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Hamilton Spectator
24-05-2025
- Business
- Hamilton Spectator
Wesgroup proposes significantly more density at Coronation Park site to offset new Metro Vancouver fees, affordable housing
Wesgroup approached Port Moody council on Tuesday with a multi-pronged proposal to keep its long-planned Coronation Park development on track – including significant density increases, alternative financial securities, and support tied to a federal financing program. Spanning 15 acres, the development was set to include six residential towers between 26 and 31 storeys and 100,000 square feet of commercial space following council approval in 2023. Of the 2,587 units, 101 were set to offered as rentals. The May 10 delegation from Wesgroup follows a 2023 letter of intent the developer submitted to explore affordable housing options in exchange for increased density after concerns were raised about the complete absence of below-market units in the project. The proposal will require another OCP amendment and rezoning to allow for another tower to be built on site, as well increasing the height of three other towers. Dean Johnson, Wesgroup's senior vice president of development, said the amount of density is needed to offset costs related to recent increases to Metro Vancouver developer cost charges (DCCs) hurting the project's bottom line, and building market rentals under the Canada Mortgage and Housing Corporation's (CMHC) Apartment Construction Loan Program (ACLP). 'The CMHC's ACLP is the only viable path forward in today's financial environment,' Johnson said. 'We have two options in front of us: additional density to offset the cost, or decrease the amenity package we previously agreed to with the community. We do not want to go down that path.' Wesgroup's proposal would add an additional 35-storey tower, as well as 13 storeys on three other towers. In exchange, Wesgroup would convert one of the 26-storey towers fronting Ioco Road to 100 percent rental housing. Of its 288 units, 72 would be secured at below-market rates for 25 years. CMHC's $55-billion ACLP provides low-cost financing to developers in exchange for rental and affordable housing commitments. But the 2025 funds have already been claimed, and the 2026 intake window is nearly full. In order to qualify, Wesgroup needed municipal confirmation that Port Moody supports the project's alignment with CMHC affordability goals. While council only received the proposal for information, it unanimously approved the issuance of a 'comfort letter' needed to advance Wesgroup's application to the CMHC. Offsetting costs Shortly after Port Moody council approved Coronation Park in October 2023 , Metro Vancouver's Mayor's Council approved steep increases to regional DCCs, resulting in a $30 million in unplanned fees, according to Johnson. He said the DCC spike is a significant cost burden on the project, and without the added density, Wesgroup may have to scale back the amenity package approved for the development. 'There was a substantial increase – once in a lifetime, really, for many of us – and this cost is going to be something that we have to deal with on this project,' Johnson said. Additional density is also needed due to the value difference between market condominiums and market rental. Most of the additional square footage, however, is being used to offset Metro Vancouver's DCC increases, which account for approximately 77 percent of the increase in density. Johnson noted that one of the benefits of using the CMHC program is that both towers facing Ioco Road would be built simultaneously, while much of the density would be added in later phases of the project. Surety bonds Wesgroup's final request was for the city to consider accepting surety bonds as an alternative to letters of credit when developers post financial securities tied to development permits. A surety bond offers municipalities a secure financial guarantee that a developer will complete their obligations, while giving the developer more financial flexibility compared to traditional bank-issued letters of credit. 'Letters of credit tie up millions of dollars in equity,' Johnson said. 'Surety bonds are insured, regulated, and already accepted in municipalities like Burnaby, Surrey, and Vancouver.' He noted Wesgroup currently faces a $15.8 million letter of credit due in July, which it is seeking to defer until building permits are issued in March 2026. The company is still in the pre-sale phase and has not yet secured final project financing, making the immediate issuance of such a large letter of credit 'challenging,' Johnson said. Council response Coun. Haven Lurbiecki was sharply critical of the amount of density being proposed, and questioned whether the CMHC proposal was even related. She accused Wesgroup of 'shifting the goalposts' by asking the public to essentially subsidize an already massive project. Lurbiecki noted the original plan includes mostly studios and one-bedroom units at a time when the city needs affordable family-sized housing, townhomes, co-ops, four-plexes, and seniors housing. 'Anything but more condos,' she said. 'To even consider this request for more density, I just find it irresponsible and inexplicable.' Other councillors took a more supportive approach. Coun. Kyla Knowles welcomed the affordable housing plan and said the financial pressures facing developers must be understood if homes are to be delivered. 'We need homes. So let's build the homes,' Knowles said. 'If there's an extra $30 million in DCCs, you could say, 'Great, the developer makes less.' But that cost falls on end users.' She also supported Wesgroup's request to explore surety bonds as an alternative to letters of credit for financial security deposits. 'Financing has changed. It's gotten more challenging,' Knowles said. 'To not have any understanding of that means you are worsening the crisis.' Coun. Callan Morrison said he supported the comfort letter but wanted more information before weighing in on the broader density and financial deferral requests. 'I appreciate this is going to need a bigger discussion,' he said. Mayor Meghan Lahti emphasized the comfort letter was only to allow Wesgroup to begin its CMHC application – not an endorsement of all its future asks. 'We may support them sending in the application, but we may not support it at the end of the day,' she said. 'This is helping them get to the next step.' In principle, however, the mayor supported the rental housing proposal. 'If all things were equal, would we be supportive of a CMHC project happening on that site in the second tower? My answer is a resounding yes,' Lahti said. 'But obviously, there are multi-faceted levels of conversation that need to take place.' Staff will return with a report on the broader proposal – including the OCP amendment, rezoning, and requests related to financial securities and density.
