Bid for fund to preserve affordable housing in Ottawa fails at committee
Staff warn a shift from construction could jeopardize outside funding
The City of Ottawa won't be creating a pot of money to buy at-risk affordable housing any time soon, citing the danger of losing federal and provincial funding by shifting away from construction.
College ward Coun. Laine Johnson led the charge for an acquisition fund at Wednesday's planning and housing committee meeting, but failed to convince enough of her colleagues to vote alongside her.
"What I've been disappointed with is the idea that we have to put new construction essentially in competition with acquisition," Johnson told CBC after the vote.
Her motion would have seen half of any money the city gets from the vacant unit tax — beyond what's forecast in the budget — go toward preserving existing affordable housing stock.
It failed by a vote of eight to four, with only councillors Riley Brockington, Ariel Troster and committee chair Jeff Leiper supporting Johnson's bid.
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What is an acquisitions fund?
Debbie Stewart, the city's general manager of strategic initiatives, wrote to the committee ahead of the meeting to lay out her staff's concerns.
An acquisition fund is a "dedicated pool of capital" that can either fund a direct purchase, or finance a low-cost loan or grant to housing providers, she wrote.
Similar funds exist in Toronto and several provinces.
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While Stewart said the funds can strengthen the community housing sector, she cautioned that market competition for units in high-demand areas can jack up the purchase price. Older units also come with high repair costs, she said.
But the main concern surrounds the structure of Ottawa's housing strategy, which relies on the federal Housing Accelerator Fund and provincial Building Faster Fund.
Putting funding at risk
Both funds require Ottawa to meet ambitious building targets.
"We really need to direct city funds into achieving those goals," Stewart told CBC, noting that the funds leave little room for negotiation.
Cyril Rogers, the city's chief financial officer, agrees the focus has to be on construction.
"I think that's what we should be focused on in the next two or three years. Any nickel or dime that we take away from that process will impact that plan," he told councillors.
Waiting would also allow the city to see how the federal government develops its own acquisitions fund.
The $1.5-billion Canada Rental Protection Fund would leverage "philanthropic investing" to "help non-profits, co-ops and other community housing providers," the office of the minister of Housing, Infrastructure and Communities told CBC in a written statement.
A spokesperson said there should be more details on the fund's design and rollout "in the coming months."
Several councillors worry that relying on outside money is risky, however.
"If we're waiting for the federal government, who knows what federal government we will have," said Capital ward Coun. Shawn Menard, who is not on the committee.
Conservative Leader Pierre Poilievre has already said he would dissolve the Housing Accelerator Fund if elected prime minister.
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Concerns over political uncertainty
Johnson said the current plans show a "lack of creativity."
She likened the city's current housing plans to a "leaky rowboat," where staff focus on years-long construction projects while overlooking the continued loss of affordable units — and she's worried things will get worse.
"If we can't afford steel or lumber coming from the [United States] under new tariffs, if we can't afford land around transit … acquisition becomes even more important," said Johnson.
Several advocates have attempted to rally councillors around an acquisition fund, including Alliance to End Homelessness Ottawa.
"When we lose those units, we're not replacing them at a pace that keeps up with what's needed," said Meg McCallum, interim executive director of the non-profit coalition. "Let's just not lose what we already have."
Pilots ongoing
Stewart said Wednesday's decision doesn't mean the city will never create an acquisitions fund, nor that non-profits with plans to purchase a property can't get help now.
She pointed to the Ottawa Community Land Trust (OCLT), which advocated for the fund.
It has so far purchased two properties by leveraging donations, bonds and municipal funding, and told councillors earlier this month that it was already looking for its third and fourth properties.
"We do believe this represents a new way of working," said Mike Bulthuis, the group's executive director. "Our hope … is that public funds might support a diversity of approaches."
Staff are still "monitoring the viability" of the model, Stewart wrote to councillors, noting that the city filled a "financial shortfall" after revenues failed to meet expectations.
That was before OCLT raised $1.7 million through its community bond campaign.
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