City looks at turning small lots into affordable housing

Small city-owned lots will be targeted in a new strategy to create affordable homes, while the city could also soon devote millions of dollars to infrastructure that supports new housing units.

A “small lot strategy” will seek interest to create projects with one to four housing units on vacant properties, says a new report on initiatives linked to Winnipeg’s share of the federal Housing Accelerator Fund.

“This will help to rehabilitate vacant lots and improve health, safety, and neighbourhood revitalization,” writes Lissie Rappaport, manager of the city’s Housing Accelerator Fund office.

The city plans to release an expression of interest to sell 10 to 20 smaller properties for $1 each, primarily to non-profit and/or Indigenous developers.

In an interview, Rappaport said that could produce less traditional housing, including some homes that are at least partly pre-fabricated.

“When we put out the expression of interest, we do want to see some innovation,” she said.

The number of units allowed per lot will be based on city zoning rules, with a goal to create “ground-oriented housing” such as garden suites, secondary suites, duplexes, triplexes, fourplexes, row houses, courtyard housing and low-rise apartments (with four storeys or less).

For small lots that are difficult to develop, such as those that require demolition, the city may offer financial assistance.

City council would need to approve a bylaw change to spend accelerator fund dollars on the new strategy, since its current bylaw requires projects to include a minimum of five housing units.

While the city hopes to secure financial support from HAF, the Winnipeg Foundation and the Manitoba government, municipal housing officials already have the power to start the small lot strategy itself, said Rappaport.

“Additional incentives are needed to really get the housing off the ground… We certainly have a number of smaller lots the city has owned for some time,” she said.

City housing staff have proposed changes on how Winnipeg spends its share of the federal accelerator fund.

If city council approves, the new plan would devote up to $20 million over the next two years to future and existing housing projects approved by the city’s land enhancement office. That funding would aim to ensure construction can start on the projects before the end of next year.

Another $8.3 million would be reallocated from a multi-family sustainable infrastructure grant to pay for infrastructure that supports mixed-income housing projects at 825 Taché Ave. and 1350 Pembina Hwy. That funding would improve sewer service at both sites as well as enhance the Pembina property’s back lane.

An additional $2 million would be diverted from the same grant and help fund a pilot catch basin program. That sewage expansion would be expected to increase capacity to serve up to 3,000 more housing units in the future, though actual construction would depend on market demand.

“Winnipeg has older infrastructure and many of our existing neighbourhoods are on the combined sewer (system) and that presents barriers to development. So, our investment in these areas is unlocking development potential,” said Rappaport.

The multi-family sustainable housing infrastructure grant, through which the city only approved one project, offered funding for local water or sewer infrastructure that supports new housing projects with a minimum of 50 units. The city suspects tight permit deadlines, and possibly the minimum unit number, deterred some applicants.

The sole grant that was approved will provide $1.18 million to help fund sewer and water upgrades for a development slated to add 118 new homes in its first phase at Gull Lake and Markham Road.

Mayor Scott Gillingham said he will likely support all of the staff recommendations.

“If we move ahead and support our city staff on these innovative ideas related to catch basins and sewer districts, it will enable developers to develop in a (higher) density… (Getting) housing getting built at a time where we need (it),” said Gillingham.

Overall, the city is slated to receive $122.4 million from the federal accelerator fund, which began in December 2023. The city must approve building permits for 14,101 housing units by December 2026, including 3,166 directly supported by the fund, to claim its final federal payment.

Winnipeg is on track to meet its required milestones, though tariffs and delays in other housing funding could create future risks, the report notes.

As of November, the city has obtained 66 per cent of the total required permits, the mayor said.

“These statistics… today show that the Housing Accelerator Fund program is working, that the city is getting more units built,” said Gillingham.

joyanne.pursaga@freepress.mb.ca

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