Winnipeg development faces pushback over affordable units from advocates, neighbours

Advocates say the development uses a metric to assess affordability inconsistent with municipal and provincial policy, resulting in rents most in the neighbourhood can't afford.

Advocates are pushing back on a proposed mixed-use development in West Broadway, saying it uses a metric to assess affordability inconsistent with municipal and provincial policy, resulting in rents most in the neighbourhood can’t afford.

Developer Paragon Design Build is proposing to demolish four houses on the site at 126-140 Sherbrook St. to construct a 102-suite apartment building with commercial spaces at street level. Thirty-eight studio and one-bedroom units would be designated as affordable, with rents up to $1,100 per month.

But the West Broadway Community Organization (WBCO) says that price puts those units out of reach for most people in the neighbourhood.

“At the rents predicted, or estimated, it is likely that about 80 per cent of current West Broadway residents would not be able to afford the rents,” WBCO executive director Kelly Frazer told Global News.

According to the 2021 census, the median income in West Broadway is $40,000 per year. The City of Winnipeg’s housing policy states affordable housing should cost no more than 30 per cent of household income. The province deems “affordable” studio apartments that rent for up to $704 per month, and $967 per month for a one-bedroom.

“The affordable rate, as it would come through in this development, is actually more than the current market rate for a bachelor or one-bedroom in West Broadway,” Frazer said.

At Thursday’s hearing, the WCBO told the committee the development does not meet the city’s definition of affordable housing, and therefore does not qualify for variances it is applying for. Developers can apply for additional units and fewer parking spaces than normally allowed in exchange for designating some units affordable.

Paragon Design Build says the units are considered affordable under the Canada Mortgage and Housing Corporation’s (CMHC) MLI Select program. Brennan Johnson with Landmark Planning and Design says the affordable units still offer savings compared with new units of similar construction (Paragon has hired Landmark for the consultation phase of the project).