Tecumseh could get millions in housing cash from feds
Mayor hopeful as accelerator fund application moves to next stage
Pending further discussion on requirements, the Town of Tecumseh has been advised by federal officials that its Housing Accelerator Fund application may be approved for millions.
The municipality applied for $7.8 million. But in a report to council on Monday, administration said the Canada Housing and Mortgage Corp. (CMHC) has tentatively approved the next stage of the application process for $4.3 million in funding over three years.
“This would be a huge deal for our community,” Mayor Gary Mcnamara told the Star.
But he cautioned that “this is just the first phase ... it's premature to say we're there.”
The next step is talks between the town and officials from the CMHC and Ministry of Housing, Infrastructure and Communities. Still being worked out are zoning changes and housing targets, as well as the timing on planned initiatives.
“We're still working out the details and the process to pursue a valuable opportunity to create new residential units in response to the housing crisis and with so many newcomers coming into the region each month,” said Mcnamara.
The good news for Tecumseh comes less than two weeks after Ottawa rejected Windsor's application and the potential of $30 million in grant moneys (plus millions more based on achieving targets) to help address the city's housing crisis.
Tecumseh, like Windsor, applied for HAF funding last summer. Ottawa subsequently made the grants conditional on municipalities opening up their residential zoning to make fourplexes as-ofright.
The town must now approve fourplexes everywhere, as well as commit to a quicker start on applying the funds to new housing growth-related projects.
“The proposed adjustments modify the town's housing unit targets and projected funding to account for work already underway or planned and to reflect growth rates generally consistent with municipal peers,” Brian Hillman, Tecumseh's director of developmental services, wrote in a report to council.
“Further considerations include as-of-right zoning to permit fourunit housing in low density areas and to adjust timing for planned initiatives.
“The implementation of the initiatives using HAF funding will go a great distance in realizing the Town's strategic priority to appropriately address the evolving housing and socio-economic needs of the community, as expressed in its Housing Action Plan.”
Tecumseh's original application called for an addition of 267 net housing units over three years. With the reduction in the approved funding, the CMHC has adjusted that target downward to 137 units.
The prospect of fourplexes becoming an issue in Tecumseh seems unlikely as Mcnamara said town council has already approved two infill, six-plex projects built on Lesperance Road.
Another 55-unit, two-storey townhouse development on the former Victoria elementary school site has been approved and is expected to see a shovel in the ground in 2024, along with a four-building six-plex apartment complex at the corner of Lesperance and Dillon Drive. Both are infill projects in existing neighbourhoods.
The issue of fourplexes derailed Windsor's bid for federal housing money when the mayor and council opted not to make fourunit developments as-of-right on any residential lot in the city over concerns on the potential impact on established neighbourhoods.
In rejecting Windsor's application, Housing Minister Sean Fraser wrote Mayor Drew Dilkens that “only the most ambitious communities will receive funding.”
Mcnamara said Tecumseh wants “to make sure we know what we're getting into. The approval will include a public process to implement changes to our housing plan.”
Mcnamara said accessing millions in funding would go a long way toward helping his town meet the pent-up demand for housing.
According to this week's staff report, Tecumseh would dedicate $3.2 million of the new funds to capital projects, with the balance used to cover things such as waiving permit fees and development charges and purchasing software for e-processing of planning applications.
“It's the opportunity to take some of the money and put it into infrastructure requirements we need to build more housing and human capital where needed,” said Mcnamara.
The cost of addressing the current housing crisis, he said, “shouldn't be all shouldered by municipalities.”