Lanark County approved nearly $1 million in funding to secure five affordable housing units in Perth, including two transitional spaces for youth experiencing or at risk of homelessness.
The county’s community services committee approved the plan Sept. 16, recommending $869,630 in Canada-Ontario Community Housing Initiative funding and another $114,072 from the county’s Housing Services Reserve.
The funding would provide $513,702 to Linden Housing Development Co-operative for three designated affordable units at its 36-unit development at 79 Wilson St. W., and $470,000 to Cornerstone Landing Youth Services for two additional transitional housing spaces at 82 Drummond St. W.
The units would be secured as affordable housing for a minimum of 20 years.
Housing Services Manager Kaitlyn Murray told the committee the county received three submissions after issuing a request for proposals in August.
Linden, the top-ranked applicant, is nearing completion of its 36-unit non-profit co-operative housing development. Staff negotiated funding for three units at $513,702, an amount tied to unexpected construction costs incurred by the project.
The three county-designated units would rent for $1,215 per month.
Coun. Toby Randell (Carleton Place Mayor) asked how those units fit into the larger co-operative development.
“The Linden Housing entire portfolio will all meet our criteria for affordability,” Murray said.
The three units tied to the county funding would be offered at a lower rate and designated as county units for the duration of the agreement.
Cornerstone Landing, the second-ranked applicant, plans to demolish and redevelop its property at 82 Drummond St. W., increasing its capacity from three bedrooms to five.
The two new spaces would serve youth experiencing or at risk of homelessness through a Housing First for Youth model, with rents of no more than $1,000 per month.
Cornerstone requires the full $470,000 for the project to proceed.
After funding Linden, the county would have $355,928 in COCHI money remaining, leaving a $114,072 shortfall. Staff recommended covering that amount from the county’s Housing Services Reserve, which has a balance of approximately $6.7 million.
Coun. Andrew Tennant (Carleton Place Deputy Mayor) questioned whether the investment represented the best value when compared with the rent reductions being secured.
Murray said COCHI is capital funding rather than an operating subsidy and comes with strict rules governing how the money can be spent.
“We only received three submissions that met the criteria and only two were viable,” she said.
The funding is restricted to new construction involving co-operative, non-profit or municipal housing providers.
The county could fund only Linden and seek provincial approval to redirect the remaining $355,928 elsewhere. Staff cautioned that doing so carries the risk of losing some of the funding if the province does not approve its reallocation.
Coun. Bill King (Lanark Highlands Deputy Reeve) also questioned what the county would receive for the investment.
Murray said the funding is strictly a capital contribution and does not include ongoing operating funding. The five units would remain affordable for at least 20 years.
Warden Richard Kidd (Beckwith Reeve) said the county has faced situations in the past where housing funding was available but no eligible local projects could meet the program requirements.
“This is a bigger improvement, a bigger opportunity, that we actually have people bidding on it,” Kidd said. “It’s a win/win.”
Smiths Falls Coun. Peter McKenna said the investment also helps build non-profit housing capacity in the county.
“Who knows, in five years, they will spread that expertise to others and there’s more units,” he said.
The committee unanimously supported the recommended funding allocation.
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