Edmonton has struck a deal with a local developer that will see five per cent of the units in a 750-unit condo development turned into affordable housing.
       
"I don't want to see a nurse coming to the city of Edmonton, or a carpenter coming to the city of Edmonton [and saying], 'I can't afford a house,'" said Mayor Stephen Mandel.

A deal approved Tuesday by a city hall committee will see Edmonton purchase five per cent of the units in the yet-to-be-built development in northwest Edmonton at 15 per cent below list price.

The details still need to be worked out, but likely federal and provincial grants will help further subsidize the cost of renting out or selling the units.

The city is working on similar deals with at least three other developers, said Jay Freeman, Edmonton's director of housing services.

Resident faces eviction

One potential tenant of the new building is Gary Lazowski, who has lived for more than 20 years in an aging row house in the Wellington area of northwest Edmonton.

Like many left in the run-down complex, he faces eviction because the owner wants to redevelop.

"I've got a really tight budget and my money that I pay for rent is basically what I run on," he said.

The deal is part of what's called the Cornerstones Plan, fulfilling a promise Mandel made during the election campaign two years ago to create more affordable housing for Edmonton's working poor.

Edmonton has committed $25 million of its own money over five years to provide affordable housing.

A count of Edmonton's homeless population released by the city in November shows 2,600 people don't have a place to live, a 20 per cent increase from two years ago.