The federal and provincial governments announced a combined investment of more than $5.4 million in two affordable housing projects in Waterloo region on September 8.

The first project will see the redevelopment of St. Paul's Evangelical Lutheran Church, which is located on Bridgeport Road East in Kitchener. Developers MennoHomes are transforming the 1950s-era building into a five-storey mixed-use building with 48 rental housing units, 12 of which will be accessible.

The 44,000-square-foot building will feature wide hallways, roll-in showers and electric scooter storage. It also includes worship space for St. Paul's, a community garden, shared meeting space and a community kitchen.

The project, which is divided into two phases, will eventually create more than 80 affordable housing units. It has an overall budget of $15.3 million, and is being funded by the federal and provincial governments, the Region of Waterloo and the City of Kitchener.

Construction began in late May.

The second project is a 13-unit development at 18 Guelph Street in Kitchener. The stacked townhouse will include 10 one-bedroom units, two three-bedroom units and one five-bedroom unit. The building will draw energy from solar panels to help reduce greenhouse gas emissions.

Funding for both projects is being delivered through the Ontario Priorities Housing Initiative and the Investment in Affordable Housing program. Both initiatives give local communities the flexibility to address their local housing needs by funding new rental construction, home repairs, housing allowances, rent supplements or home ownership.

"Our government is working hard to build a strong community housing system that supports our most vulnerable citizens,” said Ontario Municipal Affairs and Housing Minister Steve Clark. “Partnerships are a big part of the equation, with governments and community organizations coming together to create more affordable housing like these projects in the Region of Waterloo."