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August 31, 2021

High construction costs hit Ottawa’s affordable housing projects

The John Howard Society of Ottawa says the 40 supportive housing units it’s building on Carling Avenue are desperately needed in the midst of a housing crisis, but construction started at a bad time.

The not-for-profit won the bid in 2019 to build permanent housing for the homeless on city-owned land near Dow’s Lake, then broke ground in September 2020 only to face soaring construction prices, labour and material shortages, and pandemic protocols on the work site.

“You couldn’t have had a worse time to start a capital project,” said executive director Tyler Fainstat, who considered delaying the $19-million building to not put the organization’s other programs at risk.

“We’re a not-for-profit. We don’t have large money bags, unfortunately.”

Fainstat said the John Howard Society is lucky the City of Ottawa is now stepping in to supplement the project with as much as $1.2 million to cover extra costs. The city is using money that is being repaid from a housing-related loan.

Fainstat expects the building, which will also house a new head office for the John Howard Society of Ottawa, to finish construction in March as planned.

Moving from shelter to permanent apartment

That project is just one of several affordable housing efforts facing expensive construction.

The city’s list of capital spending for 2021 also includes $750,000 to be given to the Shepherds of Good Hope for cost overruns at its new building on Montreal Road near the Aviation Parkway. Those 40 apartments also offer supportive housing — residents get a permanent home as well as programs on-site to help manage their alcohol.

Keep reading on CBC News


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