Another Waterloo Region affordable housing project delayed as costs rise

CTV’s Spencer Turcotte explains why an affordable housing project in Waterloo Region is being postponed.

Another major affordable housing redevelopment in Waterloo Region is being delayed, as rising construction costs and financial uncertainty force regional councillors to once again put plans on hold, even as the waitlist for affordable housing reaches high levels.

Regional council voted to postpone the redevelopment of 15-105 Mooregate Crescent in Kitchener, a project expected to cost $298.7 million and deliver 378 units.

Regional staff said the recommendation came after reviewing multiple development scenarios and determining the project is not financially viable under current market conditions.

“Staff arrived at the difficult recommendation that you have in front of you, and that is we continue to postpone the redevelopment of Mooregate,” said Ryan Pettipierre, the region’s director of housing services.

Pettipierre said none of the potential development options could move forward without additional funding.

“None of those scenarios in the current market environment would be feasible without a significant capital contribution from the region to incentivize it moving forward,” he said.

The recommendation ultimately passed unanimously, but some councillors said the decision was disappointing given the growing demand for affordable housing.

“It speaks to our priorities, as a community, when we can’t find a way to get this to go through,” said regional councillor Matt Rodrigues. “But some other projects have landed on our books that are going ahead without this type of analysis and type of passion.”

Waitlist worries

The delay comes as the number of people waiting for affordable housing in Waterloo Region continues to climb.

“Our latest numbers have us at just about 11,500 on our current centralized waitlist,” Pettipierre said.

Councillor Colleen James said those figures highlight the urgency of the situation.

“It’s hard to hear those numbers,” she said. “I know there’s been people waiting for probably a decade to get into housing.”

The Mooregate redevelopment is part of a broader Waterloo Region Housing revitalization plan involving six properties across the region.

Three of those projects are already under construction or being rented. However, the remaining three, including Mooregate, have now been postponed.

The other delayed projects include 1050-1064 Courtland Ave. and 440-470 Shelley Dr. in Kitchener, as well as 140 Weber St. in Kitchener.

Regional staff said they are now looking for external funding opportunities and are exploring potential partnerships with non-profit organizations or housing co-operatives to help move the projects forward.

“We want to see this succeed in a way that makes sense that also doesn’t hamstring future councils and future staff budgets with significant debt servicing,” said Peter Sweeney, commissioner of community services.

For now, the continued delay means a longer period of uncertainty for residents who were relocated from Mooregate roughly four years ago in anticipation of redevelopment, and for thousands more still waiting for affordable housing across the region.