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New building on Dunlop West will mix affordable, luxury units

Almost half of the 93 units will be affordable housing, which has been in short supply in Barrie; Occupancy expected in October

New luxury apartments are being built side-by-side with affordable housing in central Barrie.

Located at 233-245 Dunlop St. W., east of Anne Street, eight storeys and 93 units are being constructed by MDM Developments, a Gravenhurst-based company.

And while a sign outside the building, which is still under construction, says ‘Brand New Luxury Apartments’, almost half of the units will be affordable housing, an ongoing shortage in this city. Occupancy is expected Oct. 1, 2022.

“The city approved a Community Improvement Program (CIP) funding for the project in 2020, for 46 out of the 93 units being defined as affordable,” said Michelle Banfield, Barrie’s director of development services.

In terms of affordability and how that’s defined for the CIP, Banfield said MDM is required to submit reports verifying the units are being leased at an affordable rate.

In this case, the annual housing costs can’t exceed 30 per cent of the annual household income for the lowest 40th income percentile, Banfield said, or $50,000 annually, so this rent is $15,000 per year or $1,250 per month. The rental levels will be maintained for a minimum of 20 years.

MDM’s website says two-bedroom apartments, assumed to be market price, are $2,395 a month plus parking.

An MDM official told BarrieToday that it’s not unusual for the company to build luxury apartments alongside affordable housing, but would not elaborate where else this has happened.

In terms of real dollars, MDM is receiving just more than $900,000 in cash incentives from the CIP to build and operate these affordable units.

It is not the only funding, however, helping MDM construct this affordable housing. On May 28, 2021, Minister Responsible for Canada Mortgage and Housing Corporation (CMHC) Ahmed Hussen announced an almost $26-million insured loan to MDM Developments.

This money will go along with funding through CMHC's Rental Construction Financing initiative (RCFi), a National Housing Strategy program that supports rental housing construction projects to encourage a stable supply of rental housing for middle-class families in expensive housing markets.

The housing agreement with the City of Barrie, requiring the project to maintain at least 46 units at rents no greater than 30 per cent of gross annual household income and that rent levels will be maintained for a minimum of 20 years, is also a condition of MDM Developments getting the $26-million insured loan.

All applicants to the RCFi must demonstrate that their project meets certain requirements for not only affordability, but energy efficiency and accessibility.