While some councillors felt that Thorold is in such dire need of affordable housing, all fees connected with the project should be waived, others wanted to wait until the site plan is finished, so planning staff will be able to tell council exactly how much they would be waiving.
Sergio Paone, chair of the Thorold Municipal Non-Profit Housing Corporation, (TMNPHC) asked council to reconsider the planning staff’s recommendation of not waiving the fees.
“There’s a tremendous need in Thorold for affordable housing,” he said, adding that 20 per cent of Niagara’s population is classified as “low income, and the waiting lines for affordable housing are huge, and haven’t improved in 20 years.”
According to Paone, seniors on the Niagara Region’s wait list will wait, on average, six and a half years for a rental unit. “If you’re a low income family, it’s six to eight years. If you're low income and single,” it’s 10 years. This phenomenon is “Canada-wide,” he said, adding, “It’s a huge problem.”
Currently, TMNPHC operates 135 affordable housing units at 61 Ormond St. South and the 14 adjacent units, facing Cleveland St.
“Thorold council has a history of supporting this,” Paone said, including waiving the building permit fees for the Cleveland St. apartment.
“In June, 2016, council passed a motion donating brownfield land to TMNPHC so we could build, to build safer healthier communities.”
“St. Catharines decided to waive the fees, so I would encourage you to do the same,” said Paone. “I want to get rid of the misconception that any money council spends on this is lost.”
Citing the World Health Organization’s published reports “showing a clear link between affordable housing and health” and safety, including reduced rates of disease and domestic violence when people have adequate housing, Paone said affordable housing provides an “improved outcome for kids who don’t do well in school,” while living in “less than desirable conditions. Studies have linked economic growth to affordable housing. You are investing in your community because it helps provide key infrastructure.”
By getting the development charges refunded, non-profit housing will have capital on hand to begin more subsidized housing projects, he explained.
Coun. Carmen DeRose asked how it’s decided which residents are allowed to receive a rental unit.
Paone said it’s determined by the Niagara Regional Housing waiting list.
“It’s based on need according to income, and who’s been waiting the longest.”
Coun. Jim Handley said he objected to the term “affordable housing,” since “A number of people are not low income” in the units, and it’s actually “rent geared to income.”
“I would love to provide nothing but low income units,” replied Paone, “but if we don’t have some (rental) income through market value, it would be all government funded and that would be a bigger burden on the taxpayer.”
According to Coun. John Kenny, who serves on the TMNPH board, “The federal and provincial governments kicked in $5 million for this building, and the remaining mortgage is $7 million. We need to pay our mortgage, so the taxpayers don’t have to, down the road.”
When Coun, Nella Dekker asked the amount of fees to be waived, planning manager Denise Landry said, “They haven’t been calculated yet.”
Paone explained that “We do pay the fees and once the building is completed, council gives the money back,” if they are waived.
CAO Manoj Dilwaria speculated the fees would be about $50,000.
“I ran on this issue,” said Coun. Ken Sentance. “I believe in it. After decades of no building, we need to step up.”
Coun. Anthony Longo said he, too, serves on the TMNPHC board.
“Since this building is being built and only half for affordable housing, I could support half the development charges.”
Paone replied, “If you support giving back half the development charges, you wouldn’t be supporting 30 of the rent geared to income, but 15 of them. With our current model, you cannot have a rent geared to income (RGI) unless you match it with funding. They come as a pair, so you would support half the units.”
He added that development charges for the Cleveland St. apartment amounted to $70,000.
“When the fees were waived previously, they were taken from the city’s economic development budget. We want people to come to Thorold, but you must be ready to supply them with affordable housing.”
Mayor Terry Ugulini asked, “If this is funded by federal and provincial governments, why are we using a Niagara Region list instead of a Thorold list, because I would hope we have a Thorold list if we’re giving money.”
Paone confirmed that "There is also a Thorold list."
Describing the Beaverdams development, the mayor continued, “With our new bylaw, there’s a 75 per cent rebate they get, without us even helping them, and another 25 per cent and C.I.P. sliding scale and tax breaks as well, because it’s on a brownfield.”
“We’re asking for 25 per cent to be given back of the development charges, but not in building permit fees,” said Paone.
Dekker enquired if the building would be strictly for seniors.
“The original agreement says 60 units for senior non-profit housing,” he replied, “so the funding is for that reason. I fully intend that the next project will be for families.”
Kenny moved to waive the fees, and Landry read the staff recommendation, which advises against waiving either the building fees or the development fees.
“We’ve all talked about senior affordable housing,” said Kenny, “and we’re not doing much. This is a project I would like to see moved forward. This is not a developer doing this project. This is being done by seven people. It’s the committee appointed by council, and we have to put trust in them.”
The councillor added that the “$5 million to $6 million site plan” was approved last week, and he hoped to have a “shovel in the ground in April.”
The development charges exemption report “will be coming to council,” said Ugulini. “Our chief building official is not opposed to waiving this, but he needs to have the report and see what we are waiving, because we may not have to waive anything. They may get 100 per cent.”
Landry estimated staff “would know by November” the exact fees.
Handley moved to defer the development charges issue “until we get the report.”
The motion carried, with councillors Kenny, Fred Neale, and Victoria Wilson opposed to waiting for it.
“I’m a little bit surprised that this is such a tough decision to make,” said Wilson, “but I think that each of us when we ran for council” committed to pursuing affordable housing.”If we can’t waive fees to support that, I don’t know what we’re doing here.”
Coun. Neale said he was on the TMNPHC board “for years, and this project has to go ahead. This will be the first of a number of projects they will do in the future. We need to help the affordable (housing) people as much as possible.”
Council voted unanimously in favour of waiving the building permit fees, estimated at about $50,000.
