Non-profits purchasing land from the city will now have the non-refundable deposits for the land after council voted in favour of an update to the land disposition policy.

While the change will impact any non-profits purchasing land from the city, the Challenge Disability Resource Group may be the first to benefit from it.

It has already paid $84,000 – representing 10 per cent of the purchase price – on the city’s property at Main Street for its proposed Cornerstone project.

That venture involves building a mix of supportive, affordable and market housing units along with some commercial space.

It will be a six-storey structure featuring 23 units identified for affordable housing and 23 units identified as supportive housing for Challenge’s clients. The top floor will include seven market-housing units for purchase.

The building is designed to offer permanent housing that is safe, affordable, diverse, and inclusive, Challenge noted in a statement this morning.

Executive director Jillian Hardie praised the city’s policy change, noting it “is allowing Challenge DRG the time to secure financing for the affordable and supportive housing development.

“We have also identified tenants for all of the available commercial space in the proposed building.”

Discussions, she said, are continuing with the Yukon government, the Canadian Mortgage and Housing Corp. and two commercial banks on potential financing options. The group is also working closely with all stakeholders on it, she said.

It was Challenge that requested the change in the policy.

As planning manager Pat Ross told council last week: “Administration is supportive of (Challenge’s) request and, as such, this amendment to the land disposition policy is being brought forward for council’s consideration.

“Affordable housing is identified as a strategic council priority in the city’s strategic plan. Providing support to (Challenge’s) Cornerstone project through this proposed policy amendment aligns with this significant council objective.”

The change ensures the provision of the policy around the non-refundable deposit is not triggered for non-profits.

Those organizations are defined as a non-profit society under the Yukon Societies Act for a minimum of two years in good standing.

“This definition would prevent a for-profit entity from incorporating under the Societies Act for the sole purpose of circumventing the non-refundable deposit provision of an agreement,” it was highlighted in the city report.

The amendment recognizes “the important contributions to the community that are made by non-profit societies and the financial challenges that they face that would be compounded by losing a portion of a sale transaction deposit,” Ross said.

Along with the changes for non-profits were some additional minor amendments to the policy, including:

• triplex lots added to the lottery process and sale agreement sections;

• adding a Yukon driver’s licence as a verification of identity and residency; and

• separating the terms and conditions for the sale agreement and agreement requirements into individual categories in an effort to provide clarity.

Coun. Rob Fendrick was absent from Monday’s council meeting.