Fredericton targets new modular homes for latest housing grants

CBC
·3 min read
Fredericton is among several Canadian cities looking at modular homes, similar to what is pictured above, as part of the solution to the housing crisis. (City of London - image credit)
Fredericton is among several Canadian cities looking at modular homes, similar to what is pictured above, as part of the solution to the housing crisis. (City of London - image credit)

The City of Fredericton is handing out money to developers who choose to create new residential units by building prefabricated modular homes.

Both for-profit and non-profit developers will be eligible for up to $20,000 per unit if they qualify under the city's new manufactured housing grant, which was formally adopted at Monday night's council meeting.

The grant is geared toward encouraging developers to create modular homes, given they might be more expensive, but can be built up to 40 per cent faster than other construction methods, said Janet Flowers, the city's affordable housing development co-ordinator.

Flowers said the grant would also encourage a method of construction that would result in fewer greenhouse gases being emitted compared to other methods and would capitalize on local expertise.

"We have multiple manufactured housing providers in the province, so we have access to some excellent firms to do this kind of work," she said in an interview after the meeting.

Fredericton is looking to encourage developers create new residential units by building modular homes, said Janet Flowers, Fredericton's affordable housing development co-ordinator.
Fredericton is looking to encourage developers create new residential units by building modular homes, said Janet Flowers, Fredericton's affordable housing development co-ordinator.

Fredericton is looking to encourage developers create new residential units by building modular homes, says Janet Flowers, the city's affordable housing development co-ordinator. (Aidan Cox/CBC)

The grant is the fifth to be announced by the city this spring, all aimed at encouraging the rapid development of new housing units in Fredericton.

The grants are being paid out by the city from the $10-million Housing Accelerator Fund, provided to Fredericton under a $4.4 billion program to infuse Canadian municipalities with cash to help ease the national housing crisis.

One of the city's earlier announced grants aims at off-setting the capital construction costs for new rental units for both for-profit and non-profit developers.

Flowers said a non-profit developer could be eligible for up to $40,000 under that program, and if they also successfully apply to the modular homes grant, could have another $20,000 of their costs subsidized by the city.

Another recently announced grant would help non-profit organizations build homes for purchase by people with moderate incomes.

Another grant has been made available to homeowners interested in creating an accessory dwelling unit that they'd be willing to rent out.

Fredericton Mayor Kate Rogers said city staff are looking at ways to make the work of its Planning Advisory Committee members less political.
Fredericton Mayor Kate Rogers said city staff are looking at ways to make the work of its Planning Advisory Committee members less political.

Fredericton Mayor Kate Rogers says the construction of modular homes could play a role in the city's strategy to encouraging the creation of more residential units. (Aidan Cox/CBC)

Mayor Kate Rogers said she thinks Fredericton is poised to see modular homes play a role in easing the city's housing constraints.

"We do hear some developers will say ... there's a challenge in the pipeline of getting tradespeople, also getting materials, and so with modular housing you you can work through all of that quickly by using a modular housing development," Rogers said.

"And we are fortunate that we have some really great businesses working in that within the province, so we see that as a real opportunity ... and we want to be taking advantage of that."

Flowers said about $5.5 million of the Housing Accelerator Fund will be spent on these grants, with the goal they'll directly result in the creation of 287 housing units before the end of 2026.

She said the city's last grant under the Housing Accelerator Fund will be announced next month and will be focused on providing direct help to residents struggling to scrape together a down payment on a home.

The rest of the city's Housing Accelerator Fund money is supposed to be spent on initiatives such as changing zoning bylaws and making city-owned land available for development.

Those efforts, combined with the units created by the grants, are supposed to result in the creation of 2,411 new housing units before the end of 2026, Flowers said.