Transcona affordable housing project at risk as federal funding in doubt

The future of a Transcona affordable housing project, meant to help people with disabilities and those transitioning out of homelessness, is in question after a federal funding program it was counting on ran out of money. 

The Winnipeg Housing Rehabilitation Corporation, which spearheaded the project, secured the land from the City of Winnipeg. Last year, it submitted an application for $25 million in funding from the affordable housing fund, a national $15-billion program created as part of the federal government's national housing strategy. 

"Everything is in question right now," said executive director James Heinrichs.

Plans for the 154-unit apartment building at 145 Transcona Blvd. began about six years ago. At an estimated cost of $45 million to $50 million, the project would include 68 deeply affordable units, with rents at 69 per cent of the median market rate.

It would also include 31 fully accessible units, and 55 median market units. 

In its application, the housing rehabilitation corporation hoped to receive a $14 million loan, as well as an $11 million grant.

However at a meeting of the Canadian Housing and Renewal Association last week, Heinrichs learned the affordable housing fund had received more applications than it could provide. 

The potential loss of that funding could delay the project, putting it at risk of losing other government funding, including $5 million from the housing accelerator fund, which has strict completion time limits, Heinrichs said.

"So there's a lot of different pieces that are flowing into the development of a project of this nature, but everything has to come to fruition in order for it to all work," he said.

"And now with the announcement that was just recently made, [that] there's no additional funds through the affordable housing fund, now we're kind of left of what do we do, right?"

'It ties our hands'

The organization had made significant progress in its plans, spending about $775,000 of its own money, including architectural renderings of the building.

"We're always looking at developing housing that is deeply affordable for the people that have probably some of the lowest incomes in the province and we want to help house them. That's what we want to do," Heinrichs said.

"Losing that amount of money … would hamper us on developing other projects as well. It ties our hands."

A spokesperson for the Canada Mortgage and Housing Corporation told CBC News in a statement that the affordable housing fund "has attracted significant interest and success, resulting in numerous high-quality applications."

"With the significant demand for funding, CMHC continues and is committed to working with our clients and partners to process as many [affordable housing fund] funding applications as possible," the statement said.

WATCH | Federal funding doubts put Transcona project at risk:

Transcona affordable housing project at risk as federal funding in doubt

2 days ago

Duration 2:04

A Winnipeg non-profit says its 154-unit affordable housing project faces an uncertain future after learning a national funding program had run out of money.

Christina Maes Nino, executive director of the Manitoba Non-Profit Housing Association, said many more projects could face funding shortages. 

"They are getting projects ready. They're putting in applications and now there's this uncertainty, and so they're really just waiting to know what's going to happen."

Transcona Coun. Russ Wyatt fears the impact could go beyond the province.

"My guess is there's projects right across Canada that are now being jeopardized, or basically not being able to be funded," Wyatt said.

Colin Fast, spokesperson for Winnipeg Mayor Scott Gillingham, told CBC News the city is looking into the issue and waiting on further information from the federal government.

In an email, City of Winnipeg spokesperson Kalen Qually said the city housing accelerator funding remains committed to the project.

"We know many of the projects approved for [housing accelerator fund] funding are relying on additional CMHC commitments," Qually wrote. 

"Without securing all funding sources, it will be a challenge for projects to meet timelines under our agreement. We will continue to work in partnerships with the non-profit housing proponents as their projects move forward."