VICTORIA, British Columbia, Aug. 13, 2024 (GLOBE NEWSWIRE) — Today, the Rental Protection Fund (the Fund) announces the acquisition of two rental buildings with a total of 68 affordable rental units by the Greater Victoria Housing Society (GVHS). This protects the extremely affordable rents in two properties located at 1500 Chambers Street and 430 Michigan Street in Victoria, BC. Rents in both buildings average 37 percent below the local market.
The Fund provided GVHS with $11.3 million in capital contributions to acquire the two properties, representing financing of $167,926 per apartment. The acquisition by GVHS will ensure the retention of 68 units, ranging from studios to two-bedrooms, and a $1.2 million renewal grant from the Fund will ensure they remain for years to come.
“The acquisition of these two properties provides 68 households with immediate housing security, which is invaluable to many families and individuals who rent,” said Housing Minister Ravi Kahlon. “The Rental Protection Fund continues to protect the existing rental stock and ensures rents remain affordable in this rapidly changing market. People will be able to stay in their homes and communities for decades to come without the risk of being evicted in the future.”
Current rents in both buildings are well below Victoria’s average market rates, and GVHS is committed to maintaining these affordable rents with adjustments for inflation as apartments move. For approximately 70% of the apartments in these buildings, rents are affordable for households earning the median renter income in Victoria. This reflects the Fund’s mission to protect affordable housing for middle-income renters who may not qualify for subsidized programs but still struggle to keep up with rising rental costs.
“Protecting affordable rental housing means residents can feel safe in their homes and community. Through the Fund, we can preserve affordability where people want to live, close to parks, public transport and services, in the heart of the city,” said Katie Maslechko, CEO of the Rental Protection Fund. “Not only will these homes continue to be affordable for renters in Victoria, but this investment will make these buildings more sustainable and continue to provide safe, affordable housing at a fraction of the cost of new builds.”
As part of the acquisition, GVHS will not only maintain the affordability of the buildings, but also make 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.
Founded in 1956, GVHS is a nonprofit organization dedicated to providing safe, secure, and affordable housing for over 65 years. GVHS currently oversees approximately 1,000 housing units in the Capital Regional District and serves seniors, families, people with disabilities, newcomers, and others who face barriers in their search for housing.
“We thank our partners, the provincial leadership, for their collaboration in purchasing these two buildings in Victoria,” said Virginia Holden, executive director of the Greater Victoria Housing Society. “We will be able to maintain these units as affordable housing for many years to come, ensuring residents have high-quality, safe, accessible and sustainable housing.”
Today’s announcement represents the culmination of extensive efforts by all involved in the acquisition. First National, Canada’s largest multifamily lender, supported the project by arranging insured financing through CMHC’s MLI Select program.
Knowing how important affordable housing is to these residents, First National was naturally motivated by the Greater Victoria Housing Society’s vision and provided long-term, low-cost financing to complement the Rental Protection Fund’s generous investment. First National has been financing affordable housing for decades and believes this groundbreaking approach will spark a new wave of investment.
This announcement follows the July announcement of the preservation of 50 affordable rental units in Parksville and over 330 units in Campbell River, Port Hardy and Duncan – along with 16 units in Esquimalt. In total, this means the preservation of more than 450 affordable units for renters on Vancouver Island.
Through one-time capital contributions from the Fund, nonprofits and housing associations can secure, revitalize and protect their current rental housing from rising market rents. Since the beginning of the year, the Rental Protection Fund has averted the threat of displacement by nearly 50 units per week, providing secure housing for more than 2,500 British Columbians and ensuring that these units remain affordable for generations to come.
Media contact:
Rent Protection Fund
Jennifer Kim, Talk Shop Media
[email protected]
About the Rental Protection Fund:
Backed by the provincial government with a groundbreaking $500 million investment, the Rental Protection Fund is BC’s direct response to the housing crisis. Led by CEO Katie Maslechko, the Fund is dedicated to protecting renters and ensuring the availability of affordable rental housing for future generations. It facilitates the acquisition of existing rental housing by providing capital contributions to non-profit housing organizations and cooperatives. This initiative is committed to maintaining housing affordability and stability for renters in BC over the long term. Anyone who would like to have a property considered for acquisition by the Rental Protection Fund can do so at www.RentalProtectionFund.ca.
