Federal Government announces over $60 million for new rental homes in Waterloo

Waterloo, Ontario, February 9, 2024

Today, the federal government announced $62.4 million to build 139 rental homes in Waterloo. The funding will come as fully repayable low-interest loans through the Apartment Construction Loan Program.

The announcement was made by the Honourable Bardish Chagger, Member of Parliament for Waterloo on behalf of the Honorable Sean Fraser, Minister of Housing, Infrastructure and Communities.

Located at 194 Erb Street West, The Carrick will be a 12‐storey building offering 139 rental apartments for middle-class families and individuals. It will feature amenities and common areas like a collaboration lounge, guest suite, outdoor terrace, and fitness center. It is located within 800 metres of an LRT station and is close to the shops at Waterloo Town Square, the main Waterloo Public Library, the city’s uptown core, and several major employers including the University of Waterloo, Wilfrid Laurier University, and Shopify.

The project, expected to be completed by May 2025, is designed to keep energy costs low for residents. The heating and cooling system will use variable refrigerant flow (VRF), an all-electric system to help do so.

Canada’s construction of rental homes has not kept pace with the country's growing cities and population, leading to a decline in the existing and aging rental stock for decades. To tackle this issue, the federal government introduced the Apartment Construction Loan Program to help build more rentals across the country. Increasing the overall supply of rental housing is crucial to creating stronger and more vibrant communities that Canadians can feel proud to call home.

Quotes:

“We need to boost housing supply, this is why we are making strategic investments through programs like the Apartment Construction Loan Program to build much-needed rental units in Waterloo Region and across the country. All Canadians deserve a safe and affordable place to call home, and our government is ensuring this becomes a reality for more Canadians.”
— The Honourable Bardish Chagger, Member of Parliament for Waterloo on behalf of the Honourable Sean Fraser, Minister of Housing, Infrastructure and Communities

“Killam is proud to be working in partnership with CMHC to address the undersupplied housing stock in Canada. By integrating the aspects of affordability, accessibility, and energy-efficiency in our 139-unit Waterloo development, we have received a low interest rate loan from CMHC for the construction and permanent financing of the property with a 10-year term. Accessing CMHC’s Apartment Construction Loan Program enables us to be part of the housing affordability solution and we look forward to working with CMHC and the City of Waterloo on future rental developments in this vibrant community.”
— Philip Fraser, President and CEO of Killam Apartment REIT

Quick facts:

The Carrick project has received $62.4 million in fully repayable low-interest loans from the federal government and $24.8 million in equity from the proponent, Killam Apartment REIT.
As of September 30, 2023, the Government of Canada has committed over $38.89 billion to support the creation of over 151,803 units and the repair of over 241,133 units. These measures prioritize those in greatest need, including seniors, Indigenous Peoples, people experiencing or at risk of homelessness, and women and children fleeing violence.
The Apartment Construction Loan Program previously known as the Rental Construction Financing Initiative (RCFi) is part of the Government of Canada’s National Housing Strategy (NHS), an $82+ billion plan to give more Canadians a place to call home.
The Apartment Construction Loan Program provides fully repayable low-interest loans to encourage the construction of more rental homes for middle class Canadians. It creates a positive impact to the housing system at minimal cost to taxpayers.
- It is one of many programs and initiatives under the National Housing Strategy designed to help address housing needs across the country.
- It complements other NHS initiatives that focus on funding affordable homes for lower-income households.
- Through the program, the federal government is encouraging the construction of more than 71,000 rental homes.
- A stable supply of rental homes is essential for more people in Canada to have access to housing that meets their needs.

Additional information:

Visit canada.ca/housing for the most requested Government of Canada housing information.

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. CMHC’s aim is that everyone in Canada has a home they can afford and that meets their needs. For more information, follow us on Twitter, Instagram, YouTube, LinkedIn and Facebook.

Progress on programs and initiatives are updated quarterly at www.placetocallhome.ca. The Housing Funding Initiatives Map shows affordable housing projects that have been developed.