On March 1, with no media fanfare, a new below-market apartment building quietly started accepting tenants.
The 52-unit building at 21 Gorge Rd. E. marks a new beginning for the site, which housed the notorious Capri Motel until its demolition in 2009.
For developer Alanna Holroyd, its successful completion proves rental housing can be achieved with only modest capital grants and no ongoing rental subsidies.
She named the building Loreen Place after her mother, Loreen Vandekerkhove.
B次元官网网址淪he was raised poor and she remembers it quite well,B次元官网网址� says Holroyd, who created the non-profit in 2009.
She secured a $9.8-million loan to construct the building with only $740,000 in grants up front.
B次元官网网址淚n the business world, that is unheard of,B次元官网网址� she says.
Traditionally, developers have needed to raise 50 per cent of the cost to get a loan.
Touring through one of the unrented units, Holroyd proudly points to the wide, white baseboards. B次元官网网址淲e really put thought into if weB次元官网网址檇 want to live here.B次元官网网址�
Her desire for a beyond-the-basics facility has fuelled a good-humoured tug-of-war between Holroyd, the idealist, and her business partner, Kaye Melliship, the pragmatist.
B次元官网网址淲eB次元官网网址檙e going to reduce some of the extras in our next building,B次元官网网址� says Melliship, executive director of the Greater Victoria Housing Society, which manages and co-owns Loreen Place.
B次元官网网址淵ou have to be very realistic about the cost of maintaining the building.B次元官网网址�
B次元官网网址淏ut then it wouldnB次元官网网址檛 be so nice!B次元官网网址� argues Holroyd.
With a grin she adds: B次元官网网址淪ee how we work well together?B次元官网网址�
Holroyd won the argument when it came to including features such a light above the tub (good for shaving, she says) and large garden beds in the interior courtyards.
B次元官网网址淪he even petitioned for in-suite washers and dryers,B次元官网网址� Melliship says with an exasperated smile. On that final point, she put her foot down.
So far, 17 of the 52 units have been rented, and it turns out the rooms with the views arenB次元官网网址檛 the ones in demand.
All the cheapest, courtyard-facing units have been signed for. ItB次元官网网址檚 a clear signal of where the biggest shortage lies in the rental continuum.
To be eligible to rent at Loreen Place, tenantsB次元官网网址� household gross income canB次元官网网址檛 exceed $65,000. It targets low-to-moderate income earners B次元官网网址� a wider mandate than most B次元官网网址渁ffordableB次元官网网址� housing projects.
Rent for two-bedroom apartments ranges from $875 to $1,300, making it not far off the average for Victoria. Throughout the metropolitan area, average rent was pegged at $1,000 in October, 2011, according to the Canadian Mortgage and Housing Corporation.
Over time, however, rents at Loreen Place will drop, as the mortgage is paid off.
B次元官网网址淚t will just get cheaper and cheaper,B次元官网网址� Melliship says.
B次元官网网址淚t sounds like a great project,B次元官网网址� says Tom Durning of the Tenant Resource and Advisory Centre.
B次元官网网址淚 hope other municipalities take note of that.B次元官网网址�
While municipalities often donB次元官网网址檛 have spare land, they can encourage rental housing in other ways, such as through rezoning, he says.
B次元官网网址淭hey can do density bonusing, they can ease parking restrictions. ItB次元官网网址檚 not just a monetary thing,B次元官网网址� he says. B次元官网网址淚n a case like this, youB次元官网网址檙e getting a 52-unit project and all they needed was a little bit of start-up money B次元官网网址� Why canB次元官网网址檛 we do more of them?B次元官网网址�
Holroyd is working on just that.
She has submitted a rezoning application to the City of Victoria to redevelop the Friendly Inn, right next door.
B次元官网网址淲e still have to ask for construction financing, but itB次元官网网址檚 nice to have something where they can kick the tires and see that the building actually was produced with only $740,000 in capital.B次元官网网址�
rholmen@vicnews.com
Did you know?
B次元官网网址� As of October 2011, the vacancy rate in the city of Victoria was 1.8 per cent, compared to a regional rate of 2.1. .
