$25M in grants up for grabs for rural P.E.I. housing developments
CBC
Developers looking to build housing in rural P.E.I. now have the chance to access a pot of $25 million in grants from the provincial government.
The aim of the Municipal Infrastructure Fund is to support projects that extend existing municipal water and sewer systems, sidewalks and roads so that more lots and subdivisions can be built in P.E.I.'s smaller communities.
According to a news release from the province, developers can receive $10,000 per lot if developing two to five lots, and $12,000 each for six to 10 lots. Developers with 11 to 20 lots can receive $15,000 for each.
P.E.I. Housing Minister Rob Lantz said the program will help overcome the barrier of building or extending services like water, sewer and roads to new homes.
"We would estimate that this could potentially produce about 700 building lots in various communities across the Island," Lantz said. "We're not looking for people to build mansions.... These are for homeowners, for family housing. Typical neighbourhoods and subdivisions."
He said there will be a point system for the grant applications, and more points will be awarded for smaller developments.
Lantz said there's no specific timeline to build once developers access the funding, but that developers are "lining up" to apply for the grants.
Kensington Mayor Rowan Caseley said the funding will help developers create one-bedroom units or single-family homes that people can afford — something his town would welcome.
"We need tax revenue to keep offering the services that our residents want and need and deserve," Caseley said.
"We need to expand our tax base, we need to expand our revenue sources from property taxes to be able to keep up."
Mike James owns Castle Building Centre franchises across P.E.I., and is also a developer. He says the infrastructure fund is "good news for everyone."
"The cost of infrastructure over the last few years has just dramatically increased, and it's not feasible unless [developers] have some support," James said.
The province said developments approved for the Municipal Infrastructure Fund can also receive support through the Subdivision Development Financing Program, which in total could cover up to 90 per cent of the costs of developing and subdividing vacant land into individual lots.
Another fund, the Building Acceleration Grant, is also available to support the construction of roads for pre-existing lots that have already been approved for development.
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