A controversial housing development in Hochelaga Maisonneuve that went up in flames Friday morning will be rebuilt, says the developper.

A security guard on site of the Faubourg Contrecoeur development noticed the fire and called authorities. The fire started around 6 a.m. and quickly spread among the 96 condominiums in six buildings situated on 38 hectares of land.

No one was evacuated as the condos were isolated from other businesses and homes. No one was living in the units because they had not been completed.

Police say they believe the fire was suspicious. The arson squad is investigating.

Tenants

CTV Montreal spoke to two people at the scene of the fire who had bought condos in the development.

They said the move in date was April 1st, but the condos were far from ready.

Both said there were many delays and many frustrations. One said they had cancelled their contract the day before due to the delays. Both declined to give their names.

The story behind the condos

The land was sold to developer Construction Frank Catania for a sum that was millions less than what the city had valued the land.

Something did not smell right, and the Societe d'habitation et de developpement de Montreal (SHDM) hired the accounting firm KPMG to examine the deal.

Its report concluded there were irregularities in the way the then-director general Martial Fillion conducted himself in the sale of the land.

It said Fillion had facilitated payments by the construction firm without the required permission of the administrative council of the Societe.

At the time, the Societe had been turned into a private business, meaning it was operating for the government but at arm's length.

As a result, Mayor Gerald Tremblay said he was going to turn the Societe back into a para-municipal company.

Fillion was dismissed.

With files from the Canadian Press.