Federal Government announces over $18 million for new rental homes in Kitchener

Kitchener, Ontario, November 15, 2023

Today, the federal government announced over $18 million to build 60 purpose-built rental units in Kitchener. The funding will come as fully repayable low-interest loans through the Rental Construction Financing Initiative (RCFi).

The announcement was made at the 55 Franklin Phase II project by Valerie Bradford, Member of Parliament for Kitchener South – Hespeler, on behalf of the Honourable Sean Fraser, Minister of Housing, Infrastructure and Communities, alongside Scott Davey, Acting Mayor of Kitchener and Councillor for Ward 1.

Located at 55 Franklin Street South, this project will be a six-storey building containing 60 purpose-built rental units for middle-income families and individuals. The building has good access to transit, expressway, shopping, daycare and schools. Expected to be completed by the Spring of 2025, the project received $18.1 million through RCFi, and over $535,000 in deferred development charges from the City of Kitchener.

Canada’s construction of rental homes has not kept pace with the country's growing cities and population, leading to a decline in the existing and aging rental stock for decades. To tackle .this issue, the federal government introduced the RCFi to help build more rentals across the country. Increasing the overall supply of rental housing is crucial to creating stronger and more vibrant communities that Canadians can feel proud to call home.

Quotes:

“We need to boost housing supply, this is why we are making strategic investments, through programs like the Rental Construction Financing Initiative, to build much-needed rental units across the country. All Canadians deserve a safe place to build and live their lives in, and we will ensure this becomes a reality.”
— The Honourable Sean Fraser, Minister of Housing, Infrastructure and Communities

“As our population grows, the need for housing becomes increasingly crucial, and purpose-built rentals are an essential part of the solution. The Rental Construction Financing Initiative (RCFi) steps up to the challenge by incentivizing the construction of purpose-built rental homes, and today’s announcement will add 60 units to the purpose-built rental stock for our Kitchener community.”
— Valerie Bradford, Member of Parliament of Kitchener South – Hespeler

Quick facts:

The Government of Canada’s National Housing Strategy (NHS) is an ambitious, 10-year plan that will invest more than $82 billion to give more Canadians a place to call home.
The Rental Construction Financing Initiative (RCFi provides fully repayable low-interest loans to encourage the construction of more purpose-built rental housing for middle income Canadians. It creates a positive impact to the housing system at minimal cost to taxpayers.
- RCFi is one of many programs and initiatives under the National Housing Strategy designed to help address housing needs across the housing continuum.
- RCFi complements other NHS initiatives that focus on funding affordable housing units for lower-income households.
- Through RCFi, the federal government is encouraging the construction of more than 71,000 rental units.
- A stable supply of purpose-built rental housing is essential for more people in Canada to have access to housing that meets their needs.

Additional information:

Visit Canada.ca/housing for the most requested Government of Canada housing information.

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. CMHC’s aim is that everyone in Canada has a home they can afford and that meets their needs. For more information, follow us on Twitter, Instagram, YouTube, LinkedIn and Facebook.

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

Check out the National Housing Strategy Housing Funding Initiatives Map to see affordable housing projects that have been developed across Canada.