SOMBA K'E/YELLOWKNIFE - An e-mail sent to many banks and realtors on Thursday stated that the Canada Mortgage and Housing Corporation (CMHC) won't insure mortgage loans for homes in Northland trailer park until the failing infrastructure of the park is replaced or a plan to fix it up is put in place.

Mortgage loan insurance is usually required by banks when home buyers make a down payment of less than 20 per cent on the house. With mortgage loan insurance, home buyers can buy homes with down payments as low as five per cent.

CMHC's decision will make it even harder to sell property in this troubled area of town, according to Wade Friesen, vice-president of the Northland condominium board.

"Now people need to come up with a 25 per cent down payment when they buy here," said Friesen on Friday.

Friesen said there were about 17 properties for sale last time he checked about two weeks ago.

Yellowknifer was unable to get in touch with Sandra Turner, the regional representative for Canada Mortgage and Housing Corporation, by press time.

Northland trailer park residents are currently trying to find funding to fix the infrastructure, which is 15 years past its expiry date and falling apart. The price tag is set at around $18 million.

Friesen is also hoping to find funding from CMHC to fix the infrastructure.

"Making sure that this gets fixed is also in the best interests of CMHC," said Friesen.

Though the CMHC decision threw another obstacle at Northland residents, Friesen said the trailer park had a "small victory" on April 15.

The city's appeal board lowered the assessed value of Northland trailer park lots, at the behest of the parks' condominium board.

This change will save Northland taxpayers about $41 off their property taxes per year.

"The meeting went pretty good," said Friesen.

He said the city's decision to lower the assessed value put Northland on par with the methodology of assessment at Dusseault Crescent and Forrest Park. Prior to the decision, Northland lots had been assessed at a higher value than Dusseault Crescent and Forrest Park.

"I would have liked to have seen them lowered more," Friesen said. "It doesn't give us a reduced price, lower than (the other parks), which is what we should be assessed at."

Friesen said Northland trailers list for lower prices than trailers in other areas, and have trouble selling. The lower value should be reflected in the taxation, Friesen said.

As of Friday, the four lowest-priced listings on Coldwell Banker's Yellowknife website were in Northland trailer park. The prices ranged from $99,000 at the lowest for a 1023 sq. ft trailer to $198,000 at the highest for a 1402 sq. ft trailer.

An 1152 sq. ft trailer in Forrest Park listed on HomeLife Sunrise Real Estate's website is priced at $269,000.

Friesen said the condominium board will meet again soon to discuss the next steps for Northland, and whether they want to appeal the property tax rate even further.