Canada providing rental housing in Halifax

Every Canadian deserves a safe and affordable place to call home. Thanks to investments made by the Government of Canada, residents of Halifax will soon 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 Geoff Regan, Member of Parliament for Halifax West announced a $115.5 million low-cost  loan to help construct a new mixed-use building located at 3514 Joseph Howe Drive in Halifax, Nova Scotia.

The project, by BANC Investments Ltd, is a 12-storey mixed-use building that will provide Halifax with 324 new residential units of much needed rental housing along with retail space. Conveniently located, the project is close to public transportation, 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.

Quotes:

“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 this one in Halifax. This new affordable rental housing will provide families with better access to jobs, services and the amenities they need daily. This is the National Housing Strategy at work.”

“It has become clear, in the past year, that nothing is more important than a home. Hard working families in Halifax deserve a safe and affordable place to call home where they can thrive and spend more time with their children. The Government of Canada’s involvement in this project demonstrates our commitment to that belief. Together we are building a generation of new, permanent housing that we can all be proud of.”

“This initiative is an important one to me as a developer and I am pleased to partner with CMHC as part of their National Housing Strategy. The tools that CMHC has provided allow a developer such as myself to rationalize a way to bridge the gap to still provide the absolute highest level of quality building that we have become accustomed to developing, but at more affordable pricing for the market demographics.”

Quick facts:

• The project will be required to maintain at least 76 units with rents at or below 30% of the median household income in the area, including 65 units with rents at or below 70% of 30 % of the median household income threshold. Affordability will be maintained for a minimum of 21 years.
• The Project has barrier free access; at least two units have universal design and at least two  units are adaptable, in addition to the minimum of 10% of units within the Project meet or exceed the local accessibility standards.
• The Project is designed to achieve a minimum of 34.7% decrease in energy intensity and 35% decrease in greenhouse gas emissions.
• 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.
• 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.
• 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.

Associated links:

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.

Information on this news release:

Mikaela Harrison
Press Secretary
Office of the Minister of Families, Children and Social Development
mikaela.harrison@hrsdc-rhdcc.gc.ca

Audrey-Anne Coulombe
Media Relations
Canada Mortgage and Housing Corporation
acoulomb@cmhc-schl.gc.ca