The Federal Government has issued a $23 million low cost loan to help with the construction of a rental housing project in Belleville that’s expected to be completed this winter.
The money comes from the Canada Mortgage Housing Corporation’s Rental Construction Financing Initiative (RCFI), which is pushing for the construction of 71,000 affordable rental units across the country.
The local loan is being given to KGF Capital Realty, who are building the six-storey Magnolia Gardens project at 135 Station Street.
The project was expected to be finished this summer, but the completion has been pushed back to later this year, due to COVID-19-related slowdowns.
Federal Minister of Families, Children and Social Development Ahmed Hussen says once complete, the 103 affordable rental units will make a big difference for those in the community who are dealing with the rising cost of living.
“The people who keep our cities running and vibrant, people like teachers, nurses, shopkeepers, paramedics, firefighters, construction workers and many others, are finding it hard to afford rent. They’re being forced to move further away from our cities, which is due in large part to a lack of rental housing supply.”
Federal Minister of Families, Children and Social Development Ahmed Hussen announces a $23 million low-cost loan to help with the contruction of the Magnolia Gardens rental project, on Station Street in Belleville, on May 27, 2021. (Photo: CMHC Press Conference Screen Grab)
The City of Belleville has a very low rental vacancy rate of just 2.6% and Hussen says the Liberal Government is continuing to try and address the housing crisis, which has been magnified by the COVID-19 pandemic.
“Far too many Canadians are forced to make the impossible choice between paying the rent and paying groceries. The COVID-19 pandemic has reminded us more than ever before that nothing is more important than a home. As we all did our part to contain the virus, our homes have become a place of refuge and a sanctuary in these difficult times.”
Hussen noted that the 2021 budget also proposes $300 million over two years from the RCFI be allocated to support the conversion of vacant commercial property into 800 units of market-based rental housing, since the demand for office space has dropped during the pandemic.
All of that is part of the 10-year, $70 billion National Housing Strategy, which Hussen says “will give more Canadians a place to call home.”
Once completed, Magnolia Gardens will consist of mostly one- and two-bedroom apartments, with rents at least 10% below the market level and at least 32 units will be held at affordable rent levels for a minimum of 11 years.
All of the units have rents well below 30% of median household income in the area.
Fifteen units are also accessible, with others that are adaptable by design.
KGF Capital Realty Owner Frank Giannopoulos tells Quinte News, there will be no requirements on who can apply to rent one of the new apartments, with applications being accepted 60-to-90 days before occupancy, which is projected for December 2021, or January 2022.
The six-storey Magnolia Gardens rental project on Station Street in Belleville, will include 103 units and is expected to be completed in December 2021, or January 2022. (Photo: CMHC Press Conference Screen Grab)
