Feds help fund rental construction in Kitchener
The federal government is helping to fund construction of 60 purpose-built rental homes in Kitchener.
The announcement took place on August 3 at 50 Eighth Avenue, where a six-storey purpose-built rental apartment building is being constructed by 55 Franklin LP. The homes will be close to transit, expressway, shopping, daycare, schools, and services for middle-income families.
Thanks to an agreement between 55 Franklin LP and the Region of Waterloo, Phase 1 of the 55 Franklin project will offer at least seven one-bedroom homes with rents at or below $522 per month and at least 18 one-bedroom units with rents at or below $1,245 per month. These affordability requirements will be maintained for minimum of 30 years.
Of the 60 units available, 12 will be accessible, while the building will achieve a minimum of 54% decrease in energy intensity and 60% decrease in greenhouse gas emissions relative to the requirements of the National Energy Code for Buildings.
The construction is being made possible through a fully repayable low-interest loan of over $16 million through the Rental Construction Financing Initiative (RCFi). The Region of Waterloo, meanwhile, has waived the project’s development charges and contributed $1.96 million through its affordable housing fund.
"Waterloo Region is one of the fastest growing regions in Canada,” said Kitchener South—Hespler MP Valerie Bradford. “As our population grows, the need for housing becomes increasingly crucial, and purpose-built rentals are an essential part of the solution. Today's announcement will add 60 units of purpose-built rental stock here in our community so that we can ensure a more stable and affordable housing market for middle income Canadians."
The Government of Canada created the RCFi to stimulate the construction of rental housing across the country. The initiative provides fully repayable low-interest loans to encourage the construction of more purpose-built rental housing. The government aims to use the fund to build more than 71,000 rental units.