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Affordable housing costs 'nearly impossible': staff

A master plan detailing 25 initiatives to increase affordable housing for middle-income renters and homebuyers would come with $3M annual cost to Collingwood taxpayers
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Collingwood council chambers is on the second floor of town hall at 97 Hurontario Street.

The plan commissioned by Collingwood's council to help create more affordable housing might do more to reveal how unaffordable housing is, even for a municipality. 

A new affordable housing master plan included on council's Oct. 30 meeting agenda presents 25 initiatives to increase affordable housing in town, but at a cost of $3 million a year for the municipality. That's about eight per cent of the annual taxes collected from residents. 

Collingwood’s new affordable housing master plan will be presented to councillors for the first time on Oct. 30 and as part of that, council will have to make some decisions on which parts of the plan should be supported through 2024 budget funds.

In a staff report on the 200-page plan compiled by N. Barry Lyon Consultants, Jenn Rae, housing development co-ordinator with the town, notes that while there are many suggestions in the 25-initiative plan that would make a big impact, staff have some concerns about the costs of implementing everything.

“Staff are concerned that this is nearly impossible in terms of other municipal needs and an over-eight-per-cent tax increase would put untenable pressure on the local tax base to fund,” wrote Rae.

To meet in the middle, staff are asking council to endorse the plan and offer up some funds in the 2024 budget to implement parts of the plan right away, as well as starting to implement recommendations in the plan that won’t have a financial impact.

Specifically, staff are asking the town to set aside $10,000 to facilitate fast-tracking zoning bylaw amendment approvals, $10,000 to enact a new rental replacement bylaw, $25,000 for an affordable housing public communications campaign and $40,000 for a development process review.

During discussion on the first draft of the budget early this month, council decided to not continue to the next draft with the development process review, however it could be brought back should council change their minds.

There are some additional funds that would be needed not already contemplated in the 2024 budget, such as expanding the rapid accessory dwelling unit program by $212,572.

Some of the suggestions made by the consultants with no associated financial impacts include offering simple pre-approved off-the-shelf building designs, exploring the potential for bonuses for higher-density building and encouraging non-traditional construction techniques.

Also as part of the plan, town-owned property at 29 and 45 Birch Street and 7882-7888 Poplar Side Road would be submitted as options to the County of Simcoe's upcoming call for municipal lands for affordable housing development.

According to a housing needs assessment completed by the town in June 2023, there are next to no options in the Collingwood housing market for moderate-income households in both ownership and rental tenures.

The town’s affordable housing master plan focuses on the housing needs of moderate-income households, which is defined in Collingwood as between $36,000 and $51,000 for renters and $70,000 and $98,000 for homeowners.

To accommodate the forecasted population growth in Collingwood to 2051, more than 10,000 new housing units will be required.

One of the key questions sought to be answered through the affordable housing master plan is whether the town should, effectively, become a landlord and build units themselves to add to the stock.

The consultant has recommended that the town should not become developers or housing operators via a housing corporation, land trust, housing co-operative or by becoming landlords.

“(The consultant) indicates that is it more efficient and effective for other community partners to deliver these actions, with town support,” notes Rae in the report.

“(This) gives the town a clear path forward with focused policy, process and regulatory changes, financial approaches, co-ordination and advocacy initiatives,” she wrote.

Actions taken by the current council and staff in regards to affordable housing to date include approving the rapid accessory dwelling unit deployment program, approving a concierge program where the town will connect developers, tradespeople and investors who are interested in helping develop affordable housing, continuing to support the work of the affordable housing task force and seeking out grants/funding opportunities. The town has also continued work on the Official Plan update.

To access the full plan and the staff report, click here.

The affordable housing master plan is included as part of the Oct. 30 special committee of the whole meeting agenda to be discussed by councillors before any decisions are made. The meeting will begin following a special council meeting starting at 2 p.m.

Any members of the public may attend in person in council chambers at Collingwood town hall, or virtually by Zoom webinar. The meeting will also be livestreamed on the town’s YouTube channel here.