SHERBROOKE — Progress on a proposed seniors’ affordable housing project by the Community First Guysborough Housing Association (CFGHA) for the Anderson property here is at a standstill, at least for now, according to its proponents.
In a presentation to the Municipality of the District of St. Mary’s committee of the whole (COTW) on March 5, CFGHA Chair Nancy O’Regan provided an update on the status of the Sherbrooke project, while also making a $78,852 funding request to the municipality.
“St. Mary’s council supports the goals of affordable housing now, and in the future,” Warden James Fuller said in an email to The Journal after the COTW session. “However, due to the restrictive time frame and fiscal considerations, we were unable to continue our partnership with this particular project.”
He added that council “is absolutely open to consider[ing] support of further initiatives as they present themselves in accordance [with] our community housing goals.”
In November, the CFGHA signed a purchase and sale agreement for the Anderson property in Sherbooke. Using $8,000 in seed funds from the municipality, they put a $5,000 down payment on the land purchase that, after several extensions, had a closing date of Feb. 28; one extended, once again, to March 10.
O’Regan told the COTW that $9,052 had been spent on the project, which included hiring a consultant ($1,152) to begin looking at re-zoning and identifying architects and designers, as well as completing a Phase 1 environmental assessment on the property ($2,900), which found no issues.
The CFGHA applied for funding to purchase the land for $80,000 through the CMHC SEED Loan program, explained O’Regan. However, she said, the application was rejected due to the need for additional information.
“What we’ve heard from them is that we’re not eligible, unless we present to them a full plan for the full construction,” she explained, adding the CFGHA has not had enough consultation with the community to do so.
Requests from the CMHC included three years of audited financial statements, a project cost estimate and a co-borrower – none of which are available currently, O’Regan stated.
She explained the CFGHA does have some plans in place, such as applying for funding from the Centre for Community Housing Transformation for pre-development costs. Those costs – $50,000 – would include hiring an architect for preliminary design and a consultant/project manager to lead feasibility for infrastructure; zoning and procurement of services, as well as site preparation costs; and consultations with the community.
O’Regan added the organization is also considering a plan to apply for funding from the Federation of Canadian Municipalities to support net-zero construction, Nova Scotia Affordable Housing Programs for rental subsidy and CMHC for construction costs. However, she noted, without a means to purchase the property, the seniors housing project at the Anderson property location has no way to move forward.
She noted other options available regarding a seniors housing project for Sherbrooke include waiting until the St. Mary’s community concept project is developed and requesting land from municipal council to build there – which would mean a longer time frame; seeking a private mortgage from the landowner – at higher costs and interest; or requesting the St. Mary’s Housing Advisory Committee fundraise in the community. Although, she noted, realistically there was not enough time or capacity to raise funds by the March 10 deadline for purchasing the Anderson property.
As there will be a community contribution needed as part of the capital construction project, she added that going to the community for funding twice is not advisable and there is not enough time to seek business partners or foundation grants or donations.
“There’s not a grant that we wouldn’t need eight to 12 weeks to apply for, so time really isn’t on our side,” she said.
Thus, what the CFGHA considers as the best path forward is “to ask the municipal council to contribute the balance of funds that we need for this project as a grant or to purchase the land, and then turn it over to us on the condition that, if we didn’t use it, it would go back to council,” O’Regan added.
She noted that, if the opportunity to purchase the Anderson property is lost, the CFGHA will be refunded the $5,000 for the down payment.
“We can use it for another project at another time, but we wanted to make sure that we did everything we could to see if there was an alternate pathway forward to be able to move on this project,” O’Regan explained, adding the association feels the project on the table is the best first option for Sherbrooke, and would allow for the quickest start as the land is already prepped.
“We know the water and sewer go right by the driveway,” she noted, “and it’s already leveled and close to all of the important services that are needed for any seniors that would be living in that community.”
The CFGHA still has legal costs. “We’ll still have to incur that … even if we don’t close the property,” said O’Regan.
She noted that, when the project reaches the construction stage, the CFGHA would come back and probably ask for another capital contribution. But, where the municipality will also have made a significant one [if they agree to fund the purchase of the Anderson property], “then that ask would probably be less.”
The majority of municipalities usually contribute $200,000 to $250,000 to affordable housing projects, O’Regan explained, especially when those projects could be anywhere from $2,500,000 to $3,500,000 to build.
“So, we know we’re going to be into at least a $3,000,000 or more project to build,” she said.
Following O’Regan’s presentation and funding request, council members then entered into an in-camera meeting, after which they disclosed their decision – at the present time – not to contribute additional funding to the affordable seniors housing project at the Anderson property.
