Funding boost for CRD housing program

The Regional Housing First Program is back on track to meet its goal of building 400 homes for people dealing with chronic homelessness.

A few months ago, the Capital Regional District was worried that skyrocketing construction costs would prevent the program from reaching its targets.

But the district, federal and provincial governments have agreed to kick in an extra $10 million each to boost the program’s funding to $120 million.

CRD board chairman Colin Plant said the added investment means the program is now on pace to have more than 1,800 affordable housing units complete or under construction by the end of 2022.

Of those, 400 will be rented at the provincial shelter rate of $375 to people dealing with chronic homelessness who are ready to live independently with supports, the district said.

“We found with construction costs going up, we weren’t going to meet that target so easily,” Plant said. “With this additional funding, we will be able to reach our original goal of 400 shelter-rate units.

“So 400 people who are unhoused now will, by the time this project is finished, have longterm affordable housing.”

The shelter-rate units will account for about 20 per cent of the total units, while 31 per cent will be affordable rental units and up to 49 per cent will be near-market rental units, the district said.

The program already has 900 units complete or under construction.

CRD officials say the $120 million for the shelter-rate units provides the down payment on the mixed-market projects, while revenue from all units will cover the operating and maintenance costs.

“So the $120 million is turned into $600 million,” Plant said.

“This is a model we believe is a success and could be used across the country to create more affordable housing.”

The region’s 13 municipalities and three electoral districts approved a plan to borrow an additional $10 million for the program.

“To have unanimity is not something we see every day,” Plant said. “So I’m really proud that this region’s local governments have said: ‘This is a project that’s worked for the first $30 million ... and this $10 million is going to help us honour our commitment.’ ”

CRD officials said unprecedented construction cost increases meant the price of a single unit jumped from about $250,000 to $300,000.

Victoria Mayor Lisa Helps, who along with councillors Ben Isitt and Jeremy Loveday was instrumental in kickstarting the Housing First Program, said regional buy-in was key to getting provincial and federal support.

“We would not have received the $10 million from the province and the $10 million from the federal government unless every municipality in this region put up their hand and said ‘yes,’ ” she said.

“I think it’s a really good example of when we work together like that our $1 can turn into $3, our $10 million turned into $30 million, just because we all said ‘yes.’ So it’s an extraordinary and, I think, unprecedented co-operation in the region.”

The program is a partnership between the district, B.C. Housing and the Canada Mortgage and Housing Corporation.

“The need for safe, secure and affordable housing has never been clearer,” Selina Robinson, minister of municipal affairs and housing, said in a statement. “It is critical that these projects move forward and we are making this investment to make sure the units remain affordable for people who need these homes.”