Thanks to investments made by the Government of Canada and the City of London, residents of London will soon have access to more safe and affordable places to call home.
Today, The Honourable Ahmed Hussen, Minister of Families, Children and Social Development and the Minister responsible for Canada Mortgage and Housing Corporation (CMHC) announced that the federal government is investing just over $130 million for the construction of two multi-residential buildings comprising of 420 units, located at 495 Talbot St and 110 Fullarton St in London.
This project, developed by Old Oak Properties Inc., is receiving funding through CMHC’s Rental Construction Financing initiative (RCFi), a National Housing Strategy program delivered by CMHC that supports rental housing construction projects to encourage a stable supply of rental housing for middle-class families struggling in expensive housing markets across the country.
Of these new units, 110 units (26%) have rents lower than 30% of median household income in London. Furthermore, 84 of these units will have rents that fall at or below 70% of the 30% median income in the area, and provide affordable housing options close to public transit and services for modest and middle-income individuals and families.
“Through the National Housing Strategy, our Government is increasing the number of rental units for Canadians. These investments also create good jobs and grow the local economy. They are making a big difference in building a more sustainable future through more energy-efficient and affordable homes. Today’s investment is wonderful news for residents of London, who will soon have new safe and affordable rental housing units.” – The Honourable Ahmed Hussen, Minister of Families, Children and Social Development and the Minister responsible for Canada Mortgage and Housing Corporation (CMHC)
“There is likely no issue more pressing, no issue more important in London right now than that of affordable housing. Nearly 5,000 Londoners are on the waitlist as demand continues to rise. We are committed to solving this challenge, but no municipality can do it alone. That is why partnerships such as this mean so much. The commitment shown by the federal government and Old Oak Properties Inc. is significant and worthy of substantial recognition. This will make a meaningful difference in the lives of a great many Londoners for years to come.” – Ed Holder, Mayor, City of London
“Old Oak is grateful that Canada Mortgage and Housing Corporation is providing a loan for this exciting new project. Named Centro, this will be a landmark development for both London and Old Oak. Standing at 40 stories and 129 meters, the Centro tower will be the tallest building between Mississauga and Calgary providing hundreds of high-end, affordable rentals.” – Jeff Martin, Chief Financial Officer, Old Oak Properties Inc.
- Of the total units, 15% will be adaptable or meeting universal design standards.
- This project is designed to achieve a reduction in energy use of 25.2% and in greenhouse gases of 38.5% relative to the 2015 NECB.
- The RCFi, a National Housing Strategy (NHS) initiative delivered by CMHC, supports affordable rental housing construction projects to encourage a stable supply of affordable rental housing across the country for middle-class households struggling in expensive housing markets.
- Launched in April 2017, the RCFi has generated a lot of interest and a high number of quality applications. This is why, through Budget 2018, the Government increased the number of low-cost loans provided by this initiative from $2.5 billion to $3.75 billion and further increased to $13.75 billion with budget 2019. In total, the RCFi will encourage the construction of 42,500 new rental housing units across Canada.
- Low-cost loans are available to borrowers who want to build affordable rental housing in Canada in response to demonstrated community need.
- The rental market is an important housing option for approximately 30% of Canadians.
- This project represents a major new supply of purpose-built rental housing in London were vacancy rates in 2018 were 1.4%.
- Under the Investing in Canada plan, the Government of Canada is investing more than $180 billion over 12 years in public transit projects, green infrastructure, social infrastructure, trade and transportation routes, and Canada’s rural and northern communities.
- 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 the Canadian government, consumers and the housing industry. For more information, visit our website or follow us on Twitter, YouTube, LinkedIn, Instagram and Facebook.
- To find out more about the National Housing Strategy, visit www.placetocallhome.ca.
SOURCE Canada Mortgage and Housing Corporation