Development with 110 affordable units in London gets $130M boost
Officials say construction on the twin tower development will take about three years
More than 100 names will be taken off a list of people waiting for affordable housing, once construction is finished on a new residential development in London's core.
The Old Oak Properties project consists of a pair of towers at 495 Talbot Street and 110 Fullarton Street that'll include 110 affordable housing units with rent 30-per cent lower than median household income.
Canada's Minister of Families, Children and Social Development, Ahmed Hussan, was in London Wednesday morning to announce the project was receiving a $130 million loan to be repaid over 10 years.
Of the 110 units, 84 will have rent that falls at or less than 70-per cent of the 30-per cent median income. The remaining 310 units will be "full spectrum," said Hussan.
"Some folks will pay full market rate, some folks will pay just below that."
According to Old Oak Properties Chief Financial Officer, Jeff Martin, the affordable housing units will be in the development's 40-storey south tower and a middle section that joins it with the 29-storey north tower.
It's unclear what monthly rental rates will look like in three years, when Martin expects construction to be finished.
"They aren't set yet. They'll be set when the building is ready to occupy," he explained.
Mayor Ed Holder said the units will go a "long way" in reducing the city's affordable housing wait list, which consists of more than 5,000 names.
The loan money is flowing from the federal government through Canada Mortgage and Housing Corporation's rental construction financing initiative, which encourages developers to build affordable housing units.
The south tower, standing at 40 storeys and 129 meters tall, is being touted as the tallest building between Mississauga and Calgary.