St. Paul — A plan to build eight affordable homes in St. Paul is moving forward with financial support from the Town and hopes of securing federal funding.

St. Paul Affordable Community Housing (SPACH) appeared before Town council September 28 to outline plans for two four-unit townhouses on Town-pledged lots at 5021 and 5025 51 Avenue, across from the FCSS office.

Later in the meeting, council approved $15,000 toward subdivision costs for the project and directed administration to consider required water and sewer upgrades as part of the Town’s 2027 budget discussions.

If funding comes through, SPACH hopes to begin construction in early 2027.

Eight homes planned on two lots

SPACH President Louise Severin and Secretary and Grant Researcher Alice Bourget told council the organization is preparing an application to the federal Build Canada Homes program.

Their concept would see four units constructed on each of the two lots, for a total of eight homes.

“We have a goal to build two four-unit townhouses on lots three and four that have been pledged by the Town,” Severin told council.

The organization believes the federal program could be a better fit than a previous provincial funding opportunity it pursued.

SPACH told council its provincial application was ultimately unsuccessful because the proposed homes were not rental properties.

The new project is designed around affordable home ownership, with SPACH acting as a facilitator rather than remaining the long-term owner of the units.

Making home ownership affordable

SPACH plans to contribute approximately 25 percent of the appraised value through the land, fundraising, donated or pro bono work and other contributions.

The goal is to reduce the amount an eligible homeowner needs to finance.

Severin told council an appraisal on the first proposed unit came in at approximately $233,000.

Under the model presented to council, the anticipated mortgage requirements would vary by unit, with the first unit at about $175,000, two middle units at approximately $160,000 each and another at approximately $167,500.

Those figures already account for SPACH’s planned contribution toward the property.

The organization also intends to put restrictions in place to prevent the homes from simply being purchased at the reduced price and quickly resold for a profit.

“The main purpose of them not being able to sell the house in the first few years that they own it is so that they’re not — it’s not one family benefiting by flipping it and selling it at market value,” Severin explained.

SPACH would prefer a restriction of about 10 years, although Severin said the organization would meet whatever conditions are required if federal funding is approved.

Town commits $15,000

SPACH asked the Town to contribute $7,500 per lot toward subdivision costs, for a total municipal contribution of $15,000.

Administration told council that the contribution could also strengthen SPACH’s federal grant application by demonstrating municipal support for the project.

Council approved the $15,000 request.

But the Town’s eventual contribution could extend beyond that amount.

Administration identified water and sewer work that will be required before the properties can accommodate the proposed development. The existing sewer cannot be reused and the water line is too small for the planned project.

A preliminary estimate discussed at the meeting was approximately $20,000 per site, although administration noted there could be efficiencies if both properties are completed at the same time.

Rather than commit to that work immediately without firmer costs, council directed administration to bring the potential water and sewer upgrades into 2027 budget discussions.

Hoping to build in 2027

There is no fixed deadline for SPACH’s federal application, but the organization told council time still matters.

“We’d like to get it moving as quickly as possible so that we can start planning construction,” Severin said.

“If we get the grant, we plan construction in early 2027. If we don’t, then we lose another year.”

The eight-unit development would build on SPACH’s existing affordable home ownership work in the community. The organization told council its first recent home attracted five applicants, while its second attracted 11, with seven ultimately interviewed after applying eligibility criteria.