The Nova Scotia government has launched a “lending program” that would allow non-profit organizations purchase existing housing units.
Municipal Affairs and Housing Minister John Lohr announced on Wednesday in Halifax that the Community Housing Acquisition Program (CHAP), will allow housing non-profits access $10 million in repayable loans.
The first loan has already been secured for the Housing Trust of Nova Scotia.
Lohr said the organization is getting a low-interest mortgage of $5.6 million to purchase five rental properties.
One of these was the property the announcement was held in, a rental building at 18 Crown Dr. near the Armdale Rotary. According to an online listing for the property, it includes 84 one and two-bedroom apartments.
One tenant of 18 Crown Dr., Trisha Estrabrooks, said she was relieved to hear the nonprofit took ownership of the building.
“Nova Scotians are concerned about the rising costs of renting, particularly in Halifax, so I’m grateful that my building is now owned by a group who are making efforts to help solve this issue,” Estabrooks said Wednesday in a statement.
In total, the Housing Trust of Nova Scotia will purchasing 295 affordable units across the municipality.
Minister Lohr said the province has learned that non-profits face challenged when they want to purchase affordable housing.
“This new lending program will help preserve and increase affordable housing stock for people and families in need,” said Lohr on Wednesday in a release.
“We have seen rental properties purchased by investors and heard the stories of rents being increased out of reach for existing tenants.
“This program not only prevents further gentrification and loss of affordable housing but also ensures tenants can continue to live in their homes.”
The loan program will provide up to 95 per cent loan-to-value financing, according to the release, and 100 per cent financing will be available for projects that receive operating funding from the Department of Community Services.
At fixed interest rates, financing is available for a term of up to 30 years, said the province.
Halifax Mayor Mike Savage said Wednesday’s announcement “demonstrates the art of the possible when we all work together to find solutions.”
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