The federal government has pledged to spend nearly $168 million to fund construction of hundreds of affordable housing units in Ottawa’s downtown.

Ahmed Hussen, the federal minister in charge of Canada Mortgage and Housing Corporation (CMHC), made the announcement on September 10,

The money, which will mostly be paid as a mortgage to the City of Ottawa, will go toward the construction of four buildings totalling 698 units on Gladstone Street just west of the city’s downtown core. About a quarter of the total units—or 211—will be earmarked at rents lower than 80 percent of median market rent for the neighbourhood.

The building at 811 Gladstone Avenue—Rochester Heights Phase 1—will include 140 affordable homes. This project aims to be Canada's largest residential Passive House, and will be 85 percent more energy efficient than conventional new builds. The City of Ottawa has allocated approximately $2.8 million in development charge and fees waivers toward this project, and $18.3 million through the Investment in Affordable Housing/Social Infrastructure Fund.

The city has also allocated $10 million in capital funding for the other three buildings—Gladstone Village phases 1 and 2, and Rochester Heights Phase 2—in addition to relief from development charges and applicable other building fees.

Rochester Heights Phase 2 at 818 Gladstone Avenue is a 4.2-acre site that will include 700 residential units as well as retail and office spaces. Gladstone Village phases 1 and 2 are sited at 933 Gladstone Avenue, and will include 1,100 units on eight acres.

The new homes will support those of all ages, family compositions and demographics, but 179 of the homes will be dedicated to priority groups such as seniors, women and children fleeing domestic violence, those facing mental health and addiction issues, and newcomers.

"Our 10-year development strategy has strategically transformed OCH's operations to ensure our readiness to build,” said Stéphane Giguère, CEO of Ottawa Community Housing. “Strengthening partnerships such as the ones with CMHC and the City of Ottawa will pave the way for a meaningful and significant transformation for affordable housing in our city. With this strategic financing opportunity, OCH can now foster the construction of a minimum of 700 new affordable rentals over the next few years." 

The federal contribution is the largest single investment awarded to a social and affordable housing provider for the development of new affordable housing in Ottawa under the National Housing Strategy.

"Affordable housing continues to be a priority for the City of Ottawa,” said Mayor Jim Watson. “Council recently approved the refreshed 10-Year Housing and Homelessness Plan, which sets ambitious targets—including eliminating unsheltered, veteran and chronic homelessness, and creating up to 8,500 new affordable housing options by 2030."