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Council considers joining affordable housing program

BY HEIDI ULRICHSEN The city is in the process of deciding whether it will participate in the Canada-Ontario Affordable Housing Program.

BY HEIDI ULRICHSEN

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.


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