The Yukon and federal governments announced a new $12.65-million housing project for low-income seniors in Whitehorse on Wednesday afternoon.

The 34-unit building will replace the aging complex currently standing at 207 Alexander St. Those premises had provided seniors' housing for 50 years up until last summer, when residents were moved to a new building.

"Finding suitable accommodation is a concern for many seniors, and I'm delighted that these new housing units will help meet that need here in Whitehorse,” Yukon MP Ryan Leef told a sunsplashed outdoors news conference held outside the old building.

"In addition to giving residents the stability, comfort, safety and familiar surroundings, these housing units should help ease concerns over finances.”

Leef said both he and Premier Darrell Pasloski realized early on in their "respective tenures that housing was an absolute priority.

"I think this highlights that we've been fully aware of the challenges Whitehorse faces and between our two governments and the co-operative efforts we're making, we're facing those challenges head-on, and we're trying to deliver immediate results in that vein.”

Pasloski noted that seniors represent one of the fastest-growing demographics in the Yukon.

"We know that housing requirements change as we get older, as seniors adapt to different levels of mobility, health and in fact, income,” the premier said.

"As well, caring for a house can become a burden to those who aren't physically or financially able to do so. Sometimes, it can also become isolating.

"Through Yukon Housing (Corp.), eligible seniors live independently and affordably in units designed specifically for their age group,” Pasloski added.

"For many, this fills the gap before supportive living is required,” he said.

Scott Kent, the minister responsible for the housing corporation, said there are 50 seniors on the wait list for housing and 50 more individuals on the list for social housing.

A tender for the demolition of the current Alexander Street building will be available shortly, with tenders for design out in the fall and for construction soon after that.

Kent said the hope is to have residents move in during the summer of 2014.

Ottawa has contributed $2.55 million to the project through its Investment in Affordable Housing program, which runs from 2011 to 2014.

The Yukon government is contributing $7.4 million, while $2.7 million will be funded through the housing corporation's Seniors' Housing Management Fund.

Kent noted the downtown location is key, as many amenities are easily accessible.

"Seniors often request downtown as their preferred location,” he said.

"Obviously, there's an active seniors community in the downtown core of Whitehorse with access to shopping, health care facilities, bus routes, entertainment, parks, the waterfront and all the great work being done along it as well.”

None of the funding for this project came from the Northern Housing Trust Fund, which was provided by the Canadian government for housing projects in 2006.

The Yukon received $50 million of the total $300-million fund.

The Yukon government retained $17.5 million of that to spend on affordable housing, while $32.5 million was dispersed among the First Nations to address housing needs.

Thirteen million dollars remain in the YTG fund and has been a source of contention among housing advocates since the fund's size became publicly known in 2011.

Kent said the fund was not available for this project because it can't be used in conjunction with other contributions.

In response to media questions regarding the removal of hazardous material, such as asbestos during demolition, Kent said the appropriate mitigation will be included in the demolition contract.

The building underwent substantial renovations in the early 1980s. Those included essentially surrounding the structure with snug industrial plastic to make it more energy-efficient.

Kate White, the NDP critic for the housing corporation, said this morning that while the federal support for the project is good news, "the housing crisis is indeed the Yukon Party government's greatest failure.”

"They've been sitting with $13 million of federal affordable housing money for a number of years now and there's been no movement to use it.

"One-off project announcements aren't going to solve the housing crisis.

"What I'd really like to see is vision on their part,” White said.

"They haven't come up with a housing strategy that has a clear plan and has targets and timelines, and I think that's what we really need.”

Claire Derome, the chair of the housing corporation's board of directors, said at Wednesday's announcement that housing for seniors is not the only need in terms of social housing units.

"You will hear more from the corporation later this year,” she said.

Corporation staff, the board and Kent are working on a "renewed plan to address social housing needs in the Yukon and other needs for housing,” Derome added.

Pasloski paid tribute to the territory's seniors in a statement released Wednesday, noting their population group is projected to almost double by 2021.

"The Yukon government is moving to address the housing needs of seniors and make it easier for them to live at home as their health and mobility levels change.

"Our communities are enhanced by the presence, knowledge and experience of seniors. By investing in housing that is appropriate for them, we are helping to retain that richness in our communities and we are delivering on the commitments we've made as part of our housing strategy.”