Three prominent real estate developers in Montreal have announced a ambitious project to construct 2,500 apartments for the homeless, with an estimated cost of $300 million on city-owned land.
Vincent Chiara, the president of Mach Group Real Estate, expressed his initial skepticism about the proposal, emphasizing that a mere 50 units would not make a significant impact. However, the developers clarified that their motivation is solely altruistic, with Quebec expected to cover the mortgage expenses over an extended period.
Chiara revealed that the plan involves constructing spacious 1,200 square foot units capable of accommodating four individuals each. The construction cost is estimated at $400 per square foot, with the companies offering their services pro bono.
The developers intend to transfer ownership of the buildings to a government agency after construction, emphasizing that they will not retain ownership. The land will be transferred to the Société d’Habitation du Québec, acting as the borrower for a $300 million loan from Desjardins, which will then be distributed to the builders.
Montreal Mayor Saroya Martinez Ferrada highlighted the urgency of developing the land promptly and the potential for collaboration with non-profit organizations, landlords, and the private sector to finance the project.
James Hughes, President and CEO of the Old Brewery Mission, praised the initiative as a much-needed addition to combating homelessness, noting the importance of diverse partnerships in addressing the issue.
Urban planning professor Richard Shearmur from McGill University endorsed the project as a positive step forward, although he emphasized the necessity for comprehensive support beyond housing for individuals experiencing homelessness.
