Construction of the Affordable Housing Corporation’s first residential building at 30 Disraeli Street is set to begin this summer, but a funding shortfall could mean a delay.

A request for proposals from private sector partners led to a partnership with Theberge Development, which offered a modular design at 40 percent less than average construction cost, for a total of $2,625,000. 

A 45-year mortgage of $2,163,600 from First National Bank has been secured, but it falls short $460,000. 

The corporation also needs the equity to secure the mortgage, anywhere from $330k to $654k, the amount to be confirmed after construction. 

The Housing Corp. can pay for construction through its loan agreement with the County, but must repay it with interest within 60 days of construction being completed. 

A staff report proposed extending the repayment period to 120 days, but Councillor Corey Englesdorfer worried that would lead to a request to waive the equity loan altogether. 

“It’s not about waiving the loan, it’s about extending the repayment date,” Housing Supervisor Elis Zeigler said. 

“Housing is as close to fruition as it’s been in a long time, despite the funding hurdles,” they stressed. “The board continues its diligent and hard work to meet its goals.” 

A financial contribution from the County could help to meet the terms set out by the bank. The report suggests the municipality waive municipal connection and building fees, saving PECAHC $108,000. 

Another possibility is requesting a transfer from the Municipal Accommodation Tax (MAT). The tax is intended to support tourism related activities, but the report justifies the request by noting that short-term accommodations have decreased the number of long-term rentals. 

It also notes that affordable housing supports the tourist economy by providing homes for workers. 

But some Councillors balked at investing anything in the development.

“In my opinion this is a very poor place for taxpayers to be putting their money,” said Councillor David Harrison. “This business plan here, I wouldn’t fund on a bet. You have one or two defaults, you’re in the red.”

“County residents want to get back to basics and want to get our tax dollars put into very tangible things that are very important to them,” Councillor Chris Braney agreed, adding that he favoured a solution involving the private sector. 

Mx. Zeigler confirmed that looking for private partnership opportunities is still a priority.

Councillor Kate MacNaughton, who sits on the board, said a public fundraising campaign was a possible solution. 

“I do believe that our community has been trying to make affordable housing a key goal for a decade,” she said, and stressed that getting to the finish line on the first development will establish a track record for future endeavors. 

“One of the notable benefits will be going to funding bodies and saying we’ve done it.”

Mayor Steve Ferguson said that an upcoming meeting with Bay of Quinte MP Chris Malette will be an opportunity to ramp up advocacy to the federal government.

“We have not leveraged our Member of Parliament as much as we could and should,” he said. “I think at this point just keep going.”

The Disraeli Street building will have 8 units, three of which will be affordable. If PECAHC succeeds in getting funding from the new Build Canada Homes program, the percentage of affordable units could increase.

The municipality transferred the property to PECAHC in 2021, and the board sought both public and private funding for the project. Pre-development funding from the Canada Mortgage and Housing Corporation (CMHC) helped, but further funding was denied in subsequent applications.