Affordable housing: When coordinated efforts pay off

Governments, city authorities and community groups are joining forces to create more affordable housing across the country.

Public Services and Procurement Canada (PSPC) has contributed to a potential solution by transferring an apartment complex, Aspen Apartments, in Yellowknife, Northwest Territories, to Housing Northwest Territories (Housing NWT). The transaction is part of the nationwide Federal Lands Initiative (FLI), a program led by the Canada Mortgage and Housing Corporation (CMHC) that turns surplus federal lands and buildings available for development into affordable housing units and communities.

In the case of Aspen Apartments, the 36-unit property was formerly used to accommodate employees of the federal public service. In 2018, following careful analysis and consultation with relevant stakeholders, including other federal departments, provinces and territories, and Indigenous groups, the property was declared surplus and became available for transfer or sale.

Once the building was declared surplus, PSPC collaborated with CMHC and Housing NWT with the idea of using the property for the FLI.

Kevin Pidhirniak, a real estate advisor with Real Estate Services in PSPC’s Western Region, says the project had special meaning for him. “While I have a lot of experience dealing with disposal projects that involve unique characteristics, I must say this project felt more rewarding, seeing the immediate benefit to the community,” he explains.

The details of a disposal

Like most federal property disposal projects, finding a new owner for Aspen Apartments involved inviting priority groups, such as other levels of government, federal agencies and Indigenous groups, to acquire the building. This process allowed PSPC to determine if there was an interest in the property, identify who was in a position to take steps to acquire it, and finalize the transfer of ownership. PSPC formally offered the property to priority groups in 2019, which is when CMHC raised its hand. This was the first step on the road to redeveloping the building as an affordable housing complex, though there was significant work ahead.

This type of project includes a long list of activities, such as appraisals, assessments, consultations with Indigenous groups, and preparation of a notice of change of ownership. In addition, there are a range of documents to be signed, such as the sale-purchase agreement between the buyer and seller and the delivery of vacant possession of property, which is an agreement that ensures the property is transferred to the new owner without any fixtures and furnishings that need to be removed.

PSPC’s role was to oversee the coordination of the project through its many stages and requirements. Ensuring that all parties fulfilled their obligations, given the multifaceted nature of this transaction, was a challenge PSPC successfully met, notes Pidhirniak, who worked directly with CMHC and Housing NWT to proceed with the sale and successfully close the transaction and transfer ownership to Housing NWT.

Helping those in need

Aspen Apartments, which includes 6 two-bedroom units and 30 one-bedroom units, is now owned and operated by Housing NWT. It will be converted into affordable housing that will provide shelter to Indigenous Peoples, families in need and those experiencing or at risk of experiencing homelessness.

“This project will assist some of those most in need of shelter in the Yellowknife area. We work on many disposal projects, but this one in particular has special meaning.”

This is not the first time Aspen Apartments has supported the community of Yellowknife. During the COVID-19 pandemic, at the request of Housing NWT, the Government of Canada granted access to the building for emergency housing and isolation purposes.

This project and PSPC’s partnership with CMHC and participation in the FLI support the goal of making life more affordable or manageable for those in need of temporary housing. It is also another step in reducing the federal government’s real property footprint.

PSPC is an active contributor to the FLI, and the department will continue looking at how to best optimize its real property portfolio, including identifying buildings that can be repurposed as housing in support of the program.

Visit PSPC’s Optimizing our real property portfolio web page to learn more about the property disposal process. For more stories about PSPC people, projects and initiatives, add Our stories to your favourites.