Yahoo
26-01-2025
- Business
- Yahoo
Federal government invests in 22,417 homes in Ontario
OTTAWA, ON, Jan. 26, 2025 /CNW/ - Today, the Government of Canada announced more than $2.1 billion in contributions and low-cost repayable loans to build and repair 22,417 homes through 234 housing projects located across different municipalities in Ontario. These projects are supported through various initiatives under the National Housing Strategy (NHS) and aim to address needs across the housing continuum for diverse communities, prioritizing Ontario's most vulnerable populations. The funding announced today includes: $305,726,435 in loans and $129,556,363 in contribution through the Affordable Housing Fund (AHF), which will help create 2,319 new units and repair 1,047 units across 38 projects. $118,750 in loans and $96,277,828 in contribution through the Affordable Housing Innovation Fund (AHIF), which will help create 3,671 new units across 7 projects. $1,444,846,000 in loans through the Apartment Construction Loan Program (ACLP), which will help create 3,306 new rental units across 15 projects, with affordability conditions. $7,890,445 in loans and $38,790,919 in contribution through the Canada Greener Affordable Housing (CGAH), which will help repair 10,615 units across 161 projects. $85,813,344 in contribution through the Rapid Housing Initiative (RHI), which will help create 246 new units and repair 45 units through 11 projects. $9,949,984 in contribution through the Federal Lands Initiative (FLI), which will help create 1,168 new units across two projects. Through investments like these, the federal government is working to end the housing crisis, so that everyone has a safe and affordable place to call home today – and so future generations have the same opportunity to rent or own a place of their own as generations that came before them. Project-specific details will be announced locally in the coming weeks. Quotes: "The market alone won't deliver the housing affordability we need. These projects represent major progress in returning a strong federal role to affordable and non-market housing. It's now time to double down on that commitment." – The Honourable Nathaniel Erskine-Smith, Minister of Housing, Infrastructure and Communities Quick Facts: Progress on programs and initiatives is updated quarterly at The Housing Funding Initiatives Map shows affordable housing projects that have been developed. As of September 2024, the federal government has committed $57.57 billion to support the creation of over 156,000 units and the repair of over 297,000 units. These measures prioritize those in greatest need, including seniors, Indigenous Peoples, people experiencing or at risk of homelessness, and women and children fleeing violence. The Affordable Housing Fund (AHF) provides funding through low-interest and/or forgivable loans or contributions to partnered organizations for new affordable housing and the renovation and repair of existing, affordable and community housing. This is a $14.6 billion program under the National Housing Strategy (NHS) that gives priority to projects that help people who need it most, including women and children fleeing family violence, seniors, Indigenous Peoples, people living with disabilities, those with mental health or addiction issues, Veterans, and young adults. As of September 2024, the Government of Canada has committed $10.34 billion to support the creation of over 40,000 units and the repair of over 166,000 units through the Affordable Housing Fund. Budget 2024 announced enhancements to the AHF which includes the program being extended from 2025 – 26 to 2028 – 2029. The existing New Construction Stream is now divided into two dedicated sub-streams: a Rapid Housing Sub-Stream for the creation of shelters, supportive and transitional housing for those in greatest need, and a dedicated Community Housing Sub-Stream to support affordable and mixed-market housing where there are both affordable and market rent units in a project. The Repair and Renewal Stream has replaced minimum requirements with an approach where projects supporting accessibility and energy efficiency will be prioritized. The Rapid Housing Initiative (RHI) is delivered through the Canada Mortgage and Housing Corporation (CMHC) under the NHS. It provides funding to facilitate the rapid construction of new housing and the acquisition of existing buildings for the purpose of rehabilitation or conversion to permanent affordable housing units. With its third