Construction cost savings for the Westview housing development on Carey Road could potentially be passed on to tenants in the long term, members of the Capital Regional District hospitals and housing committee heard Wednesday (Sept. 2).
BC Housing, which holds two of the Capital Region Housing Corporation’s (CRHC) mortgages on the Saanich project, reduced the $7.16-million forgivable second mortgage by $700,000, the amount by which the 73-unit rental project came in under budget.
“It’s a very good news story,” said Lisa Helps, Victoria mayor and committee chair.
While the savings do not come directly back to CRHC for reinvestment into future projects, CRD chief administrative officer Robert Lapham said, answering a question from committee member and Colwood Mayor Rob Martin, the building’s tenants will likely benefit.
“We bring the rent profile down on the project, and we’ve got a lesser mortgage, [so] it ultimately impacts the rents we need to charge to recover the loan amount on this building,” Lapham explained.
The committee heard that the same approach would be undertaken on future CRHC projects.