Charities given greater opportunity to buy home lots

April 4, 2008

(Red Deer, Alberta) – The City is changing the lot draw process to give charities an opportunity to purchase a lot on which to build a home, starting with a modified lot draw on April 22.

“The City received several requests from charities that wanted to buy lots and we are responding by changing our process,” said Howard Thompson, Land & Economic Development Manager for The City of Red Deer. “We believe this change will have a positive impact on the community.”

No process existed for charities to enter lot draws other than as a contractor and take their chances on their name being drawn. “The way The City sells lots is based on demand for lots and our effort to be as fair as possible,” explained Thompson.

After being approached by local charities, The City went to the local homebuilders association (CHBA-CA) and asked if their members would object to lots being allocated to one or more charities. Working with the association, The City decided to create a charitable organization category that will be added to the draw process and used on an ongoing basis.

Moving forward, applicants will compete against others in the same category versus a random draw. In the new three box process the first and second position in the draw would be determined by a coin toss between contractors and individuals and the charity category would get the third pick.

At the modified lot draw on April 22, four single family lots will be allocated for charities and drawn based on the three box process. If all four lots are not taken, they will remain in the draw for contractors or individuals.

“This is a win for the community,” said Scott Boyd, CHBA-CA Executive Officer. “It’s a strong message to the public that municipal and industry leaders are willing and able to support charitable groups and affordable housing projects while maintaining a vibrant market and economic development.”

Charities will only be able to choose from single family lots – no secondary suite lots or duplex lots – and it is at The City’s discretion to exempt certain lots deemed to be unsuitable based on traffic implications or other impacts. Charities may also have different criteria for the type of lot or location they want. Some may want a lower cost lot while others prefer a higher cost lot.

“The City supports Red Deer’s social infrastructure and is looking forward to helping local charities fundraise or provide affordable housing for our residents,” said Thompson.

For more information on lot draws and registration visit our website at www.reddeer.ca/land.

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For more information, please contact:

Liz Soley
Land Sales Administrative Clerk
The City of Red Deer
403-342-8127