St. Thomas unveils purpose-built townhomes with finished rental units to ease housing crisis

The groundbreaking for a new townhouse development in St. Thomas was held Wednesday.

St. Thomas has unveiled another new approach to affordable housing.

Builders are being offered breaks on development charges to construct brand new townhomes with secondary units already finished in the basement.

“The key is it’s a new unit being built from scratch. It’s being built to code, so it’s safe, it’s fireproofed properly, and it’s properly constructed, and it is brand new,” stated Russell Higgins of MacPherson Builders. His firm has partnered with Collier Homes on the project.

The first of six townhomes built by the firm will soon be under construction on Shaw Valley Drive. Plans are in place for an additional 29 homes.

The concept is part of a city council initiative to create affordable units in new areas of The Railway City.

St. Thomas will rebate $12,500 back to developers for each unit built.

The homes will feature 1,800 square feet of living space upstairs, and a self-contained 600 square foot unit in the basement.

While it is anticipated that family members will occupy some units, Higgins predicts the majority will provide rental income to buyers.

“The chartered banks account for three-quarters of the rental income towards your income test and qualifying for a mortgage. So, that’s a huge advantage for someone trying to get into the market and buy a house.”

Officials expect basement units to rent for approximately $1,200/month.

“That’s the that’s the big difference for us”, said St. Thomas Mayor Joe Preston. “To be able to use the community improvement plan funding that we usually use to outfit a brand-new apartment above a downtown store or something. But to take it for a new building, an affordable home for a new home buyer, what a great concept!”