Feds invest more than $40 million in Saskatoon housing plan

Over the next three years, 940 housing units are to be built in Saskatoon through an agreement with the federal government and the city.

On Wednesday, Randy Boissonnault — the federal minister of employment, workforce development and official languages — announced the investment through the Housing Accelerator Fund. Ottawa is investing $41.3 million into Saskatoon’s project.

Boissonnault said the funding will remove barriers to construction and help build more homes faster. The hope is that the deal will spur the construction of 25,200 units in the city over the next 10 years.

Saskatoon Mayor Charlie Clark said the city’s population has grown by 14,000 people since last year, which is double the growth the city has seen in previous years.

But with that, Clark said there were only 2,600 housing units built, vacancy rates have dropped to around two per cent, and rent has increased by 10 per cent in the past year.

“All of these things combined is creating a significant challenge when it comes to housing,” Clark said, adding these housing challenges can create an unprecedented amount of homelessness.

The mayor explained the funding from the federal government will help drive the development of more housing units in the city, whether it’s through investing in infrastructure or partnerships with affordable housing partners.

A similar investment was announced in Regina earlier this month.

Saskatoon Mayor Charlie Clark said funding from the federal government will help with housing solutions for the city’s growing population. (Mia Holowaychuk/650 CKOM)

The city’s application for the funding included key strategic measures such as partnering with post-secondary institutions for student housing.

Saskatoon’s Action Plan will speed up home developments near transit and in the downtown area. Additionally, zoning changes will allow for more units across the city, by transit, and near post-secondary institutions.

“The plan will also encourage more medium-density and multi-family homes such as townhouses and multiplexes, reduce parking requirements and streamline processes for supportive housing which includes wrap-around services like health care, social work and accessible building design,” the federal government’s release said.

Clark said the city has worked with the Saskatoon and Region Home Builders’ Association and the Landlords Association to ensure the housing project aligns with the demand throughout the city.

“(Homelessness) is a very urgent issue. We all have to work together to build the solutions,” Clark said.