Quebec and federal government set target for 6500 affordable units - Shelter - Brief Article

Community Action, March 18, 2002

QUEBEC -- An agreement between the federal government and Quebec is expected to produce 6,500 affordable rental housing units in Quebec in 2002 and 2003.

The agreement foresees a total contribution of $323.3M which includes $161.65M from the federal government, $104M from the Quebec government and $57M from participating municipalities.

The Affordable Housing Quebec Program components include social and community component that target the nonprofit organizations of the municipalities, along with residential developers who want to implement housing projects. The social component is expected to produce 5,000 housing units for low to modest income households. The private component of the agreement is expected to produce 1500 units for moderate income households.

The Social and Community Component targets the construction of new housing units, the conversion or recycling of buildings not currently used for residential purposes, as well as the renovation of severely deteriorated housing units. The new construction and recycling projects may only be carried out in municipalities where the housing unit vacancy rate is less than 3%, whereas the renovation projects may be carried out in all areas of Quebec, whether financial or rural.

The maximum financial assistance is 75% of eligible production costs, including a contribution by the municipality of at least 15%. These housing units will be offered at rents between $350.00 and $500.00 a month for a heated, 2-bedroom unit. For a period of 15 years, rent increases may not exceed a maximum set by the Societe d'habitation du Quebec. 514-283-3023