Victoria will inject $2.4 million into an affordable housing project planned for 1132 Johnson St.
City council has unanimously endorsed handing over a grant to the Capital Region Housing Corporation from the Victoria Housing Reserve Fund that will see 140 units of affordable housing come out of the ground.
Coun. Jeremy Caradonna noted it is more than the city tends to invest in affordable housing projects based on the city’s per-unit guidelines – normally the project would qualify for $732,500 — but said this one makes sense.
“I think in this instance, I think it’s very much warranted; 140 units of affordable housing is rare and precious in Victoria,” he said, adding it will provide family housing with 53 two- and three-bedroom units. “It meets and exceeds our commitments to the family housing policy. It obviously meets and exceeds our commitments to affordability.”
The $29-million project, known as Village on the Green, is to be spread across two affordable rental buildings at 1132 Johnson St. It was given a development permit in February through the city’s Fast Track for Affordable Housing program.
According to the Capital Region Housing Corporation, the need for a larger grant is due to a number of factors, including a higher equity contribution requirement to secure mortgage financing and rising construction costs.
The Victoria Housing Reserve Fund, which will have about $2.1 million left in it after this grant is handed over, provides one-time capital grants to assist in the development and retention of affordable rental housing for households with very low, low, median or moderate incomes.
Coun. Dave Thompson said it makes sense to spend the money in the reserve fund now.
“I’d rather get the homes built and worry about how to find the next bit of money rather than clutch the money, not have the homes, and then have to build them later when it gets more expensive,” he said. “As we are seeing in a lot of areas, it doesn’t get cheaper to build housing if you wait.”
