HEDDY SOROUR

The Town of Carleton Place has just released a Supports for Affordable Housing report that explores partnering with private and non-profit organizations. The Town’s decision to collaborate with developers to accelerate affordable housing development was initiated by the requirements of a federal Housing Accelerator Fund (HAF) application — a shift that marks the first time the municipality has seriously explored such collaborations.

The Town has secured a $5.6 million grant toward speeding up the development of affordable housing in town, in consultation with both private and non-profit developers.

The funding, received at the end of 2024 through an application to the second intake of HAF administered by Canada Mortgage and Housing Corporation (CMHC), aims to streamline the development of affordable housing. To meet the requirements of the funding, Town staff had to identify seven initiatives designed to improve processes, including collaboration.

“The funds do not necessarily have to be used for affordable housing; however, the seven initiatives are intended to create change which will help support affordable housing,” said Smithson.

In her report to Council, Smithson recommended using $500,000 of the grant to beef up the Town’s Community Improvement Plan from $50,000 to $200,000 and use it to help lower the costs of building affordable housing, on an application basis. Council proceeded to give direction that non-profit developers get first dibs.

“I (and other Council members supported) believe it to be important that non-profit developers get first opportunity at these funds, because they will build 100 percent reduced units. They would keep them permanently at below-market rents. For-profit developers generally are looking to make units available below market rates for a specified period, and then when that time ends, they would become normal rate units moving forward,” said Toby Randell, mayor.

At issue is the need for land. Non-profit developers expressed their need for land at below market value or at no cost.

“The Town has very limited available land that is not already earmarked for some other purpose,” said Randell. “Private builders have land, labourers, and the ability to build units. But as they are profit-driven, it must make sense financially for them to do below-market units. If a non-profit organization isn’t able to step forward, then I would be willing to see a private developer access those funds to the benefit of our community.”

Collaboration with private and non-profit developers is only one of the seven initiatives that the Town identified in order to secure funding. Other actions the Town has committed to include a full review of the Town’s development fee structure to streamline the process and reduce costs associated with growth; ending exclusionary zoning to allow a greater mix of housing types; removing barriers to highway corridor residential development; adopting a community planning permit by-law to make approvals easier to obtain; administrative upgrades; and increasing density in certain neighbourhoods.

“These seven initiatives were ones the Town was able to accomplish and that Council supported,” said Smithson.

The HAF funding is intended to address the current housing crisis and help municipalities find ways to encourage more affordable housing development.

“The funds do not necessarily have to be used for affordable housing; however, the seven initiatives are intended to create change which will help support affordable housing,” said Smithson.

The bulk of the actions the Town has committed to accomplishing will cost about $560,000, so in addition to the $500,000 earmarked for the CIP, the Town still has a little more than $5 million left to invest in creating affordable housing directly or indirectly as Council dictates.

“Council has not decided how the balance of grant funds will be used at this time,” concluded Smithson.

The Supports for Affordable Housing report is available on the Town’s website.