SOMBA K'E/YELLOWKNIFE
The Betty House transitional home for women received a boost Monday as city council approved a $2.293 million forgivable loan from the NWT Housing Corporation secured through a payment-free mortgage.

City council approved a motion Monday to accept the $2.293 million from the NWT Housing Corporation as a forgivable loan for the Betty House project secured by a mortgage. The mortgage was approved during a special council meeting on Monday, bringing the women's transitional home another step closer to completion. - Candace Thomson/NNSL photo

As long as Betty House remains a women's transitional home they city won't have to pay it back.

"Essentially the city has been granted the mortgage from the (housing corporation) so if for some reason in the next 15 years Betty House isn't run for its original purposes, payments would be due and payable," said Kerry Penney, manager of legal services for the City of Yellowknife.

The Betty House project has been in the works since 2010 when the Yellowknife Homelessness Coalition came forward with a plan to build a $6-million, 30-room facility after purchasing four lots for $935,000 on 54 Street downtown.

However, due to a lack of funds, the decision was made to limit the scope of the project and move ahead with construction of a smaller 18-unit project.

Once the ownership and operation of Betty House is turned over to the Yellowknife YWCA after the transitional home opens in the summer or fall, the mortgage will insure that they keep true to the mandate of Betty House. So long as it's run the way it was intended, the YWCA won't be required to make payments on the mortgage.

"It's gonna look like a normal mortgage, but as long as (the YWCA) is not in default it doesn't have to make any payment," Penney said.

"It's a forgivable loan. Every year they reduce the amount owning so after the 15 years there's nothing owing. It's just to protect the integrity of the money."

Aside from the NWT Housing Corporation's contribution, the now $4.8 million facility is being funded by a combination of partners including Dominion Diamond Ekati Corporation ($700,000), the Government of Canada ($1.7 million) and the Yellowknife Community Foundation ($50,000), as well as many smaller donations from people in the community.

The facility will include a collection of bachelorette suites for single women as well as two-bedroom and three-bedroom units to accommodate women with children.

Penney said the goal is to open the facility in September, but it might be earlier in the summer depending on how fast construction goes.

-- with files from Cody Punter