Nova Scotia's first land-for-housing project opens, 4 years after program launched

The Progressive Conservatives are making the first delivery of a promise made four years ago to turn surplus provincial land into affordable housing.

Starting shortly after they were first elected in 2021, the PCs opened several calls for bids on land around the province with the intention of tying an agreement to each sale requiring some degree of affordability.

A vacant lot on Circassion Drive in Cole Harbour went to non-profit housing developer Rooted — formerly known as the Dartmouth Non-Profit Housing Society — and was the first land-for-housing project to get underway.

The project was recently completed and an 18-unit apartment building started taking tenants this month. Tenants in half the units are paying about 50 per cent below market rates. Eligibility is based on income.

"This is smart public investment and we're proud to be delivering on it," said Nick Russell, CEO of Rooted, speaking at a ribbon-cutting event at the site Tuesday.

According to property records, the province sold the quarter-hectare lot to Rooted for $720,000. The province said it put $4.5 million into the build, including $1.4 million from provincial coffers and $3.1 million from a federal fund the province manages under Canada's National Housing Strategy.

Growth and Development Minister Colton LeBlanc said this case shows the land-for-housing program has been effective. But he acknowledged it's had challenges, pointing to the rising cost of construction and red tape that has to be cut through before building can even get underway.

"We want to do more, and more of it faster. And as a government, we will do everything within our control to speed up those opportunities, those processes," he said.

Since the program's inception, the province has announced 11 projects. Two were shelved after developers found the land to be unsuitable for development. A spokesperson for the department of growth and development says three other projects are under construction and the rest are in planning. Some land is still up for grabs.

Old apartment buildings purchased

The province and Rooted have also partnered on the purchase of two existing apartment buildings on Gaston Road in Dartmouth, with the aim of keeping rents low in all units — 60 in one building and 24 in the other. 

Rooted is taking the buildings over from for-profit landlord Vida Living.

Rents in the two buildings will be about 50 per cent below market rates.

"It's about stability and making sure that those tenants feel comfortable and safe and in their communities," said Russell.

Russell said the buildings — one of which was constructed in 1970 and the other in 1983 — need some maintenance and retrofitting. He said no tenants will be asked to leave for the work to happen.

Dylan Ward, director of development for Rooted, said acquisition is "one of the most practical, high-impact strategies" for non-profits to expand their portfolios and protect affordable housing stock. He said Rooted is looking to do more of it.

"What makes acquisition so powerful is that it removes housing from the speculative market permanently," said Ward.

"Non-profit ownership ensures long-term affordability, tenant engagement and building improvements without the pressure to sell or price people out," he added.

According to property records, Rooted paid $7.8 million for a 60-unit building and $3.1 million for the 24-unit building.

Rooted bought the buildings on Gaston Road and will do some renovations with the help of $11.1 million from the province, including a loan of $8.9 million and $2.2 million in grants.

The deal struck between Rooted and the province for all three buildings requires that the non-profit maintain affordability for at least 30 years.