An innovative partnership to quickly build 1,000 social and affordable housing units for independent seniors

SHAWINIGAN, QC, Feb. 26, 2024 /CNW/ - Today, the governments of Canada and Quebec announced an innovative partnership with Mission Unitaînés to build 1,000 new social and affordable housing units for independent seniors over the next two years. Thanks to an investment of close to $235 million by both levels of government, ten 100-unit buildings will be built in ten cities across Quebec, including Shawinigan, where the announcement was made.

France-Élaine Duranceau, Quebec Minister Responsible for Housing, presented the partnership's innovative nature and significant benefits to the media, along with the Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry and Member of Parliament for Saint-Maurice?Champlain, Michel Angers, Mayor of Shawinigan, Caroline Sauriol, President and Chief Executive Officer of Mission Unitaînés, and Mario Plourde, Director of the Office municipal d'habitation de Shawinigan.

The government funding is tied to the $900 million in federal funding provided to Quebec through the Canada-Quebec agreement under the Housing Accelerator Fund and the new $900-million investments announced by Quebec in its fall 2023 economic update.

The contribution of each municipality involved in one of the construction projects amounts to between $3 and $5 million, either in kind or in the form of a subsidy. This includes the transfer of land ready to build on, a three-year tax exemption starting on the transfer date of the land with the building and a building permit (or equivalent subsidies) and utility connections.

The charitable organization Mission Unitaînés will be responsible for designing and developing the ten buildings. At completion, the organization will provide the municipality, or a non-profit organization designated by the municipality, with a building ready for commissioning for a nominal fee and no mortgage. In addition, each building will have a $500,000 reserve fund from a philanthropic donation by Luc Maurice, Chair of the Board of Directors of Mission Unitaînés. Other partners will complement the funding with philanthropic contributions to enhance the residents' quality of life.

Thanks in part to economies of scale and the partners' expertise, this new model has the advantage of creating 1,000 units at a lower cost than the units the Société d'habitation du Québec (SHQ) is currently building in several Quebec regions. It also ensures that buildings will be debt-free.

The six-storey building to be built in Shawinigan represents a government investment of $23.5 million, in addition to the City of Shawinigan's contribution, which is offering the land and a tax holiday, as well as a philanthropic donation to complete the financing package. Construction should start in July 2024 and be completed by spring 2026. Upon its completion, the Office municipal d'habitation de Shawinigan will manage the building and select the residents. The Office will also ensure maintenance of the building using the $500,000 reserve fund provided by Mission Unitaînés.

The building will include 74 one-bedroom units, 15 bachelor units and 11 two-bedroom units. Equipped with two elevators, sprinklers and a scooter parking area, it will also include a multi-purpose common room, an outdoor patio and landscaping to foster the socialization of residents. The rent will be set at about $595 for a bachelor unit and $900 for a two-bedroom unit.

"As I have often said, we need to innovate if we are to build more and better housing, especially given the current housing crisis. This collaboration with Mission Unitaînés is proof that our government is taking concrete action, together with our federal partner and the municipalities, to better house seniors in Quebec. I'm excited by this project, which mobilizes stakeholder expertise to very quickly build quality affordable housing. We are determined to deliver results through this partnership."

France-Élaine Duranceau, Quebec Minister Responsible for Housing and Member of the National Assembly for Bertrand

"The implementation of the Housing Accelerator Fund in Quebec paves the way for innovative solutions. The partnership between Mission Unitaînés and the municipalities receiving funding from the governments of Canada and Quebec will allow more units to be build, more quickly, to adequately house thousands of low- and moderate-income seniors." 

The Honourable Sean Fraser, Minister of Housing, Infrastructure and Communities

"Through partnership projects like the one with Mission Unitaînés, we are innovating to increase housing supply. Today we are celebrating not only the upcoming construction of 100 units in Shawinigan, but the creation of a thousand units across the province as well. This is what we can achieve when we work together. We are continuing to deliver for Quebecers by taking concrete actions that make a real difference."

The Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry and Member of Parliament for Saint-Maurice?Champlain 

"We are happy today to take part in this announcement and the affordable housing construction project for seniors in our city. The municipal council's priority is to help face the housing crisis challenge and promote active aging. More than a roof over our seniors' head, this project is the council's commitment toward them and a concrete step to achieving these objectives. I want to thank Mission Unitaînés for selecting Shawinigan to construct one of their buildings. Thank you for contributing to the well-being of our residents."

Michel Angers, Mayor of Shawinigan

"This meaningful project is in line with the mission I've set myself to help our society age better so that it feels safer, freer, happier and less isolated. Twenty-five years of working intensively to build and develop housing for seniors' has given me a good understanding of their needs and solid expertise in the design, construction and management of state-of-the-art retirement homes. It's this expertise that I now want to put at the service of less affluent seniors. I'm also very grateful to those who have contributed to making this wonderful challenge a reality so quickly."

Luc Maurice, Chair of the Board of Directors of Mission Unitaînés

"This exciting project mobilizes institutions and professionals from varying sectors who are pooling their strengths and expertise in order to quickly provide quality housing to low-income seniors who really need it. Thanks to the leadership and generosity of the three levels of government and of Luc Maurice and other philanthropists, this project will be carried out with agility and have significant impacts in the communities involved."

Caroline Sauriol, President and Chief Executive Officer of Mission Unitaînés

"At the Office municipal d'habitation de Shawinigan, we are extremely pleased to partner with the Société d'habitation du Québec, the City of Shawinigan and Mission Unitaînés in this innovative and mobilizing project. This is an extraordinary project for our city that will allow our seniors to live in a safe environment and thrive in their community."

Mario Plourde, Director of the Office municipal d'habitation de Shawinigan

• Seniors who settle in these units and are eligible will benefit from the SHQ's Rent Supplement Program, which would ensure that they do not spend more than 25% of their income on housing. This additional assistance is covered by the SHQ (90%) and the city where the project is located (10%).
• The financial model was designed to offer long-term housing units where the rent will be equivalent to 25% of the residents' income. The average rent is set at $595 per month for a one-bedroom apartment with heating, electricity and Wi-Fi included. Rent increases will be limited by agreements with the SHQ to maintain affordability in the years to come.

As a leader in housing, the SHQ's mission is to meet the housing needs of Quebecers through its expertise and services to citizens. It does this by providing affordable and low-rental housing and offering a range of assistance programs to support the construction, renovation, and adaptation of homes, and access to homeownership.

To find out more about its activities, visit www.habitation.gouv.qc.ca/english.html.

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SOURCE Canada Mortgage and Housing Corporation (CMHC)