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2. NEW PROVINCIAL FUNDING FOR SOCIAL HOUSING REPAIRS NOUVEAUX CRÉDITS PROVINCIAUX POUR LA
RÉPARATION DES |
Committee Recommendation
That Council
approve that the Housing Branch allocate the $8.2 million in provincial funding
announced on March 17, 2008 by providing $4.1 million to Ottawa Community
Housing (OCHC) and $4.1 million to all other social housing providers via the
funding process established in 2007 for urgent capital repairs.
Recommandation du comité
Que le Conseil
approuve que la Direction du logement répartisse de la manière suivante les
crédits provinciaux de 8,2 millions de dollars annoncés le 17 mars 2008 : 4,1
millions de dollars pour la Société de logement communautaire d’Ottawa et 4,1
millions de dollars pour les autres fournisseurs de logements sociaux, selon le
mécanisme de financement établi en 2007 pour les réparations urgentes liées aux
immobilisations.
For
the information of council
The Community and Protective
Services Committee also approved the following directive:
That the Community and Protective Services Committee authorize staff to receive
the Provincial funding for capital repairs to social housing and proceed with
the implementation and allocation of this funding.
Pour la gouverne du Conseil
Le
Comité des services communautaires et de protection a également approuvé la
directive suivante :
Que le Comité des services communautaires et de protection autorise le
personnel à recevoir des crédits provinciaux pour la réparation des logements
sociaux et à poursuivre la mise en œuvre et l’attribution de ces crédits.
Documentation
1. Deputy City Manager's report (Community and
Protective Services) dated 11 June 2008
(ACS2008-CPS-HOU-0009).
Report
to/Rapport au :
Community and Protective Services
Comité des services communautaires
et de protection
and Council/ et au Conseil
11 June 2008/le 11 juin 2008
Submitted by/Soumis par : Steve Kanellakos, Deputy City Manager/
Directeur municipal adjoint,
Community and Protective
Services/Services communautaires et de protection
Contact
Person/Personne ressource : Russell Mawby, Director/Directeur
Housing/Logement
(613) 580-2424 x 44162, russell.mawby@ottawa.ca
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SUBJECT: |
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OBJET : |
NOUVEAUX CRÉDITS
PROVINCIAUX POUR LA RÉPARATION |
REPORT RECOMMENDATION
That the Community and Protective Services Committee recommend Council
approve that the Housing Branch allocate the $8.2 million in provincial funding
announced on March 17, 2008 by providing $4.1 million to Ottawa Community
Housing (OCHC) and $4.1 million to all other social housing providers via the
funding process established in 2007 for urgent capital repairs.
RECOMMANDATION DU
RAPPORT
Que le Comité des
services communautaires et de protection recommande au Conseil d’approuver que
la Direction du logement répartisse de la manière suivante les crédits
provinciaux de 8,2 millions de dollars annoncés le 17 mars 2008 : 4,1
millions de dollars pour la Société de logement communautaire d’Ottawa et 4,1
millions de dollars pour les autres fournisseurs de logements sociaux, selon le
mécanisme de financement établi en 2007 pour les réparations urgentes liées aux
immobilisations.
On March 17, 2008, the Government of Ontario announced $8.2 million in
new funding for repairs to social housing in Ottawa. Staff recommend that this funding be
allocated via the funding process established in 2007 for urgent capital
repairs.
In October 2007, Council approved a report to allocate $12 million in
grants to housing providers in support of emergency repairs with $6 million of
the total to be allocated to Ottawa Community Housing, and $6 million
distributed to the other 55 housing providers in Ottawa.
RÉSUMÉ
Le 17 mars 2008, le
gouvernement de l’Ontario a fait savoir qu’il accordait la somme de
8,2 millions de dollars pour la réparation des logements sociaux à Ottawa.
Le personnel a recommandé que l’attribution de ces crédits s’effectue selon le
mécanisme de financement établi en 2007 pour les réparations urgentes liées aux
immobilisations.
En octobre 2007, le
Conseil a approuvé un rapport prévoyant l’octroi de subventions de
12 millions de dollars aux fournisseurs de logements pour l’exécution de
réparations urgentes. La moitié de cette somme devait être attribuée à la
Société de logement communautaire d’Ottawa, alors que la seconde moitié devait
être répartie entre les 55 autres fournisseurs de logements d’Ottawa.
BACKGROUND
Ottawa’s social housing stock is a
significant public asset with an estimated replacement value of $2.8 billion.
There are 18,931 existing social housing units under City oversight. Subsidizing social housing is also a significant
cost to the City of Ottawa - about $74 million in 2008.
The gap
in capital funding for maintenance and repairs is estimated at $712 per unit
per year, or $14 million per year. This
is consistent with findings from across the province.
In
October 2007, Council approved a report to allocate $12 million in grants to
housing providers in support of emergency repairs with $6 million of the total
to be allocated to Ottawa Community Housing, and $6 million distributed to the
other 55 housing providers in Ottawa.
Thirty-one
social housing providers applied for urgent capital funding, and 21 did
not. Many housing providers applied for
multiple projects, and in total, 123 separate projects were reviewed. Requests exceeded the available funding by
$5.126 million. All 31 housing
providers had at least one project that qualified for priority funding. Eighty-nine projects were approved to
receive funding. The remaining 34
projects could not be funded due to a lack of funds. All projects must be completed and funds paid by December 31,
2008 and staff will provide a final report to CPS committee.
On March
17, 2008, the provincial government announced that Ottawa would receive $8.2
million in new funding for social housing repairs. Staff propose that a similar approach is used to allocate these
funds; $4.1 million will be allocated to Ottawa Community Housing Corporation,
and $4.1 million allocated to the other 55 housing providers in Ottawa. Housing providers who wished to be
considered for this funding were required to submit detailed applications by
May 30, 2008 for each capital project for which funding has been
requested. 190 capital projects were submitted by
32 housing providers, and the total funds requested exceeded $11
million. Staff are reviewing each project request.
On March 17, 2008, the provincial
government also announced that it will
expand the Ontario Strategic Infrastructure Financing Authority (OSIFA) to
include loans municipalities to undertake social housing capital repairs. Up to $500 million from OSIFA will be
allocated for municipalities to use to repair social housing. The details of how the program would work
and which housing providers would be eligible are still being finalized. Currently only Local Housing Corporations, which
in Ottawa is Ottawa Community Housing, are eligible. In general terms, OSIFA provides loans, which must be
repaid. Assuming a 25-year term at the
current posted rate of 4.67%, each $10 million borrowed would cost $682,098 per
year (bi-annual payment) which would be new funding over and above current
operating subsidy payments and budget.
Total interest payment over 25 years would be $7,052,462. The benefits of borrowing are that a greater
amount of capital can be brought to the table up front to undertake the
necessary repairs rather than spreading the repair program out over 20
years. Staff will report back to
Council once the details of the program are available and in time for 2009
budget deliberations.
There was no consultation in the development of this report as the proposed approach is consistent with the allocation of the 2007 social housing repairs grant fund.
The announced grant from
the Province of $8.2 million for repairs to Ottawa's social housing
stock, and the allocation of this grant to housing providers as identified
in this report, would have no immediate financial implications to the City.
This report supports Infrastructure
Renewal Priority Objective 4: Repair, replace and/or upload all City
housing stock by 2020, including a review of innovative alternatives to
rehabilitate the stock.
SUPPORTING
DOCUMENTATION
This report was
previously listed on the CPSC agenda of April 3, 2008 under the following
reference number: ACS2008-CPS-HOU-0004.
The Community and Protective Services Department will action any direction received pursuant to consideration of this report.