The federal government has contributed more than $86 million to fund construction of 250 rental housing units in Ottawa.

Soho Italia, a project by Mastercraft Starwood, is receiving financing through CMHC's Rental Construction Financing initiative (RCFi), a National Housing Strategy program delivered by Canada Mortgage and Housing Corporation (CMHC) that supports rental housing construction projects. The program encourages a stable supply of rental housing for middle-class families struggling in expensive housing markets.

Soho Italia will provide much needed housing options for middle-class families, close to public transit, schools and services. The 30-storey mixed-use building will feature 250 residential units, including 50 one-bedroom units, 100 one-bedroom + den units and 100 two-bedroom units. At least two units will have universal design and at least two units will be adaptable, in addition to the minimum of 10 percent of units within the project that will meet or exceed the local accessibility standards. 

The building is located at 486-500 Preston Street in Ottawa’s downtown, which is less than 200 metres away from the Carling Station on Ottawa’s O-Train Trillium Line, and in close proximity to the future site of the Civic Campus of The Ottawa Hospital.

Bruce Greenberg, president of Mastercraft Starwood, called the building state of the art, citing its electric vehicle charging stations, car sharing and electronic locks.

"Mastercraft is pleased to celebrate this important financing milestone on 500 Preston and wishes to thank CMHC and the federal government for creating a program to promote innovative and socially responsible rental housing options for middle class Canadians, create jobs and long term benefits,” he said. “Mastercraft is incredibly grateful to CMHC for the innovative funding which helped us to realize this project, and we are committed to the development of more purpose built, affordable rental buildings in Ottawa and Toronto." 

This development represents a new supply of purpose-built rental housing in an area of Ottawa where the vacancy rate was 2.3 percent. 

The RCFi supports rental housing construction projects to encourage a stable supply of rental housing across the country for middle-class households struggling in expensive housing markets. 

Launched in April 2017, it has generated a lot of interest and a high number of quality applications. In the 2018 budget the federal government increased the amount of low-cost loans under the program from $2.5 billion to $3.75 billion. It was further increased to $13.75 billion in budget 2019.

In total, the RCFi will encourage the construction of 42,500 new rental-housing units across Canada.