St. Thomas is moving ahead with another affordable housing project, with the city donating $2.7 million and a portion of land for a new 40-unit development beside the YWCA St. Thomas-Elgin.

The three-storey building, planned for 53 Hiawatha St., is intended to support seniors and young adults, while also including a dedicated Indigenous gathering and programming space.

Mayor Joe Preston says the project reflects an approach that has helped the city secure funding for a growing number of affordable housing developments.