Property that once housed the former Union Hospital could soon be the new home of 40 affordable housing units, contingent upon a federal agency providing the necessary funding.
Anhart Community Housing Society wants to purchase 1.5 hectares (2.75 acres) of land at 455 Fairford Street East to develop a 40-unit modular affordable housing project that provides different apartment options, from studios to two-bedroom to three-bedroom units. These suites would be for singles, couples, seniors, families, single mothers, people with disabilities, and people who struggle with affordable housing.
The organization aims to build 20,000 affordable housing units across the country by 2030 through a community-based development and operating model.
Anhart has offered to pay $250,000 per acre, which means the organization would pay $687,500 in total for the property. It would have to pay 10 per cent as part of a deposit on the property.
When the City of Moose Jaw acquired the property in 2015, an appraiser valued it at $417,452 per acre, a council report explained. This past September, an updated market appraisal changed that value to $250,000 per acre; city hall learned the market had “substantially changed” since 2015.
The municipality could see gross profit of $357,700, the report added. It would also receive ongoing tax revenue, revenue from land sales and one-time building permit fees. However, since this property is infill, it is not subject to development levies.
The non-profit organization plans to apply for funding through the federal Canadian Mortgage and Housing Corporation’s (CMHC) $500-million rapid housing initiative, part of a national housing strategy to develop new and affordable housing units. All projects must remain affordable for a minimum of 20 years.
The initiative provides funds on a first-come, first-serve basis, with applications accepted until Thursday, Dec. 31. Anhart would then have to construct the building within a year.
Since the deadline is coming quickly, Anhart approached city council during the Dec. 14 regular meeting to ask for support.
“I’m in full support,” said Coun. Crystal Froese. “I think this a great project and is a great property. It’s close to downtown and is a great use of infill in that area.”
Coun. Heather Eby agreed, pointing out this will be affordable housing and not subsidized housing as some people think.
“This will be a good project,” she added, “and hopefully it does go past the next vetting.”
After hearing from an Anhart representative by video, council voted unanimously to have the mayor and city clerk issue a letter of support to Anhart Community Housing Society to develop affordable housing in Moose Jaw and execute the purchase and sale agreement.
Once the agreement has closed, city hall will advertise the remaining 2.75 acres of former Union Hospital property for $250,000 per acre.
The next regular city council meeting is Monday, Jan. 11, 2021.
