More affordable housing is slated to be built in Greater Sudbury near the downtown Pearl Street water tower.

During a virtual meeting Tuesday night— held by teleconference due to COVID-19 concerns— city council voted to allocate $5.7 million from the province's Home for Good Phase 2 program to the Peace Tower complex project.

The Ministry of Municipal Affairs and Housing must still review the proposal and environmental studies and engineering assessments of the property still need to be done.

The group behind the Peace Tower complex, which includes developer Dario Zulich and the "I Believe Network" president Eileen Mahood, will be responsible for securing the financing for the entire construction cost of the project until it's completed and people can start moving in.

"At that point this [provincial] funding flows," Steve Jacques, city general manager of community development told council.

Zulich bought the former municipal water tower several years ago and is donating the land beneath to the "I Believe Network", which will operate the social housing facility.

Group co-chair Michael Cullen told city councillors that a number of organizations have agreed to support the project, but none have committed contractually.

"I'm confident that there's going to be some really good solid collaborators that build this thing, not just a stand-alone entity," Cullen said.

Sudbury developer Dario Zulich, and co-chair of the steering committee for the Peace Tower affordable housing initiative, Michael Cullen. (Markus Schwabe/CBC)

You committed to work with the community to provide a quality project that will enhance the neighbourhood, and not deter from it. We will hold you to it. - Joscelyne Landry-Altmann, Sudbury city councillor Ward 12

The building would be in councillor Joscelyne Landry-Altmann's Ward 12. She had a number of questions and comments for Cullen.

"We all agree that the water tower will stay," she said, while pushing the owners to paint the rusty 65-year-old landmark.

"You committed to work with the community to provide a quality project that will enhance the neighbourhood, and not deter from it. We will hold you to it."

Construction of the housing complex is expected to take 18-24 months, with a few extra months to get through the planning and provincial approval process before a shovel can hit the ground.