Two significant multi-residential projects, if completed as envisioned, could add about 274 much-needed rental units to Huntsville’s housing market. But it will take time to build, and only scratch the surface when it comes to demand, says the developer.
“Right now there is a six to seven-year waiting list for seniors in that area [Huntsville] for housing of any description,” says Teresa Oliver, the developer working on two large multi-residential projects off Sabrina Park Drive and Highview Drive.
“The whole of Ontario is considered in a severe rental housing shortage, and if it is severe now it’s only going to get worse for the next 15 to 30 years as all the baby boomers retire,” says Oliver. She says many people, particularly retirees, move north of the GTA because it’s cheaper. “That’s partly why you have this upward pressure on the rentals. So if we have a seven-year waiting list for a one-bedroom apartment in Huntsville now, can you imagine what it’s going to be in five years?”
She says market studies indicate that Huntsville would need 400 units to keep up with the current market demand. “And between the two projects – Highview and Sabrina – we don’t even have 400 units. It’s not possible.”
The project at 425 Highview Drive has been in the works for several years. If brought to fruition, it would add 127 apartments to Huntsville’s rental market contained in five-three storey buildings on a 1.94 ha parcel on Highview Drive.
Huntsville’s planning committee approved the first phase of the development in August. That’s two buildings with 49 rental apartments to start. The one and two-bedroom apartments will be fully accessible via elevators and be mostly geared to seniors.
Planning committee chair Nancy Alcock says any housing is good. She says as more housing becomes available in the community, as well as housing geared to seniors, it will free up other units for different demographics.
To help with the housing crunch, the Town of Huntsville has entered into a partnership with Craig Developments Inc. by donating land to build 171 new units off Sabrina Park Drive. Twenty-four of those units will be townhouses; some will be for rent and some for sale. The remainder will consist of 147 apartment units made up of bachelors and one and two-bedroom apartments contained in five-three storey buildings. The agreement stipulates that 40 to 60 per cent of the units must be affordable, according to Huntsville director of planning Kirstin Maxwell.
“I believe that every unit that is constructed with an intent to be affordable will help to ease the burden, however, these larger developments will help ensure that people who require more housing options are able to remain in Huntsville,” says Maxwell.
Affordable rentals are considered units being rented at or below 80 per cent of market rents as determined by an annual survey conducted by the Canada Mortgage and Housing Corporation (CMHC). If a unit is constructed for sale, the sale price would fall at or below 10 per cent of the market rate in order to be considered affordable housing.
It will take years to add all of those planned units to the housing market. Raising money and convincing investors that there’s a solid return on their investment is part of the challenge.
“A bank will only value a building based on what it can earn, so you’re spending way more money to build, and earn way less up north than you would in the GTA, and that becomes a massive funding bottleneck to just take on big projects,” says Oliver. “That’s why you don’t see any big projects up north. You don’t see like 1,000 units being built at a time.”
Another issue is trades, Oliver says there aren’t enough tradespeople in the area, which makes building larger projects that much more difficult.
On the other hand, competing for lands to build housing in Toronto with big developers is extremely difficult. “Getting into sort of a financial fight with the big boys for the lots in Toronto was just undoable… so we then chose a niche market where we had less competition and had a chance of devising, which is how we ended up north.”
Oliver said she first became aware of the Huntsville market because the Empire Hotel burned down.
“We were invited to come and take a look at the situation and see if we couldn’t get involved with some development up there. We decided we couldn’t take on the Empire Hotel… because the math wasn’t ever going to work. We were never going to get enough rental income to build and pay for the site… it wasn’t viable in any form,” she said. “But while we were there we started spending more time researching the area and realized there was still a need and then slowly got to one little development at the time.”
On a positive note, Oliver did note that the Town of Huntsville has been extremely helpful in trying to get projects, particularly Sabrina Park, off the ground.
“The Town of Huntsville and the council, in particular, have really done a lot to help speed up some of the processes,” says Oliver. “But you’re dealing with a two-tier government and it’s still incredibly onerous.”
In the meantime, she said she will continue to focus on the two projects she’s working on in Huntsville. “We don’t want to take on more than what we’ve got because we’d like to make sure that these are done right, and successful, and then from there make a decision,” she said regarding the possibility of working on more projects.
Planning committee chair Nancy Alcock says she’s hopeful that the number of rental units planned for Highview Drive are built, particularly given the need, but she’s also a strong proponent of doing it right.
