Affordable housing projects in limbo after fund ends
Non-profit organizations say an interruption to federal funding is putting millions of dollars for affordable housing projects in limbo.
Last week, some groups say they learned funding had been 'exhausted' for the Affordable Housing Fund's community housing development stream, said Stephanie Haight, director of development and construction for the Winnipeg Housing Rehabilitation Corporation.
Haight said groups were told the key Canada Mortgage and Housing Corporation funding stream is now on hold and 'waiting for further direction from government.'
MIKAELA MACKENZIE / FREE PRESS FILES
Manitoba Non-Profit Housing Association's Christina Maes Nino fears a 'cascade' of uncertainty.
Her corporation fears that will put their $46-million affordable housing project at risk, along with many others.
'We're in a pretty terrible position right now because we've actually put in $768,000 of our own cash with the understanding that CMHC would be supporting our project and moving it forward, only to receive this information … This housing project likely won't be built without CMHC support,' said Haight.
The group planned to build 154 housing units at 145 Transcona Blvd., all with affordable rents. The project would include 68 units rented at 69 per cent of the median market rate and 31 units with provincially supported rents 'geared-to-income,' with some monthly one-bedroom rates as low as $285. The remaining 55 units would meet CMHC median market rent (the middle point of rental rates in a specific area).
'The 31 (rent-geared-to-income) units are fully accessible and they are dedicated to providing affordable housing for vulnerable populations facing homelessness or at (risk of) homelessness with a physical disability,' said Haight.
The organization applied for CMHC funding to cover more than half its costs, seeking an $11.5-million grant and $14.8 million in long-term, low interest loans.
Haight said the funding delay could also jeopardize $5 million the project is set to receive from Winnipeg's $122-million share of the federal Housing Accelerator Fund.
Without CMHC funding, she said it's not clear if the project will get a building permit in time to qualify for that fund.
'If we don't get this project going, we can't recover that money so it will be very difficult for us to continue building deeply affordable housing into the future. So it definitely doesn't do anything to help our city work on the housing crisis that we currently have,' she said.
Haight said CMHC did not provide a written conditional approval for the Transcona Boulevard project but encouraged the group to pursue it.
Christina Maes Nino, executive director of the Manitoba Non-Profit Housing Association, said many of her organization's members are facing the same uncertainty.
'There is a lot to do on a project to be able to apply for CMHC capital funding, so they will often get funding from a bunch of other sources and invest a bunch of their money just to get to the stage where they can apply for the funding,' said Maes Nino.
She said projects across the country could be affected by the change.
Maes Nino said the federal government has expressed a commitment to affordable housing but the timeline for this key funding pocket is unknown.
'It's not clear how long the pause is for or what it's going to look like in the end,' she said, adding other housing funds could be compromised by CMHC changes, since many projects wouldn't be viable without it.
'It creates this cascade effect of uncertainty,' she said.
In a late May notice to members, the Canadian Housing and Renewal Association warned that the Affordable Housing Fund's community housing development stream had been exhausted.
'This means any applications in the new construction — community housing sub-stream of the Affordable Housing Fund that have not yet been conditionally approved are being placed on hold … CHRA understands that these holds will remain in place until CMHC receives new direction from the federal government,' it states.
The memo says the funding issue is 'particularly concerning' because the federal government announced in November that the Affording Housing Fund would be extended to 2028-29.
'Organizations have been investing in and preparing proposals based on the assumption that funding would be available until this time,' the memo states.
Wednesdays
Sent weekly from the heart of Turtle Island, an exploration of Indigenous voices, perspectives and experiences.
A federal news release described the Affordable Housing Fund as a $14.6-billion program, which also includes a separate rapid housing stream and a repair-and-renewal stream.
A spokesperson for CMHC said its affordable housing fund has received many applications since it launched.
'CMHC continues and is committed to working with our clients and partners to process as many (affordable housing) funding applications as possible,' an email said, without confirming if the fund had been exhausted and whether more money would be added.
joyanne.pursaga@freepress.mb.ca
X: @joyanne_pursaga
Joyanne PursagaReporter
Joyanne is city hall reporter for the Winnipeg Free Press. A reporter since 2004, she began covering politics exclusively in 2012, writing on city hall and the Manitoba Legislature for the Winnipeg Sun before joining the Free Press in early 2020. Read more about Joyanne.
Every piece of reporting Joyanne produces is reviewed by an editing team before it is posted online or published in print — part of the Free Press's tradition, since 1872, of producing reliable independent journalism. Read more about Free Press's history and mandate, and learn how our newsroom operates.
Our newsroom depends on a growing audience of readers to power our journalism. If you are not a paid reader, please consider becoming a subscriber.
Our newsroom depends on its audience of readers to power our journalism. Thank you for your support.
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