Workers are breaking ground on an apartment building for single parents on land donated by Labrador City.

Labrador City Mayor Karen Oldford says finding space for the structure was essential. The city donated a 0.483 hectare parcel of land on Tamarack Drive worth over $300,000.

"We have very limited housing, lands available for housing, and so we looked through what we had available recognizing that this project required a partner in order to go ahead," Oldford said.

Minister Responsible for Labrador Nick McGrath announced a further $280,000 for the project Monday. 

"To give 10 single parents an opportunity now to move forward with the rest of their lives — that's what's most important with this project. So I'm very pleased to see this come to fruition," he said.

The provincial government has contributed nearly $2 million for the 10-unit building. It will include office space for social and mental health workers.

Construction on the building is scheduled to be finished by January.