This email is to express to you our City’s administration’s response to the ‘opportunity’ poised by the Province’s Ministry of Municipal Affairs and Housing, as per the “Investment in Affordable Housing for Ontario Program” (otherwise referred to as the IAH). As background – the IAH program is in Year 1 of 4 Year program – its primary funding source is the result of a 50/50 agreement that was just signed November 8, 2011 between provincial and federal government and it provides funds for affordable housing at the municipal level.
Immediate situation:
A Ministry letter dated December 19, 2011 to County staff advised that that there might be an ‘outstanding balance’ remaining in the Year 1 IAH Program allocation and the Ministry was encouraging Service Managers to apply and submit business cases for projects to benefit from a top up. The criteria for the application required the projects to be shovel ready by March 31.
This matter came to our attention just this week via a ‘late’ added report to the County of Wellington’s Social Service Committee (our CMSM provider of social services on behalf of the City of Guelph.) County staff received the Ministry’s letter on January 4th and City staff advised, that to the best of our abilities, we are not in the position to meet the criteria and deadlines. This was communicated to Social Service Committee of County Council – noting that further discussion was required amongst County/City staff and the developer.
Subsequently staff of the City & County met to discuss the opportunity for a proposal for the City of Guelph. The proponent of an existing proposal for affordable housing in Guelph was also able to join this City/County meeting.
Administrative Position:
As a result, I am advising Madame Mayor and Council that City Administration cannot meet the deadline for Year 1 applications (January 31, 2012) to the IAH for the following reasons:
1. We do not have the current capital dollars to meet the provincial formula that requires capital funding from the City (or combination of city dollars and private sector – developer funds). Thus, there is no readily available source of capital funding which the City could commit specifically to the Lammer Project.
2. Further, on the expenditure of City funds within this timeframe, staff cannot bring to Council this month, a comprehensive, clear policy recommendation on the utilization of property tax based dollars to fund affordable housing responsibilities. This decision requires a reasoned dialogue with opportunities for input from our residents and homeowners.
3. The specific project is not far enough along to meet the March 31, 2011 – in other words, this particular project isn’t ‘shovel ready’.
Moving Forward
You may be asking what our ‘go forward’ position is…. it is our intention to bring forward a Position Paper on Affordable Housing during this term of Council – one that would deal with the municipal funding principles– the timing of this matter can be discussed through further discussion with staff and Council.We also have Year 2, 3 ,4 of the program with which to submit a reasoned business case that reflects this policy position.
Action
With regard to this immediate opportunity, I propose to write a letter to the County of Wellington CAO advising of this position; acknowledging that the short timeline was a decision of the Province, thanking the CMSM & City staff for the quick turn around on the report and continuing to work with the proponent. Staff