County News
Too good to fail
Housing Corp to ask council to cover its funding gap
The County’s Affordable Housing Corporation is running out of time. If they aren’t able to give their builder the green light soon, they may have to abandon their plans for an eight-plex (three affordable apartments) in Picton this year. Yet the Housing Corp remains about $400,000 short of what it needs to fund the project.
While some board members cautioned against proceeding until the money is found, the majority argued that the virtue of their purpose was too important, and that, as a group, they had come too far, worked too hard, and were so close to their goal that they could not turn back now.
So the Housing Corp board agreed on Monday to ask the County council for the money (about $108,000 through a waiver of municipal fees and the balance in cash) to get them across the finish line.
But before that happens, the board will ask the County’s Finance Director to identify where he might find the money, if Council instructs him to do so. It puts the Finance Director in an untenable position—guarding municipal finances, while simultaneously facilitating a risky investment. But the board is beyond such niceties.
It is stuck. Unwilling to step back from the brink, and without the means to span the chasm, they must rely on others to see them across—to join them in their venture.
At least one board member understands that the lender won’t commit funds until it knows the Housing Corp’s funding is locked down—that the funding gap poses a significant vulnerability to the Housing Corp and its board. While the Housing Corp may use a County loan to fund construction, upon completion, the construction loan must be repaid. If there is no lender, when the hammers stop swinging, the County will be stuck funding the entire enterprise.
Discussion of pragmatism and risk, however, was soon overwhelmed by board members’ optimism that their ambition was too good to fail.
“The only risk is for the [Finance Director] is that the municipality is being left behind in terms of creating affordable housing,” said public board member Mark Guslits. He suggests the board’s failure to attract federal and provincial governments stems from a lack of track record and its struggles to get this project off the ground.
“It’s not a big deal,” insisted Guslits. “Sure, we have a few ducks to put in place, but we are going to build this housing. We can start now, or start next year, but I’d rather start as soon as we can. Even if we don’t finish this year, we will be moving forward with something that we can parlay into the other projects that we have in mind.”
Another public board member said she wants to have faith that the community and Council can see the big picture.
“We are missing just 10 per cent,” said Penny Morris. “I feel it is really important at this time not to slow down. We are in the last little run for the Disraeli Street funding.”
Morris pointed to positive “verbal support” from the federal government and “some verbal support” from the province that the board should press on—despite the funding gap.
“I have faith in our community and our Council,” said Morris.
With that, the Housing Corp board agreed it would ask Council for the missing 10 per cent.
If you listen to the Monday meeting of the Housing Corporation on the County’s Live Stream you will hear the group planning strategy to sell the financial ask to Council. Making the proposition more convoluted under the Board membership is the fact you have Five (5) Councilors supporting the taxpayer ask going in so they need only convince three remaining Councilors/Mayor. They speak of the already $700,000 spent as a drop in the bucket. The Public does not support this boondoggle! Public needs someone to lead the charge to put this entity to bed.
This is financial negligence.
Committing the County to borrowing MILLIONS of dollars over 4.5 DECADES to fund 3 “affordable” rental units and 5 “market rent” rental units — how can this be justified?
This is clearly about the Board members being unwilling to acknowledge their own failure to achieve any actual deliverables in the history of the enterprise, despite spending hundreds of thousands of taxpayer dollars already to create vacant lots.
This enterprise must be shuttered ASAP and other ways (involving other people) should be found to help subsidize rents for County people on the waiting list for affordable units.
Thank you, Penny, but while you may have faith in the verbal supports from the federal and provincial government, and in our Council, you are incorrect in having faith in support from the Community. If the affordable housing group can drum up the finances without the taxpayers, then go for it. But, I believe that many in the PEC taxpayer base want out. Many of us never wanted “in”.
So, do it yourselves from here-on-in, or shut it down. Without OUR taxes behind this group.
SPECIAL NOTE TO COUNCIL: NOT ONE THIN DIME FROM OUR TAXES GOES INTO THIS MESS FROM HERE ON IN!
No! No more taxpayer dollars. Wrap things up and dissolve this losing proposition and Corporation. This is nothing more than stubborn pride not wanting to admit failure. Enough!