The Strathcona Regional District (SRD) will be meeting with the Cortes Housing Society to discuss the possibility of making a short term loan to help bring power, water and sewage to some lots in the Rainbow Ridge affordable housing project.
While the SRD created a Housing Service earlier this year, it has yet to requisition any funds and the request prompted some discussion at the Wednesday October 30 board meeting.
Regional Director Mark Vonesch, of Cortes Island, made the motion “that the Regional District work with the Cortes Housing Society to develop a plan for a short term loan through the Regional Housing Service so that the Cortes Housing Society can develop a part of its land with power, water, septic, and road access to facilitate long term lease agreements and thus create affordable housing opportunities on Cortes Island.”
The seconder, Regional Director Robyn Mawhinney of Area C, asked, “I’m curious can staff give the likely timeline on the report and if it would be returned in time for the board to consider the request inclusion in the 2025 financial plan.”
To which Chief Administrative Officer (CAO) David Leitch replied, “I don’t know what kind of model they’re looking at in terms of a lease. The motion says a short term loan. I don’t really know what that means. I can bring something back as preliminary to high level thoughts about what the society has in mind and bring that to the board, hopefully before the end of the year, there’s only two meetings left before the end of the year.”
Campbell River Director Susan Sinnott added, “I’m just curious about staff capacity and coming in with an innovative thing. I would prefer if the Cortes Housing Society wanted to do a delegation presentation to us and explain to us how they’ve exhausted their options, including going to B. C. Housing, which seems to me the place you go for this type of funding and shows that they’ve met the requirements and how they’re going to provide housing that goes within the requirements for the provincial funder. I’m not sure if I would appreciate our staff working on this right now. We have a lot of other things that we need to get through.”
“When we create a housing service, does it include the power to grant loans?”
CAO Leitch: “Well, that’s also tricky. I don’t know if it’s just even through the service to grant loans, but I’m going to say it’s highly unlikely that the Regional District would offer a loan to the society without any security, that would create a significant amount of liability.”
“I’m not saying that’s what they’re asking for. I haven’t had any discussions, but let’s say they needed a $3 million loan through the Regional District. That would create a great deal of risk and vulnerability to the Regional District if there is no secured asset to that loan. I don’t know what the payback terms of that would be, are we talking about security? I don’t know.”
Director Vonesch attempted to clarify the matter, “Obviously the land would back any loan. In the initial discussions that we’ve had, they are looking for $1 million dollars to put power, water and sewage into 10 lots. They intend to sell those 10 lots through a long term lease for, let’s say, $100,000 that would pay back the loan.”
The discussion turned to Cortes Island’s favour after Campbell River Director Ben Lanyon pointed out, “I read this motion as a request for permission to deploy SRD staff to do some investigative work alongside the Cortes Housing Society. This would be planning staff.”
CAO Leitch: “I think it would be myself.”
Ben Lanyon: “I would be interested in freeing up a little bit of resource to just see if it’s feasible and then kill it if it’s not. It sounds like they have a ‘back of the napkin’ outline of where it could go. It might take an hour for you to see.”
CAO Leitch: “In a single meeting, knowing the challenges, I think I could determine whether it has some life or not, and bring that back to the board.”
Ben Lanyon: “Well, we all want more affordable housing and if this doesn’t cost us anything to accomplish that, then I have no objections.”
Chair Mark Baker called the vote, “Further discussion? … All in favour? … Opposed? One opposed, Director Sinnott. The motion is carried.”
CAO David Leitch will be speaking with the Cortes Housing Society.
Links of Interest:
- Cortes Community Housing Society website
- SRD Receives Go Ahead To Establish a Regional Housing Service (Jan 26, 2024)
- Articles about, or mentioning, the Rainbow Ridge affordable Housing project
Top image credit: Entrance to the SRD Building – Roy L Hales photo
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