The president and CEO of Habitat for Humanity says the city's decision to give his organization another $257,000 will make it easier for the organization to leverage that money for more donations.
Alfred Nikolai made the comments one day after city council voted to give Habitat for Humanity and its Aurora Place project in Akinsdale an additional $257,000 in provincial affordable housing money. The money became available after the Sturgeon Foundation's application for grant funding for a 42-unit addition to North Ridge Lodge was rejected.
"Well I am very pleased, obviously," Nikolai said. "There might be a perception that Habitat for Humanity is taking money from the community of St. Albert. We're putting money into the community. This is just helping us make it happen."
Last November council asked if the money could be used to fund the operations of the St. Albert Housing Society, but they were later advised the provincial funds could not be used for operating expenses.
Lory Scott, the city's affordable housing liaison, advised council Monday to use the money for permit fee rebates and construction costs for Aurora Place.
"It's a council priority, there are construction deadlines and it is in the city's best interests to minimize the effects on the neighbourhood," Scott said.
Scott presented other alternatives, such as renovating more basement suites, funding a proposed program from the St. Albert Housing Society that would help subsidize rents for families in need, or creating a home ownership assistance program, but recommended the money go to Aurora Place. She pointed out that with its gift of the land in Akinsdale, the city to date has contributed the lowest per-unit amount to Habitat compared to other Capital region communities at $28,000 per unit. Edmonton funds $77,700 per unit, Fort Saskatchewan $170,000 per unit and Sherwood Park $146,875.
"I believe Habitat needs it now," Scott said. "They have to have fundraising before they can build."
Coun. Cathy Heron tried to amend the motion to give Habitat only $100,000 while using the balance for rent supplements and a first-time homebuyers program, but the amendment was defeated.
"We start splitting a quarter of a million dollars, it's not a significant amount compared to the rest," said Coun. Malcolm Parker.
Nikolai said it will be easier to approach other companies for donations with $257,000 in hand.
"You can go to private corporations and ask, 'Will you sponsor this?' It's much easier than going with an empty hand," Nikolai said.
Aurora update
Nikolai said eight of the 30 homes are currently under construction and basements for 12 more units will be dug in the next two to three weeks. By Christmas of this year, he said 20 homes will be finished with the remaining 10 ready for completion in 2013.
"We're pleased to say as summer comes up there will be more and more activity," Nikolai said.
