New St. Catharines affordable housing development brings in Habitat for Humanity as partner

In order to ensure that a new housing development built on former St. Catharines property has a proper allotment of affordable housing, the city okayed a plan that brings the big guns squarely into the picture – Habitat for Humanity Niagara.

When St. Catharines okayed the sale of 320 Geneva Street – formerly home to their Recreation and Community Service building – to Penn Terra Group Ltd (PTGL) last November, it came with the understanding that the 3.8 acre lot was to include 43 per cent affordable housing, 14 per cent social housing and 43 per cent market rate housing.

Since the developer agreed to the split, they got the land for a relative steal at just $1.35 million, a fraction of its market value.

In the end, it was PTGL who asked the city if they could bring Habitat for Humanity Niagara (HFHN) on board with the development.

By attaching HFHN’s name to the project, it gives instant legitimacy to ensuring the social and affordable elements of the new development remain both intact and beyond reproach, especially in these days where housing is financially out-of-reach for a large percentage of the Niagara population.

“Our decision to allocate City-owned lands to an extensive affordable, social and attainable housing development has generated one the most impressive projects in the City’s history,” said Mayor Walter Sendzik.

“With Bethlehem Housing and Penn Terra announcing the inclusion of Habitat for Humanity Niagara within the project, it adds another positive dynamic to a truly transformative project that takes direct aim at Niagara’s housing crisis.”

PTGL has proposed the construction of one nine-storey building with 180 rental units and one four-storey building with 32 two-bedroom townhomes. In addition, some 19,000 square feet of commercial space could be developed on the site, alongside three community gardens.

HFHN has a very specific job in this mix. PTGL will sell the organization the 32 units of townhouses and it’s up to the group to sell them at below-market rates  and that any future sales of these units will continue to be affordable housing in the community.

HFHN CEO Mark Carl said in a release that his group is ready and enthusiastic for the ownership plan.

“This is an exciting opportunity that will make an impact on the affordable housing crisis in Niagara and allow families to achieve greater stability,” said Carl. “We look forward to collaborating with the City of St. Catharines and Penn Terra as we work through the details of this project.”

He added HFHN will sell the homes through an equity share program whereby any profits generated off future sales of the townhomes will be split between the selling family and Habitat. This will allow for the organization to reinvest the profits in affordable housing delivery.

In order to bring HFHN into the picture, an additional agreement was that 60 of the rental units be rented at affordable rates for the next 40 years.

For his part, John Kingston, Chief Financial Officer for PTGL, was happy with the arrangement, which he said harkened back to a previous housing project in St. Catharines.

“We’re proud to call St. Catharines our home base and to invest in the affordable housing sector to address the urgent need in our community for well-built, quality housing that can be offered at an affordable price,” said Kingston. “This latest project at 320 Geneva Street is an extension of our earlier venture in affordable housing in St. Catharines at 111 Church Street.”