Foxcroft
Questions & Answers
The Canadian Mental Health Association (CMHA) Shuswap/Revelstoke Branch approached BC Housing in December 2008 about a partially completed development at 761 2nd Street, S.E. in Salmon Arm. The Province purchased the property with two buildings for $5,549,360 to help meet the need for affordable rental accommodation in the community.
The second building, Foxridge, has four studio and 24 one-bedroom units providing subsidized housing for low-income adults at risk of homelessness and living with mental illness. Tenants began moving into Foxridge in May 2009. CMHA Shuswap/Revelstoke Branch operates this building under an operator agreement with BC Housing.
What is Foxcroft Affordable Homeownership?
The Province is introducing an affordable home ownership development in Salmon Arm consisting of 11 two-bedroom strata title apartment units at Foxcroft for sale to qualified buyers who meet the income and asset criteria.
Who will manage Foxcroft?
The owners of the 39 strata units make up the members of a strata corporation, PRHC is the owner of the 28-unit strata-titled Foxridge while the Foxcroft units will be owned by the 11 homeowners.
The strata corporation is responsible for managing and maintaining the common property and common assets for the benefit of all the owners, which is typically administered through a strata management company.
The strata corporation has been divided into two sections, each section will operate independently of each other and elect executives to administer their building’s regulations and their section’s operating budget.
Each homeowner will be responsible for contributing a monthly strata fee toward the maintenance of the building. The first Annual General Meeting is anticipated to take place in January/February 2010.
For more information about the operation of strata properties, see the following link:
http://www.fic.gov.bc.ca/responsibilities/strataowners/instruction_guides.htm
Who will manage the adjacent building?
CMHA Shuswap/ Revelstoke Branch, as designated by the Province, will manage the 28-unit adjacent building, Foxridge, and the Interior Health Authority will provide on-site staff.
What are the eligibility criteria to purchase units at Foxcroft?
• Applicants must have a gross household income of $61,223 or less and must be able to qualify for a mortgage.
• The units must be the owner’s principal residence. Buyers must be residents of BC for a minimum one year and be either a landed immigrant or a Canadian citizen.
• The buyer cannot have assets over $100,000.
• As a condition to purchasing a unit, all buyers will be required to complete a one-day course on home ownership and the responsibilities and liabilities of homeownership and strata corporations.
Do I have to have dependents to qualify to purchase a strata unit?
No, you do not need to have dependents to qualify, but you still must meet the eligibility criteria to be able to purchase a unit.
Is there a standard purchase price for each strata unit?
The initial purchase price for the 11 units is $135,000 plus approximately $10,000 in closing costs.
Where can I apply for a mortgage?
Arrangements have been made with Salmon Arm Savings Credit Union to be a lender for the affordable home ownership units. Qualified buyers may be eligible for Salmon Arm Savings Credit Union’s 100 per cent financial package on approved credit. Buyers are at liberty to seek alternate financing arrangements.
Will I need to hire a lawyer to assist in closing the sale?
A lawyer will be required for the conveyance. The Contract of Purchase & Sale requires that all purchasers obtain independent legal advice. The name of a local lawyer having a thorough understanding of the charges to be registered on title will be made available to those applicants, but buyers are at liberty to retain a lawyer of their choice for the conveyance of the property.
Will I need to buy house insurance to purchase a strata unit in Foxcroft?
Insurance is usually a requirement of the financial institution when obtaining a mortgage. The bylaws of the strata corporation will also require that all owners must obtain a strata liability insurance policy insuring against damage to their personal property.
Can I see what the apartments look like before I decide to apply?
Contact CMHA at 832-8477 to set up a time to view the available units.
How can I apply to purchase a unit at Foxcroft?
Potential buyers can obtain an application and other information from the Foxcroft website (www.foxcrofthousing.ca), or may collect an application from the CMHA offices at 433 Hudson Avenue NE, and Salmon Arm Savings Credit Union at 370 Lakeshore Drive NE, Salmon Arm, BC.
What is the application deadline?
The first round of applications were due on July 31, 2009. We are now moving to the second round of applications, so if you are interested contact the CMHA office, 832-8477.
How will buyers be chosen for units in Foxcroft?
Applicants for the first round have the opportunity to buy will be randomly selected from a pool of prequalified applicants. The second round will be individual Contract of Purchase and Sales, after completing the Application form, and being deemed eligible.
When will a new owner be able to move in?
It is anticipated that the randomly selected applicants will take possession of the property during the fall / winter months of 2009.
Is there a warranty that covers the construction of Foxcroft?
Homes built by licensed residential builders are covered by mandatory, third-party home warranty insurance. The building is covered under 2-5-10 year home warranty insurance. Coverage includes two years against defects in material and labour, five years against defects in the building envelope, and ten years against structural defects. It is the strongest construction defect insurance in Canada. The warranty is attached to the home, not to the owner of the home and remains in effect upon the re-sale of the home until the coverage expires.
Why do owners pay a monthly strata fee?
The fee covers the costs of services for the administration of the common areas. This fee includes a reserve for future expenditures for costs to capital repairs to the building. The fee does not cover monthly utility fees such as telephone, cable, heat and hot water. Each owner is responsible for contacting the utility companies and connecting their utilities. Each apartment will have its own hydro meter and will be billed separately for use.
How is Foxcroft's future affordability assured?
CMHA will conduct all re-sales from a waiting list of qualified buyers. Only qualified buyers may purchase a unit. A qualified buyer means a buyer meeting all the income and asset testing criteria. The registrar of Land Titles will not accept a transfer of title unless approved by the Province.
On the resale of a unit, prequalified applicants selected from the waiting list will be called to attend an open house. The applicants, starting from the first on the waiting list, will be given an opportunity to make an offer to purchase the unit. An applicant can refuse a unit a total of three times before being removed from the top of the waiting list and then placed at the bottom of the waiting list.
The Province is ensuring permanent affordability for the units in Foxcroft through a Restrictive Covenant on Title (Section 219), an Option to Purchase. The resale price will be valued inclusive of the Consumer Price Index and GST.