NEWS RELEASE

For Immediate Release 2009HSD0079-000737 December 7, 2009

Ministry of Housing and Social Development City of Victoria

 

INNOVATIVE $32M AFFORDABLE HOUSING ANNOUNCED FOR VICTORIA

 

VICTORIA – A $32-million apartment building, providing a combination of 120 affordable homeownership and rental units, will be constructed as part of the redevelopment of the former Hudson’s Bay site in downtown Victoria, announced Rich Coleman, Minister of Housing and Social Development.

 

            “We recognize the significant changes in the housing market and the increased need for affordable housing,” said Coleman. “Hudson Mews will offer an innovative approach by providing affordable rental housing and homeownership for moderate-income earners.”

 

The Province is seeking a non-profit housing provider for Hudson Mews through an Expression of Interest (EOI). The successful proponent will own and administer the rental units and oversee the sale of the affordable homeownership units. The Province will provide interim construction financing and arrange take-out mortgage financing that will be debt serviced by the rental revenues. The City of Victoria will contribute an $800,000 grant to the project from the Victoria Housing fund.

 

“This project is a unique opportunity to bring more rental housing to the city and investment in our downtown community,” said Dean Fortin, mayor of the City of Victoria. “Victoria struggles with an extremely low vacancy rate, so the addition of 80 more affordable rental units will make a big difference, creating housing options and relieving some of the pressure we currently experience.”

 

Construction is expected to start in spring 2010. TL Housing Solutions Ltd., an experienced developer of non-market housing, will develop the site. Townline Victoria, the property owner, will sell the land to the non-profit housing provider selected through the EOI for 80 per cent of the current market value.

 

“We’re pleased to partner with the Province and the City on this innovative development,” said Rick Ilich, president, Townline Group of Companies. “Redevelopment plans for this full city block include renovation of the existing Hudson’s Bay heritage building to a commercial and residential use and the creation of three new commercial and residential buildings, including Hudson Mews, on the remainder of the site.”

 

Through Housing Matters BC, the Province is addressing a range of housing needs, from homelessness to affordable rental housing and homeownership. In 2009, the provincial housing budget is approximately $450 million, more than three times as much as in 2001.  To find out more about affordable housing in B.C., visit www.bchousing.org.

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BACKGROUNDER

HUDSON MEWS

 

Hudson Mews will provide moderate-income earners with 120 units of affordable housing fronting on Fisgard St. on the south portion of the site of the former Hudson’s Bay building in downtown Victoria.

 

The 13-storey building will have one level with almost 840 square metres (9,000 square feet) of commercial space and 12 residential levels, which will include:

·         40 affordable homeownership units, including 16 one-bedroom, eight one-bedroom plus den, and 16 two-bedroom units

·         80 purpose-built below market rental units, including 46 one-bedroom, 13 one-bedroom plus den, and 21 two-bedroom units

There will also be 106 underground parking spaces.

 

Both the rental and homeownership units will rent or sell for approximately 90 per cent of comparable existing private owner-market condominiums.

 

Partners and Funding:

The total capital cost of Hudson Mews is approximately $32.8 million.

·         The Province will provide interim construction financing for the total amount and arrange take-out mortgage financing of approximately $17.8 million that will be debt serviced by the rental revenues.

·         The City of Victoria will provide an $800,000 grant towards the rental units ($10,000 per unit).

·         TL Housing Solutions Ltd. will develop the site.

·         Townline Victoria, the property owner, will provide the land at 80 per cent of the current market value.

·         An Expression of Interest is being issued seeking a non-profit housing provider to own and administer the rental units.

 

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Contact:

Patricia Lusic BC Housing 604 456-8895 604 314-1458 (cell)

Howard Markson City of Victoria 250 361-0264 250 216-9822 (cell)

 

For more information on government services or to subscribe to the Province’s news feeds using RSS, visit the Province’s website at www.gov.bc.ca.