The city’s community services committee has given a preliminary thumbs up to seeking $4.6 million in additional funding from a provincial fund for the Beaver Barracks affordable housing project in Centretown, despite cost overruns.
Committee members voted quickly to approve the request for funds on Thursday, bringing the planned development at 424 Metcalfe St. — near the Canadian Nature Museum — one stage closer to becoming a new home to some 250 low-income families.
“Building the Beaver Barracks is a small step, but a very welcome step,” said Coun. Alex Cullen.
The first phase of development costing $35 million would provide much-needed living space for some of the 10,000 people currently waiting for affordable housing in Ottawa. But an initial plan to build 195 units in phase 1 has been scaled back to 160 units— with some of the project’s energy efficiency and sustainable design features scrapped — because of the cost crunch.
The $4.6 million infusion would provide full funding for 60 of the 160 units. The provincial housing ministry “is supportive” of the proposed funding increase, a staff report said.
The developer, Centretown Citizens Ottawa Corporation (CCOC) is facing cost overruns because of major price increases for concrete, fuel and steel, as well unexpectedly high costs for site cleanup and financing.
The CCOC has been pushing to receive the unallocated remainder of the city’s Affordable Housing Program’s budget from the province — a sum of $4.6 million, which expires at the end of this year.
The final decision on the proposed $4.6 million funding increase is to be made by city council on Nov. 26.
Construction on the project, which is one of the largest of its kind in Canada, is scheduled to begin in January. A second round of construction on 87 units costing $15 million along Catherine Street is expected to begin following the completion of phase 1, bringing the total number of units to 247.