Whitehorse Daily Star

Habitat for Humanity plan could receive a tax break

A property owner in Copper Ridge may get a break on property taxes this year.

By Whitehorse Star on June 21, 2005

A property owner in Copper Ridge may get a break on property taxes this year.

Next week, council will vote on whether to award a grant equal to the 2005 property taxes and building permit fees for 451 Kodiak Place, owned by Habitat for Humanity Yukon.

'The society itself isn't really flush with cash, as you can imagine, and would like the city to make this contribution,' Coun. Doug Graham told the other six members of council at Monday's meeting when it was discussed. 'It's basically revenue-neutral to us.'

In a letter to Mayor Ernie Bourassa and council, society president (and territorial NDP Leader) Todd Hardy explained the organization, which helps build houses for families who may not otherwise be able to afford a home, is ready to build its first home in the territory on the Copper Ridge property.

The home will be a single-storey, four-bedroom design with high energy efficiency and low operating costs.

The letter asks the city to forgive the costs of the building permits and first year taxes on the property.

Since the territorial Municipal Act prohibits municipalities from waiving taxes, administration is proposing the grant be approved equal to what taxes and the permit fees will be.

'While the actual amount of fees or taxes would not be known until the application for a building permit was submitted or assessment completed, council could award the grant and pick up specific costs in the (umbrella grants) bylaw,' reads an administrative report delivered to council last night.

The city typically awards such grants by application, then deals with them all in an umbrella grant bylaw at the end of the year.

Graham pointed out once the house is built, the owners who occupy the home will take over paying the taxes on it.

A report to council notes the request would have no impact on the 2005 budget because it would fall under the category of foregone revenue rather than an expense.

Hardy told the city that actual construction of the house, which relies on volunteers and community contributions, donations and fundraising will get underway in August.

The property was donated to Habitat for Humanity by the territorial government last year.

The family, including Kim Field, Michelle Vanderkley and their three daughters, was selected for home ownership earlier this year. Whitehorse resident Jim Vautour designed the house that will be built.

The homes are sold interest-free to selected families who participate in the construction project.

The Yukon chapter of Habitat for Humanity was formally established last fall, but organizing efforts had been underway for a couple of years.

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