Re: "City seeks better value for dollar on affordable housing," Dec. 14 Gazette:
This letter is in reference to the article about the city committee meeting regarding affordable housing models and the St. Albert Housing Society. What the committee council member did not say or perhaps did not know is that operational funding was a part of the agreement with the City when the St. Albert Housing Society was formed eleven years ago. The ongoing operational funding has allowed the Housing Society to buy and subsidize additional affordable rental units. The Society also operates, manages and maintains these properties for the tenants and the City.
The first 15 affordable units were completed in mid-2013. The Society will receive $44,000 in funding in 2020. This is well below the approximate $50,000 the Society pays the city in annual property taxes for the affordable housing units. Operational funds along with the net rental income the Society earns, has allowed the Society to purchase another 12 affordable housing units in less than five years. These 12 units alone are now worth in the neighbourhood of $3 million in today's market. A pretty good return, I would say for the $1.1 million invested in operational funding since 2008. We know this is due to strong fiscal management at the Board level. Shouldn't the City continue to support the St. Albert Housing Society, which supports the city's most vulnerable citizens? Homeland Housing receives tax dollars from the city. There is room for and a need to support both groups, if we are to meet affordable rental unit targets in St. Albert.
Would the City have invested the $1.1 million to buy affordable rental units? We will never know. What we do know is that $1.1 million would likely have allowed the city to purchase perhaps four units. The Society, on the other hand, was able to leverage unit values to purchase an additional 12 units from 2015 to 2017. These new units have been available for vulnerable St. Albertans ever since. In addition, dollars were spent for ongoing maintenance of all 27 units and management of the units and placement of hard to house tenants. The Society has managed this feat by running a very lean operation. We have one staff member, rent a small office space from NABI and have a dedicated volunteer board of seven. We have policies in place to ensure the best possible management of the dollars entrusted to the Society. Note, in total the 27 units are now assessed at approximately $5 million. Market price would be more.
This asset essentially belongs to St Albertans. The units are safe, well maintained, accessible and have helped many seniors, single parent families and those with disabilities stay housed and in St. Albert where they have the support of families, friends, schools, agencies etc. About half of the families served by the Society are able to move on to market housing after receiving support for a year or two. They just needed a hand up, as we all sometimes do.
The Housing Society has annually raised dollars to help subsidize rents for our tenants at Big Lake Pointe and many other tenants in the city. This additional support allows renters to stay in their current home, rent at a reduced rate with private landlords or with Boardwalk and other rental agencies. The City's rental assistance program (RAP) requires that the renter be employed, and make we believe $40,000 a year etc. to receive rental assistance. The Society's charitable arm called The HOMEConnection Program catches those people who fall through the cracks of this program, because they are not working currently due to illness, family separation or abuse etc. or are making less income than the city/provincial program required. Please access our website to donate to this worthwhile program.
It is estimated that this City needs 4,000 plus affordable rental units. There are only a few hundred available at this time. The lived stories of our tenants are often difficult to hear. We must do better as a city. Our units are never empty and the waiting lists for affordable housing is long.
The City of St. Albert should continue to fund the Society $50,000 annually and waive the city portion of the property tax on these units as some other municipalities in Alberta already do. The cost to each taxpayer would be about $3 a year. Surely this is doable and is more important than many of the things our City has spent money on these past two years?? This support would allow the Society to buy additional units quicker than is now possible.
In order to continue acquiring affordable rental units, the Society has a line of credit. This requires City support so that the Society's debt coverage ratio is met. I urge you to support the Housing Society and its volunteer, seven-member working Board of Directors, by calling or writing Mayor and Council. Let them know you support affordable rental units and the Society. The Society has invested taxpayer money well, to serve the most vulnerable in this city. The Society has much left to do to help meet the needs of those who require assistance to acquire safe, accessible and affordable housing in St Albert.
The Society thanks the City for donating two parcels of land in the downtown core and will be making an application to St. Albert's expression of interest (EOI). Meanwhile, the Society is also working alongside Braeside Church regarding a proposed affordable project on their site.
Cheryl Dumont, chair, St. Albert Housing Society
