P.E.I. announces $2.25M for affordable housing units
Program will provide forgivable loans of $45,000 per unit
The P.E.I. government says it will spend $2.25 million on a new program announced Tuesday for developers looking to create new affordable housing units.
The Affordable Housing Development Program will provide forgivable loans of $45,000 per unit, which can be used not only for proposed buildings, but also for those already under construction and for renovated units.
The project must, however, add new affordable units to the market.
"The low vacancy rate and rising cost of rent in Prince Edward Island is making it hard for Islanders to find adequate, suitable and affordable housing to meet their needs," said Housing Minister Ernie Hudson in a news release.
"This new program will quickly increase the number of affordable housing units on the market and reduce some of the pressure Islanders are facing."
Projects must be a minimum of four units and at least 20 per cent of the units must be accessible. The loan forgiveness period will range from 15 to 25 years, the release said. If a developer decides to change the units from affordable to the regular market, they would have to pay back a portion of the loan, Hudson said.
Applications must include information on the proposed property, zoning, evidence of financing and design work. Applications will be judged partly on community need. The deadline to apply is Nov. 15.
"I think any step that we can take is going to make a difference," Hudson said.