An affordable housing project proposed for downtown Orillia may end up being even more affordable than originally planned.
At its Monday meeting, city council approved a $129,250 grant for the 40-unit complex at 25 Peter St. N. in the Canada Post building.
The grant comes on the heels of a request from developer Raising the Roof, which made a plea in January for city support for a grant application to the Canada Housing and Mortgage Corporation’s (CMHC) Rapid Housing Initiative.
The grant application would be unlikely to succeed without city investment in the project, the developer said at the time.
The city funds will assist with the project’s land purchase and the city’s planning, building, and engineering review fees.
The project will include 40 bachelor, one- and two-bedroom units, ranging from 320- to 640-square-feet, and it will provide social supports for tenants through its partner organization, Redwood Park Communities.
“This is a very, very important project for this city,” said Cam Davidson, chair of the Affordable Housing Committee at Monday’s meeting. “When I spoke to the proponent this morning, he said that he is going to be putting in his application for the Rapid Housing Incentive … by the end of February.
“He is prepared, at this point in time, to say that he is going to get those rents down as far as he possibly can.”
Originally, the plan was for 24 of the project’s 40 units to be rented at affordable rates, but on Jan. 25 the developer indicated all 40 units would be rented at affordable rates for the next 50 years if Rapid Housing Incentive funding is obtained.
If the federal grant application is successful, many of the project’s units may be rented at “deeply affordable” rates, and the developer is now proposing rental rates ranging between $451 and $759 per month.
Coun. Tim Lauer, who noted his support for the project, had questions about the evolution it has undergone.
“I believe that our last presentation would indicate that this was going to be a full-on second stage housing project for people who are experiencing domestic violence,” he said.
Lauer wondered whether the project could handle the security needs and space for children in its current format.
“I don’t unfortunately have information for you on (their) security plan because that's not a criteria that we look at in terms of dispensing funds for this particular program,” said the city's senior planner, Jill Lewis.
In an interview with OrilliaMatters, Davidson stressed the need for “deeply affordable” housing options in the city.
“That 50 per cent figure, where people are paying more than 50 per cent of their earnings to housing costs, is going up steadily,” he said. “There are people in this city … who are on special programs like ODSP and things like that where they just can't afford an apartment.
“We have to start somewhere, and this is a good start," said Davidson.
Along with the grant, council also permitted the developer to submit reduced securities, at 30 per cent of the total securities value.
In their initial request to the city, Raising the Roof also asked for a $10,000 "per door" grant, totaling $400,000, but such a request is not authorized in city policy, noted a staff report, and would have exceeded the available funds in the city's affordable housing reserve.
Council’s decision Monday still needs to be ratified at its Feb. 27 meeting.
