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Federal government provides $15M loan for rental housing project in Cobourg

Click to play video: 'Cobourg receives $15 million for apartment complex development' Cobourg receives $15 million for apartment complex development
The Federation of Canadian Municipalities has announced $15 million of funding to be put towards a four-storey, 71-unit apartment complex on University Avenue in Cobourg. – Aug 12, 2021

The federal government is providing a $15-million insured loan to assist in construction of a new rental housing project in Cobourg, Ont.

In a virtual announcement Thursday, Adam Vaughan, parliamentary secretary to the minister of families, children and social development and minister responsible for the Canada Mortgage and Housing Corp., announced a $15-million insured loan to help with construction of a new residential building located at 311–325 University Avenue West.

Developed by Balder Corp., the four-storey building will offer 71 units.

Read more: $3.5M in government funding supports affordable housing project in Peterborough, Havelock

The Town of Cobourg in 2019 approved rezoning of the land for the project which Balder at the time said would include 14 studio units, 15 one-bedroom units, 23 one-bedroom and den units, eight two-bedroom units and five two-bedroom and den units. The Toronto-based company said in a presentation that 13 units would be designated as “affordable housing” under CHMC standards.

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The project received funding through CMHC’s Rental Construction Financing initiative, 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.

“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,” Vaughan stated.

Construction continues on the apartment complex on University Ave. West in Cobourg on Aug. 12, 2021. Sam Houpt/Global News Peterborough

 

Babak Akbari of Balder Corp. said addressing housing crisis in communities requires “commitment from all stakeholders.” He anticipates the building to have occupancy within “four to six months.”

“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,” he said. “If it were not for this initiative, projects such as ours would simply not be possible in the current housing market.”

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Construction on the project is well underway. Cobourg Mayor John Henderson says the development has received recognition for its planned use of geothermal energy for the building’s heating and cooling system.

“We’re very pleased to have received a Cobourg accessible energy-efficient downtown apartment rental recognition,” he said. “It is one of the first sustainable builds in our town. And it’s to be one of many.”

“Every Canadian deserves a safe and affordable place to call home,” said Ahmed Hussen, minister of families, children and social development and minister responsible for CHMC. “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.”

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Through the RCFi, the Government of Canada is encouraging the construction of more than 71,000 new rental housing units.

— with files from Sam Houpt/Global News Peterborough

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