Every Canadian deserves a safe and affordable place to call home. Thanks to investments made by the Government of Canada, residents of Belleville will now have access to more stable rental housing options.
Today, the Honourable Ahmed Hussen, Minister of Families, Children and Social Development and Minister responsible for Canada Mortgage and Housing Corporation (CMHC), alongside Neil Ellis, Parliamentary Secretary to the Minister of Agriculture and Agri-Food, and Mitch Panciuk, Mayor of the City of Belleville, announced a $23 million insured loan to help construct a new residential building located at 135 Station Street, the Magnolia Garden Residence.
Magnolia Garden Residence, developed by KGF Capital Realty, is a 6-storey residential building that will provide Belleville with 103 new units of much needed rental housing close to public transit, schools and services for families.
The project received funding through CMHC’s Rental Construction Financing initiative (RCFi), a National Housing Strategy program that supports rental housing construction projects to encourage a stable supply of rental housing for middle-class families in expensive housing markets.
“Every Canadian deserves a safe and affordable place to call home. That’s why our government is taking action to increase the supply of rental housing through projects like the one we are announcing today in Belleville. This new affordable rental housing will provide families better access to jobs, services and the amenities they need. This is the National Housing Strategy at work.”
“We all know that everyone in our region, and across Canada, deserves adequate and affordable housing. Today, our government’s Rental Construction Financing initiative (RCFi) is helping Belleville to increase its supply of new rental developments. When it is complete, the Magnolia Garden Residence will offer fresh housing options for families and individuals which are even closer to good jobs, services and amenities in our community.”
“The Magnolia Garden Residence is such an exciting addition to the City of Belleville! Thank you to the CMHC, the Federal Government along with Minister Hussen and our local MP Neil Ellis for the $23 million insured loan to make this project a reality. Belleville is experiencing an acute housing shortage and these 103 new rental units will go a long way in improving the life of many residents. It's been a pleasure to work with KGF Capital Reality and we look forward to it opening soon.”
“KGF Capital Realty along with our development team look forward to providing affordable housing at the centrally located Magnolia Garden Residence to help better serve our community. CMHC and the National Housing Strategy has committed $23 Million in partnership with KGF Capital Realty to create and develop 103 affordable housing units that are accessible and at least 40% or more efficient then the applicable building code with a significant reduction in green house gasses. This has all been made possible with the assistance of CMHC, together with Mayor Mitch Panciuk, Councillors and the City of Belleville Staff for the first affordable housing summit. The incentives that have been made possible as a result of this summit will result in generations of affordable housing growth in Belleville. We look forward to being part of further investments in this community we grew up in and look forward to continuing to create more affordable housing partnerships and options with all levels of government.”
- The vacancy rate in the City of Belleville is at 2.6% (October 2020).
- Through the RCFi, the Government of Canada is encouraging the construction of more than 71,000 new rental housing units.
- A stable supply of rental housing is critical to ensure that more Canadians have access to housing that meet their need and that they can afford. This is a great option for middle class Canadians who are experiencing affordability pressure in many markets with high home prices and lack of rental supply.
- Launched in April 2017, the RCFi has generated significant interest in the industry, which has led to an expansion of the program. Through Budget 2019, the Government of Canada increased the total amount available in loans to $13.75 billion.
- Given the high demand for the program, the Government again expanded the RCFi in the 2020 Fall Economic Statement by adding an additional $12 billion over 7 years, starting in 2021 – 22. The program now totals $25.75 billion in low-cost loans.
- Budget 2021 proposes that $300 million over two years (2021 – 22 and 2022 – 23) from the RCFi be allocated to support the conversion of vacant commercial property into 800 units of market-based rental housing. As the demand for retail and office space has changed due to COVID, some landlords, particularly in major urban cores, are facing higher vacancies. This is an opportunity for property owners and communities to explore converting excess space into rental housing, enhancing the livability and affordability of urban communities.
- Canada's National Housing Strategy (NHS) is a 10-year, $70+ billion plan that will give more Canadians a place to call home — this includes more than $13 billion committed through the 2020 Fall Economic Statement.
- To help Canadians find affordable housing, Budget 2021 proposes to provide an additional $2.5 billion over seven years in new funding and a reallocation of $1.3 billion in previously announced funding to speed up the construction, repair, and support over 35,000 additional housing units.
As Canada's authority on housing, CMHC contributes to the stability of the housing market and financial system, provides support for Canadians in housing need, and offers unbiased housing research and advice to all levels of Canadian government, consumers and the housing industry. For more information, follow us on Twitter, Instagram, YouTube, LinkedIn and Facebook.
To find out more about the National Housing Strategy, visit www.placetocallhome.ca.
Office of the Minister of Families, Children and Social Development
Canada Mortgage and Housing Corporation