Affordable housing project in Tecumseh gets a $25M loan from Ottawa

A housing project in Tecumseh with approximately one-third of the units earmarked as affordable will be built with the help of a federal loan.

Ottawa is lending The Tecumseh Gateway Towers project $25.27M to build the six storey residential building. There are a total of 99 units, 31 of which will have rents geared to income.

"You know the very people who keep Windsor-Tecumseh running and vibrant, people like teachers, nurses, shop-keepers, paramedics and firefighters, those people are finding it harder and harder to afford rent," said Ahmed Hussen, Minister of Families, Children and Social Development.

"They are being forced to move further and further away, which is due in large part, to a lack of good rental supply."

The funding is part of the Canada Mortgage and Housing Corporation's Rental Construction Financing initiative. It supports new builds geared to middle-class families renting in expensive housing markets.

"I am incredibly thrilled to be bringing this rental project to Tecumseh. We have many projects we are working on, but I am very proud to be part of this project to serve a need for more affordable housing in Windsor & Essex County," said Gateway Tower President Peter Valente in a statement.

At Tuesday's virtual press conference, officials said 5,800 residents are on wait-lists for affordable housing in the community. They said 44 per cent of renters spend 30 per cent or more of their income on housing.

"That is why, the first ever partnership in our region of this scale, between the federal government and a private developer is not only historic, it is a game changer for our community," said Irek Kusmierczyk, MP in Windsor—Tecumseh.

Construction for the project began in Fall of 2020. The project is expected to be complete within 18 months will welcome residents in 2022.