The city is in the process of deciding whether it will
participate in the Canada-Ontario Affordable Housing
Program.Greater Sudbury qualifies for three different components of
the joint provincial-federal program, city housing services manager
Denis Desmeules told councillors at a priorities committee meeting
July 12.
The housing allowance component would provide $864,000 in funding
for rent subsidies for low-income earners over five years.
Recipients could get up to $180 a month. The allowance would not be
a rent-geared-to-income program.
The northern remote component would provide $4.2 million in funding
over 20 years to provide forgivable loans for developers to create
affordable housing or renovate existing housing. The per unit
funding translates to approximately $20,000 per unit.
The home ownership component would provide $324,000 in funding to
provide down payment loans to renter household whose income is
$49,700 or less. They must be willing to move from their rental
unit to purchase an affordable home. The maximum house price is
$165,000.
Councillors will choose between three options regarding the program
at the next priorities committee meeting Aug. 9. Their decision
will then have to be approved by city council.
Option 1 would see the city administering the housing allowance and
northern remote components. Because new staff would have to be
hired, it would cost the city $150,000 per year in 2007 and 2008 to
administer the program, and $80,000 in 2009 and beyond.
The province would provide a maximum of $150,000 to offset
administration costs between mid-2006 and 2008 if this option is
approved.
Option 2 would see the city administering all three components of
the affordable housing program. It would cost the city $225,000 per
year in 2007 and 2008 to administer the program, and $125,000 in
2009 and beyond.
The province would provide a maximum of $180,000 to offset
administration costs between mid-2006 and 2008 if this option is
approved.
Option 3 would see the city decline to participate in the
affordable housing program. Council could avoid further
“downloading” from the federal and provincial
government if they chose this option, said Desmeules.
Ward 6 Councillor Janet Gasparini said she was “obviously
pleased” to hear about the program, although
she’s leery about adding more city staff to administer
it.
Helping young couples by subsidizing their rent means they may
eventually apply for the down payment loan program and buy their
first home, she says.