By Thia James

New provincial funding will aid Habitat for Humanity building capacity

Mar 25, 2013 | 6:03 AM

The provincial government’s promise to double its funding for Habitat for Humanity is being cheered by the head of the Prince Albert organization.

The Saskatchewan government said it would set aside $2 million in 2013 for Habitat for Humanity to build 40 new homes.

“What it does really, it increases our capacity to help people with affordable housing,” said Morris Sawchuk, president of the Prince Albert Habitat for Humanity.

He said right now the plan is to add a minimum of six houses in Prince Albert. This plan was in the works prior to the budget announcement.

“What the government gives us helps us to build a house … [is] a considerable portion. But it doesn’t build the entire home. So, what we have to do now is we have to raise money for our portion to increase our build capacity.”

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Sawchuk said there is no specific allotment of funding for each chapter, but it will be split in $50,000 portions for each new house.

And the full value of the funding will go towards the new homes.

“We can’t use it for administration, or anything,” he said. “This money goes directly towards building.”

And the organization is looking to expand its operations in northern Saskatchewan. He identified La Ronge, and added Habitat for Humanity has had discussions with Duck Lake.

Habitat for Humanity is a national non-profit organization that builds affordable housing for families. In Saskatchewan, the combined income of family members cannot exceed $52,000. More than half of the Habitat homes built in Canada are built out west. Once a family has been approved for a Habitat home, they must agree to provide 500 hours of what Sawchuk calls “sweat equity.”

Once the house is complete, the homeowners must pay an interest-free mortgage.

“We call it a hand up, not a hand out,” Sawchuk said.

Habitat asks PA for tax abatement for ReStore

The Prince Albert Habitat for Humanity will find out Monday whether the city will grant it tax abatement for its ReStore on Marquis Road.

The ReStore takes in new and used building materials and re-sells the products to the public.

Sawchuk said the proceeds from the ReStore are used towards the fundraising portion of Habitat for Humanity’s homebuilding capacity.

Administration has recommended the approval of an abatement for the 2013 municipal taxes. The property is not owned directly by Habitat for Humanity, but the property owners pass along the yearly tax bill to Habitat for Humanity. The annualized levy is about $15,750 – based on 2012 assessment numbers.

“The reason we applied for that is because of the annexation of the property where our ReStore is which was … previously in the RM,” Sawchuk said. “The taxes have increased substantially.

“And so, we’ve asked for a tax abatement from the city because this – if we don’t get it, this will impact our build capacity.”

The request was on the agenda at the March 18 executive committee meeting.

Councillor Ted Zurakowski initially expressed concern about the tax abatement because Habitat for Humanity doesn’t directly own the building.

“And I recall another situation we had on River Street … the Women of the Earth asked for a tax abatement and we did not grant that because they did not own the building,” he said.

But director of finance Joe Day told the committee “My anticipation was we would get something from both owner and the lessee that assures us that that’s where our … abatement would end up.”

The motion to refer the matter to council passed, and council will make its final decision about the abatement at Monday’s meeting.

tjames@panow.com

On Twitter: @thiajames