Ground has been broken on a new 42-unit development in the community of Saint Andrews.

Compass Housing has been working on the project for the better part of two years.

“We’re so excited to have finally broken ground,” Tressa Bevington, president of Compass Housing, said in a recent interview.

The two-storey building is being constructed at the corner of Mowat Drive and Bar Road.

It will include six one-bedroom units, 31 two-bedroom units, and five three-bedroom units.

Bevington said the project would not have been possible without support from the town, which contributed $500,000 as part of the development agreement.

“There is a housing crisis right now, as everyone is well aware, in the province and to bring a 42-unit to Saint Andrews is just a great feeling to have to provide for the town,” said Bevington.

“To be a small area to be able to put the money where their mouth is toward the housing crisis is just huge.”

The town expects to get its money back through property taxes in about 10 years.

Rents for the units were initially expected to range from $800 to $1,200 per month.

Bevington said they were forced to increase the rents to between $950 and $1,500 due to rising interest rates.

“When we started this project, the prime rate was at 2.7 per cent. Currently, it sits at 7.2 per cent, which has a huge impact financially on our project,” she said.

“We had to go back and look at our numbers so that we could make the project feasible.”

Bevington said $1,500 is for the three-bedroom units, which initially were not part of their plans.

Rental rates will be “secure” with only inflation adjustments for 15 years, according to the town.

“We’re trying to keep it as affordable as possible,” said Bevington about the rental rates.

Compass Housing expects the building will be ready for occupancy by late fall of 2024. Applications are anticipated to open in January.

The new building will be adjacent to the Anchors Landing project which Bevington and her team completed a few years ago. The 36-unit building caters to seniors in the community.