Saint John will receive $918,000 in federal funding under the Housing Accelerator Fund (HAF) to unlock the development of 34 new housing units over the next two years.
The funding is part of a national effort to address Canada’s housing shortage by cutting red tape and speeding up the construction of new homes.
The federal government recognized Saint John as a top performer in the Housing Accelerator Fund program because the city met its housing goals for the first year and suggested new ways to speed up development.
Communities must meet several criteria to be eligible for the top performer designation, according to a government release.
This includes achieving their housing unit forecasts, delivering on their action plan commitments for the first year, and proposing new initiatives to accelerate housing development.
Meeting these criteria makes communities eligible to receive up to 10 per cent of the value of their original agreement in additional funding.
For Saint John, the city’s efforts in surpassing housing targets and proposing new large-scale development projects contributed to this recognition.
The $918,000 boost represents a 10 per cent increase to the $9.1 million the city announced in July 2023 under the HAF.
Mayor Donna Reardon highlighted the city’s progress, noting they are ahead of their goals.
“So 1,124 was the target with the Housing Accelerator Fund, and we’ll add another 34 doors with this new funding,” Reardon said.
She added that Saint John’s vacancy rate is currently below 2 per cent, showing the urgent need for more housing.
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The Mayor also mentioned the challenges developers face when working on modular housing projects.
“With modular, a lot of times they want 50 per cent upfront, and it’s figuring out how the province could help with that bridging funding to get them there,” she said.
Reardon points out that this upfront payment requirement is unusual, comparing it to building a house, where paying 50 per cent of the cost before construction starts is uncommon.
She explained the new funding will be used to support large-scale housing developments in key areas such as Saint John’s uptown core.
These projects are part of the city’s broader plans to create mixed-income neighbourhoods and ensure housing options for its growing population.
The Housing Accelerator Fund is a $4.4 billion initiative launched in March 2023 to speed up the construction of at least 112,000 homes nationwide by 2028, according to the Government of Canada.
The fund supports municipalities in creating housing more quickly by addressing zoning barriers and accelerating project timelines.
