HAINES JUNCTION – The Yukon government has put up $3.5 million over two years as an incentive to build additional rental housing in the eight Yukon municipalities (AYC).

Yukon Housing Minister Stacey Hassard announce the funding over the weekend in Haines Junction during the annual general meeting of the Association of Yukon Communities.

Hassard explained under the program, the government will match any housing incentives put forward by the municipalities.

The government has set aside $1 million this year and $2.5 million next year with no commitment to carry on after the two years, Hassard told the municipal leaders.

“Through this program, the Yukon government will partner with municipalities in offering one-time capital grant incentives for eligible projects to help increase the supply of rental housing in municipalities,” the minister said.

“This will match municipal programs that are in place, or will come into place to meet the unique housing priorities in that community.”

Currently, for instance, the City of Whitehorse has a policy where it will forgive property taxes up to 10 years for major housing projects to a maximum of $500,000.

The first project approved under the policy adopted by the city in 2011 was in 2012 to assist with a downtown housing initiative by the Options for Independence Society.

Over the last year, the city has entered into two other arrangements: one for 11 townhouses in Whistle Bend and the other for a 24-apartment complex on Centennial Street.

Hassard explained the government would provide the incentive up-front, even if the arrangement with the municipality is a multi-year deal.

If, for instance, the city entered into an arrangement with a developer to write off property taxes over 10 years with a total value of $300,000, the government would provide the developer with an additional $300,000-grant upfront, the minister explained.

He said the program only applies to arrangements after April 1, so that the two agreements entered into with the city over the last year are not eligible.

The government will also match any joint incentives put forward by a municipalities and First Nations, he said.

Faro deputy mayor Diana Rogerson asked Hassard if the incentive could be applied to renovation projects, as the former mining town has an abundance of unoccupied homes.

“I think as long as we are building capacity in the community, we would be able to figure it out,” Hassard replied.

Hassard said while the fund is locked into two years, the government can still look at a new program after the two years.

It was also noted during the discussion that Whitehorse has already developed an incentive policy and there’s nothing stopping the seven other incorporated communities from piggybacking on that policy.

“I want to thank the staff of the housing corporation and AYC, everyone who has been involved in putting this together,” he said.

The minister announced the new fund after reviewing existing programs the Yukon Housing Corporation provides for affordable housing and the mortgage assistance it provides for those who don’t qualify for regular bank mortgages.

In the 10 years from 2004 to the end of last year, Yukon Housing has spent $183 million on its housing programs, he said.

Hassard was one of four cabinet ministers who attended the annual general meeting of elected municipal leaders.

See related AYC coverage.