1,001 new affordable housing units, being fast-tracked in Quebec

The governments of Canada, Quebec and the City of Montreal announced the construction of 1,001 new affordable housing units on Friday, thanks to the creation of a “fast track for qualified developers.”

The announcement was made in the presence of the Minister responsible for the Economic Development Agency of Canada for the Regions of Quebec Soraya Martinez Ferrada, Quebec Housing Minister France-Élaine Duranceau, Montreal Mayor Valérie Plante, and other elected officials.

The new model provides for other constructions, not just the 1,001 new affordable homes.

“The new business model consists of providing financial support for affordable housing projects led by groups of experienced developers recognized for their efficiency by the Société d’habitation du Québec (SHQ),” reads the press release issued by the various governments.

The SHQ will grant the status of “qualified developer” to promoters and organizations so they can benefit from administrative relief and quickly proceed to start the construction of their projects.

“We want to work with developers that are strong financially, that have a good governance, that have shown that they can deliver because of prior projects,” Quebec Minister for Housing France- Élaine Duranceau said.

Developers are invited to submit their applications to have access to “the fast track” and Minister Duranceau explained that those who will be able to benefit from the program will be chosen according to a grid of criteria that includes the “quality of constructions,” the “ability to get projects off the ground,” expertise and the “ability to respect budgets and deadlines.”

“In general, when the three levels of government come together for an announcement, it means that trouble is coming,” said Mayor Plante.

Developers can find out about the criteria in detail on the SHQ website. The cost for the units is $452M with funds coming from the Société d’habitation du Québec, Desjardins, the City of Montreal, and the City of Rimouski.

The funding comes in part from the $900 million the federal government provided to Quebec through the Canada-Quebec Agreement on the Housing Acceleration Fund (FACL) and from recent investments of $900 million announced by the Quebec government in 2023.

“I keep saying it: we need to multiply solutions to increase the supply of housing, particularly social and affordable housing. That is why, today, I am proud to announce that we are adding another string to our bow, namely the status of Qualified Developer,” said Duranceau.

SDA to build three projects

The announcement took place in the Locoshop Angus, in the east end of Montreal, owned by the Société de développement Angus (SDA), which will be the first to join the SHQ’s qualified developer network.

The SDA will receive a subsidy of nearly $193.5 million to build 1,001 new housing units, including 677 in Montreal and 324 in Rimouski.

The financial assistance corelates to approximately half of the estimated costs to build the homes and the affordability must be ensured for a minimum of 35 years.

Quebec Housing Minister of Housing explained how many housing units could be built using this method.

“Obviously, there will be a budget limit, we are working within our scope of 8,000 units announced last November, but these are tools that we are providing, to work more efficiently.”

Minister Duranceau indicated that “other qualified developers will be announced very soon.”

Organizations who have worked closely with family affected by the housing crisis have voiced the need for social housing over affordable.

“Some projects are not going to enter just the same needs, so if we’re thinking about the municipal office of Montreal, there are 16 people on their waiting list, they’re not seeing themselves being attributed a fast track for developing social housing right now,” said Catherine Lussier, coordinator of housing organization FRAPRU.

“We don’t have any programs that permits and specifically are dedicated for developing public housing that will permit some of those municipal offices to be able to answer the needs of the people on their waiting list,” Lussier said.

Lussier adds that so many non-profits with similar projects continue to struggle on access to the opportunity to get funding from the provincial government. She added that some projects have remained stagnant.

Two projects in Montreal

Two buildings will be built in the Angus eco-district on Molson Street and will include 352 off-market housing units, with a variety of one to three bedrooms available. Work will begin at the end of 2024.

Additionally, in the Écoquartier Louvain in Ahuntsic, a 10-storey building will be built and include 325 off-market housing units with one to three bedrooms.

Rental prices will be set according to the grid established by the SHQ in the Quebec Affordable Housing Program (PHAQ).

“We hope that the Quebec Government is going to actually really put on place a program that will be dedicated, I think, for the specificity of social housing that will be complete,” Lurrier said.

–This report by La Presse Canadienne was translated by CityNews