$91 million to build affordable housing complex at Kapyong Barracks site

A new affordable housing project rising at the former site of the Kapyong Barracks received an influx of cash from Ottawa.

A new affordable housing project rising at the former site of the Kapyong Barracks just got a multi-million-dollar cash infusion, promising hundreds of new homes aimed at putting a dent in the country’s housing crisis.

The federal government announced Wednesday it will spend $91 million to help build a First Nations-led apartment complex on Naawi-Oodena, Winnipeg’s developing urban reserve.

Called Endayaan Omaa, which means ‘home is here’ in Anishinaabemowin, the project will create 260 new homes, 109 of which will have affordable rents that are below median market rate for the area.

Sagkeeng First Nation Chief E.J. Fontaine, who is chairperson of Treaty One Development Corporation, said economic growth and social impact must go hand in hand when developing the urban reserve.

“As First Nations, we are leading one of the most significant developments in Manitoba, and with that comes the responsibility to build in a way that strengthens our economy, creates jobs and entrepreneurship opportunities, and improves quality of life,” he said.

“Endayaan Omaa creates much-needed housing while advancing a larger vision of economic reconciliation led by First Nations.”

Construction on the complex, which has been ongoing since the summer, requires a minimum 30 per cent Indigenous workforce, with 20 per cent coming from Treaty One First Nation members.

It is expected to be completed by 2028.

Wednesday’s funding comes after a November 2025 announcement that two parcels of public land at Naawi-Oodena will be managed by the federal Build Canada Homes project, which will accelerate the construction of 320 new homes on the site.

All in, Naawi-Oodena is expected house about 5,000 homes once the project is finished.

“This is an exciting day but it really marks the doors opening for a future with a lot more affordable homes for the people who need them the most,” said Gregor Robertson, Canada’s minister of housing and infrastructure, during a news conference at the site.

The project is led by seven Treaty One Nations as part of its Naawi-Oodena Master Plan, which envisions redeveloping the Kenaston Boulevard site into a multi-billion-dollar urban reserve, complete with commercial and residential space, sports and recreation facilities, a health-care centre and a cultural and education campus.

The first phase of the multi-phase project broke ground in April 2024, with the site’s first business, Oodena Gas and Convenience, opening to the public in June.

The entire endeavor is expected to take a little more than a decade to complete, with funding being secured on a project-by-project basis.

Widening of Kenaston Boulevard ‘critical’: Gillingham

Part of the multi-year plan to develop the urban reserve relies on widening Kenaston Boulevard – a multi-million-dollar endeavor that would require not only the physical widening of the busy thoroughfare, but also extensive sewer overflow work and the refurbishment or replacement of the north and southbound St. James bridges.

The latter would require shutting traffic down on one bridge at a time for two years, taking the other bridge down to one north and southbound lane in the process.

“There’s more traffic that passes those bridges than any other place in Winnipeg, so that would be problematic, obviously. It’s already gridlock now at five o’clock at Route 90,” Mayor Scott Gillingham said at the news conference.

Still, he said Kenaston is an essential trade route and crucial in economic development, be it with the build out of CentrePort Canada or the feds’ defense industrial strategy which aims to capitalize on billions in defense procurement and investment opportunities.

As it stands, the city earmarked $13 million in the most recent municipal budget to begin design work, but much more funding is needed on the estimated $757 million project.

“This project is critical for so many reasons, and I know that our federal and provincial partners understand that, and we’ll continue to work together to try to secure funding as soon as possible and get the project built,” Mayor Gillingham said.

- With files from CTV’s Jeff Keele and Danton Unger