Canada Provides More Rental Housing for Families in Cobourg

Canada Mortgage and Housing Corporation (CMHC) logo (CNW Group/Canada Mortgage and Housing Corporation)

Government of Canada logo (CNW Group/Canada Mortgage and Housing Corporation)

COBOURG, ON, Aug. 12, 2021 /CNW/ - Every Canadian deserves a safe and affordable place to call home. Thanks to investments made by the Government of Canada, residents of Cobourg will now have access to more stable rental housing options.

Today, Adam Vaughan, Parliamentary Secretary to the Minister of Families, Children and Social Development and Minister responsible for Canada Mortgage and Housing Corporation (CMHC), announced a $15 million insured loan to help construct a new residential building located at 311 – 325 University Avenue West in Cobourg.

The project, developed by Balder Corporation, is a 4-storey residential building that will provide Cobourg with 71 new units of much needed rental housing close to public transit, schools and services for families.

The project received funding through CMHC's Rental Construction Financing initiative (RCFi), a National Housing Strategy program that supports rental housing construction projects to encourage a stable supply of rental housing for middle-class families in expensive housing markets.

Quotes:

"Every Canadian deserves a safe and affordable place to call home. That is why our government is taking action to increase the supply of rental housing through projects like the one we are announcing today in Cobourg. This new rental housing will provide families better access to jobs, services and the amenities they need. This is the National Housing Strategy at work." – The Honourable Ahmed Hussen, Minister of Families, Children and Social Development and Minister responsible for Canada Mortgage and Housing Corporation (CMHC)

"By providing financing for new housing builds like we have for this project at 311-325 University Avenue West, our government is taking action to not only increase the supply of new rental developments, but to also provide housing options that are closer to jobs, services and amenities for middle-class families here in Cobourg, the surrounding regions and across Canada." – Adam Vaughan, Parliamentary Secretary to the Minister of Families, Children and Social Development

"We believe that addressing the housing crisis in our communities requires commitment from all stakeholders. It's been a privilege to take part in the federal government's housing initiative that brings together federal funding with private sector investment and support from municipalities and other community stakeholders. If it were not for this initiative, projects such as ours would simply not be possible in the current housing market." – Babak Akbari of Balder Corporation

Quick facts:

• Through the RCFi, the Government of Canada is encouraging the construction of more than 71,000 new rental housing units.
• A stable supply of rental housing is critical to ensure that more Canadians have access to housing that meet their need and that they can afford. This is a great option for middle class Canadians who are experiencing affordability pressure in many markets with high home prices and lack of rental supply.
• Launched in April 2017, the RCFi has generated significant interest in the industry, which has led to an expansion of the program. Through Budget 2019, the Government of Canada increased the total amount available in loans to $13.75 billion.
• Given the high demand for the program, the Government again expanded the RCFi in the 2020 Fall Economic Statement by adding an additional $12 billion over 7 years, starting in 2021-22. The program now totals $25.75 billion in low-cost loans.
• Budget 2021 proposes that $300 million over two years (2021-22 and 2022-23) from the RCFi be allocated to support the conversion of vacant commercial property into 800 units of market-based rental housing. As the demand for retail and office space has changed due to COVID, some landlords, particularly in major urban cores, are facing higher vacancies. This is an opportunity for property owners and communities to explore converting excess space into rental housing, enhancing the livability and affordability of urban communities.
• Canada's National Housing Strategy (NHS) is a 10-year, $70+ billion plan that will give more Canadians a place to call home—this includes more than $13 billion committed through the 2020 Fall Economic Statement.
• To help Canadians find affordable housing, Budget 2021 proposes to provide an additional $2.5 billion over seven years in new funding and a reallocation of $1.3 billion in previously announced funding to speed up the construction, repair, and support over 35,000 additional housing units.

Associated links:

• As Canada's authority on housing, CMHC contributes to the stability of the housing market and financial system, provides support for Canadians in housing need, and offers unbiased housing research and advice to all levels of Canadian government, consumers and the housing industry. For more information, please visit cmhc.ca or follow us on Twitter, Instagram, YouTube, LinkedIn and Facebook.
  
  
• To find out more about the National Housing Strategy, visit www.placetocallhome.ca.

SOURCE Canada Mortgage and Housing Corporation

Media contacts: Hafsah Asadullah, Communications Assistant, Office of the Minister for Families, Children, and Social Development, [email protected]; Audrey-Anne Coulombe, Canada Mortgage and Housing Corporation, [email protected]

Related Links

www.cmhc-schl.gc.ca