A unique affordable housing partnership with a North End church is receiving nearly $2 million in federal funding — and interest from across the country.

Hughson Street Baptist is building a new church at 500 James St. N. that will be topped with 45 affordable apartments via a partnership with Christian supportive housing provider Indwell.

The federal Liberals announced $1.96 million for the project Tuesday from the National Housing Strategy co-investment fund during a visit to the steel-and-concrete bones of the new building climbing four storeys above the corner of James and Picton streets.

But the project — which will see the church lease its top floors to Indwell for two dollars a year — is also attracting attention from faith groups across Canada, said pastor Dwayne Cline.

"There have been people calling us from all over southern Ontario, churches have flown in from Winnipeg and Montreal, to see how this could be done and replicated across our land," he said Tuesday.

Executive director Jeff Neven said Indwell has shared its experiences developing the partnership in a book, "Making Housing Affordable," distributed to faith groups across Canada. "We've had literally several hundred groups, faith communities, individuals who have reached out for more information," he said.

Cline said the project grew out of conversations with church members and financially struggling residents about the challenges of living in a gentrifying North End. "We were sitting with neighbours, listening to them talk about their displacement, not knowing where to go, where to live," he said.

The project is giving newlyweds Scott Wooldridge and Kendra Campbell hope they can stay in the neighbourhood.

"I've lived here since I was two years old. But we won't be able to handle the (market) rates here, based on what I see today," said Campbell, who checked out the announcement Tuesday.

Average rent in the city at the end of 2018 was approaching $1,100, with some reports estimating the average tenant needs to make at least $18 an hour just to cover the cost of shelter.

Right now, Campbell relies on ODSP payments while Wooldridge works as a minimum wage personal support worker.

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Indwell expects the James Street units to be offered for rent at around $550 per month, said Neven. "We want to help marginalized residents living in poverty be able to stay in this neighbourhood," he said.

Nine of the apartments will be fully accessible and Indwell will be responsible for maintenance on all affordable units. The agency will also have day staff on site to provide support to tenants with disabilities, special challenges or health needs.

That focus on supportive housing appealed to the federal government, said MP Adam Vaughan, the Liberal parliamentary secretary to the minister of families, children and social development. "We need to make sure we are building homes for everybody," he said.

Increasingly, churches across the country are selling or redeveloping old buildings to offset spiking maintenance costs and falling membership.

But that's not the situation at Hughson Street Baptist, which has a growing membership and will not use lease proceeds from the affordable units as revenue.

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Government grants, donations and ongoing church fundraising have all contributed to the $19 million project. The church should move into its new home early next year, with tenants following in spring.

mvandongen@thespec.com

905-526-3241 | @Mattatthespec