Brockville: Two providers pool resources to build together
It was a match made in housing heaven: one provider had equity and another provider had land. Both wanted to build new housing for seniors.
Marguerita Non-Profit Housing Corporation owns 124 units of seniors’ housing in Brockville. The community, like others in Ontario, is aging and more affordable housing for seniors is needed. Marguerita owns two buildings, completed in 1980 and in 1984 under the Federal Section 95 program, and was interested in building a third. With the operating agreement on the first building expiring this year, the non-profit will soon have equity to help finance a new project.
Wall Street Village, another Brockville non-profit housing provider, has been accumulating land on a site that’s suited to a seniors’ housing project.
The two non-profits have drafted a merger agreement that will combine the assets of both organizations so that they can build 85 new units of seniors’ housing. Their plan is to build on the accumulated land using equity financing from Marguerita’s first building, bridge financing on the second building, and an Infrastructure Ontario loan on the new building. Once the plan is approved by lenders, the two non-profits will finalize the merger.
The local Service Manager, the United Counties of Leeds and Grenville, has committed 30 units of rent supplement funding for the new project. CMHC seed funding has been approved and Marguerita has chosen an architect to oversee the build.
With notes from Bruce Hynes.