Gregor Robertson says creating modular homes for low-income Vancouverites is a creative way to create affordable housing as the city struggles with an “affordability crisis.”

On Thursday, the city moved one step closer to a new pilot plan by announcing two locations where the temporary structures will be created.

The buildings will be installed in two locations: one near Main and Terminal and the other on Nelson Street near Howe Street downtown.

Both sites will eventually be redeveloped, but a timeline has not been provided by the city. In theory, the structures can be taken apart and moved to a new location.

The housing is meant to “bridge the gap” for people who do not have secure housing and are living on fixed incomes.

“The technology has come a long way so the opportunity to put modular housing in place on sites that will someday be redeveloped really allows high efficiency, good living conditions and the opportunity to build community in the short term, at a very affordable rate,” Mayor Robertson told reporters at a press conference at the 1500 Main St. site.

After shortlisting 12 companies to build the housing, the city has asked five to submit specific design proposals. Input from neighbourhood residents and businesses will be taken after the applications are submitted.

The Vancouver Affordable Housing Agency (VAHA), the agency running the pilot, says the Main Street site will accommodate up to 80 micro suites with bathrooms and kitchens, and the Howe Street location will hold 40 suites with bathrooms and shared kitchens. The downtown site will be built on a raised parkade at the rear of the building at 1060 Howe St.

Each unit will be a minimum of 250-square-feet in size, a City of Vancouver communications coordinator told CTV News. The cost has not been made public.

The city will select a non-profit agency to run each site, and the projects are slated to be “up and running” by the fall.

Robertson said while the modular housing is a step in the right direction, the city’s larger goal is creating enough permanent housing to get people off the streets – and out of shelters.

“We will not back down in the face of an affordability crisis for housing,” he said. “This is a great idea of what we can do in the short term.”

Robertson said the city has put forward a proposal that is now in front of the federal government to build permanent housing on 20 city sites, with up to 3,500 units. The city would contribute $250-million in land.

This isn’t the first time the city has mulled using modular housing as a solution for affordable housing. In 2013, a 12-unit building made of metal shipping containers opened on Alexander Street, to rent at below market rates to low-income women. Built on a standard-sized city lot, the 320-square-foot containers were stacked three high and were joined by an external staircase.

Councillor Kerry Jang said each container unit cost around $80,000 to build, compared to the $225,000 it would be for a custom apartment unit.