June 6, 2024
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Graham Cubitt director of projects and development for Indwell, says $24 million from the province to operate 418 units of supportive housing is a no-brainer.
Cathie Coward, The Hamilton Spectator file photo
City politicians have embraced a new streamlined process to fund affordable housing in Hamilton, but non-profits say provincial health dollars for supportive units remain a vexing challenge.
The coalition of housing providers called Hamilton is Home says it could build 400 supportive-housing units with integrated health services in short order, but needs $24 million in provincial operating funds.
The costs associated with people cycling through homelessness and hospital emergency wards are much higher, suggests Graham Cubitt, director of projects and development with Indwell.
“This is where we think the $24 million from the province is a very simple decision, actually, and will have very long-term impacts on Hamilton.”
But there’s a “disconnect” between capital funding from governments and provincial dollars to operate such supportive housing, Cubitt told The Spectator.
Without that commitment, capital funders, such as the federal Canada Mortgage and Housing Corporation (CMHC), tell non-profits their operating plans aren’t “viable,” he noted.
“And we’re like, ‘We know.’”
Cubitt and fellow Hamilton is Home representative Sarah Borde, the YWCA‘s director of capital projects, raised those frustrations with city politicians Wednesday before they backed Hamilton’s new funding evaluation system.
The first intake of the secretariat’s affordable housing project stream received 27 applications, which represents a potential 1,620 affordable housing units. Allocations for projects are to be announced on June 19.
The budding application process is meant to replace more time-consuming and less uniform funding approvals through council with a streamlined and transparent system via an online portal that lays out criteria for applicants.
The goal, as well, is to show that the city has committed support for projects, which is a crucial milestone for applicants vying for more funding from senior levels of government.
Mayor Andrea Horwath called the issue of disjointed funding for supportive housing “a bit of a challenge,” noting municipalities have long pressed the province for operating funds.
“I think, historically, we don’t see those dollars coming.”
That’s the “crux of the problem,” responded Cubitt, noting the municipal tax levy doesn’t cover health services for supportive housing. “It’s not legally our responsibility. It’s not financially within our capabilities.”
Giving ample notice to the province of projects in the pipeline with the hope of eventually lining up operating funding makes sense, but firm municipal commitment is key, he suggested.
“As long as we just stand there saying, ‘Well, we’re ready to go as soon as you are,’ they have other priorities.”
In an interview, Cubitt explained the provincial Health Ministry won’t commit operating dollars beyond the fiscal year, which is an issue for construction projects that might not open two or three years down the road.
“So, it’s just a structural problem.”
Indwell, however, landed provincial funding for 640 new supportive housing units in Ontario, including in Hamilton, in this year’s budget. “But all of those projects were projects that had actually opened already.”
The provincial housing, health and social-service ministries didn’t immediately respond to The Spectator’s request for comment Wednesday.
Hamilton’s affordable housing project stream relies on a variety of sources, including a $93.5-million federal Housing Accelerator Fund allocation and a $31-million, three-year city commitment to supportive housing.
According to the latest available city figures, roughly 6,000 households are on the wait list for subsidized housing and about 1,600 people are homeless in Hamilton. City staff recently estimated more than 200 people are living outside, including in encampments.
The first round of allocations through the project stream caps the allocations that the housing secretariat can make without council’s approval at $2.5 million per project.
That will work for many projects, but it will leave gaps for some, Cubitt and Borde said.
“The $2.5-million delegated authority limit is a good start,” said Borde, but added supportive housing projects, in particular, need higher thresholds of municipal investment to land senior government funding.
Coun. Cameron Kroetsch said projects that need more than the $2.5 million can come before council to make such requests.
“This is a starting place and not a final resting place for this program,” he said.
Indeed, there “will be lessons learned” as the process rolls out, added Justin Lewis, housing secretariat director. “This is a starting point to do something with the funding that we have available to us.”
Horwath agreed there’s fine-tuning ahead.
“We have a long way to go. There’s no doubt, but I’m excited about where we are now.”