The City of St. Thomas is accepting applications for the Affordable Housing Grant Program until May 31, 2026, offering $500,000 in total funding to support the creation of new housing for low-income residents. The grant opportunity is open to non-profit organizations, housing cooperatives, and partnerships between non-profits and private developers, aiming to bolster the community’s supply of affordable and supportive housing.
The program features two funding streams to assist with project costs. The first stream provides up to $25,000 per project for pre-construction expenses, with a maximum of $100,000 available. The second stream offers up to $25,000 per affordable unit or up to $200,000 for on-site support service facilities, covering eligible construction costs up to a total of $400,000. Applications for these funds must be submitted through the City of St. Thomas website by midnight on May 31, 2026.
This initiative arrives as the community faces significant housing pressure. An annual household income of approximately $70,000 is now required to afford the average market rent in the city. Additionally, local data indicates that one in five people in St. Thomas-Elgin live in poverty, and approximately 100 young people are without a home on any given night. As part of a broader strategy to address these needs, Mayor Joe Preston has set a goal to build 2,000 homes by the end of 2026, and the city is working toward a functional end to chronic homelessness by 2027.
The demand for housing is expected to grow as the population of St. Thomas and the surrounding area is projected to reach 130,000 by 2036. This growth is driven in part by major employment opportunities, including the Volkswagen electric vehicle battery plant, which is expected to open in 2027 and employ about 3,000 people. The grant program is part of the city’s Housing Accelerator Fund Action Plan, which has provided the city with federal support to accelerate the development of new homes.
Local efforts to increase housing options are already underway, including projects like Project Tiny Hope, led by the YWCA St. Thomas-Elgin, which aims to build 40 new homes by the summer of 2026 to house 66 residents. Furthermore, Indwell is currently redeveloping the former Balaclava Street Public School to create 78 units of supportive housing.
