2023-11-10 09:01:45
More than 1,500 tenants in eastern Montreal will see their rent protected from disproportionate increases thanks to a transaction worth approximately $120 million.
It is a transaction that will have symbolic value as governments increase their announcements to carry out affordable housing projects.
Radio-Canada has learned that an affordable housing NPO, the Mainbourg Real Estate Company, has acquired the Le Domaine La Rousselière real estate complex in eastern Montreal.
The $120 million project includes a $10.4 million renovation program spread over five years.
More than 1,500 people are seeing their housing move out of the speculative environment and have an owner whose sole mission is to manage housing at an affordable cost, rejoices Benoit Dorais, vice-president of the executive committee and head of the housing in the City of Montreal.
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Benoit Dorais, vice-president of the executive committee at the City of Montreal
Photo : Radio-Canada
Already in recent weeks, financial engineering has taken shape with the registration of a $75 million loan by the Caisse d’ économique solidaire Desjardins.
The Chagnon Foundation is also participating in the financial package to the tune of $5 million, as well as a financial company from British Columbia.
Montreal’s participation will be $15.8 million while Quebec injects $20 million.
A project like this is really promising because we know that, if we want to ensure that the City preserves our affordability character, we must build, build, build, but we must also withdraw from the market speculative lot of housing units.
Domaine La Rousselière was also included in the list of buildings in Montreal’s sights.
According to a compilation prepared by Radio-Canada in June, nearly 350 owners have received an official notice from the City of Montreal since last year telling them that their building or land was subject to a right of pre-emption.
A procedure that allows cities like Montreal to obtain a right of first purchase and match a private purchase offer submitted to the owner. A privilege valid for 10 years.
A group of Ontario investors had owned the La Rousselière complex for many years. The property assessment of the site is nearly $110 million.
Rents under $1000
Met at her apartment at Domaine La Rousselière, Francine Fortier is delighted to know that her rent will remain affordable for many years.
Seniors today don’t have much income from pension checks and wouldn’t even be able to afford $1,200, $1,500 a month housing, she said.
She has been renting with her husband for 45 years, and the couple pays $775 per month all inclusive for their four and a half. An exception in Montreal.
As Benoit Dorais points out, we know very well that, when a tenant leaves, the price [du loyer] will be increased and, at that point, we will lose units that are affordable.
An NPO as manager
The buyer, the Mainbourg Real Estate Company, is an NPO that already owns 500 community housing units in eastern Montreal.
For its general director, François Claveau, it took an organization with strong backbones to give investors confidence. […] and we needed subsidies, help from the government.
Quebec announced, in June 2022, a subsidy of $350 million for housing projects which will be carried out by the Fonds de solidarité FTQ and the Mouvement Desjardins. They are committed to making nearly 3,000 affordable and social housing units available over a three-year period.
On Friday, Minister Duranceau and Mayor Plante must make the official announcement of the transaction.
With the collaboration of Sarah Dery
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