$320 million in new federal financing to build 843 rental homes in Surrey | Daily Hive

Artistic renderings of Rize Alliance's Comma King George (left) and Bosa Properties' Parkway (right) developments in Surrey. (Rize Allaince | Bosa Properties)

Three secured purpose-built rental housing projects in Surrey will be going ahead with the support of the federal government’s low-cost construction financing program.

Through the federal Rental Construction Financing Initiative, the federal government will provide a combined total of $319.5 million in fully repayable loans at low interest rates to three separate developers building the projects.

“We need to boost housing supply, this is why we are making strategic investments, through programs like the Rental Construction Financing Initiative, to build much-needed rental units across the country. All Canadians deserve a safe place to build and live their lives in, and we will ensure this becomes a reality,” said federal Minister of Housing Sean Fraser in a statement.

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The federal government’s construction financing program for rental housing mainly targets the needs of middle-income working households. Eligible projects must also have an affordable housing component, such as setting aside at least 20% of the units with rents 30% below the median total income of an area or falling under another affordable housing program approved by any level of government.

With higher borrowing costs due to interest rates and escalating construction costs for building materials, equipment, and labour, new building development projects are increasingly at risk of becoming financially unviable, with rental housing being particularly vulnerable.

About $147 million of the federal financing will go to Comma Properties, the rental housing division of Rize Alliance Properties, for their 38-storey, mixed-use building at 9656 King George Boulevard, which is situated near SkyTrain King George Station and Surrey Memorial Hospital.

9656 King George Boulevard Surrey Comma King George Rize Alliance Properties

Artistic rendering of Comma King George at 9656 King George Boulevard, Surrey. (Rize Alliance Properties)

Artistic rendering of Comma King George at 9656 King George Boulevard, Surrey, including the retained and repurposed historic Surrey Medical Building. (Rize Alliance Properties)

The Comma King George tower will contain 392 rental homes, and it includes the restoration and preservation of the historic Surrey Medical Building, which will be converted into office and retail uses and connected to the tower with a three-storey, glass-covered atrium. The developer is providing $59.2 million towards the project costs.

Construction on Comma King George is expected to reach completion in early 2025.

From excavation, crane-up to now – our Surrey project is transforming! Comma King George is our first purpose-built rental in Surrey and will bring 392 homes to the neighbourhood. On the lower levels, the project will have 4 storeys of thoughtful commercial space.

📹: @joelschat pic.twitter.com/tgR15LDowq

— Rize Properties (@RizeProperties) October 27, 2023

“King George is our first purpose-built rental project in Surrey, where we know the need for rentals is acute. Rental housing is an integral part of the future of our cities,” said Chad Boorman, the CFO of Rize Alliance Properties.

Another $145 million will go to Bosa Properties’ master-planned Parkway community development at 10420 City Parkway, which is just north of SkyTrain Surrey Central Station. This will go towards supporting the 373 rental homes in the four-tower mixed-use complex. The remaining $27.3 million in project costs will come from the developer’s private financing and the City of Surrey’s in-kind support.

The federal financing program will also provide $28 million to Mosaic Living for their Parker Living mid-rise building at 10590 139th Street in the northeast quadrant of Surrey City Centre. The developer will contribute $2.8 million at this time.

Artistic rendering of 10420 City Parkway, Surrey. (Perkins&Will Architects/Bosa Bluesky Properties)

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