Region of Waterloo staff say future affordable housing projects could result in $500M debt

Staff say future affordable housing projects could put the Region of Waterloo $500 million in debt over a 10-year-period.

The money would be taken out of the tax levy and would fall on the backs of taxpayers, if approved.

“Is there a cheaper way to do this?” Councillor Chantal Huinink asked during last week’s budget committee meeting.

“Short of somebody else paying for it or winning the lottery? No,” answered Peter Sweeney, the region’s commissioner of community services.

The 10-year capital program carries a total price tag of $6.8 billion. Staff said the proposed $500 million debt represents more than a quarter of all debenture funding.

“In total, we have $1.3 billion in tax levy-supported debentures and $500 million of that relates to housing. So there's another $800 million across the rest of the capital program in terms of debenture funding,” explained Christopher Wilson, the region’s manager of corporate budgets.

Councillor Colleen James told CTV News she was shocked to hear it would cost that much.

“It was sticker shock,” she said. “How do we do more with less without putting, you know, that extra expense on our taxpayers?”

James believes the province should help shoulder the cost.

“Other provinces throughout the country, with the exception of Ontario, provide funding to municipalities to at least help offset the cost of addressing homelessness and those living rough in the community.”

After more than an hour of discussion at the meeting, the committee approved a motion to ask MPP’s to put pressure the province for funding.

“I mean, the ultimate goal is to just to hope that there is no chronic homelessness in this case within our community,” James said. “The reality is that there are financial pressures that are driving people out of their homes.”

Some councillors agreed something had to be done to help fix the housing crisis.

“It's an expensive pill to swallow, but probably one that we have to do if we're going to solve the problem,” Councillor Jim Erb stated at the meeting.

There will be another budget committee meeting on Nov. 27 and a public input session where the community is encouraged to speak up if they have any concerns about the budget.