Council Approves Affordable Housing Proposals

A federal Liberal government program could see some new development happening in Moose Jaw as two projects have come forward to construct affordable housing in the city.

At their regular Monday evening meeting Council heard plans regarding developing a portion of the former Union Hospital land into affordable housing under the Rapid Housing Initiative (RHI).

Under the proposal the City would sell 2.75 acres on the west side of the former Union Hospital property (455 Fariford Street East) to Anhart Community Housing for the going rate of $250,000 per acre (although offer to purchase does mention that if the City sold the land for $1 it would strengthen the funding application). If approved Anhart proposed to erect 40 apartments. The apartments would be a mix of affordable modular studio, two bedroom and three bedroom apartments.

The sale would still leave about 2.75 acres of land available in two parcels for the City to sell on the former Union Hospital site.

RHI is a $1 billion federal program to construct 3,000 new permanent and affordable housing units across the country. The RHI has two funding streams - $500 million for pre-determined areas of the country with dire need of affordable housing for vulnerable people and another $500 million for projects based upon applications.

RHI is designed to assist such groups as the homeless and other (most) vulnerable people have affordable housing while at the same time serving as a economic stimulus because of the COVID - 19 downturn.

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“Again the hits keep coming for Moose Jaw,” city manager Jim Puffalt said, adding “this is another exciting project that we have been able to work with. The developers they are looking towards applying for funding through a federal program and it is the old Union Hospital grounds.”

Director of planning Michelle Sanson explained the history of the property and how the City had acquired it in 2015 for $119,924 per acre with the land then valued at just over $450,000 per acre. The land was subsequently re-appraised in September 2020 - following a failed RFP released in 2019 - and the value was $250,000 per acre.

“In September 2020 the appraisal came back at $250,000 per acre and so due to the markets or existing market,” Sanson said.

Speaking via a video link Mukhtar Lutif, development lead for Anhart, said the project is about empowering and assisting the community.

“Anhart is a network of community based organizations that are working together to empower local communities to address local needs,” Lutif said.

According to their web-site “Anhart builds communities through affordable housing in Canada and pay-forward microloans, schools and clinics in areas of poverty.”

He said Anhart was working towards providing affordable housing.

“One of the challenges we have seen there is a lack of affordable housing supply (in Canada) compared to other countries across the world.”

Lutif said Anhart is not just developing homes but they are looking at a more holistic approach that not only provides housing but other things such as employment and training opportunities.

He said Anhart was trying to get 10 to 12 municipalities on board, including Moose Jaw, in an effort to make the entire endeavour more efficient and viable with the presentation to receive the funding.

Speaking on the proposal Councillor Crystal Froese said the proposed development was in a great location close to Downtown and “it is a great use of in-fill in that area too.”

Councillor Heather Eby said she supported the proposal and additionally mentioned the project was affordable and not subsidized housing.

Affordable housing is where rents and purchase prices are often below market rate to allow people with lower incomes to afford to purchase or rent their home. Subsidized housing is where the government owns the housing and then rents units out to people at a rate calculated upon what funds they receive and have.

“I think it is a good project. I think it is a good use of that land and it is affordable housing and not social housing. I think it is important for the community to recognize that,” Councillor Eby said.

Council voted unanimously to authorize the conditional sale and support the project by providing a Letter Of Support.

If the project is approved the new units should be completed by the end of 2021.