THUNDER BAY – The District of Thunder Bay Social Services Administration Board is scrambling to find a solution after losing out on $4.2 million in funding.
Federal Housing Minister Sean Fraser announced that Ontario will not be receiving $357 million in funding for affordable housing because the province has not done enough to meet federal targets under the National Housing Strategy Action Plan.
Locally that means the District of Thunder Bay will be losing $4.2 million in funding, resulting in the inability for TBDSSAB to fund certain capital repair projects and new affordable housing projects.
Bill Bradica, chief administrative officer of TBDSSAB, said the news came as quite a shock to the organization, which is now scrambling to find a solution.
“Especially as we were told at the 12th hour. We were told at the end of March and the fiscal year for the funding starts on April 1, so it was a shock,” Bradica said.
“Normally when there is some type of removal of funding, or reduction, we’re given advance notice, so that we can plan. There was absolutely no opportunity to plan for this.”
TBDSSAB covers the entire district and has previously used that funding for multiple projects throughout its coverage area. Bradica said that cutting this funding will have devastating impacts on the people who rely on affordable housing.
“The vacancy rate is quite low and we have 1,300 people on our waitlist. So, it would be very difficult for them and will result in a financial hardship,” he said.
TBDSSAB originally budgeted $2.2 million for capital repairs for 442 housing units, $1.2 million for operational funding to maintain over 270 legacy units first built under the Urban Native Housing Program, and $800,000 for new builds in the district.
According to Bradica, as many as 115 existing units could be lost this year if another funding source can't be found.
The TBDSSAB board of directors urged Minister Patty Hajdu and MP Marcus Powlowski to call on Fraser to reverse his decision in a letter on March 28.
“TBDSSAB relies heavily on National Housing Strategy funding to both preserve the existing social housing stock and create new supply,” the letter read.
“For the 2024/25 fiscal year, TBDSSAB’s anticipated allocation under the Canada Ontario Community Housing Initiative is $3.4 million.”
One possible solution that Bradica is recommending to the board next week is to dip into reserve funds to cover 2024, though he said that is not sustainable in the long term. The board will decide what its next steps are in one week.
