Moncton Business Community Supports $6-Million Affordable Housing Project
MONCTON – On Monday, city councillors voted 8-to-1 to provide $6-million over three years to the Rising Tide Community Initiative, a non-profit housing entity tackling homelessness if the provincial government also commits to the same amount or more.
The decision would add pressure to the province, which still hasn’t decided whether to back the project.
The vote followed presentations from various community groups, including the Greater Moncton Homelessness Steering Committee and the Chamber of Commerce of Greater Moncton (CCGM).
CCGM CEO John Wishart says homelessness is “a subject of increasing concern and importance to our business community.” In fact, it was a top concern in a member survey the chamber conducted in January.
“Homelessness in Moncton is both a social and business issue. We hear on a weekly basis from our business owners, mostly in the downtown area, but more and more throughout the city, that this issue threatens their livelihood and viability,” he said.
In addition to worrying about the impact of the pandemic this year, businesses are also concerned about the safety and security of their staff and customers, as well as “the safety and security of the vulnerable people who, with increasing numbers, panhandle, feed their addictions, commit petty crimes, and sleep in our alleys and parking lots.”
Wishart says the chamber has urged the province to support Rising Tide, and look at the financial commitment “as an investment in the reputation and future of our community.” He encouraged the city to see it through the same lens.
“Social issues like homelessness, mental health and addictions are provincial responsibilities. But we cannot ignore our own responsibility as a community no our need to show leadership,” he said.
“I know this will put pressure on the tax rate, but left unchecked, it threatens to put much more financial strain on our community down the line,” he added.
He said if the issue is not tackled now, it could lead to loss of businesses in the downtown core, and the loss of potential investment opportunities.
The Rising Tide proposal, first presented 19 months ago to council, is based on a “housing first” model, taking from the local success of the federal pilot program At Home/Chez Soi, which took place between 2009 and 2013. It will rely on municipal and provincial funding, as well as community fundraising down the line.
It will also apply for funding from the recently announced federal Rapid Housing Initiative to buy property, though that funding would count as “icing on the cake” and wasn’t in the business plan initially, said Dale Hicks, president of Food Depot Alimentaire and a co-founder of Rising Tide.
Rising Tide plans to use the funds to deliver a three-year program that will create 125 affordable units, with wrap-around support services and seven case managers to help those who need them.
The $12-million also includes about $2.2-million for operational budget and property maintenance, as well as a reserve for the fourth year of operations.
Rising Tide envisions its properties to be partly affordable housing and partly market-price rental units. The affordable units would cost no more than 30 percent of a person’s monthly income with some renters having peer-support or case management workers to will help them stay on track. The market-price units would help subsidize the lower-priced ones.
Housing is considered affordable when the cost takes up no more than 30 percent of a household’s income. Yet, in Moncton, 40.3 percent of households spend more than that on rent, and 28 percent of children in the city live in poverty. In addition, around 200 individuals are experiencing homelessness, relying on shelters, couch surfing or other unstable means to have a roof over their heads.
The city’s approval means Hicks and his team can now move on to request funding from the province.
“By Christmas time, this thing’s going to be a done deal, or it’s going to be done,” he said, adding that in that case, Moncton will get its money back.
“If the province doesn’t come through in a relatively short amount of time, then we’ll tell the province this project is off the table. So it won’t be the city of Moncton that killed Rising Tide, it would be the province of New Brunswick that killed the Rising Tide.”
Paul Pellerin was the only city councillor who voted against the funding. He says although it’s “an excellent project” and that homelessness has been a long-running issue that needs to be resolved, he is unsure of what the impact will be on tax rates or reserves.
City manager Marc Landry says the options on the table wouldn’t be to raise taxes. The city will deliberate as part of its budget this week whether it could draw from reserves and/or defer some capital project.
Inda Intiar is a reporter for Huddle. Send her story suggestions: [email protected]