Habitat for Humanity Nova Scotia’s board has decided to scrap a long-planned affordable housing project in Halifax due to its high construction cost.

Plans had called for the $30-million project to contain up to 52 residential units and up to seven backyard suites.

The development site, located in the Spryfield district at Drysdale and River roads, will be sold, said Habitat in a news release. Proceeds will be used to fund other affordable housing projects in Nova Scotia.

Habitat said the development, dubbed Habitat Way, would have left the organization with an unsustainable debt and prevented the pursuit of other projects.

“After analyzing the construction costs of Habitat Way, it became clear that the project is not financially viable for our non-profit organization,” said . Habitat.

Infrastructure expenses and the land’s density rules, which do not allow for for developments larger than duplexes, contributed to the high cost, the group added. CBC reported that the duplexes-only limitation is tied to a 1994 covenant placed on the site by neighbouring land owner Paradigm Investments, which settled a legal dispute with Habitat in 2020.

Donna Williams, Habitat Nova Scotia’s CEO, told CBC that the organization could only cover half of the $30-million cost.

Also, it would have been impossible for Habitat’s partner families to build equity in their homes, said Habitat.

Under Habitat’s program, partner families volunteer 500 hours and pay an affordable, no-down-payment mortgage, which is geared to their income, to purchase homes at fair market value. Habitat does not develop rental housing projects.

Bruce Holland, president of the Spryfield Social Enterprise and Affordable Housing Society, told CBC that his group wants to purchase the property and develop rental apartment buildings.

New provincial legislation allows for Halifax’s chief administrative officer to modify or discharge restrictive covenants.

Pictured: Image of a proposed Habitat for Humanity affordable housing project in Halifax that has been scrapped.

Rendering: Habitat for Humanity Nova Scotia