'Why not us?': United Way buys building for affordable housing project

It may not look like much now, but when the United Way is done with the second floor of a building in downtown Listowel, there will be new affordable rental units for the community's less fortunate.

"Right now, the plan is for a 10-unit retrofit, space that has been basically underutilized or not used for a number of decades. It's really nice infill development. It's a great size for our first project," said United Housing Director, Kathy Vassilakos.

Frustrated with the state of affordable housing development in the region, last November, the United Way Perth-Huron decided it would create United Housing, and build its own. Staff got to work and bought the building housing the Clothing Loft and former Diana Sweet's Restaurant.

The storefronts will stay, but the second floor that's been used for storage or sat vacant for decades, will be United Housing's first foray into the world of housing development.

"It really sort of was like, well, if there's no one available, why not us?" said Vassilakos.

She said the proposed 10-unit retrofit will cost $2.5 million. One third of the units will be deeply affordable, one third will be below market, and the final third will be market price apartments.

"I always say that we're a not for profit. That doesn't mean we can lose money, because we want to be able to reinvest into building more housing for our community. But it's also, I think philosophically, a really good idea not to create silos amongst people. So, that mixed income model of rental housing is really important to us," she added.

United Way Perth-Huron plans to turn the second floor of two Listowel storefronts into a 10-unit affordable housing project. Oct. 17, 2024. (Scott Miller/CTV News London)

The Huron-Perth United Way isn't the first United Way in Canada to delve into the world of real estate and developing its own affordable housing but is certainly one of the smallest to do so.

"We recently went to the United Way National conference in Ottawa. It was really interesting to see Ryan Erb, our executive director, in a housing panel, and we were on stage with organizations from Montreal and Halifax. So, you know, Huron-Perth United Way is doing something really unique and really interesting," said Vassilakos.

She said they plan to pay for the affordable housing retrofit in Listowel with a combination of government grants, community fundraising and community bonds, which are essentially fixed-rate return investments for community minded residents or businesses.

Vassilakos said with over 300 unhoused residents in Huron-Perth, and more than 900 affordable housing units needed to meet demand in Perth County alone over the next decade, this will not and frankly, cannot be the only project.

"Money is the only sort of barrier to us. By 2030, we are easily planning on having 100 units in Perth and Huron Counties. We're always open to other opportunities," she said. 

United Way Perth-Huron plans to turn the second floor of two Listowel storefronts into a 10-unit affordable housing project. Oct. 17, 2024. (Scott Miller/CTV News London)