Canada provides more rental housing in Moncton

Moncton, New Brunswick, March 30, 2021

Every Canadian deserves a safe and affordable place to call home. Thanks to investments made by the Government of Canada, residents of Moncton will soon have access to more stable rental housing options.

Today, the Honourable Ahmed Hussen, Minister of Families, Children and Social Development and the Minister responsible for Canada Mortgage and Housing Corporation (CMHC), and the Honourable Ginette Petitpas Taylor, Member of Parliament for Moncton — Riverview — Dieppe, announced nearly $16 million to help construct 76 residential units at 369 Highlandview Road in Moncton.

Birch Meadows, a four-storey building by J.N. Lafford Realty Inc., is receiving the low-cost loan through the Government of Canada’s Rental Construction Financing initiative (RCFi), a National Housing Strategy program delivered by CMHC that supports rental housing construction projects. The program encourages a stable supply of rental housing to support middle-class families facing expensive housing markets.

Conveniently located in Moncton’s Lewisville area, Birch Meadows will provide new housing options close to public transit and services for families in Moncton.

Quotes:

“Every Canadian deserves a safe and affordable place to call home. Today’s announcement will help create more rental units for families in Moncton. Our Government is committed to providing more rental units that meet the needs of families across the region, while creating well-paying middle-class jobs and strengthening our economy.”
— The Honourable Ahmed Hussen, Minister of Families, Children and Social Development and Minister responsible Canada Mortgage and Housing Corporation (CMHC)

“Current events remind us that nothing is more important than a home. Hard working middle-class families in Moncton deserve a safe and affordable place to call home where they can thrive and spend more time with their children. This investment is wonderful as it is providing housing options that are closer to jobs, services and amenities that families in Moncton need.”
— The Honourable Ginette Petitpas Taylor, Member of Parliament, Moncton – Riverview – Dieppe

“With the rising cost of construction and increased demand for affordable housing it is becoming more difficult for developers to find the proper balance in creating viable multi residential projects. But with the right strategy and partnerships like CMHC’s RCFi program has helped make this development a reality.”
— Richard Tower, Vice-President, iQ Commercial Mortgages Strategy Inc.

Quick facts:

The Government of Canada acknowledges Birch Meadows is located on the traditional unceded territory of the Mi’kmaq Peoples. This territory is covered by the “Treaties of Peace and Friendship”.
38 units in the building will have annual rents that are well below 30% of the median household income in the area. The affordable rent levels for at least 27 units will be maintained for a minimum of 21 years from the date of first occupancy.
Birch Meadows will have barrier free access; at least two units will be universal design and at least two units will be adaptable, in addition to eight units that will meet or exceed the local accessibility standards.
The building is designed to achieve energy-efficiency savings and reduction in greenhouse gas emissions of 25.4% relative to the 2015 National Energy Code of Buildings.
Construction commenced in April 2020, and substantial completion is expected by October 2021.
Moncton has had consistently strong demand for rental units in the past years, with average rental rates increasing, and low vacancy rates, currently at 2.8% (Oct. 2020).
The goal of the RCFi is to increase the supply of new purpose-built rental housing options for middle class households across Canada, enabling them to live in the cities and communities that they work in.
Through the RCFi, the Government of Canada is encouraging the construction of more than 71,000 new rental housing units.
A stable supply of rental housing is critical to ensure that more Canadians have access to housing that meet their need and that they can afford. This is a great option for middle class Canadians who are experiencing affordability pressure in many markets with high home prices and lack of rental supply.
Launched in April 2017, the RCFi has generated significant interest in the industry, which has led to an expansion of the program. Through Budget 2019, the Government of Canada increased the total amount available in loans to $13.75 billion.
Given the high demand for the program, the Government again expanded the RCFi in the 2020 Fall Economic Statement by adding an additional $12 billion over 7 years, starting in 2021 – 22. The program now totals $25.75 billion in low-cost loans.
Canada's National Housing Strategy (NHS) is a 10-year, $70+ billion plan that will give more Canadians a place to call home — this includes more than $12 billion committed through the 2020 Fall Economic Statement.

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As Canada’s authority on housing, CMHC contributes to the stability of the housing market and financial system, provides support for Canadians in housing need, and offers unbiased housing research and advice to all levels of Canadian government, consumers and the housing industry. For more information, follow us on Twitter, YouTube, LinkedIn, Instagram and Facebook.

To find out more about the National Housing Strategy, visit www.placetocallhome.ca.