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Victoria grants $2.5 million for hospitality-worker housing project

The project will see a 19-unit apartment complex on Quadra Street replaced by a 40-unit building offering affordable housing for hospitality workers
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Apartment building at 2558 Quadra St. would be replaced by a five-storey mixed-use residential apartment. VIA GOOGLE STREET VIEW

A 40-unit building designed as affordable workforce housing for the hospitality sector will get a $2.5-million injection of funding from the City of Victoria, after council unanimously approved a grant from the city’s housing reserve fund.

The money will be used by the Greater Victoria Housing Society as it applies for Canada Mortgage and Housing Corporation funding for the $18-million project.

Council was unanimous in support of the project, citing the lack of affordable housing in the city, especially for those working in the tourism and hospitality industry.

However, a number of councillors noted they wished the project was larger, so it could provide more housing.

“I think that this should be 140 units, because $2.5 million could close quite a large equity gap,” said Coun. Jeremy Caradonna. “For the next project related to hotel and hospitality workers, I would like to see probably some more scale.”

Coun. Dave Thompson said he would encourage both city staff and those who work to provide affordable housing to think bigger and more boldly.

“Our need is an order of magnitude bigger than what we’re getting,” he said.

The project, a partnership between the Greater Victoria Housing Society and Destination Greater Victoria, will see the replacement of a 19-unit apartment complex at 2558 Quadra St. with a 40-unit pilot project for affordable workforce housing.

The new building, which was granted a rezoning permit in 2020, is expected to be a five-storey mixed-use residential apartment owned by the housing society.

Since 2021 the city has received $2.8 million in fees from online accommodation platforms like Airbnb and other short-term rental sites. That same year, the city and Destination Greater Victoria agreed those funds would be put into the housing reserve fund to help create affordable workforce housing.

Paul Nursey, chief executive of Destination Greater Victoria, said the approval shows a commitment to the well-being of those who make Greater Victoria a sought-after destination.

“We are proud to be part of this collaborative effort that will not only provide much-needed housing but also enhance the overall quality of life for our dedicated hotel and hospitality workers,” he said.

Virginia Holden, executive director of the Greater Victoria Housing Society, called the grant approval a win-win.

“The funding allows us to close a funding gap and proceed with building affordable housing on an existing site, and allows us to support the hospitality industry, which is so essential to our local economy,” she said.

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