Affordability of 1,900 subsidized housing units in jeopardy as funding agreements set to expire
London could start losing ground in its efforts to alleviate the housing crisis unless City Hall intervenes.
Deeply discounted rent-geared-to-income (RGI) housing is partially supported by government funding agreements that are in place for the length of the building’s mortgage — usually 35 years.
Once an agreement expires, the loss of mortgage funding from the municipality can create a financial shortfall for non-profit agencies in possession of aging buildings that require more maintenance.
“It’s hard to help the people that are in the deepest need without getting these subsidies,” explains Greg Playford, a board member of Homes Unlimited.
Across Ontario, 6,500 affordable units have already been lost as agencies are forced to raise rent to cover the lost subsidy.
A new report to city council warns 2,918 affordable units in London will have their funding agreements expire by 2030.
“Without some form of funding, it is not feasible for all projects to continue to provide affordable housing,” reads the report to council’s Community and Protective Services Committee (CAPS).
“It’s a serious problem,” says Playford. “One many of us have seen coming for quite a few years.”
Homes Unlimited has developed a possible solution for four of its Odell-Jalna properties (246 units, 210 RGI) which could become a model for other organizations.
The proposal requires city hall to forgo the savings it would have accrued when the mortgage funding agreements expire — and instead continue directing those dollars to subsidizing the units.
In 2021, city council approved a municipal strategy that aims to create 3,000 new affordable housing units in just five years.“We must not lose sight of maintaining the affordability we have,” warns city staff in their report recommending the Odell-Jalna proposal.
Adding, civic administration at city hall, “views this proposal as an innovative approach and pilot (project) that might provide similar strategies for other housing providers facing similar challenges.”
The CAPS Committee will consider continuing to fund the units after their agreements expire at a meeting on Feb. 1.
Playford believes the proposal could see hundreds of Londoners and their families benefit for decades into the future.
“We’ve been providing affordable housing for 50 years, and want to do it for another 50 years, so we’d like to see the savings reinvested.”
CTVNews.ca Top Stories
Several flight attendants from Pakistan have gone missing after landing in Canada
Multiple flight attendants from Pakistan International Airlines have abandoned their jobs and are believed to have sought asylum in Canada in the past year and a half, a spokesperson for the government-owned airline says.
BREAKING Ottawa public school board, 3 Toronto-area school boards launch lawsuit against social media giants
The Ottawa-Carleton District School Board and three school boards in the Toronto-area have launched legal action against social media giants, accusing them of "disrupting students' fundamental right to education."
Rainfall warnings of up to 90 mm among weather alerts in effect for 7 provinces
Rainfall warnings of up to 90 millimetres, air quality advisories and other alerts have been issued for seven Canadian provinces, according to the latest forecasts.
Tipping is off the table at this Toronto restaurant
A Toronto restaurant introduced a surprising new rule that reduced the cost of a meal and raised the salaries of staff.
A Nigerian woman reviewed some tomato puree online. Now she faces jail
A Nigerian woman who wrote an online review of a can of tomato puree is facing imprisonment after its manufacturer accused her of making a “malicious allegation” that damaged its business.
Donald Trump assails judge and his daughter after gag order in N.Y. hush-money criminal case
Donald Trump lashed out Wednesday at the New York judge who put him under a gag order that bars him from commenting publicly about witnesses, prosecutors, court staff and jurors in his upcoming hush-money criminal trial.
A fight to protect the dignity of Michelangelo's David raises questions about freedom of expression
Michelangelo's David has been a towering figure in Italian culture since its completion in 1504. But in the current era of the quick buck, curators worry the marble statue's religious and political significance is being diminished.
Doctors visiting a Gaza hospital are stunned by the war's toll on Palestinian children
An international team of doctors visiting a hospital in central Gaza was prepared for the worst. But the gruesome impact Israel’s war against Hamas is having on Palestinian children still left them stunned.
What new auto insurance reforms will mean for Ontarians, if they get introduced
Ontario has among the highest rates for auto insurance premiums in Canada -- just below Alberta and Nova Scotia -- however, the introduction of an insurance reform in the provincial budget could soon lower prices.