Imminent?

After seven years, will affordable housing plans bear fruit?

It’s been seven years since the County formed an Affordable Housing Corporation— an organization that would be at arm’s length from the municipality. The idea was that an agile, quasi-independent unit might be nimble enough to access pools of capital (private, public, and institutional), navigate bureaucracy, and innovate with third-party builders to meet the need for affordable homes.

Resources have splashed around, plans have been drawn up and abandoned, and a former rink in Wellington was levelled to make way for new homes. The empty lot stands as a visual testament to the challenge of developing affordable homes.

Meanwhile, the Prince Edward County Affordable Housing Corporation (Housing Corp) has shape-shifted a few times. One thing has not changed, however. The Housing Corp has not built a single affordable unit in Prince Edward County in seven years.

Some on council are getting restless.

An apartment building built by Theberge Homes on Armstrong Street in Ottawa. Image courtesy of Google Street View.

“Last year we were told something was imminent and that we (Council) were to be patient— that something could happen before the end of 2025,” said Bill Roberts, councillor for Sophiaburgh at a council meeting last week.

His question was for fellow council member Phil St-Jean, who chairs the Housing Corp. board.

“Is something imminent?” continued Roberts. “ At some point, even I, who was intimately involved in the creation of the Affordable Housing Corp, will have to ask after seven years: have we demonstrated that the municipality should not be in the affordable housing business?”

“I am glad you asked,” responded St-Jean gamely.

Councillor St-Jean assured the Sophiasburgh representative and his council colleagues that exciting things were happening. But he couldn’t talk about them due to confidentiality concerns.

He and other board members had just returned from visiting a builder in Ottawa.

“After today’s meetings, I am extremely confident we are headed in the right direction here,” assured Councillor St- Jean.

Then he added, “Our biggest challenge is finding the funding. That is our biggest hurdle right now. The rest of it I’m feeling pretty damn good about.”

It’s not a small thing. The Housing Corp’s challenges have always been about money. Unless and until a large capital pool reveals itself soon, it seems funding will remain a hurdle.

Nevertheless, Councillor St-Jean and his council colleague on the Housing Board, Brad Nieman, were feeling positive after the roadtrip to visit the Ottawa builder.

Theberge Homes has made a specialty of building modular apartment blocks and has experience working through federal government bureaucracy and programs.

“What we learned today will be very useful in moving the project along,” Councillor Nieman told his council colleagues. “We are making huge steps.”

But financing.

THE DISRAELI PROJECT
So, what is the project? The Housing Corp is currently focused on an eight-unit modular apartment block on Disraeli Street in Picton—four units offered at market rents and four at affordable rates (80 per cent of market rent).

The cost is estimated to be about $2.8 million. (The assumption is that Shire Hall will provide the land, fund development charges, waterworks connection charges, hydro connection, geotechnical evaluation and land shoring costs.)

The plan anticipates funding the project with a CMHC loan. ($2.5 million—91 per cent of the project—at 4.52 per cent over 45 years.)

According to the Apartment Construction Loan Program document presented to the Housing Corp meeting on Monday, financing this way will result in an annual deficit of about $11,000 (rental income minus operating costs and loan payments).

That is, if everything goes to plan. Some on the Housing Corp board worry that it is a big project and needs enhanced project management skills. It is an area that has caused Shire Hall headaches in the recent past. (See story Learning to walk here).

Councillor St-Jean, however, is hopeful the Disraeli project will serve as a blueprint for future Housing Corp projects.

“I want to bring you some good news—but if it’s not complete, I don’t want to talk about it,” said Councillor St-Jean.

It turns out St-Jean would have preferred Councillor Roberts had not asked his question.