Despite considerably cold feet from councillors, the city could provide a $3-million, two-year, interest-free loan for interim financing to Redwood Park Communities for supportive housing projects in Barrie.
Councillors gave initial approval to the loan Monday night, subject to funding approval for the projects from the Canadian Mortgage and Housing Corporation (CMHC).
“This is our one and only big shot to end homelessness in our community,” said Mayor Jeff Lehman, who acknowledged the risk. “No bank would make this loan. … There is some risk in it.
“This (Redwood) is the one and only provider we have in Barrie," he added.
Only Coun. Sergio Morales and Mike McCann opposed the loan.
“If we vote 'yes' on this, it is completely reckless,” McCann said.
Even Coun. Gary Harvey, who voted for the loan, has reservations.
“I’ve got more questions than answers and I hope I get answers before next week,” he said, referring to the June 28 meeting when city council will consider final approval of the loan. “When there is a huge ask on the table, I usually expect a staff report or a presentation.”
Redwood Park Communities is a charitable organization and has no way of securing this loan, according to city staff.
Councillors spent about two hours Monday night debating the risk and how to mitigate it.
They agreed that on a best-effort basis, Barrie’s treasurer will release money in increments toward supportive housing projects approved by the CMHC.
“They (Redwood) don’t need all the money at once,” said Coun. Jim Harris.
The city could release as much as $1 million immediately, to a maximum of $2 million, after council meets in August. The funding would be spent on construction costs only and Redwood would also report to city staff monthly.
Deputy Mayor Barry Ward has said an interest-free loan would offer some relief to the most vulnerable in the community a little sooner than if Redwood Park Communities had to wait for the federal government funding.
Supportive housing is a combination of housing assistance and supports that enable people to live as independently as possible in their community.
Redwood Park has one project of 12 units of transitional housing for families behind the Salvation Army Citadel Corps on Lillian Crescent, and much of the cost has already been fundraised, Ward said. The other project can’t be identified because it involves the purchase of private property, but it would be under the federal government’s Rapid Housing Initiative.
It’s a $1-billion program to help address urgent housing needs for vulnerable Canadians — especially during the pandemic — through rapid construction of affordable housing.
Ward has said Redwood Park expects to hear about its funding applications approval in the next few weeks, but the money might not flow for many months. The loan would allow Redwood Park to begin work on the projects right away; in the case of the transitional housing on Lillian Crescent, the pipes are already in the ground and construction could begin almost immediately.
The County of Simcoe is the lead agency for social housing and support for both these projects. Operating funds will flow through the county and be paid for by all county residents.
Ward’s motion simply forwards a loan for capital works that would be contingent upon Redwood Park Communities being guaranteed that CMHC funding is on the way.
Late last year, council approved a refundable $50,000 loan to support the County of Simcoe and Redwood Park Communities’ efforts to buy property for supportive and transitional housing in Barrie.
Redwood Park Communities provides safe, affordable and supportive housing. Its United House, for example, provides transitional housing and support to women leaving the Barrie Women and Children’s Shelter in five renovated, fully furnished apartments.
Since opening United House, this partnership has been expanded to offer additional housing options through the second suites program. It provides tenants with affordable rental options in neighbourhood settings, while also generating rental income for homeowners. The space is rented out to Redwood Park Communities, which pays rent directly to the homeowner.
