Ontario Construction News staff writer
The federal government has announced over $157 million to build 648 purpose-built rental homes across two projects in London and St. Thomas. The funding will come as fully repayable low-interest loans through the Rental Construction Financing Initiative (RCFi).
“We need to boost housing supply, this is why we are making strategic investments, through programs like the Rental Construction Financing Initiative, to build much-needed rental units across the country,” said Sean Fraser, housing minister.. All Canadians deserve a safe place to build and live their lives in, and we will ensure this becomes a reality.”
Located at 391 South Street in London, the first project is a two-tower building containing 588 purpose-built rental units. The building includes two levels of underground and a four-level above ground parking structure, as well as multiple amenities including a gym, theatre room, lounge, party room and a large outdoor patio area. Construction is expected to be completed by next summer.
The Inglewood Modular project at 300 Manor Road in St. Thomas was also announced last week. The three-storey building includes 60 purpose-built rental units and received over $14.2 million through the RCFi and is expected to be completed by the fall of 2024.
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. 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.
“As our community expands, the imperative for housing intensifies. I applaud the federal government’s commitment to investing in the heart of our communities by providing housing for middle-income families and individuals,” said Josh Morgan, Mayor of London. “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 Rental Construction Financing Initiative (RCFi) provides fully repayable low-interest loans to encourage the construction of more purpose-built rental housing for middle income Canadians. It creates a positive impact to the housing system at minimal cost to taxpayers.