End the First Time Home-buyers Program
The city is moving forward with the First Time Home-buyers Program even
though there is no reason to continue. When the program was conceived,
housing inventories were at a record low and an argument could be made
to create affordable housing. Given that a selection of houses and
condominiums that were available, the argument that relatively well off
Edmontonians needed subsidized housing was weaker. However, currently
housing inventories are at record high levels and there is is a wide
variety of condominiums and single family homes available for less than
the $300,000 ( min 2 bdr-MLS and Comfree under $300,000 2609 units;
under $200.000 321 units) the city is planning on charging for their
units. The only purpose this program will achieve is to transfer public
property (parks) to private ownership.

The loss of public parkland is significant when viewed in the context of
council's stated goal of increasing community density and its
willingness to ignore zoning and neighbourhood plans to allow high
density developments. As a practical matter there is no zoning in the
city and preserving parkland is the only guarantee that communities will
be remotely liveable in the future. Picture your favourite park 20
years from now surrounded by high density developments, all using it to
meet open space requirements.

In addition to the loss of public space, the structure of the program
sets the home buyers up to lose their homes. The idea that people who
can barely afford to buy the condo units will be able to increase their
mortgages to buy the land a few years later is similar to the schemes
that led to the housing crisis in the US and the home grown market
collapses in the early 80`s. If the first time home-buyers are to keep
their homes, their income and property values will need to increase
substantially. Although, if prices rise and incomes don't the first
time home buyers will have an excuse to become first time flippers.

There is no justification for the First Time Home-buyers Program. There
is no shortage of affordable housing and middle income earners don't
need subsidies to buy homes. It is a program whose time has past and it
should be ended.
- posted by Larry @ 1:33 p.m.