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Assessed value of Banff Housing Corp. portfolio increases 1%

“It’s so heartwarming to see these communities that have been built at Ti’nu and The Aster."
Banff Town Hall 1
Banff Town Hall

BANFF – The overall assessed value of Banff Housing Corporation’s affordable portfolio remained flat in 2023, increasing one per cent from $151.8 million in 2022 to $152.8 million in 2023.

The assessed value of the Banff Housing Corporation’s (BHC) equity share portfolio increased one per cent to $139,894,720 from $139,152,940, while the value of the price-restricted portfolio jumped two per cent to $12,978,460 from $12,723,470.

“Overall, the total value of the portfolio increased one per cent over the previous year, excluding The Aster because we don’t have a comparison because it came on in 2023,” said BHC board chair Mark Walker during the June 24 shareholders meeting.

Currently, the housing portfolio includes 349 units – 62 per cent of which are homeownership in the Middle Springs area, downtown apartments, and the new 33-unit Aster development on Banff Avenue, and 38 per cent are rentals, including the 131-unit Ti'nu development on Coyote Lane and Moffat Manor units.

The homeownership portfolio includes two types of models – 55 price-restricted units and 161 equity share housing units.

Under the price-restricted model, the list price is tied to a maximum of two per cent of the base purchase price, which is compounded annually. This price restriction is tied to the amount the purchaser paid for the unit when the property is sold. For example, the selling price of 104 Peyto Place was $222,400 in 2010 and the list price would be $288,643 by Dec. 31, 2023.

With the equity share units, the homes have been sold to residents at below-market cost through a sublease arrangement whereby BHC retains an equity share of the total value of the unit. The BHC owns a percentage of the home, ranging from 13.2 per cent to 35.32 per cent.

The seller determines the list price by averaging appraisals and can apply bookends of three to six per cent above or below the average appraised value.

For example, for 14 Riverview Court, average appraisals came in at $854,500, the list price was $899,000, and the selling price was $845,000. The homeowner’s equity share percentage was 69.5 per cent and BHC’s was 30.5 per cent. The price to the buyer was $587,275.

“The market value is determined by averaging the appraisals,” said Walker.

“The bookends create a set price range and allow the homeowners to proceed without explicit consent from the board. This expedites the sale process and ensures the price remains within a set framework.”

There were three ownership sales in 2023, and all were equity-shared properties. The average full market value was $947,900 and the average price to buyer was $700,612.

To buy a home within the BHC, applicants must be on the registered resale list, which is a list of pre-qualified Bow Valley residents. The process for determining priority on the available units for sale is currently through a points system or a lottery-based allotment.

For The Aster, there were 63 applicants in the lottery for 33 homes. First-time homebuyers made up 87 per cent.

Walker said there were challenges and delays getting the 33-unit development on Banff Avenue up and running.

“I know there were some issues the contractor had in getting the amount of labour that they needed,” he said.

“There were some supply chain issues during COVID that delayed construction and opening of The Aster.”

Banff Mayor Corrie DiManno said BHC rental and ownership homes are in high demand, pointing to a waitlist of 277 on the registered resale list, 92 on The Aster waitlist and 216 people on the rental waitlist in 2023.

“It’s so heartwarming to see these communities that have been built at Ti’nu and The Aster,” she said.

“It just goes such a long way in trying to make Banff a better place for folks to live and improve the quality of life, and I look forward to adding to the portfolio soon.”

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