Region to give three houses to nonprofits in affordable housing lottery

KITCHENER — Nonprofits have the chance to acquire three houses for affordable housing — for free — under a plan by the Region of Waterloo to hold two lotteries for the surplus properties.

It’s the first time the region is holding a lottery rather than selling property it doesn’t need. It’s selling the homes at 24, 32 and 34 Mill St. in Kitchener “as is” for a nominal fee. Staff called it “a novel approach that provides a fair and open opportunity” for housing nonprofits to acquire property.

Waterloo regional councillor Jim Erb praised the creativity of regional staff in proposing the scheme, saying at a recent meeting, “There’s all sorts of things we need to start doing to think outside the box of the way we create traditional affordable housing.”

The move will mean “there could be three families in our community that we’re going to be able to house in a family setting, so let’s do it.”

Kitchener councillor Michael Harris said he would prefer the region sell the houses, which he said would be better “not only for taxpayers but also for potentially an investment and more funds for better affordable housing options.”

Council voted to approve the lottery, which will happen after pandemic restrictions are eased.

The three sites are relatively modest, with street frontages of about 40 feet. Each lot contains a two-storey detached house, though two of the homes are vacant and in need of repair. The new owner must honour the lease of the tenants who live in the one occupied home.

The region will send out a request for proposals to nonprofit housing groups who want to take part in the draws. Eligible groups must already provide affordable housing in Waterloo Region, and be able to show they have the experience, expertise and funds to manage the homes as affordable rental units.

The region will cover the estimated $6,000 legal costs to transfer the properties to new owners.

To ensure the sites remain as affordable housing, the region will register restrictive covenants on title, requiring that the houses be used as affordable rental housing for at least 25 years. The region will also have the option to buy back the properties for a nominal fee if they’re vacant for more than six months, if they aren’t used for affordable housing or if the nonprofit tries to sell the property to a third party.

As with any lottery in Ontario, the winner will have to answer a skill-testing question to be able to claim their prize.

The region bought the three properties in 1984 for a total of $141,500 — equivalent to about $322,00 today — as part of a plan to build the Queen-Benton diversion, a major artery to link the west side of Kitchener with downtown. That plan was scrapped years ago and the properties were declared surplus in April 2019.