Organization preserves 58 affordable housing units in Kitchener
Posted Nov 17, 2022 12:35:00 PM.
Union Co-operative has made its first property purchase.
It means two apartment buildings at 475 and 477 Lancaster Street West will remain as affordable housing. There are 58 units in total.
“So really excited about the opportunity to bring this property into community ownership, out of the speculative real estate market, and work to make it a better spot for folks to live … but also to maintain that affordability permanently into the future.” explained Union Co-operative Executive Director, Sean Campbell.
According to Campbell, average rent at the property is $1,300 a month. The latest report from rental.ca has a vacant two-bedroom unit in the region going for $2,300 a month, an increase of 24 per cent in the past year.
He added that these types of properties are being lost through real estate investment trusts. “Who see the opportunity to put on a fresh coat of paint and either wait out, or encourage the current tenants to move out.”
Campbell told The Mike Farwell Show on CityNews 570, there was at least one real estate investment trust that put in an offer.
Union Co-operative, Waterloo Region's community land trust, is looking purchase residential/commercial properties, and maintain affordability through community ownership and control. The organization has over 200 members who live, work, or have a connection to the area.
The Lancaster purchase received financial backing by some members, as well as local organizations, including the Waterloo Region Community Foundation, Lyle S. Hallman Foundation, Canadian Co-operative Investment Fund, and VERGE Capital.
Vancity Community Investment Bank also provided first mortgage financing of $8.45 million.
Union Co-operative also plans to add two accessible apartments within the existing buildings, as well as explore ways to reduce the buildings' energy costs and environmental impacts.
