CityHousing Hamilton projects face $5.4M funding gap

CityHousing says it faces a $5.4-million shortfall for two projects ready for construction after last-minute" changes to federal funding rules.

To save them, the municipal housing provider is asking the city to close that gap amid talks with the Canada Mortgage and Housing Corporation (CMHC).

The conclusion really here is for these 95 units to progress, we do need additional funding for both projects," CityHousing senior project manager Sean Botham said.

CityHousing can't take on more debt and is tapped out" when it comes to cash flow and funding sources, Botham told its board of directors. This is why this is an emergency."

Both projects - 104 Bay St. N. and 55 Queenston Rd. - are on the eve" of construction with environmental work done.

The Bay Street project at Cannon transfers 45 rent-geared-to-income units from the vacant Jamesville townhouse complex, which is to be demolished and redeveloped into a mixed-income community. An additional 10 moderately affordable" units are also part of the Bay-Cannon mix.

The Queenston Road project - where excavators have dug up a parcel at the traffic circle - involves 40 units meant to replace single and semi-detached homes CityHousing has sold in recent years to raise funds.

Botham noted the last-minute" changes in CMHC policy are to the federal co-investment fund, a flagship program under the Liberals' National Housing Strategy.

Funding applications were submitted in December 2020, but this past June, CMHC said the requests would be capped" at lower levels or receive less than maximum eligible amounts, CityHousing says.

So far, CMHC staff haven't responded positively" to proposed solutions to bridge the policy gap, Botham told Friday's board meeting.

That's a really, really disappointing scenario" given the federal encouragement for affordable-housing providers to submit applications for funding, Coun. Nrinder Nann said.

In an email, a CMHC spokesperson said details of applications couldn't be released in order to protect the confidentiality" of proponents before agreements are finalized.

But CMHC has had great success" recently with CityHousing, including $145.6 million in co-investment funding to repair 6,290 units in its portfolio, Leonard Catling wrote.

CMHC looks forward to continuing our partnership" with CityHousing as we work to address housing needs in Hamilton and across the country."

Coun. Jason Farr called the CMHC a third-party arm's-length" body that's clearly not in touch" with the National Housing Strategy.

But Farr, who is CityHousing president, expressed confidence that Hamilton East-Stoney Creek MP Chad Collins, Ward 5's longtime councillor until last year, could help.

Collins, who formerly led the board, couldn't immediately be reached for comment.

CityHousing's $5.4-million pitch is to be heard at the city's emergency and community services committee in August.

An option could be repurposing existing funding, but with other applicants also appealing for assistance, municipal resources are stretched, said Brian Kreps, program manager in the city's housing division.

At this point, the cupboards are pretty bare."

Earlier this month, a coalition of non-profits warned council that 19 affordable-housing projects were at risk unless the city could find a way to fill a multimillion-dollar funding hole.

They asked the city to waive $40 million in development charges, a commitment needed to qualify for the federal CMHC co-investment funds.

Teviah Moro is a reporter at The Spectator. tmoro@thespec.com