A city council committee has given a preliminary thumbs-up to $4.6 million in additional funding from a provincial fund for the Beaver Barracks affordable housing project in Centretown, despite cost overruns.
The community services committee voted quickly to approve the request for funds on Nov. 6, bringing the planned development at 424 Metcalfe St. one stage closer to becoming a new home to about 250 low-income families.
“Building the Beaver Barracks is a small step, but a very welcome step,” says Coun. Alex Cullen.
The development would provide much-needed living space for the lengthy list of families currently waiting for affordable housing in Ottawa.
A final decision on the increased funding will be made by city council on Nov. 26.
“City-wide we have about 10,000 households on our waiting list,” says Coun. Diane Holmes. “Certainly some of them are from Centretown.”
The developer, Centretown Citizens Ottawa Corporation, 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.
“We weren’t surprised by the decision at all,” says Dennis Carr, development coordinator of the CCOC.
“The province and the city realize that construction costs have greatly risen over the past year and a half.”
If allocated, the funds would offset cost overruns surrounding the major price increases for concrete, fuel and steel, as well as unexpectedly high costs for site cleanup and financing.
“The issue is being resolved now with the extra funding,” says Carr. “We are confident that the project can work.”
The first phase of the development, which costs $35 million, is already a victim to the cost crunch, as the original plan to build 195 units has been reduced to 160 units.
“There was not sufficient funding,” says Holmes.
She adds that the new funding gives the project some stability.
The $4.6 million would provide funding for 60 of the 160 units.
“There is no reason for them not to approve it,” says Carr.
“Council has generally been very supportive of affordable housing.”
The project, one of the largest of its kind in Canada, will be ready to start construction as early as January – if the city allocates the funds.
“If it doesn’t go through, we have to go back to square one and consider how else we can develop this site within the money we have,” says Carr.
If city council refuses the request, Carr suggests higher market rent or even home ownership as alternative solutions to raise the funds and still bring families to Centretown.
“We need more families living in Centretown and it is becoming an adult community because of the cost of housing,” says Holmes. “The sooner CCOC can get into the ground the better.”
If the city co-operates, CCOC has a second round of construction following the completion of the first phase.
The developer plans to spend $15 million to produce a six-story apartment building, stacked townhouses and some commercial space along Catherine Street, bringing the total number of units to 247.
“This project is going to set a new standard for social housing,” says Carr.
“It will also provide badly needed affordable housing in Ottawa,” he adds. –