TAMRMS#: B06
10.1
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Habitat for Humanity Funding
Notice given by: Councillor Killick
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PROPOSED MOTION(S):
recommendation
That the following Notice of Motion be debated at the April 16, 2024 regular meeting of Council and that the 20 day notice period requirement in section 119(9) of the Procedure Bylaw be waived.
That funding in the amount of $100,000, funded from the Capital Reserve, be provided by the City to Habitat for Humanities in support of four affordable housing units in the Midtown neighbourhood in St. Albert, subject to (i) Habitat for Humanities receiving associated grant funding for the same project from both the Government of Canada and the Government of Alberta; (ii) Habitat for Humanities entering into a grant funding agreement with the City on typical terms and conditions approved by the CAO; and (iii) Habitat for Humanities’ compliance with the terms and conditions of the grant funding agreement.
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ADMINISTRATION’S UNDERSTANDING OF THE INTENT OF THE MOTION
If the above motions are approved, Administration’s understanding is that the City would enter into a grant funding agreement with Habitat for Humanity to provide $100,000 to Habitat in support of four affordable housing units in the Midtown neighbourhood subject to Habitat receiving sufficient grant funding from the Government of Canada and the Government of Alberta for the project and on terms and conditions approved by the CAO.
PURPOSE OF REPORT
The purpose of this report is to present a motion for which Councillor Killick gave notice on April 10, 2024.
BACKGROUND AND DISCUSSION
Administration’s understanding is that Habitat for Humanity is negotiating a partnership with Averton to purchase two interior, and two exterior units in Midtown, Phase 2. The project would have Habitat contributing $600,000 in the form of cash and government grants to bring the cost of the units down to break even. Habitat faces a shortfall of $484,000 to make the four units affordable, and a representative presented to Council on April 2, 2024 seeking contribution of up to $484,000. This contribution is equivalent to the land cost, similar to what other regional municipalities have contributed to Habitat development in other communities.
The desired units would be dedicated to Black families, and would support Black families in perpetuity, as this is the funding stream available to them.
To participate in the Black Families Funding program, Habitat would need to provide the intended address no later than May 2024. If the project were to go forward, Habitat anticipates needing the funds in 2025. There are no known commitments for future Habitat funding beyond the current opportunity.
STAKEHOLDER COMMUNICATIONS OR ENGAGEMENT
A representative from Habitat for Humanity presented to Council on April 2, 2024. Their presentation is attached to this agenda report.
IMPACTS OF RECOMMENDATION(S)
Financial:
The current uncommitted balance in the Capital Reserve is $6.2 million.
With the reduction in provincial grants, the overall funding deficit available for capital initiatives has increased, putting further pressure on the capital reserve. Funding this initiative will reduce the amount of capital dollars available for future prioritized capital projects as well as emergent capital items.
Compliance & Legal:
If the above motions are passed, Administration would enter into an agreement with Habitat for Humanity in support of four affordable housing units in the Midtown neighbourhood. The agreement will have typical grant funding requirements (for example: reporting, repayment if not used for the project, public acknowledgement of the City’s contribution), but in addition would be conditional upon Habitat receiving sufficient grant funding for the project from both federal and provincial levels of government. The agreement will be clear that the funds from the City are not payable unless this condition is met.
Program or Service:
None at this time.
Organizational:
None at this time.
Risks
None at this time.
ALIGNMENT TO PRIORITIES IN COUNCIL’S STRATEGIC PLAN
Community Well Being
Support development of mixed housing choices including market, attainable, and transitional housing types. This strategy includes advancing development on 22 St. Thomas Street and youth transitional housing.
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Report Date: April 16, 2024
Author: Adryan Slaght, Anne Victoor
Department: Planning and Development, Financial & Strategic Services
Managing Director: Diane Enger, Diane McMordie
Chief Administrative Officer: William Fletcher