The province will no longer be accepting new applications for loans aimed at helping homeowners with the cost of repairing their leaky condos built before July 1, 1999.
Rick Coleman, minister of housing and social development, made the announcement Friday, saying the reconstruction loan program will end with legislation expected in the coming few months. He said the financial viability of the program has severely declined and can no longer be sustained given the downturn in the residential construction market.
The reconstruction loan program provides financial support to help homeowners with the cost of repairing their leaky condos. It was funded through a $750 levy charged on new residential construction. The recent slowdown in residential construction has resulted in less money being collected to fund the program.
To ensure the program was in a position to fulfill its existing commitments for approved projects, the province recently approved an additional $9 million for the program in June, bringing the total amount borrowed from government to $83 million.
The program was launched 11 years ago and expected to run for 10 years. It was expected to give out approximately $250 million in interest-free loans. To date, the province has approved more than $670 million in no-interest loans through the reconstruction loan program, repairing more than 16,000 leaky condos. The province has also provided an additional $23 million in provincial sales tax rebates on repairs.