Tecumseh's Community Housing and Facilities funding by the CMHC is now uncertain following a city council vote.
In a move that could set a precedent for other municipalities, Tecumseh and Windsor have raised concerns about the rigidity of Ottawa's Housing Accelerator Fund (HAF) program. The issue at hand revolves around a key requirement for the program: allowing fourplexes as-of-right in low-density residential zones.
Tecumseh council recently voted against this requirement, a core part of their HAF-approved action plan, potentially putting up to $3.2 million of HAF funds at risk. The funds were earmarked specifically for stormwater management projects to support housing development.
The town administration has informed the Canada Mortgage and Housing Corporation (CMHC) of the decision and is awaiting a response. It appears that the other portions of HAF funding for waiving development charges and purchasing software remain separate from the fourplex requirement and are not immediately at risk.
Mike Moffatt, a housing policy expert, believes that this silence from Ottawa has created an opportunity for municipalities to "have it both ways - collect the funding and not necessarily live up to their full obligation." He warns that unless Ottawa enforces HAF conditions clearly and consistently, the program risks losing credibility, making future housing agreements more difficult to negotiate and easier to ignore.
Moffatt also points out that the federal government did not immediately respond when the City of Toronto voted down sixplexes as a HAF requirement. This lack of response, he suggests, could embolden other municipalities to test the boundaries of the HAF program.
In Windsor, the mayor, Drew Dilkens, expressed similar concerns about the program's rigidity. Windsor exceeded its housing targets and submitted a locally focused plan, but ultimately declined HAF funding "out of respect for our residents, our neighbourhoods, and our future." The city's situation, however, does not appear to have directly affected its HAF agreement, according to the available information.
The HAF program requires municipalities to fully implement their Action Plans and meet housing growth targets to receive the full amount of committed funding. If these conditions are not met, the CMHC may withhold or withdraw funding. CMHC has signaled a firm stance, stating that future payments of Tecumseh's HAF are issued annually, but only "subject to the conditions and targets within their agreement being met."
The current situation underscores the importance of meeting federal funding conditions in housing action plans. Failure to do so may lead to loss of millions in supportive funding, as Tecumseh is currently experiencing. The outcome of Tecumseh's situation will likely influence future negotiations and adherence to HAF agreements, particularly if municipalities perceive a lack of enforcement from Ottawa.
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- Despite the potential risks, some municipalities, such as Tecumseh and Windsor, have voiced concerns about the strict conditions of Ottawa's Housing Accelerator Fund (HAF) program, specifically the requirement allowing fourplexes in low-density residential zones.
- The financial sector is closely watching the situation as Tecumseh, with up to $3.2 million of HAF funds at risk, has voted against a key HAF requirement, potentially affecting the program's credibility and future negotiations.
- Experts like Mike Moffatt urge the federal government to enforce HAF conditions clearly and consistently, warning that a lack of enforcement could make future housing agreements more difficult to negotiate and easier to ignore, potentially impacting the broader general-news and industry sectors.
