The Village of Lytton says they have reached a tentative agreement with Cooperators Insurance as it works to help Lyttonites access funding for fire-resilient home rebuilding.

Lytton Recovery Manager Mike Blaschuk explains the issue lies in the PacifiCan Lytton Homeowner Resilient Rebuild Program being back-end funded, which leaves homeowners struggling to come up with the cash upfront.

“People need the money on the front end, and it is hard for the builders to supply that because builders’ construction loans are running about 12 per cent right now, so it is getting very expensive to do that.”

With that, Blaschuk says elements of the tentative agreement with Cooperators will provide funds directly to builders at initiation.

“It will save the builder money, even on their own construction loans – they will provide that money and they (Cooperators Insurance) will collect their payment, which will have a small profit element in it, from PacifiCan.”

He says they are working out the details with PacifiCan, Cooperators Insurance, and builders part of the program to create the four-party agreement involving homeowners.

“It would mean that those who want to go in this program would be able to apply for that and not have the financial stress of having to put the money out and wait for it,” he said.

“The builders would then earn extra cashflows. It doesn’t cost the owner anything in the end and it saves them money of not having borrowed money out.”

Blaschuch anticipates in the next few weeks – a revision of the PacifiCan Lytton Homeowner Resilient Rebuild Program – will be announced.

“That will allow people to take advantage of it with virtually no cost but still get all of the benefits on their construction projects in the end, so fingers crossed things just come together.”

He says Cooperators is “very focused” on the social investment – while noting they still have to provide a return to their investors.

“They’re trying to be very aware and do initiatives, particularly on this, and when they see resiliency, climate resiliency, fire resiliency and those sort of actions representing in this program – and this type of program.”

Suggesting Cooperators Insurance wants to use this as a “test case” to get into further programs where they can expand their reach to help support resiliency-type programs.

“We’re really excited to get this going, and I met with their legal representatives, I met with their senior executives, they’ve all got approval up and down; so now we just need to finalize the structure so it works and everyone agrees with it.”