The province is contributing almost $50 million to a Londonderry housing project that will eventually be home to 240 families.

The project is supposed to replace an older 80-unit complex in the community, and will feature one to five-bedroom homes and facilities for community organizations, like daycares.

“This building is not only housing. It will enrich the life for everyone in our neighbourhood,” said MLA Heather Sweet at the groundbreaking ceremony on Wednesday.

The Government of Alberta provided $49.5 million in capital funding for the initiative, while the Capital Region Housing Corporation financed the remaining $20.5 million.

Sweet said the facility would use a mixed-income model that determines rent for each family based on their household income level. Over time, as their income changes, so will the rent.

“We certainly do not want to punish people for working hard and starting to get momentum in their lives. The mixed income model provides greater flexibility in determining the rent that tenants pay,” said Sweet.

“The mixed income mode will also make the facility financially stable. Tenants with higher income, who are able to pay higher rents, can help offset the cost of those who pay less,” she added.

Mayor Don Iveson said the project brings to life the city’s vision to repurpose facilities that are aging or no longer meeting community needs, as it discussed in the 2015 Social Housing Renewal Advisory Group report.

“This is consistent with what I think the federal government has talked about in the national housing strategy—the notion of housing being a human right. It really is more than just a remedy. It is transformational for people,” said Iveson.

“We have so many sites in the city that we would like to partner with housing providers like Capital Regional Housing and others to do this kind of thing.”

It was estimated construction will be done by fall 2021.