As I strolled through downtown Nanaimo last week, the contrast couldn’t have been more stark. Tourists wandered along the harbourfront while just blocks away, makeshift shelters lined alleyways, a visible reminder of the housing crisis gripping Vancouver Island’s second-largest city.
That reality is why yesterday’s announcement from Housing Minister Ravi Kahlon has generated such significant attention across the mid-island region. The province has committed $17.2 million toward a new 50-unit supportive housing project in central Nanaimo, with construction expected to begin this fall.
“Communities like Nanaimo have been hit particularly hard by the affordability crisis,” Kahlon said during the press conference at the future site on Terminal Avenue. “This investment represents our government’s commitment to creating housing solutions that work for everyone, especially our most vulnerable neighbours.”
The project, to be operated by Island Crisis Care Society, will provide round-the-clock support services including mental health counselling, addiction recovery programs, and life skills training. What makes this particular development noteworthy is its integrated approach – embedding support services directly within housing infrastructure.
Leonard Krog, Nanaimo’s mayor who has been vocal about the challenges facing his city, called the announcement “a significant step toward addressing a complex social issue that requires multiple solutions.”
According to the latest homeless count conducted last year, Nanaimo has seen a 23% increase in people experiencing homelessness since 2020. The pandemic’s economic fallout, coupled with Vancouver Island’s soaring housing costs, has pushed more residents toward housing insecurity.
I spoke with Violet Hayes, executive director of the Island Crisis Care Society, who explained why this project differs from previous housing initiatives.
“What we’re creating isn’t just shelter – it’s a foundation for stability,” Hayes told me. “When someone has secure housing with supports wrapped around them, we see tremendous improvements in their overall wellbeing, reduced hospital visits, and fewer interactions with emergency services.”
The new facility will prioritize individuals currently in temporary shelter programs and those identified through the coordinated access system as most in need of supportive housing. BC Housing data suggests that for every dollar invested in supportive housing, communities save approximately $2.50 in reduced emergency services costs.
Not everyone shares enthusiasm for the project’s location. During the public consultation phase, some nearby business owners expressed concerns about potential impacts on their operations. James Wilkinson, who runs a coffee shop two blocks from the site, voiced measured skepticism.
“We absolutely need more supportive housing,” Wilkinson acknowledged as we spoke over coffee. “But there’s genuine anxiety among some merchants about whether adequate resources will be provided to ensure the project integrates well with the neighbourhood.”
City councillor Tyler Brown addressed these concerns directly at yesterday’s announcement. “We’ve learned valuable lessons from previous supportive housing projects. This development includes dedicated community liaison staff and enhanced security measures based on community feedback.”
The provincial investment comes as part of the BC Builds program, which aims to create 10,000 homes for middle-income earners, while simultaneously addressing homelessness through targeted supportive housing initiatives. Nanaimo is one of seven communities receiving funding in this round of announcements.
What struck me during conversations with both supporters and skeptics was their shared recognition that the status quo isn’t working. Tent encampments in city parks have strained resources and created tensions, while emergency shelters operate consistently at capacity.
Dr. Sandra Richardson, who researches housing policy at Vancouver Island University, explained why supportive housing represents an evidence-based intervention.
“The housing-first approach, which provides stable housing without preconditions while offering voluntary support services, has consistently shown better outcomes than traditional shelter systems,” Richardson explained. “The challenge has always been scaling these solutions to meet the actual need.”
That scaling challenge
