Town of Banff

BHC Sub-Lease

To meet the affordability targets, the BHC has implemented a unique Sub-Lease Agreement, whereby the homeowner pays the total cost of construction, infrastructure and land (CIL), as well as development costs, relating to the home. The BHC acquires the equity difference between those costs and the appraised market value of the unit.

Using this formula, the BHC is able to provide housing at an affordable rate. For example:

Sale Price (CIL & development):	$265,000
Market Value of House:	$320,000
BHC Equity Share:	$55,000
Sub-Lease Percentage:	82.81% Homeowner 17.19% BHC

Under the assumption that in 10 years the real estate market increases, and the market value of the same home is now $550,000, if the homeowner decides to sell, the following would represent the breakdown in equity share:

Sale Price of House:	$550,000
Homeowner Equity Share (82.81%):	$455,455
BHC Equity Share (17.19%):	$94,545

Based on this example, the homeowner has made $190,455 on their initial investment (i.e., $455,455 -$265,000). The value of the BHC equity share has increased by $39,545.


Sample Agreements
These generic sublease agreement(s) are meant solely to provide information that may be of general assistance to interested parties and are not intended to represent and should not be assumed to be an exact copy of every or even any BHC sublease. Prior to acquiring any BHC property the sublease agreement should always be reviewed with your solicitor.

• BHC Generic Sublease  ( PDF 108 kb)
  
• Price Restricted Sublease ( PDF 109 kb)

More information:
Banff Housing Corporation
T: 403.762.1115
E-mail: dougal.forteath@banff.ca