Old Hamilton Mountain school will be razed for affordable housing project

Two local non-profits hope to build at least 200 units of affordable housing at a former Mountain school site.

The city spent $3.13 million on the 7.2-acre former Mountain Secondary School property in 2018.

This week, council approved the sale of 60 Caledon Ave. through a $5-million forgivable loan to Hamilton East Kiwanis Non-Profit Homes and Victoria Park Community Homes.

So hugely exciting for so many reasons," Lori-Anne Gagne, chief executive officer of Victoria Park, said Friday.

Victoria Park and Hamilton East Kiwanis have formed a limited partnership called Caledon Community Collaborative for the project.

Construction company Ellis Don will build the development, but first the old school must be razed, with demolition expected to start next year, and construction getting underway in 2022. The goal is have the complex ready for tenants by 2024 or 2025.

The collaborative has submitted an initial site plan application to the city that calls for two apartment towers on the site off Mohawk Road West and Upper James Street.

Most of the planned units won't be rent-geared-to-income, but the plan is to provide moderately affordable housing. We really are targeting those working people that just can't pay the full market rents that are skyrocketing all across the country."

The bulk of the units will have a rate of 125 per cent of average market rent, according to Canada Mortgage and Housing Corporation (CMHC) figures, which are based on occupied units. That works out to $1,037 for a one-bedroom, Gagne notes.

A report by Bullpen Research based on units advertised on Rentals.ca found an average one-bedroom unit in Hamilton was $1,453 in November.

The Caledon Community Collaborative expects to contribute roughly $35 million of the organizations' equity to the project, which is anticipated to cost more than $100 million, Gagne notes.

In addition to the city's contribution, the partners have been approved for about $490,000 in CMHC funding for planning and to secure more via the federal agency.

Victoria Park and East Kiwanis are part of a collaborative of local community housing providers called Hamilton is Home. The group aims to build 3,000 affordable units in three years.

Teviah Moro is a Hamilton-based reporter at The Spectator. Reach him via email: tmoro@thespec.com