Partnership Between Québec Government and Fonds de solidarité FTQ Will Create Over 1,400 Affordable and Social Housing Units by 2025
Longueuil, April 24, 2023
The Gouvernement du Québec and the Fonds de solidarité FTQ announced this morning that they are on track to surpass their goal of creating 1,000 new affordable and social housing units over the next three years. The announcement was made on the site of the Desaulniers project, one of the first initiatives to reap the benefits of this partnership. This project will be carried out by the non-profit (NPO) Habitations Communautaires Longueuil (HCL).
As agent for this partnership, the Fonds de solidarité FTQ has granted conditional financing for the construction or renovation of more than 1,400 units. New construction will make up 75 % of the units, while 25 % will be acquired and renovated by NPOs in order to ensure permanently affordable rents.
In June 2022, the Québec government signed an agreement with the Fonds de solidarité FTQ in which the latter was given $175 million to subsidize NPOs, cooperatives and housing authorities with viable projects. For its part, the Fonds de solidarité FTQ is investing $75 million through its real estate subsidiary, which manages the funds. The Fonds de solidarité FTQ's share of the investment takes the form of a patient capital loan that complements the government's subsidy.
A project in Longueuil for low-income households
The Desaulniers project, scheduled to break ground this fall, is a 175-unit social and community housing building that will be erected at the corner of Taschereau, La Fayette and Desaulniers Boulevards, just one kilometre from the Longueuil-Université de Sherbrooke metro station. Valued at $80.5 million, this project is being funded by a subsidy from the government, patient capital from the Fonds de solidarité FTQ and a contribution from the City of Longueuil. HCL, which will acquire the land from Gérer son quartier, is overseeing the project along with the technical resource group Bâtir son quartier. The building will offer one- to four-bedroom apartments to meet the needs of both single people and families with children.
QUOTES
"Building more housing for Québec households is a key part of my mandate. In order to do this, we have entered into partnerships with various tax-advantaged funds. One of these is with the Fonds de solidarité FTQ, and what we see here today confirms that we're on the right track. But this is just the beginning, because our government is active on all fronts. As I've said many times, we need to work in a different way, come up with new and promising ideas so that everyone can have a decent roof over their head."
France-Élaine Duranceau, Minister Responsible for Housing
"I'm proud to see that as one of the first in the partnership between the Fonds de solidarité FTQ and the government, this project brings people together, is well located and is designed to meet the needs of families living in the Marie-Victorin riding. I applaud the partners' commitment and I'm thrilled for the people who will eventually live in this new building."
Shirley Dorismond, MNA for Marie-Victorin and Parliamentary Assistant to the Minister Responsible for Social Services
"As impact investors, we want to make a difference. Over the years, the Fonds immobilier de solidarité FTQ has backed the construction or renovation of 6,353 affordable housing units. I am proud to announce today that more than 1,400 units will be added to this number thanks to our innovative partnership with the government that I thank for their initative. I would like to congratulate and thank the Fonds immobilier team, led by Normand Bélanger. Thanks to their expertise in financing social, community and affordable housing projects, they were able to accomplish a lot in a short span of time."
Janie C. Béïque, President and CEO, Fonds de solidarité FTQ
"By harnessing over 30 years of experience in the field, we were able to develop, in just 6 months, a financing solution that meets the needs of social and community housing providers. Our team of professionals manages the $250 million envelope, from analyzing and approving projects submitted by organizations, estimating the cost of the work and performing a social audit of the selected contractors. The social and community sector was quick to respond and as a result, we will be able to surpass the initial target. The available funds have now all been allocated and more than 1,400 units will be created by 2025."
Normand Bélanger, President and CEO, Fonds immobilier de solidarité FTQ
"Today's announcement speaks to the partnership and efforts of all the stakeholders to provide lasting solutions for those individuals and families hardest hit by the housing crisis. The 175-unit community and social housing project that we are carrying out here in Longueuil is one of many initiatives led by housing NPOs, coops and technical resource groups such as Bâtir son quartier. With financial support, other projects will be able to see the light of day."
Édith Cyr, Managing Director, Bâtir son quartier
HIGHLIGHTS
Projects underway by the Fonds immobilier de solidarité FTQ
- Montréal 12 buildings, 627 units
- Mauricie 10 buildings, 251 units
- Montérégie 2 buildings, 189 units
- Outaouais 1 building, 130 units
- Saguenay–Lac-Saint-Jean 2 buildings, 74 units
- Estrie 5 buildings, 69 units
- Bas-Saint-Laurent 2 buildings, 47 units
- Laval 1 building, 20 units
- Gaspésie–Îles-de-la-Madeleine 1 building, 12 units
- Abitibi-Témiscamingue 1 building, 6 units
TOTAL : 37 buildings, 1,425 units
- 24 buildings will be new construction, for a total of 1,048 affordable housing units (75%).
- 8 buildings will be transformed or renovated, for a total of 377 existing units maintained at an affordable price (25%).
Overview of the Fonds capital pour TOIT, a partnership between the Gouvernement du Québec and the Fonds de solidarité FTQ
Affordable and social housing projects are developed in partnership with or with the involvement of cooperatives, NPOs, municipal housing authorities or corporations, municipal agencies or other non-profit bodies.
- Funding is calculated on a cost basis, including land acquisition, demolition and decontamination costs.
- Projects must secure a community contribution equal to 40 %of the government funding.
- Repayable loans and loan guarantees are not taken into account in the calculation.
- The minimum size of the units is determined based on the market and their location.
- Projects receiving federal funding may apply for funding from the Fonds capital pour TOIT.
- The projects will be distributed across all regions of Québec.
- Monthly rents must not exceed the threshold set by the Société d'habitation du Québec (SHQ) under the Programme d'habitation abordable Québec (PHAQ). This threshold is updated annually.
- Tenants' household income must not exceed the threshold set by the SHQ under the PHAQ.
- Businesses located near a project can be annexed.
- Where applicable, projects must align with the City of Montréal's Mixed Use Metropolis By-law.
ABOUT THE SOCIÉTÉ D'HABITATION DU QUÉBEC
As a leader in housing, the Société d'habitation du Québec (SHQ) works to meet the housing needs of Québec citizens. To that end, it offers affordable or low-rental housing and assistance programs promoting residential construction and renovation, home adaptation and home ownership.
To learn more about its activities, visit :
ABOUT THE FONDS IMMOBILIER DE SOLIDARITÉ FTQ
The Fonds immobilier de solidarité FTQ has been helping to drive economic growth and employment in Québec for over 30 years by strategically investing in profitable and socially responsible real estate projects in partnership with other industry leaders. It backs residential, office, commercial, institutional and industrial projects of all sizes across Québec. As of December 31, 2022, the Fonds immobilier had 43 projects worth $4.8 billion in development or construction of which the latter will ultimately create 27,150 jobs, 65 portfolio properties under management, 3.7 million square feet of land for development and a cumulative total of $291 million invested in social and community projects. The Fonds immobilier is a member of the Canada Green Building Council — Québec division.
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