In partnership with the BMO Bank of Montreal, the federal government and the Saskatchewan Lac La Ronge Indian Band recently announced a new on-reserve home ownership loan program. The program is intended to promote private home ownership on reserves.

Pride of ownership provides a powerful motivation for individuals to improve their property. It explains why home owners are willing to spend their time and money mowing their lawns and fixing their houses: The property is theirs and theirs alone. They own it in "fee simple" - that is to say, outright. As the expression goes, no one ever paid money to wash a rented car.

As a visit to a typical Canadian reserve reveals, such pride of ownership is absent in many native communities. Housing is dilapidated and there is little evidence that occupants care much about their properties.

Needless to say, this is not a reflection of aboriginals themselves, but rather an indictment of our government's native policy. Currently, natives who live on reserves cannot own their land. Even the tribes themselves cannot own the land. Instead, the land is held in trust by the Canadian government.

While the new loan program will not enable the residents of Lac La Ronge Indian Band to own their homes in fee simple - meaning the federal government will still hold the land in trust - owning the bricks and mortar however, is a step in the right direction.

To promote home ownership on reserves, the program will provide residents with a renewable 29 year lease on the building(s) located on a specific lot. Specifically, the Department of Indian Affairs will transfer a one-time payment of $1.7 million to the Lac La Ronge Indian Band for the new housing and loan program. Eligible residents will be able to obtain a $5,000 grant and a $15,000 short-term loan from the Indian band. The grant and/or loan are to be used to access loans for construction or purchase of owner-occupied, single family dwellings. BMO would provide the balance of the financing through a conventional mortgage. Existing home owners will be able to use the loans for renovations.

Canadian courts will enforce the rights and obligations associated with ownership of the leases. The leases may also be left to an heir or sold to another person having a right to reside on the reserve. It is anticipated that holders of the leases will assume the mindset and habits of a true property owner. In the words of the Lac La Ronge Indian Band Chief Tammy Cook-Searson, "The option for home ownership gives Lac La Ronge Indian Band members the opportunity to create their own wealth through self-investment."

The Canadian Taxpayers Federation will continue to advocate for the federal government to transfer ownership of reserve land to eligible reserve members so fee simple ownership is available to natives. That said, the new housing and loan program is an encouraging step toward fee simple ownership. The band is able to secure more income, residents will become eligible for mortgage financing and Canadian taxpayers are relieved of some of the burden associated with the constant replenishment of native housing stock.