'Game-changer' housing project in Sydney hits a snag

Plans to create 430 rental units at the site of Tartan Downs, a former harness racing track in Sydney, N.S., are stalled due to a lack of funding, says its promoters.

Cape Breton University (CBU) and the non-profit group Urban Neighborhood Development Association says the project would address a housing shortage in the community.

It has so far received $100,000 from Canadian Mortgage and Housing Corporation (CMHC). But backers say work can't go forward without more money from the Crown corporation responsible for administering Ottawa's 10-year, $72-billion National Housing Strategy.

CBU vice-president of operations and finance, Gordon MacInnis, said rural and suburban projects will require more investment.

"I think the project is nearing the point where we're either going to have a green light to go or we're going to suggest that the project is not feasible," MacInnis said in an interview with Cape Breton's Information Morning.

"It's not clear to us that the project will be viable without some level of participation at the non-repayable level from CMHC above where their traditional norms would be."

Kent MacIntyre, president of Urban Neighborhood Development Association, agrees.

"This [project] is a game-changer for [Cape Breton Regional Municipality]," MacIntyre said. "And we're very concerned.... We're really pushing as hard as we can to try and influence CMHC decision makers to take a step back and have another look at this. But at this point in time, we've not had that success. They've put some money on the table but it's certainly not enough."

CBRM Mayor Amanda McDougall said she believes one of reasons why CMHC doesn't want to fund the project is because it requires infrastructure investment.

"There's lots of public infrastructure in and around the Ashby area, but Tartan Downs itself will require streets, underground infrastructure — sewer, water hookups — all of that," said McDougall. "That is not included in CMHC funding and that is very much needed."

McDougall said CMHC isn't up to date on the high demand for housing in Sydney.

"The most concerning is the amount of calls that I get from people saying I am days away from being homeless," McDougall said. "I'm on a housing list. It's been months and months and months. I've got children. We have nowhere to go."

CMHC says it supports many rural projects across Canada, including in the Atlantic region, but cannot release information about specific applications or potential projects due to its terms of confidentiality.

However, the Crown corporation said it will continue to work with the Urban Neighborhood Development Association and its provincial and municipal partners to seek housing solutions for the community.