benefit from AHP.”
The initiative was suspended in 2020 due to significant inflation in local housing prices that outpaced the AHP guidelines.
During Monday’s meeting, Mayor Joe Preston observed, “This is great to have it back. We’ve been very successful at attracting home ownership by partnering with first-time buyers and with good, solid rules that go along with it.
Hickey indicated the hope is to approve approximately 10 applications.
The AHP is to be relaunched next month.
Eligibility Criteria
To be eligible for down payment assistance, applicants must meet the following criteria:
- You must be at least 18 years old.
- You must be a legal resident of Canada
- You must be a first-time home buyer.
- You must qualify to obtain a mortgage.
- You must not currently own a home or a residential property, in whole or in part, including recreation or cottage property.
- You cannot be living in a spousal relationship with a person who owns, in whole or in part, a residential property, including recreation or cottage property.
- You must be a renter residing in St Thomas or Elgin County (verification required).
- You agree not to lease the home and to occupy it as your primary residence for the entire duration of the loan. Failure to do so will be considered a default under the terms of the loan agreement.
- You must not owe arrears to a Social Housing Provider.
- Eligible purchasers receiving down payment assistance must sign a loan agreement with the City of St. Thomas and provide all requested documentation.
Maximum Assistance Levels
- The maximum amount of down payment assistance is 5 per cent of the purchase price up to a maximum of $25,000, and will be provided at the time of the closing date.
- Your total household income before deductions must be less than $113,900 for individuals and $135,000 for families consisting of two or more people.
- Your total household assets must be below $50,000.
Written by Ian McCallum

