Towards the construction of 25,000 affordable housing units

There is strength in numbers, believe the leaders of four companies established in different locations in Quebec, which seek to innovate to accelerate the construction of affordable housing.

Their goal is to build 25,000 over the next 10 years, through the creation of a non-profit, non-market organization and the formation of links with partners from different sectors. The launch of the first four projects, totaling 1,250 housing units, should take place in 2025.

“To really meet the need for affordable housing, the Quebec government should provide extraordinary sums, but it does not have the means,” indicates Dominic Rodier, partner at Biophilia, who came to this conclusion with his partner Vincent Lainesse, after coordinating two affordable projects in Saint-Hyacinthe and Beauharnois, with the support of the two municipalities and the community sector.

Wanting to move away from existing models, the two partners considered creating a real estate fund, then sought to ally themselves with other developers to have a greater impact. They contacted the managers of three other companies, Cloriacité, Immostar and Maître Carré, with whom they wanted to work. They all agreed to take on the challenge.

“We continue to work for our respective companies, but due to the market and the housing crisis, we are all convinced that we are capable of doing more,” adds Maxime Camerlain, co-president of Cloriacité. But to do more and to bring velocity, it takes regrouping. We quickly knew that our values ​​are aligned and that we all want to deliver the same thing. This is very encouraging and interesting. »

“The innovative side of the initiative really appealed to us and it is the good understanding between the four companies that will ensure its success,” continues Kevin Lachance, partner at Immostar.

For entrepreneurs, this is a legacy of which they are very proud. “What attracts everyone is the fact of leaving a large quantity of buildings in an off-market vehicle,” notes Dominic Rodier, of Biophilia. Not owning it is not important, because to say to yourself: in the end this is what we are going to have delivered, it’s exciting. »

Make an impact

The formula on which the group is working arouses great interest in the various circles concerned, notes Mr. Rodier. Lawyers and architects work pro bono to advance the cause, which leads to the creation of the Impact Consortium. This will be based on collaboration between the four private promoters, financial institutions and investment funds, the provincial government, municipalities and communities, in order to facilitate the integration of off-market projects in all regions of Quebec.

The fund, which will own the buildings, manage project capital and commit to housing affordability, sustainability and reinvestment criteria, and will be managed by a non-profit organization.

Lawyer Jean-François Hudon, partner and director of the Montreal office of the Cain Lamarre firm, gives his time to ensure that the structure is legally solid and that all the rules are understood. “That four companies came together to make a difference for Quebec immediately resonated with us,” he reveals. With the members of my team, across Quebec, we are working to make this work.

To get there, everyone will have to make compromises, starting with real estate developers, who will be paid for their services, like all professionals, and will give up their performance bonuses, the increased value of land and the increase in the value of land.

“We want to set an example, because we ask for a compromise from each stakeholder so that the recipe works,” indicates Kevin Lachance, of Immostar. If everyone tries to keep the traditional model, the equation at the end is going to give exactly the same result. »

Developers, who will respect the parameters that they themselves have established while having a certain flexibility, want to build accessible rental housing, less expensive than the current price, which is between the very expensive and the ultra-affordable, and which will become more and more affordable over the years thanks to modest rent increases.

“The international models that work are those that result from support by the industry, which has imposed practices leading to the creation of affordable and sustainable housing,” explains Dominic Rodier, of Biophilia. We decided to do the same to have a positive impact. »