The provincial government had agreed to fund an Elk Valley Family Society project to construct a new apartment building on the former fire hall site at 692 3 Ave.
The government announced it would be funding the project on Aug. 13, as part of a $19 billion province-wide housing investment, although the cost for this particular local project has yet to be determined.
It was one of two regional projects the government publicly endorsed this week, the other being an apartment building located at 91 Baker St. in Nelson, which will be run by the Railtown Housing Society.
The Fernie building will have 44 units, spread across five storeys, with studio and one and two bedroom apartments. Preliminary plans suggest there will be space for businesses on the main floor as well.
It will be geared primarily towards middle class residents. Occupants will only have to spend up to 30 per cent of their income on rent and roughly a quarter of the units will have rent at least 20 per cent below market rate.
The decision for funding follows a land assessment that Elk Valley Family Society completed in the spring to determine whether the site was eligible for the project. The land is owned by the city and will be leased to the society over the long-term.
Mayor Nic Milligan said he remains hopeful that this will give locals more options amidst the the current housing shortage.
"People coming to town and working in the service industry are struggling to find good accommodation. Professionals who come to town for teaching and nursing are having difficulty. Hopefully this fills a gap in the market and provides good quality housing for folks in those demographics," he said.
"It allows people to move out of their current accommodation, and thereby, free up that accommodation for others who are coming to town, so it potentially creates some movement in the market, which I think is a healthy thing," he added.