Plateau-Mont-Royal apartment building to be turned into affordable housing

A 93-unit building overlooking Montreal's Parc La Fontaine had become an emblem of the city's housing crisis — but now Manoir Lafontaine will be converted into affordable housing units.

Hillpark, a company run by Brandon Shiller and Jeremy Kornbluth, owned the building located in the city's Plateau-Mont-Royal borough for several years before selling it to Interloge — a non-profit group specializing in affordable housing — for $18,810,000. The transaction was finalized Tuesday.

"This is good news for the citizens of the Plateau-Mont-Royal," said Louis-Philippe Myre, executive director of Interloge.

"We are very proud to be part of this solution and offer affordable housing for many years in this area … and help each other get a better future."

 In April, Montreal's executive committee authorized a $5.6 million grant to help Interloge take over the building on Papineau Avenue, with support from the Société d'Habitation du Québec.

Interloge's mission is to acquire and develop apartment buildings with affordable rents. Its housing stock includes more than 750 housing units and 1,000 others in the making. These dwellings are mainly rented to households living below the low-income threshold.

Myre said units at Manoir Lafontaine would cost about $1,000 per month.

Tenants to be relocated

In the spring of 2021, Hillpark sent eviction notices to the building's tenants, informing them that they would have to leave for a period of at least seven months for repairs.

The move caused outrage from the tenants who fought what they called a "renoviction" with the province's housing tribunal, the Tribunal administratif du logement (TAL). In May 2022, the tribunal rejected Hillpark's request to temporarily evict tenants to carry out major work.

"Hillpark is satisfied in knowing the Manoir Lafontaine will become affordable housing and therefore contribute to offer a solution to Montrealers," said Kornbluth in a statement.

Interloge will have to renovate the building but says it will relocate all tenants into some of its existing housing stock while doing the repairs. The tenants will then be allowed to move back into their units once the renovations are finished.

Though Myre could not confirm how much money will be needed to repair the building, Radio-Canada sources say the construction budget for the Manoir Lafontaine is about $38 million — nearly $430,000 per housing unit.

This amount includes more than $15 million for major repairs to the heating system and elevators among other things, likely spread over two or three years.

Montreal and the Plateau-Mont-Royal borough will approve a grant of $35,000 on Monday for the costs of inspection and development of the building, according to Radio-Canada.

Interloge and the Plante administration are also seeking partners from the Ministry of Municipal Affairs and Housing (MAMH).

City says it needs more help from Quebec

Last June, Quebec announced a grant of $350 million for housing projects to be carried out by the Fonds de solidarité FTQ and the Mouvement Desjardins to create 2,000 units of social and affordable housing over three years.

At Wednesday's executive committee meeting, Montreal Mayor Valérie Plante said housing is at the core of her priorities — but she needs more support from the province.

"There are more people who are having a hard time paying their rent or can't find proper housing," she said, as the July 1 moving day looms.

The city works with community and housing organizations to develop more affordable housing, but projects have stalled as there is no new money from the Quebec government, she said.

"We cannot handle housing alone," said Plante. "Quebec needs to give more subsidies for rent programs.

"We need higher levels of government to pitch in because we have ideas."

Quebec has said that Montreal needs to use the money already allocated for existing projects.

But inflation and construction costs have soared since much of that project funding was approved and many organizations have been left scrambling to re-plan their finances — causing a backlog in announced housing projects, said Plante.

"The market rate is very high and construction costs are very high, so it's a new reality. It's an explanation why there's a lack of offer in affordable housing," Interloge's Myre told CBC.