New program by City of Richmond cuts affordable housing costs by up to $40,000 per unit
Funded by the federal government’s Housing Accelerator Fund (HAF), the City of Richmond is launching a new grant program to help catalyze and lower the cost of affordable housing projects.
The new one-time “Housing Priorities Grant Program” offers up to $40,000 per affordable rental unit in a project to offset development fees typically charged by the municipal government, including various types of permit fees, city development fees, and development cost charges (DCCs).
In order to be eligible for this grant, the project must have conditional approval for a development application and/or received Richmond City Council’s approval of the issuance of a development permit. Furthermore, the applicant must be from a non-profit organization or a cooperative housing owner, and the eligible costs must be incurred by December 14, 2027.
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Alternatively, eligible applicants can also apply for up to $50,000 to cover the cost of the early planning work of new affordable rental housing projects.
The deadline to apply for the grant is March 26, 2025.
It is noted that homebuilders who voluntarily provide affordable housing in their projects can receive funding to offset up to 75% of the municipal government’s DCCs.
“Creating more affordable housing across Richmond is a key priority for Council and the City,” said Richmond Mayor Malcolm Brodie in a statement today.
“The new Housing Priorities Grant Program will help eligible organizations and builders offset costs that might delay the construction of much-needed homes for families, seniors, Indigenous peoples, and others.”
In January 2024, the federal government announced Richmond’s municipal government would receive a total of $36 million from the HAF. The City is now setting aside $10 million specifically for the Housing Priorities Grant Program.
Through the new one-time grants, the municipal government is aiming to support the development of at least 220 new affordable rental homes.
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- Record of nearly 6,300 new homes permitted by City of Surrey in 2024