District of Muskoka commits to an operating subsidy of almost $300,000 annually for Pine Street Project
District of Muskoka agreed to commit to an operating subsidy of almost $300,000 in an affordable housing funding application, in the December 16, 2024, meeting.
According to the agenda, the funding is for the 100 Pine Street Affordable Housing Project.
Staff advised that the application is a part of efforts towards securing funding opportunities for the project, and that the Canada Mortgage and Housing Corporation (CMHC) “fits well with the project and is appropriate to cover majority of costs.”
The report indicates that the District may be eligible for financing and a forgivable loan though CMHC for the Affordable Housing Fund (AHF) program. So, staff advised they are applying for both repayable and nonrepayable funding.
They added that the estimated operating costs from the 2025-2026 Draft Budget include mortgage and interest payments.
The agenda indicates that the AHF funding application conditions includes “an explicit commitment from the District to an operating subsidy for the term of the loan,” upon the approval of the 2025-2026 Draft Supported Budget that will be presented to Council.
It continues that the reported annual amount of $267,043 will be established for a 10-year term.
Staff have been directed to include the operating subsidy in the Tax Supported Operating Budget annually from the period of 2025 to 2026.
They advised they can submit the application in the next few days and the CMHC approval may take place in approximately 30 days.
Chair, Jeff Lehman, explained that the capital project and cost relates to building operations for subsidizing apartments for low market rentals.
Staff advised that the project is “part of the Big Move on Housing” in relation to affordable housing. “So, the operational subsidy is part of that investment.”
