Why this P.E.I. developer scrapped his plans for affordable rental units
CBC
A P.E.I. developer says the rising cost of building and borrowing has forced him to scrap his plans for 17 rental units, and hand back the government money he received to make six of them affordable.
Instead, Kris Taylor is now selling the units in the renovated Catholic church as condominiums.
"I was really proud to bring [the rentals] to my community. We need housing here. Everybody does," said Taylor. "And you know, people are asking questions now, how that transitioned into me turning this into condominiums. It's a decision I had to make to maybe save the project from financial trouble."
He purchased the church three years ago, and got approval last year to expand the building and turn it into a 17-unit apartment complex.
Taylor was granted funding through the Community Housing Fund — a collaboration between the P.E.I. government and the Canadian Mental Health Association P.E.I. division — to make six of those two-bedroom units affordable at $1200 per month.
"Six was the maximum I could get through the program ... and those six units were great. I would've rented those easily, quickly. They would've been rented forever," he said.
According to Taylor, it's the other 11, non-subsidized units that are the problem.
To recoup his building costs — which he estimates have risen more than 30 per cent since the start of the project — and to ensure he can cover his ongoing expenses, Taylor said he'd have to charge a minimum of $1700 per month for those units, plus utilities.
He fears there just aren't enough people able or willing to pay that much for an apartment in Hunter River, and that he'd be left with several vacant units.
"I'd love to give everyone rent at a more affordable rate," he said. "But with the cost of building now, and insurance and interest rates going up ... I think from a builders' perspective, it's very tough. I can see projects stopping. I can see people not wanting to do this anymore."
But while Taylor now has the 17 units listed for sale as condos, it appears four of them may still turn into affordable housing.
Under his contract with the Community Housing Fund, he said, hanging onto the six subsidized rental units himself isn't an option.
But in an email to CBC Tuesday, a spokesperson for P.E.I.'s Department of Social Development and Housing said the province now plans to buy four of the units, once Taylor finishes paying back the $159,000 in program funding he had received.
"Upon the pay back of the funds, the P.E.I. Housing Corporation has committed to purchasing four of the units to maintain affordability in the project to add to the Island's social housing inventory."
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