Habitat for Humanity pauses 20-unit Highbury Ave. housing project

The local branch of Habitat for Humanity has paused a housing project that was slated to bring 20 affordable townhouse units to northeast London, CBC News has learned. 

In early 2021, London city council approved a planning application for 1697 Highbury Ave. N. to build 20, two-bedroom units in two stacked townhouse buildings on the 1.3-acre lot which fronts the Thames River, south of Fanshawe Park Road. 

The organization behind the project is Habitat for Humanity Heartland Ontario, the local branch of Habitat for Humanity, a global non-profit that provides affordable housing through donations and the organizations ReStores. 

In media interviews when the project was announced, it was described as a badly needed source of housing to serve families. 

After council approval in early 2021 some initial site work was done, including grading of the lot and the rough-in installation of plumbing services. However neighbours told CBC News no work was done over the 2024 construction season. 

Today the site is an empty lot surrounded by construction fencing. 

In a statement to CBC News, Habitat for Humanity Heartland Ontario CEO Susan Fahner alluded to difficult market conditions affecting the project, but did not provide specifics on why it's been paused. 

"Our primary objective at Habitat for Humanity Heartland Ontario is to provide safe and affordable housing to families living with low to moderate incomes, and the need for affordable housing is greater today than ever before," the statement said. 

"As an organization, we are not immune to the increasing challenges of building affordable housing amid a housing crisis and rising housing costs, including the rising costs of land and materials, fluctuating interest rates, and skilled labour shortages."

In an email to CBC News in response to follow-up questions, Fahner said the project has been paused, but not abandoned. 

"We are continuing to evaluate and do our due diligence on the Highbury build within the context of these organizational changes and financial realities," she said. "We anticipate being able to provide an update to families and our community soon."

The project was briefly mentioned in Habitat Heartland's 2021 and 2022 annual reports, but it not mentioned in the 2023 report, which is the last one available on the organization's website. 

Fahner joined Habitant Heartland in October.

With low supply pushing up housing costs beyond the reach of many London residents in recent years, the city has set a goal to create 3,000 affordable units by 2026.

According to the city's annual housing development report, a total of 2,139 affordable units were being tracked by the city up to the end of last year, a total that includes approved applications along with projects under construction.