A low-interest loan from the federal government will help build nearly 650 rental homes in London and St. Thomas.
London North Centre MP Peter Fragiskatos, the parliamentary secretary to Canada's minister of housing, announced $157 million in funding through the Rental Construction Financing Initiative (RCFi) on Wednesday. The money is being offered as fully repayable low-interest loans for two separate projects.
"The Government of Canada is committed to working with all communities to meet the challenge of building more rental housing," Fragiskatos said in a statement. "These homes will benefit Londoners and their families, making communities like London more inclusive and equitable."
According to the federal government, $142.8 million of the funding will be used for a two-tower building with 588 purpose-built rental units at 391 South St. in London. The building will include a gym, theatre room, lounge, party room, and a large outdoor patio area. It will also include a parking structure with 2 underground levels, and four above ground levels. The City of London is also contributing $6.7 million toward the build which is slated to be completed by next summer.
The second project, at 300 Manor Rd. in St. Thomas, will receive $14.2 million. The three-storey building will offer 60 purpose-built rental units gear toward middle income residents. Construction is scheduled to be finished by next fall.
"As our community expands, the imperative for housing intensifies," said London Mayor Josh Morgan. "I applaud the federal government's commitment to investing in the heart of our communities by providing housing for middle-income families and individuals. The construction of purpose-built rental homes will contribute to the dynamic growth of London and the surrounding areas, creating a more vibrant and just community for all."
The federal government established the RCFi to help increase the overall supply of rental housing across the country and address an ongoing decline of stock. It is one of several programs under the $82 billion National Housing Strategy.
