The Kwanlin Dun First Nation is moving into the housing market as part of its strategy to generate revenue, says Alicia Vance, a councillor with the First Nation.

Vance explained Tuesday that by providing housing opportunities, the First Nation generates income from primarily leasing the land and increased revenue from an income tax agreement it has with Ottawa.

When Yukoners reside on aboriginal settlement land, a portion of the income tax paid by the residents – aboriginal or non-aboriginal – is returned to the First Nation, Vance explained.

She said the First Nation is currently moving forward with five single-family lots it owns in Porter Creek, three of which are on Grove Street, one on Walnut Crescent and another on Pine Street.

Construction of houses on two of the three Grove Street lots should be complete and ready for the market by the end of the year, she said.

Vance explained under the land lease arrangement, potential buyers purchase the home under a typical mortgage agreement through the bank and the Canada Mortgage and Housing Corp.

There is, however, no transfer of title to the land, but rather a long-term, transferrable lease is struck which guarantees the homeowner security of occupancy provided the terms of the lease are fulfilled, she said.

The Kwanlin Dun First Nation estimates a lease arrangement will save the homeowner up to $100,000, because the land is leased and not included in a long-term mortgage.

Vance explained the lease will cost about two or three per cent of the value of the home per year, or less than it would if it were included in the higher rate for mortgages.

Owning the home but not the land is a similar concept to a condominium arrangement, says a press release issued by Kwanlin Dun following a meeting last week to update members about economic development strategies.

"Living on KDFN lands in the City of Whitehorse potentially reduces the cost of a home by $100,000 because the lot is leased,” says the release.

"With housing prices at record highs for the city, this could significantly assist with the current housing problem.” (The average price of a Whitehorse home is just under $400,000.)

Vance confirmed the Kwanlin Dun is aiming in the $200,000 to $300,000 price range for the cost of the houses.

In addition to the five Porter Creek lots, and another downtown lot on Jarvis Street, the First Nation has three larger residential projects in its economic development portfolio, Vance explained.

Kwanlin Dun, she added, is looking for a contractor to bring on 85-lots next to the existing McIntyre subdivision, lots which were in the original subdivision design and are already serviced.

There is also an unserviced parcel of land abutting Copper Ridge large enough to accommodate 185 lots, Vance pointed out.

She said another parcel in Valleyview is suited for a condominium development.

Also noted at last week's meeting to discuss the potential for generating revenue was this September's completion of the new waterfront cultural centre which will house the Whitehorse Public Library.

It was also pointed out that Kwanlin Dun started developing its McLean Lake gravel quarry on August 1.

Under the provisions of the aboriginal land claim settlements in the Yukon, First Nations negotiated the right to receive a portion of income tax by residents living on settlement land.

Though the numbers are different, the formula is similar to the arrangement which provides the Yukon government with its base funding.

Ottawa reimburses the territory 45 per cent of the income tax paid by each Yukoner, in addition to other arrangements in the annual financial transfer agreement to provide for health care and the like.

Vance said the self-government agreement states that Kwanlin Dun will currently receive 75 per cent of the income tax paid by residents on settlement land. That percentage will increase to 95 in 2015.

By Chuck Tobin

Star Reporter