In terms of the Sabrina Park project, she says council has great expectations for that development. “We have great expectations on that. We want it to be a community that people say ‘oh, that’s how it’s done.’ So there’s always a bit of nervousness about something like that because… it’s so easy to miss certain steps and you can’t afford to miss those steps.”
Alcock maintains that the Sabrina Park project has to be a mix of an affordable and at market housing community, without stigma.
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Jim Sinclair says
I think it’s time to quit donating land from a ‘grateful’ Council!
We need a thinking Council who will expand the Town limits upwards towards Novar, south toward Port Sydney. East and west as well will see a much needed expansion. In so doing we will create suburbs and ease up the demand on the downtown core. What is it that Huntsville does not have enough parking that Councillors do not understand. We have seen proposals but we have no arteries that are not jampacked as happened because we had a 100 ‘ hole in the road for the recent sewer project. Tell the developers thanks but no thanks. Let them pay for the sewer plants and the water supply if they want to ‘develop’, but quit creating residential satellites just to alleviate a housing shortage when there is only a limited shopping area. Towns to the south of us grew but it also included commercial areas. We need a new Planning Head if we have one now.
Bill Beatty says
On a Happier Note Nancy : What is the definition of ” Affordable Housing ” ? When these buildings are subject to the open Real Estate Market , up goes the price and the affordability factor…..What is the actual purchase dollar figure used to define affordability ? Anyone…Beuhler ?
PS…Nancy , You are doing a great job !
Rob Millman says
The use of “fully accessible” to define a building with elevators is ludicrous in the extreme. Are they large enough for scooters (not e-scooters), or even wheelchairs for that matter? Are the main entrance doors power-activated? Do all fire alarms include flashing lights for the hearing impaired. Are bedrooms equipped with bed-shakers for this same group when they’re sleeping? Are all doors wide enough? Have the multitude of adjustments been completed for the washrooms for use by wheelchair-users? Have the kitchen counters/cabinets been lowered to an appropriate height? If appliances are included, are the ovens/dishwashers side-hinged? Furthermore, a contract manager, who is a disability expert, is required on site as the site manager or assistant manager.
.
“Fully accessible” is a loaded descriptor, which should never be employed in this cavalier manner.
Tamara de la Vega says
Dear Mr. Millman,
Thank you for your comment, you make some very valid observations. Although, I do not believe the placement of a bed shaker in an apartment is the responsibility of the developer or the landlord for that matter, that would be up to the resident.
Thank you for reading Doppler.
Rob Millman says
Admittedly, that was a bit of a stretch.
.
Best,.
.
Constant Reader
Jim Logagianes says
Leaving our dollar in the seventy cent range is great for exporting. But if your subsidizing the world real estate market with your low dollar is that a good idea. Our housing shortage is due to Capitol
Fleeing other countries looking for a safe haven. Canada is not the only country being mismanaged currently. We are witnessing a turning point in the world when confidence in government is at and all time low. The biggest threat to humanity is rogue governments who govern without respecting the will of the people. And it just seems as though everyone around the world is being subjected to the same contagion.
Susan Bobyk says
The units should be geared to income.
Ralph Cliff says
A rendering of one of five three-storey buildings proposed for a multi-residential project on Highview Drive, as presented to Huntsville’s planning committee in August. (See Photo)
Reminds me of the WWII military housing.
Reminds me of an old Elvis Presley song “In the ghetto”
Yet we do badly need affordable housing.
Bob Vtech says
Reading Mr. Cliff comments. Ghetto is a bit strong.
We do need affordable housing, but who would manage these units?
The district of Muskoka? Town of huntsville?
Maybe turn them over to Ontario Housing to manage?
I fear another Toronto Jane Finch area in our own back yard
if strong management from town council is not present.
Allen markle says
Industrial hen house comes to mind.
Is there an architect in the house? Please!
Samantha hearn says
Hi my name is Samantha and I am a hardworking woman/mom of a 8 year old and I have been living in a hotel in Huntsville for 5 years and the owner is selling and now me and my son and our dog might not have anywhere to go and I have been trying to find a place and I can’t afford anything this town keeps building condos and senior places but nothing for low income and now we might have to live on the streets wait ago Huntsville I hope u can all sleep at night knowing a mom and 8 year old and our dog are going to be on the streets April 1st 2024