Owen Sound developer pre-leasing Harbour West apartments with no affordable units
The developer had publicly promised 10 percent of the 224 units would be affordable, but now says no such agreement exists.
OWEN SOUND — Pre-leasing has begun for the first four buildings of the Harbour West development in Owen Sound, with none of the 152 units released so far designated as affordable housing.
"For the initial release of rental units, no units are intended to meet any ‘affordable’ criteria," said Jennifer Muller, vice-president of marketing for Kitchener-based Kingsley Management, in a statement Friday.
"Consequently, there are no affordable-unit rents, eligibility criteria, tenant-selection procedures, or affordability durations to report at this time."
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The announcement contradicts public statements made as recently as this summer. When construction began in October 2025, the City of Owen Sound posted on social media that Harbour West was "a 6 building development w/ 224 rental apartments, including 10% affordable housing units."
At the groundbreaking, Mayor Ian Boddy addressed concerns about affordable housing directly, the Owen Sound Sun Times reported.
"So, for the boo birds out there, 10 per cent of the units in here will be affordable, adding to the number that are in here already," Boddy said. "So that’s pretty important and we thank the developers for doing that."
When asked to provide the agreement binding the developer to that mandate, City Manager Tim Simmonds said on October 1 that the commitment was offered by the developer, not required by the city.
"The City does not currently have an agreement with the developer requiring those units to be affordable," Simmonds said.
"Our understanding is that the developer is still working through its financing with CMHC, including any affordability requirements associated with that funding."
Grey County has also confirmed it has no agreement with Harbour West.
On Thursday, Simmonds was asked what steps the city would take to ensure the promised affordable units are delivered. He replied that "the City is not a party to those lending arrangements."
He said the city "shared the developer's stated intention that 10% of the Harbour West units would be affordable" and was sharing the information provided at the time. Boddy did not respond separately to that question.
Boddy has declared a conflict of interest related to the property in the past, because his law practice had previously acted for Hansa Financial, one of Harbour West's partners.
At the October 2025 groundbreaking, he noted that Geoff McMurdo, Kingsley’s chief operating officer, had grown up in his former family home and that the two had later met again at university, the Sun Times reported.
In October 2025, Boddy was asked whether his remarks at the groundbreaking were consistent with council’s Code of Conduct, given his earlier declaration. He replied that he had not taken part in council discussions or votes on the matter and that the groundbreaking was not a council meeting, so he had fulfilled the requirements of the Municipal Conflict of Interest Act.
He did not address the council Code of Conduct, which states members are expected to avoid conflicts of interest, "both apparent and real."
A prospective tenant who receives Ontario Disability Support Program benefits told the Owen Sound Current she had put her name on an affordable-unit list and was invited to leave a deposit cheque for a one-bedroom unit.
On Aug. 17, Harbour West’s leasing office emailed her to say it could not go ahead with her reservation due to "an adjustment to the number of affordable units we are able to reserve and lease at this time."
"I’m very sorry for this change, particularly after you had taken the step of reserving your preferred suite and providing your cheque," the representative wrote.
The woman said leasing staff have been unable to tell her when affordable units might become available and that her current housing situation is untenable.
CMHC told the Current Friday that affordable rents under its MLI Select program are based on 30 percent of median renter income in Owen Sound, which is $12,450 a year.
That means rents for affordable units could be no more than $1,037.50 per month. The one-bedroom floor plan the woman had been assigned is now advertised at $2,020 a month, available in December 2026. Other one-bedroom units are listed from $1,964.
Muller said first occupancies are targeted for early December, subject to municipal approvals, and the full project should be finished in spring 2027.
At the October 2025 groundbreaking, McMurdo told the Sun Times the project was using CMHC-insured financing, "which requires 10 per cent of the units to be offered at rents deemed affordable, based on a CMHC formula."
Harbour West’s statement on Friday said something different. "Harbour West is not currently subject to an agreement with the municipality, a government agency or a lender requiring affordable rental units," Muller wrote.
The company now says it is pursuing a CMHC-insured mortgage under the MLI Select program to cover financing after construction. It did not say whether it has applied.
With files from The Owen Sound Current