TAMRMS#: B06
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Rapid Housing Initiative
Presented by:
Catriona Gunn-Graham, Senior Manager, Community Services
Lory Scott, Affordable Housing Liaison, Planning and Development
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RECOMMENDATION(S)
recommendation
1. That AR-20-405 be rescinded.
“That a grant application for the Rapid Housing Initiative (RHI) towards the transitional youth home housing model be approved in principle, including the requirement for a municipal financial contribution towards the project.
That Administration return to Council with specific details on the City’s application prior to submitting to Canada Mortgage and Housing Corporation for funding consideration.”
2. That Administration continue working on the Youth Transitional Housing initiative, and apply for any future funding if it becomes available.
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PURPOSE OF REPORT
The purpose of this report is to provide Council with an update on the progress made, and the current status of the City’s Rapid Housing Initiative grant application for Youth Transitional Housing (YTH).
ALIGNMENT TO PRIORITIES IN COUNCIL’S STRATEGIC PLAN
2020-2021 Corporate Business Plan:
Strategic Priority #5: Housing and Social Well-being - Enhance housing options and social supports
- Explore interim housing options to support vulnerable populations.
- To explore options for an enhanced, integrated, and coordinated network of social services to meet the basic needs of residents and address emerging trends and issues.
ALIGNMENT TO LEVELS OF SERVICE DELIVERY
2019 Service Level Inventory
- Land Use Planning - Strategic Land Planning: Development, management and implementation of corporate land strategy. Search for land for new capital projects, high school sites, and affordable housing locations.
ALIGNMENT TO COUNCIL DIRECTION OR MANDATORY STATUTORY PROVISION
On November 16, 2020 Council passed the following motion:
(AR-20-405)
That a grant application for the Rapid Housing Initiative (RHI) towards the transitional youth home housing model be approved in principle, including the requirement for a municipal financial contribution towards the project.
That Administration return to Council with specific details on the City’s application prior to submitting to Canada Mortgage and Housing Corporation for funding consideration.
BACKGROUND AND DISCUSSION
Canada Mortgage and Housing Corporation announced the Rapid Housing Initiative grant call at the end of October 2020, allocating one billion dollars to address the urgent housing needs of vulnerable Canadians through the rapid construction of affordable housing, with a submission deadline of December 31, 2020. The grant provides a minimum of $1,000,000 in capital dollars for housing which addresses homelessness.
The timelines were very ambitious, but the opportunity was substantial. The main work that needed to be completed was to:
- identify potential site(s),
- determine capital costs for modular construction within a 12-month completion timeframe,
- identify potential agencies to provide the operational programming,
- secure commitment for ongoing operational funding, required for the minimum 20-year term, or an executed agreement or letter of intent with the service provider.
Grant funding provided through the RHI is for capital funding only. Grant requirements specifically state that program and operational costs must be confirmed for the minimum 20-year affordability period, either through a letter of intent from the municipality, or through an agreement or letter of intent with an operational partner. Without a third-party operator, the City was required to commit to all operating costs ($650,000/year) for a minimum of at least 20 years.
Potential Site(s): Several alternative sites were identified as potentially appropriate for Youth Transitional Housing, given the proposed development size and location requirements. While planning amendments and public consultation will be required to facilitate development of a preferred site option, alternatives do exist with existing City owned properties. Council approval at a future public meeting would be required for specific sites.
Capital Costs: The grant required renovation of existing facilities into housing, or the development of new housing using modular construction processes completed within a maximum 12-month timeframe. Administration has asked for price quotations from two modular suppliers based on a draft building plan.
Building Operations: Preliminary discussions were held with a housing operator who expressed interest in supporting this initiative but indicated that they would be unable to cover the expenses associated with property management without a dedicated revenue stream to support the costs incurred.
Program Operations: operational costs to staff and run YTH are estimated at approximately $650,000/year.
- Three non-profit organizations were approached to gauge their interest in operating the YTH. Two agencies engaged in further discussions, but unfortunately neither were able to commit to this project within the RHI timelines.
- One agency is considering contributing a percentage of operational costs, but prefers to run the program in partnership, either with the City or another partner.
- The other agency does not have access to core operational dollars to support this initiative. However, they are interested in discussions to explore options how they could be involved should operational funding be secured. Their expertise and experience would help build strong programing for YTH.
o The City could provide some operational support through existing COSA grant programs.
Administration was notified on December 3, 2020 that RHI applicants were required to submit fully completed applications to CMHC for preliminary review by December 18, 2020 in order to identify any potential shortcomings or deficiencies with the grant application, and to address them prior to the final application deadline of December 31, 2020.
The revised process timelines would have required Administration to make assumptions of Council’s long term operational funding commitments to this project, which was not in alignment with the intent of Council’s original motion, to direct Administration to prepare the application and return to Council with specific details on the City’s application prior to submitting to Canada Mortgage and Housing Corporation for funding consideration.
STAKEHOLDER COMMUNICATIONS OR ENGAGEMENT
N/A at this time.
IMPLICATIONS OF RECOMMENDATION(S)
N/A
Legal / Risk:
The RHI grant required confirmed operating funding through an identified source, such as an agreement with the Province, a third party, through the project’s own operations, or through the City itself for the term of the RHI contribution agreement.
As the expedited timelines for the grant application did not allow sufficient time to confirm funding availability, a letter of intent from the City was an alternative option, confirming an operating funding commitment for the minimum 20-year affordability term, estimated at $650,000/year,
This requirement represented a long-term liability and financial risk to the City without confirmed external funding sources.
Program or Service:
The RHI grant opportunity addressed Council’s strategic and corporate priorities to enhance housing options and social supports. Had a grant application had been successful, vulnerable groups would have access to services and supports that are currently not available without leaving St. Albert.
While the City was unable to apply for this grant opportunity, given the specific conditions of the grant, it has enabled a clear direction moving forward for future project planning work, and will enable the City to be in a better position should future grant opportunities become available.
Organizational:
The City will continue to play a coordination role in finding one or more agencies to operate the YTH, and work with other orders of government to advocate for capital and ongoing operational funding. The Affordable Housing Liaison Officer and Social Housing Specialist positions are pivotal to carry this work forward.
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1: Direct Administration to discontinue working on the Youth Transitional Housing initiative. This will result in an ongoing gap in housing supports for vulnerable youth, as identified in the Mayor's Taskforce on Homelessness Final Report.
Report Date: December 9, 2020
Author(s): Debi Skoye, Catriona Gunn-Graham, Lory Scott
Department: Community Services / Planning and Development
Deputy Chief Administrative Officer: Kerry Hilts
Chief Administrative Officer: Kevin Scoble