City council is looking to make affordable housing easier to build in Orillia with a $325,000 contribution to its affordable housing reserve.
During budget deliberations Wednesday, city council approved an additional $100,000 contribution to the affordable housing reserve for 2024 on top of the $200,000 annual increase already accounted for in the city’s draft budget.
On Tuesday, an additional $25,000 was approved following changes to the city's community improvement plan, bringing the city’s total contribution to $325,000 for 2024 – nearly matching the reserve’s current balance of $360,750.
“I'm of the belief that we need to do all we can on this front, and I get the sense that there’s many on council that believe that, as well,” said Coun. Jay Fallis, who recently pitched the idea to raise the city’s contribution in 2024.
“As always, more needs to be done on this front, for sure.”
As per the city’s affordable housing incentives policy, reserve funding may be used to subsidize land purchases, development charges, building, planning, and engineering review fees, and more for eligible affordable housing projects.
Some members of council, however, questioned whether the increase was appropriate.
“We heard from the county yesterday that they're developing a whole bunch of things for affordable housing and everything else,” said Coun. Ralph Cipolla. “I'm just wondering whether that $100,000 could be better used at this time, and … add to it (later) if it's necessary.”
“It’s a county responsibility. The county’s not doing what they’re supposed to – we need to step in. It’s a problem right now,” replied Mayor Don McIsaac. “The county’s got a great 10-point plan. That 10-point plan will provide a lot of benefit, but this is a problem we can deal with right now.”
Coun. Janet-Lynne Durnford argued that it’s important for Orillia to have a “robust” affordable housing reserve to help projects come to fruition, particularly as certain projects require the support of multiple levels of government to secure grant funding.
“We certainly have non-profit developers that are approaching the city for support, and some of their grants that they apply for at the federal and provincial level require municipal support, county support, in order to qualify for those grants, so I think it is essential that we have a robust affordable housing reserve,” she said.
Durnford noted the affordable housing committee recently updated the criteria to access funding for the reserve, something that Coun. Tim Lauer said he would like to see before supporting the idea.
“I don’t like the way the parameters are set up now; I’m more than willing to look at the new ones, that we haven’t seen … and I can support this at a later date, but I am not in favour of subsidizing county initiatives,” Lauer said.
“I’m OK with Orillia-centric solutions being funded from affordable housing, but I have a real reluctance to throw any more money towards the county in any way, especially given the increase we’re seeing this year," said the long-time Ward 4 councillor.
“My understanding is that any incentives that are granted through this reserve have to come to council to approve anyway,” replied Durnford. “If a project was being developed by the county, and the county was coming to us for a share of the affordable housing incentives, council would have the authority … to refuse that and reserve those funds for nonprofit developers.”
Decisions made during the 2024 budget deliberations are subject to ratification on Dec. 11, 2023.
