Habitat for Humanity drops long-planned Spryfield affordable housing project

Habitat for Humanity Nova Scotia has dropped an affordable housing project in Halifax that was billed as the non-profit's largest in Canada, saying the financial case no longer makes sense.

The charity had been hoping to build 52 housing units on the two-hectare site in Spryfield, dubbed Habitat Way, with a mix of townhouses, single-family homes and backyard suites. The site is beside J.L. Ilsley High school, and close to services, stores and on a transit route.

But Habitat N.S. CEO Donna Williamson, who has been in the position for three years, said the organization can only cover half of the $30 million needed for the project.

"It didn't make sense for Habitat and the families that we serve to continue the project, so we had to make the very hard decision of stopping," Williamson said.

She said a variety of issues came together to put the project out of reach.

Since the COVID-19 pandemic, construction, labour costs, and house prices have spiked. That final point is especially tough, Williamson said, because Habitat must sell homes at market value due to its standing with the Canada Revenue Agency.

Spryfield, which had long been an affordable part of Halifax, is now seeing new homes go for over $500,000. Williamson said that doesn't work out to an affordable mortgage for clients who make between $40,000-$80,000 a year, even with Habitat's model of no downpayment.

Habitat has built other homes on Drysdale Road, and Williamson said in 2017 one sold for around $180,000.

"So this is a big difference, and again, it's just more challenging for families," she said.

The province granted Habitat $203,000 in April 2022 for project management, design and other pre-construction costs to create 70 units of townhouses and single-family homes in Habitat Way. That eventually changed to 52 units in the latest 2023 plan. 

Williamson said while they got some money from different levels of government, most of the current federal and provincial housing funding is focused on rentals — which Habitat doesn't offer. She'd love to see governments focus more funding in this area, Williamson said.

"Home ownership is such a key fundamental for generational wealth and independence. And we're afraid that the middle class is disappearing," Williamson said.

There's also a covenant on the land dating from 1994 preventing anything denser than a duplex that was placed on the site by neighbouring landowner Paradigm Investments. Paradigm owns Foxwood Terrace, a multi-unit residential development next to Habitat's wooded parcel.

Court records show Habitat learned about the covenant in 2016, but moved ahead with the project.