A new affordable housing project in downtown Whitehorse is receiving $420,000 through the territorial Housing Initiatives Fund.

The Lowe Street Affordable-to-Own Housing Development will create 12 modest-sized, energy-efficient, affordable homes, the Yukon government said Tuesday.

The new homes will be located next to Riverside Grocery, which corners on Second Avenue.

The homes will be sold at or below the Whitehorse median sale price for the next 20 years.

Four homes on the ground floor will be wheelchair-accessible and designed with aging-in-place in mind.

They will provide more affordable homeownership options close to transit, greenspace and other amenities downtown.

Soulspace Design Build will construct the homes and employ local builders and contractors for the project. Construction is scheduled to begin this summer and be completed in late 2020.

“The Lowe Street Affordable-to-Own Housing Development will diversify homeownership options and increase the number of energy-efficient and accessible homes in Whitehorse,” said Pauline Frost, the minister responsible for the Yukon Housing Corp.

“Through the Housing Initiatives Fund, we are proud to support projects that create affordable housing options for Yukoners across the territory.”

The fund is designed to support innovative affordable housing projects that will address local needs. The 2019-20 territorial budget included $3.6 million for the fund.

In 2018, it supported new housing projects that will contribute more than 100 new homes across the territory.

The Lowe Street development is the first housing project to benefit from the fund’s 2019 intake.