BANFF – The assessed value of the Banff Housing Corporation’s entire housing portfolio has decreased seven per cent.
According to a Sept. 8 report presented to council as shareholders of the corporation, the overall value dropped from $148,845,270 in 2018 to $138,516,530 in 2019.
“There’s a reduction in the equity share the Town owns,” said Allan Buckingham, chair of BHC board of directors.
“We control that not at all … that’s due to the way the housing prices go and that’s reflected by the assessments.”
The assessed value of BHC’s equity share portfolio has decreased eight per cent to $126,533,270 from $137,097,750.
However, the assessed value of the corporation’s price restricted portfolio increased two per cent to $11,983,260 from $11,747,520.
“It’s interesting to see an overall decrease there,” said Mayor Karen Sorensen. “It’s not the norm for sure.”
BHC has provided home ownership opportunities in order to provide homes within the community of Banff at below market cost for residents.
Under the equity share model, BHC implemented a unique sub-lease agreement whereby the original homeowner paid the total cost of construction and land. The BHC retained the equity difference between those costs and the appraised market value.
BHC’s equity share portfolio includes 163 units made up of row houses, duplexes and single family homes.
With the price restricted model, Middle Springs 2G development and Peyto Place were sold at 80 per cent of fair market value. Future resale was tied to the same equity share and a price restriction of two per cent per annum, compounded annually.
The price restricted model portfolio has 22 units in the portfolio including apartment style condos and duplexes.
