Construction of new, privately-led affordable housing could soon begin throughout Guelph, thanks to a trio of financial incentive programs unanimously approved by city council on Tuesday.
The programs, which are largely funded using a federal housing grant, are meant to help property owners convert built spaces into affordable units, build new affordable housing and add new affordable, accessory units such as basement apartments or tiny homes. They are collectively known as a community improvement plan (CIP).
“I’m really excited about seeing the results,” Mayor Cam Guthrie said.
Funding for two of the programs – the vacant unit renewal grant and the additional dwelling unit grant – will flow from a $21.4 million Housing Accelerator Fund grant the federal government pledged to the city last year. Presuming the full amount is received, $5.72 million would be dedicated to the programs, a staff report notes.
Funding for the third – new affordable housing unit grant – is undetermined. Staff told council it could come from the property tax base or the federal grant, depending on the timing of the project.
All HAF funding must be used by the end of next year.
“Housing affordability is one of the most pressing issues facing our city. It’s an issue that is no longer confined to just one demographic or income bracket,” commented Chad McBain of OnePoint Association of Realtors, which represents local sales representatives and brokers. “People of all backgrounds are feeling the effects of an increasingly challenging market.”
McBain praised the programs, but noted it will still be a challenge for the city to see 8,700 new affordable housing units by 2051, as indicated in the staff report.
That accounts for about one-third of the new units needed to accommodate the city’s mandated growth to 208,000 residents, up from about 145,000 currently.
The programs create incentives to unlock potential housing supply, McBain noted.
“We know that Guelph has properties that can be put to better use,” he said.
When it comes to ensuring funding recipients maintain affordable rent levels, council heard they will be asked to annually re-affirm their program compliance, including that units aren’t used for short-term rentals such as AirBnB.
If they aren’t in compliance, council heard property owners will be given an opportunity to come into compliance, but if they don’t, they’ll need to repay the grant total plus interest.
Here’s a brief summary of each of the initiatives:
Vacant unit renewal grant – Available for the conversion of “uninhabitable residential and/or vacant commercial/institutional/office space into affordable residential rental units.” Eligible projects would receive up to $100,000 per affordable unit and $20,000 for each for units that provide accessibility features beyond the minimum Building Code requirements. Units must remain affordable for 25 years.
Additional dwelling unit grant – The proposal calls for two streams, with one for homeowners and another for developers, involving the creation of basement apartments, tiny homes and other accessory units. On the homeowner side, grants of up to $50,000 per unit are available ($20,000 for the unit and another $20,000 if infrastructure upgrades within the city's right-of-way are needed, with another $10,000 if accessibility features exceed minimum requirements in the Building Code). In terms of developers, grants of up to $140,000 are available for projects with six affordable units, including $10,000 per unit for construction costs, $20,000 for upgrades to infrastructure upgrades within the city's right-of-way and $10,000 if accessibility features exceed minimum requirements in the Building Code.
Those new units are to be kept affordable for at least 15 years.
New affordable housing unit grant – For the development of new, purpose-built affordable rental or ownership units, which must remain affordable for 25 years. Eligible projects would receive up to $25,000 per affordable unit.
Funding for the latter proposed program is proposed to come from the HAF or city taxpayers, depending on the timing of projects.
“There’s been a lot of interest in all of the programs,” noted James Goodram, the city’s general manager of economic development and tourism. “We’re getting all set up, ready to go in March.”
That’s when the application process is expected to open.