The federal government says they will be providing $23 million in low-cost loans to build more than 100 purpose-built rental homes in Fredericton, the Canada Mortgage and Housing Corporation announced Tuesday.
In a release, the Crown corporation said the funding for the 132 units will come as fully repayable low-interest loans through the Rental Construction Financing Initiative.
According to the CMHC, the initiative “provides low cost funding to eligible borrowers during the most risky phases of product development of rental apartments.”
The new “Micro Boutique Living” units will be located at 650 Waterloo Row, in a central part of Fredericton. The project will include studios and one, two, and three-bedroom units, ranging in size from 250 square feet to 1,000 square feet.
“Canada’s construction of rental homes has not kept pace with the country’s growing cities and population, leading to a decline in the existing and aging rental stock for decades,” the release said.
“To tackle this issue, the federal government introduced the RCFi to help build more rentals across the country. Increasing the overall supply of rental housing is crucial to creating stronger and more vibrant communities that Canadians can feel proud to call home.”
The project’s funding also includes $150,000 through SEED funding and $1.72 million from Micro Boutique Living Fredericton.
According to the Micro Boutique Living website, the new units will begin leasing in May 2024.
Monthly rents currently start at $1,095 for a studio apartment, $1,325 for a one-bedroom, $1,495 for a two-bedroom and $1,650 for a three bedroom.
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