A new supportive housing complex for seniors under construction on Bonaccord Street needs short-term funding of $8 million from the City.
In a new report, city staff recommends the city extend this funding with the understanding that it would be returned no later than August 2023.
Councilors will consider it during a virtual meeting of the committee on Monday evening.
The Peterborough Housing Corporation, the city’s largest public housing provider, is building the 85-unit complex on the former grounds of Fleming College McRae Campus.
This is the second phase of the project: PHC bought the property in 2014 and converted the existing building – formerly the college’s trade school – into apartments (completed in 2020).
Now the neighboring complex – Hunt Terraces – is under construction.
It will have 85 apartments:
- 20 affordable assisted living units (bedroom, living room and bathroom) for seniors currently living at Peterborough Regional Health Center because they cannot be safely sent home and there is no place for them locally in long-term care.
- 30 affordable assisted living units for other seniors, including some homeless seniors.
- 15 complete apartments for seniors, rented at 80% of the market price.
- 20 complete apartments for seniors, rented at market price.
When the McRae Building conversion and Hunt Terraces were first planned in 2017, the two together were expected to cost $39.58 million.
The city has secured Infrastructure Ontario funding of up to $24.4 million on behalf of PHC.
When $1 million was made available by the federal and provincial governments, the plan was to use $23.4 million of the $24.4 million funding and also take out a mortgage.
But now construction costs are rising in the ongoing COVID-19 pandemic, bringing the total estimated cost to $43.12 million, or $2.66 million more than expected.
Additionally, PHC had planned to use proceeds from the sale of properties to help cover costs, but not all of these properties have been sold yet.
PHC sold its 51 rent-geared-to-income homes as they became vacant in recent years.
More than half of those homes had been sold by the end of 2021, but the city staff report says another $5.34 million is dependent on either ongoing sales or refinancing.
This represents a shortfall of $8 million.
City staff are proposing that PHC take all of the $24 million in funding available through the city from Infrastructure Ontario (instead of $23 million) plus $7 million from municipal reserves.
Funding will only be needed for just over a year, the report says, because by then it is expected that the PHC homes will be sold.