VICTORIA, British Columbia, Aug. 13, 2024 (GLOBE NEWSWIRE) -- Today, the Rental Protection Fund (the Fund) announces the acquisition of two rental buildings, accounting for 68 affordable rental units, by the Greater Victoria Housing Society (GVHS). This will protect the deeply affordable rental rates at two properties at 1500 Chambers Street and 430 Michigan Street in Victoria, B.C. Both buildings provide rents that are on average 37 percent below the local market.
The Fund provided GVHS with $11.3 million in capital contributions to acquire the two properties, resulting in funding of $167,926 per home. The acquisition by GVHS will ensure the preservation of 68 housing units, from studios to two-bedroom apartments, and a $1.2 million Renewal Grant from the Fund will ensure they are around for years to come.
“The acquisition of these two properties provides 68 households with immediate housing security that is invaluable for many renting families and individuals,” said Ravi Kahlon, Minister of Housing. “The Rental Protection Fund continues to safeguard existing rental stock and maintain rent affordability in this highly changing market. People will be able to remain in their homes and communities for decades to come, without the risk of being displaced in the future.”
Current rents in both buildings are significantly below Victoria’s average market rates, and GVHS has committed to maintaining these affordable rents upon unit turnover, with adjustments for inflation. For approximately 70% of the homes in these buildings, rents are affordable to households earning the median renter income for Victoria. This reflects the Fund’s mission to protect affordable homes for middle income renters who may not qualify for subsidized programs but still struggle to keep up with the rising cost of rent.
“Protecting affordable rental housing means residents can feel secure in their homes, and their community. Through the Fund, we’re able to preserve affordability where people want to live, close to parks, transit and services, in the heart of the city,” said Katie Maslechko, CEO Rental Protection Fund. “Not only will these homes continue to be affordable for renters in Victoria, but through this investment, these buildings will be more sustainable, and continue to provide secure, affordable homes for the future at a fraction of the cost of building new.”
As part of the acquisition, GVHS will not only preserve the affordability of the buildings but is also making them more sustainable, by upgrading existing low-efficiency boilers. These upgrades will make the buildings more energy efficient, and reduce greenhouse gas emissions, ensuring the homes are well equipped for future generations.
Established in 1956, GVHS is a non-profit organization dedicated to providing safe, secure, and affordable housing for over 65 years. GVHS currently oversees approximately 1,000 housing units within the Capital Regional District, catering to seniors, families, individuals with disabilities, newcomers, and others who encounter barriers to housing.
“We thank our partners, through the leadership of the province, for working with us to purchase these two buildings in Victoria,” said Virginia Holden, Executive Director of the Greater Victoria Housing Society. “For years to come, we will be able to preserve these units as affordable housing, ensuring that the residents have high quality, safe, accessible and sustainable homes.”
Today’s announcement represents the culmination of extensive efforts by everyone involved with the acquisition. First National, Canada’s largest multi-unit property lender, supported the project by arranging insured financing through CMHC’s MLI Select program.
Knowing how important affordability is to these residents, First National was naturally motivated by the Greater Victoria Housing Society’s vision and delivered long-term, low-cost financing to complement the Rental Protection Fund’s generous investment. While First National has financed affordable housing for decades, it believes this game-changing approach will inspire a new wave of investment.
This announcement follows the preservation of 50 affordable rental homes in Parksville and over 330 homes in Campbell River, Port Hardy and Duncan, announced in July – along with 16 units in Esquimalt. In total, this represents the preservation of more than 450 affordable homes for renters on Vancouver Island.
Through one-time capital contributions provided by the Fund, non-profits and housing co-operatives can secure, revitalize, and safeguard current rental units against escalating market rents. Since the start of this year, the Rental Protection Fund has been able to reverse the threat of displacement at a rate of nearly 50 homes a week, delivering housing security for more than 2,500 British Columbians and ensuring these homes remain affordable for generations to come.
Media Contact:
Rental Protection Fund
Jennifer Kim, Talk Shop Media
media@rentalprotectionfund.ca
About The Rental Protection Fund:
Endorsed by the provincial government with a groundbreaking investment of $500 million, the Rental Protection Fund stands as B.C.'s direct response to the housing crisis. Under the leadership of CEO Katie Maslechko, the Fund is dedicated to protecting tenants and ensuring the availability of affordable rental homes for future generations. By providing capital contributions to non-profit housing organizations and cooperatives, it facilitates the acquisition of existing rental buildings. This initiative is committed to maintaining housing affordability and stability for renters in B.C. in the long run. Those who wish to have a property considered for acquisition through the Rental Protection Fund can submit them at www.RentalProtectionFund.ca
