Comment
Accentuate the positive
Housing Corp chair reports to council
Everything is going great at the County’s Affordable Housing Corp., according to its chair, Councillor Phil St-Jean. In his report to his council colleagues last week, St- Jean laid out a timetable in which a proposed eight-unit apartment block will begin construction next month and be ready to accept tenants by the end of the year. Maybe.
The Housing Corp still has big hurdles yet to cross. Like money. It has none. Funding agencies have refused to participate (twice). It owes the municipality more money than it has. And lenders are wary of extending credit to an organization without a track record and whose finances are underwater.
But other than that, things are going great. Or as another council member, Sam Grosso, also a member of the Housing Corp board, put it last week:
“We are like the Dodge Charger now. I have faith in our board. Not just talking. Things are going to happen,” gushed the Ameliasburgh councillor.
It appears increasingly likely, however, that unless—and until—the County steps up with a big injection of capital, the Housing Corp will remain stalled on the side of the road— as it has done for the past eight years.
But St-Jean presented a different message to Council last week—a message light on talk of the Housing Corp financing challenges.
“We are going to start showing positive results,” said St-Jean. “We are almost there.” The councillor and board chair explained that while the Housing Corp has been twice denied funding by federal agencies established to support affordable home development, “we haven’t given up.”
The Carney Liberal government has recently launched a new fund, Build Canada Homes. The Housing Corp is working on an application to the fund.
“Hopefully we will be successful— for a change,” offered the Picton councillor and Housing Corp board chair.
He described the relationship with the prospective builder, however, as “amazing.”
The nearest St-Jean came to the Housing Corp’s precarious financial position was when he described preparing a pro forma operating statement—a document that seeks to predict future performance and ultimately offers a measure of a project’s viability.
“It’s a statement to prove you can get financing,” explained Coun. St-Jean. “Every time you change a number on one side, it changes the other side. It’s a complicated document.”
Other council members are growing impatient with the Housing Corp, which they point out has spent several hundred thousand dollars since 2018 but has failed to build a single affordable unit.
Hillier councillor Chris Braney suggested that the money sunk into the Housing Corp over the past eight years might have purchased a couple of homes by now.
“Something has to happen soon,” said Coun. Braney. “I am losing confidence.”
Coun. Brad Nieman waved away his colleagues’ waning faith.
“Disraeli is going to happen this year,” assured Councillor Brad Nieman, co-chair of the Housing Corp. He was referring to an eight-unit modular apartment building in Picton. “With something on the ground, it might open some [funding] doors. By the end of 2027, there will be another.”
But such comments run counter to the facts and the challenges revealed earlier at the March 13 meeting of the Housing Corp (see story here).
The council/board members didn’t mention that without a substantial capital injection—potentially from the County itself—the Housing Corp is unlikely to make any progress on Disraeli Street or other proposed developments.
Instead, the message remained upbeat.
“It appears we are going to have eight affordable units by the end of the year,” said St-Jean.
Wrong. The current plan (pro forma) aims to have just three of the eight units charge affordable rents (ranging from $1,320 for a one-bedroom unit to $1,588 for a two-bedroom unit).
Coun. Bill Roberts corrected his colleagues.
“At the end of eight years, you will have three affordable units,” said Roberts.
St-Jean acknowledged he misspoke, but dug in his heels.
“That is the economic reality,” said St-Jean. “We have to help the public understand how this works.” It wasn’t clear, however, he was successful in helping his council colleagues understand “how it works”.
He explained that a new fundraising effort was being resurrected, led by another council member, Kate MacNaughton.
“The fundraising is meeting this week to get the ball rolling,” said Coun. MacNaughton. “To ensure we have the skills needed.”
But time is running out. The Housing Corp has set a deadline of April 30 to finalize negotiations with its builder. At this point, it needs divine—or council—intervention to make it happen.
Otherwise, things are going great.
Quote:
““The fundraising is meeting this week to get the ball rolling,” said Coun. MacNaughton. “To ensure we have the skills needed.”
Those “skills” should have been in place from the very beginning.
This so-called “Housing Corp”, has spent several hundred thousand dollars since 2018 but has failed to build a single affordable unit. With only three of the proposed eight being affordable.
Get rid of this “Housing Corp” before the election. This has gone on far too long with no end in sight.
Keep in mind that this is a Lame Duck Council with municipal election 6 months away. This Council should not be sinking thousands more into a losing proposition on the backs of the taxpayer or an incoming new Council. It is fair to suggest that several Councilors pushing this agenda may very well not be re-elected.
I’d be happier if it was “all Councillors pushing this agenda” not even bother to run. Three affordable units. Out of eight. After all this time? Shut ‘er down!