Cowichan Housing Association and Cowichan Tribes are looking to acquire 447 Festubert St. in Duncan to establish affordable-housing units and support services for adults experiencing homelessness, Indigenous individuals, and persons with disabilities.
The board at the Cowichan Valley Regional District voted unanimously to approve almost $519,000 from its regional housing trust fund to provide short-term bridge financing towards buying the property at its meeting on Feb. 14.
The CVRD’s housing trust fund was established in 2018 after a successful referendum on the issue that sees a maximum of $765,000 set aside each year for affordable-housing initiatives, with the majority committed directly to seed funding for the CHA to help kick-start affordable housing projects in the regional district.
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To facilitate the project, called New Foundations, the partners secured $800,000 in grant funding through Infrastructure Canada’s Reaching Home program for land acquisition and preliminary development costs, and those funds must be spent by March 31.
The New Foundations project has two phases, with the first phase involved with acquiring a suitable property by March 31, and the second phase entailing development of the property for affordable housing.
A CVRD staff report by Ian Paydli, the CVRD’s acting general manager of corporate services, said 447 Festubert St. has been evaluated for suitability, zoning regulations, and infrastructure, and the property is zoned for high-density residential, with necessary services available.
He said architectural schematics have yet to be developed for New Foundations, but the project proposes accommodating a maximum of 10 studio-sized dwelling units alongside areas for communal spaces and meeting rooms for third-party service providers.
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Paydli said the anticipated cost to build New Foundations, as of September, 2023, ranges from $3.4 million to $4.25 million.
He said the $519,000 in bridge financing for the project from the CVRD will help provide New Foundations the assurance of financial feasibility.
“While additional funding may be required for subsequent phases, the current financing arrangement establishes a solid foundation for future capitalization,” Paydli said.
“Pending property acquisition, the CHA’s executive director (Darryl Matkaluk) plans to commence discussions in June with BC Housing, Canada Mortgage and Housing Corporation and other lenders to secure preliminary project seed funding.”
Paydli said the New Foundations project represents an initiative to address the Cowichan region’s housing challenges.
“By leveraging grant funding and fostering collaboration between key stakeholders, the project has the potential to create meaningful impact and improve the lives of vulnerable populations,” he said.
Paydli said in some communities, there is a reluctance to locate services and housing serving vulnerable, low-income individuals who may or may not be struggling with mental health and addiction challenges in close proximity to daycares, schools, seniors centres and housing.
But he said there has been no indication that these concerns exist in Duncan, or in the context of the New Foundations project.
“The recent and widely recognized success of The Village project (a transitional housing initiative on Trunk Road) may have helped challenge some preconceived notions about the compatibility of uses adjacent to and located close to supportive and transitional housing projects,” Paydli said.
“Notwithstanding, it is challenging to control community opposition to the development of affordable, subsidized, or supportive housing intended to aid individuals transitioning out of addiction.”
