By Neetu Singh
The federal government must do more to match housing prices to income levels, says an Ottawa multifaith group.
But until that happens, the group will do what it can to ease Centretown’s affordable housing problem by investing in low-rent apartments.
“You cannot live and buy affordable housing on a minimum wage, it’s not possible,” says Brian Kinsley, chair of the Multifaith Housing Initiative’s building committee. Some incomes are so low, he says, that even affordable housing is expensive.
As a result, Ottawa has a long list of individuals waiting for affordable homes.
But with construction set to start on a 10-storey condominium project on Somerset Street West, east of Elgin Street, that list is about to get shorter.
Made up of Christian, Hindu, Muslim and Jewish faith groups, the multifaith organization will buy 10 units of the new building, which it will rent to low-income families and individuals.
The condominium will be built on the existing parking lot of the Anglican Church of St. John the Evangelist.
In today’s market, the units would rent for about $1,200, Kinsley says, but as subsidized housing the 10 units will range from $450 to $770 per month.
Together the federal, provincial and municipal governments are subsidizing $90,000 per unit.
The city, in addition to providing $ 30,000 per unit, has decided to waive all development charges, such as fees for building permits and planning.
But the multifaith group still has to raise $540,000 on their own.
Kinsley says the group will raise money by finding investors.
He says that is simpler than asking people for lump sum donations.
The project is attractive, Kinsley says, because investors will get a return at a rate of four per cent on their investment.
Twenty-five people have so far decided to invest in the project. The group is now within $70,000 of raising the funds necessary to build the units, but more investors are needed.
“You know that your money will be doing some good in the community,” says Kinsley, who committed $25,000 to the initiative.
Bill Teron and his son Chris, owners of Teron International Building Technologies Ltd., were the developers in Ottawa willing to build affordable housing in the church parking lot.
Aside from the 10 units sold to the Multifaith Housing Initiative, the company will sell units
directly to low-income individuals and families.
“The (Multifaith Housing Intiative’s) mission is exactly in line with what we’re trying to do. We’re doing it on the ownership side, but we’re thrilled to see them doing it on the rental side as well,” says Chris Teron.
Construction will begin on March 31 and the condominium will be ready for occupancy 14 months later, he says.
Somerset ward Coun. Diane Holmes says it’s a very good partnership.
“We have a developer who has a philosophy of helping and a church that is also interested in helping the city with our affordable housing.”
Holmes says about 11,000 households in Ottawa are now on the waiting list for affordable housing.
The city builds about 200 affordable housing units a year.
However, she adds, that “hardly even scratches the surface.” She says she would like to see the construction of about 300 additional units per year.
Holmes says even though 10 units are minimal in comparison to what is needed, “we need more groups like that to be doing similar projects.”
The church parking lot condominium is the multifaith’s group second project. It bought an apartment block last February at 396 Kent St.
Five families now rent it out.
Kinsley says he hopes the group continues to expand. It wants to buy another building within the year, but doesn’t know where yet.