phase, launched in 2022, the Rapid Housing Initiative once again exceeded targets. It is expected that with this phase over 5,200 new homes will be created, of which almost half will be for women and one third will be for Indigenous Peoples. The total number of units created with the support of Rapid Housing Initiative is expected to be over 16,000 units. The program is now closed. The RHI takes a human rights-based approach to housing, serving people experiencing or at risk of homelessness and other vulnerable people, including women and children fleeing domestic violence, seniors, young adults, Indigenous Peoples, people with disabilities, people experiencing mental health and addiction issues, Veterans, 2SLGBTQI+ individuals, racialized groups, and recent immigrants or refugees. The $55 billion Apartment Construction Loan Program (ACLP) is providing low-cost financing to support more than 131,000 new rental homes across Canada by 2031 – 32. The ACLP provides fully repayable low-interest loans to encourage the construction of more rentals for middle-class Canadians. It creates a positive impact to the housing system at minimal cost to taxpayers. A stable supply of purpose-built rental housing is essential for more people in Canada to have access to housing that meets their needs As of September 2024, CMHC has committed $20.65 billion in loans through ACLP to support the creation of more than 53,000 rental homes. It is one of many programs and initiatives under the National Housing Strategy designed to help address housing needs across the housing continuum. It complements other NHS initiatives that focus on funding affordable housing units for lower-income households. Budget 2024 announced enhancements to the ACLP which includes the program being extended from 2027 – 28 to 2031 – 2032. The enhancements will allow applicants to apply for funding for on- and off-campus student housing to support post-secondary educational institutions as well as independent seniors housing. There are no longer minimum requirements relating to energy efficiency and accessibility, instead applicants will benefit from making stronger commitments to desired rental supply and social outcomes. The Federal Lands Initiative (FLI) is an over $318 million fund that supports the transfer of surplus federal lands and buildings to be used as affordable housing. The FLI is a National Housing Strategy initiative delivered by Canada Mortgage and Housing Corporation (CMHC), Housing Infrastructure and Communities Canada (HICC), Public Service and Procurement Canada (PSPC) and Canada Lands Company (CLC). The Affordable Housing Innovation Fund (AHIF) is providing $615.5 million for projects that showcase new funding models and innovative building techniques. The investment is expected to support the construction of over 29,000 new affordable housing units over six years. The Canada Greener Affordable Housing (CGAH) is providing $1.2 billion to make multi-unit rental housing serving low- and moderate-income households more energy efficient and environmentally friendly. CGAH is a financing program to help community housing providers complete deep energy retrofits on their multi-unit residential buildings, improving their quality and adapting homes to the effects of climate change and extreme weather events leading to deep reductions in energy consumption and greenhouse gas (GHG) emissions. CGAH provides contributions for pre-retrofit activities needed to plan, prepare, and apply for retrofit funding as well as forgivable and low-interest loans to help finance building retrofits and activities needed to meet climate objectives. Funding has been provided to 158 Ontario housing providers to complete pre-retrofit activities and assess their eligibility to undertake deep energy retrofit projects. Additional Information: Visit for the most requested Government of Canada housing information. CMHC contributes to the stability of the housing market and financial system, provides support for Canadians in housing need, and offers unbiased housing research and advice to all levels of Canadian government, consumers and the housing industry. CMHC's aim is that everyone in Canada has a home they can afford and that meets their needs. For more information, follow us on Twitter, Instagram, YouTube, LinkedIn and Facebook. To find out more about the National Housing Strategy, please visit SOURCE Canada Mortgage and Housing Corporation (CMHC) View original content to download multimedia: Sign in to access your portfolio
