The skyline of Summerside, P.E.I., will soon include a seven-storey apartment building, built with the assistance of the National Housing Strategy.

Ottawa is contributing $15.2 million to the project. Of the 70 apartments in the building 51 will have affordable rents — rents that are equal to or less than 21 per cent of the median income in the area.

The building will be at 160 Water St., right at the centre of the downtown, and Mayor Basil Stewart described its potential impact as transformational.

"I think it is probably the largest project in downtown Summerside, but it is certainly going to draw a lot of people and it will change the look of downtown," Stewart said.

Project expected to be complete Oct. 2020

Arsenault Brothers Construction began work on the building last week, starting with preparing to lay the foundation Tuesday morning.

"It feels really good to finally get this announcement out there and to get started," said David Arsenault, property development manager with the company.

Arsenault said there is a need for a building like this in Summerside's downtown.

"There are plenty of small businesses that are successful already, but I think if we bring more people to the downtown and more residents, and more foot traffic, and more pedestrians it will only help those existing small businesses," he said.

Arsenault said the building should be completed by October of next year.

An artist's rendering of what the building at 160 Water St. in downtown Summerside is supposed to look like when finished. (Tom Steepe/CBC)

The money is being provided through the rental construction financing initiative of the National Housing Strategy. The initiative provides low-cost loans to encourage the construction of rental housing. The program was expanded in the 2019 budget.

"It's a great day for downtown Summerside and the people that are looking for affordable housing," said Egmont MP Bobby Morrissey. He said the government is dedicated to making sure Canadians have access to affordable housing.

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