The federal government is putting up $130 million toward a downtown high rise development that will add 110 new rental units geared to low-income Londoners.
Ahmed Hussen, federal minister of families, children and social development, announced the investment Wednesday for the two towers that will be built by Old Oak Properties at 495 Talbot St. and 110 Fullarton St. -- the former site of the historic Camden Terrace.
"With a 1.4 per cent vacancy rate, more affordable rental stock is certainly needed in London," said Hussen.
The development, dubbed Centro, will add a total of 420 new apartments to the city's housing stock. Units reserved for low-income tenants will have rents lower than 30 per cent of the median household income. The south tower at the corner of Talbot and Fullarton will be 40-storeys high, making it the tallest building in southwestern Ontario. The second tower will stand 29 storeys.
Construction of the new downtown highrises began last summer and is expected to take three years to complete.
Construction crews working at 110 Fullarton St.
Currently in London, there are approximately 5,000 families on the waiting list for social housing.
"There’s no issue more pressing now than affordable housing," said Mayor Ed Holder. "What this [investment] truly represents is hope and the prospect of a better life for all of those who will call this property their home. Quite simply, when you don't have a roof over your head very little is possible. But once you do many things become possible."
Holder also noted the project contains the highest proportion of units geared toward low-income individuals within a single structure.
"Does 110 units solve the issue? No, but I will tell you it goes a long way. Ask 110 families that are going to be helped as a result of that and they are going to say it has made all the difference to them," said Holder.
London North Centre MP Peter Fragiskatos, who was also present at Wednesday's announcement, commended Old Oak for the intertwining of people from all walks of life in the two-tower build.
"There is great merit to a mixed-income approach because we do not want to segregate those in need, those in poverty. We have seen approaches like that in the past that simply have not worked," said Fragiskatos. "By taking on an approach that brings together people from various income levels we think that is a much more [effective] way to make people feel a part of the community."
The cash infusion coming from the federal government is not a gift, but a low-cost loan to Old Oak. The developer will be required to repay the money.