A new affordable housing project is about to get underway in London’s Old East Village.

Local MPs Peter Fragiskatos and Kate Young were on hand as the federal government announced $4.7 million in funding for Nightingale Place at 1045 Dundas Street.

The project, by the London Affordable Housing Foundation, will provide 41 new apartments for individuals who are at risk of becoming homeless.

Nine of the units will be fully accessible and rent will be set at 78 per cent of the median market rental rates for the area.

According to Dale Boost, who sits on the board of directors for the foundation, London ranks fifth in Canada for the need for affordable housing.

“So many of our citizens here pay much more than 30 per cent for their rent for their housing accommodation. Shelter costs are up in this area, and we have more in this city that really struggle, that really need some help."

The total cost of the project is roughly $8 million.

About 60 per cent of that will be funded by government grants and forgivable loans. The remaining 40 per cent will be mortgaged.

Construction is expected to begin next week and be finished in about a year or so.