‘We really need that federal piece': city awaits Ottawa grants for housing projects as deadline looms

Winnipeg Free Press

5 hours ago

City housing officials fear more than half of the first round of Winnipeg projects awarded Housing Accelerator Fund grants could miss a key deadline.
'Six out of the 10 projects that we've approved through our (Housing Accelerator Fund) capital grants (in) Round 1, which require a building permit by September of this year … are still awaiting approval from (Canada Mortgage and Housing Corporation) under the Affordable Housing Fund,' Lissie Rappaport, manager of the city's Housing Accelerator Fund office, said during Tuesday's executive policy committee meeting. 'The loan (portion) of that program has run out of funds. There's still money left in the grant program but most groups access both to make a project work.'
Rappaport told the committee her office is 'fully optimistic' the federal government will commit more money but it's not yet clear when that could happen.
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In late May, some groups proposing housing projects learned the federal Affordable Housing Fund's community housing development stream had been exhausted.
'Some of those projects may be late on that September deadline … It could be a risk for us to not meet our targets under this year,' she said.
In late May, some groups proposing housing projects learned the federal Affordable Housing Fund's community housing development stream had been exhausted.
Rappaport said the six affected projects she mentioned include a combined 680 housing units, and 464 of those are considered deeply affordable.
One of the affected projects aims to provide 154 housing units with affordable rents at 145 Transcona Blvd.
But a key proponent of that $46-million project said it is now in limbo.
'We've been pushing really hard from a political level to try to get support for this project,' said Stephanie Haight, director of development and construction for the Winnipeg Housing Rehabilitation Corporation.
Haight said the project would provide homes for vulnerable people who are facing homelessness or at risk of becoming homeless due to a physical disability.
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 project received a $5-million grant from Winnipeg's $122-million share of the federal Housing Accelerator Fund.
While CMHC has not provided written approval for the project, it would need that funding to succeed, Haight said.
'We have city support, we have provincial support and we really need that federal piece,' said Haight.
Mayor Scott Gillingham said he's confident the senior government will act on the issue.
'The federal government has already told us that that Affordable Housing Fund is an important fund. Even though it's fully subscribed, they've committed to my office that … they're working on either replenishing the fund or finding a way to make sure those projects still go ahead,' said Gillingham.
To secure federal Housing Accelerator dollars, the city made sweeping changes to its zoning rules, including allowing up to four housing units to be built on a single lot in most residential areas.
Gillingham said those changes will help attract more housing projects, long after current funding programs end.
'What those zoning changes are about is getting more housing built quicker. There are many projects that will never try to access or need federal or provincial funding to get built,' he said.
In an email, a CMHC spokesman noted the Housing Accelerator Fund and Affordable Housing Fund are not directly tied to each other. He also noted many housing proponents applied for the latter fund.
'With the significant demand for funding, CMHC continues and is committed to working with our clients and partners to process as many (Affordable Housing Fund) applications as possible. Further updates on (that fund) will be provided as they become available,' wrote David Harris.
Overall, the city awarded $25 million to 11 projects from its share of the Housing Accelerator Fund last year, while another 12 projects split $25 million of the funding in 2025.
Rappaport noted one of the 11 projects granted last year has now withdrawn its application for Housing Accelerator Funding, leaving the total for that year at 10 projects.
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Westgate Developments Ltd. and LVDC Holdings Ltd. had planned to convert a commercial building at 125 Garry St. into a mixed-use apartment complex with 126 housing units, including 32 affordable ones.
The city and developer declined comment on the reasons that project won't proceed.
Rappaport said city staff will look at other options to invest the money allotted to that project, which could be offered to another applicant who didn't initially receive a grant.
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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.
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