YELLOWKNIFE (February 14) - Minister Responsible for the Northwest Territories Housing Corporation (NWTHC) Roger T. Allen has announced changes to the NWT Housing Corporations Loan Guarantee on Interim Financing Program.

The Housing Corporation has reduced the equity requirements for private residential market developers. Developers can now qualify for guarantees on interim financing with only a 15% equity position for new rental units and a 10% equity position for homeownership units. Developers were previously required to contribute 25% equity.

It is important that the government work with the private sector to address the rising costs of housing, Mr. Allen said. These changes create a more flexible program and offer improved access to financing for small companies during the construction phase of their projects.

In addition to the more flexible equity requirements the NWT Housing Corporation has also decreased premiums for the Loan Guarantee fee from 1.5% to 0.5%.

By encouraging and supporting companies to develop additional housing projects, we can work to alleviate the tight Yellowknife housing market and encourage housing development in all NWT communities. Mr. Allan said.