Community and not-for-profit organizations and private developers can build more new rental properties in Prince Edward Island with the renewal of the Housing Challenge Fund pilot, which added $50 million to contribute to housing in the province.
The Housing Challenge Fund pilot was created to help fast-track new housing stock across the island. With a 10-year 2 per cent interest rate over 25 years and property tax rebates, the province is looking to grow housing in both urban and rural areas.
The fund will allocate $20 million of the $50 million available to rural housing construction projects, while the remaining $30 million will be earmarked for developments in Charlottetown, Cornwall, Stratford, and Summerside areas.
Projects funded through the Housing Challenge Fund must be new projects, and will be evaluated based on the following:
- Property design features, including accessibility
- Construction timelines
- Lease, rental, or ownership structure
- Carbon reduction footprint
- Financial capability of the development and the developer or contractor
“We need to work together, and work quickly, to get new housing developments off the ground to address our vacancy rate and create more housing options for residents. Through the first round of the Housing Challenge Fund, over 250 new units are currently under construction. We will continue to look at ways we can add to our housing inventory—from emergency shelters and supportive housing to affordable housing, market units, and home ownership—so that every Islander has a place to call home,” says minister of housing, land, and communities, Rob Lantz.
Interested applicants can learn more about the Housing Challenge Fund and submit their application to Finance PEI by September 29th, 2023.