Chatham-Kent Council has approved $3.8 million to fund the tiny transitional cabins project in Chatham by a vote of 15-1.
The tiny cabins will replace the full homeless shelter at Victoria Park Place in Chatham and include a community building, a washroom pavilion, a security cabin, and a utility cabin on municipally owned land at 378, 390, 392, and 396 Park Street in Chatham.
The municipality said the work is planned to begin this Fall and be completed by the end of April 2025.
Municipal funding for the Victoria Park Place shelter will end in May 2025, meaning both operations and debt servicing will need additional taxpayer funding in the 2025 and 2026 budgets, according to administration.
Staff said they are trying to secure funding from upper levels of government, a prominent theme throughout the council discussion at their meeting Monday night.
Councillor Anthony Ceccacci said upper levels of government need to step up because the municipality can't do it alone.
CK Director of Housing Services and Operations Josh Myers also told council there are no plans right now to expand the tiny transitional cabins project.
Myers is also putting some community rumours to rest, saying traditionally less than five per cent of the local homeless population are from out of town. The municipality emphasized once again that there are not bus loads of homeless people being shipped from other communities.
He also put some fears to rest, saying the new project isn't anticipated to attract more non-residents.
Myers said homeless people are required to answer a municipal questionnaire before they get municipal housing support, including a question that asks if they're a Chatham-Kent resident.
"For our municipally funded programs, we are very clear when someone is contacting us, it is for CK residents who have a familial background or a residency background in the community. For others that are not from the community we work with them to offer voluntary transportation back to their communities and this will continue for the site," Myers said.
Director of Municipal Housing Development Ray Harper said each cabin resident will pay rent.
"We'll be charging the maximum rate under OW (Ontario Works) and ODSP (Ontario Disability Support Program) and that equates to approximately $234,000 per year in rental revenue," said Harper.
Myers reported to Council that currently there are 10 homeless encampments in Chatham-Kent with a total of 80 people staying in them. He said it's going to be difficult to keep up with the demand for the tiny cabins as housing needs increase and eliminating encampments won't be possible at this time.
Original article was published September 6, 2024.
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Chatham-Kent Council is being asked to approve $3.8 million to fund the tiny transitional cabins project in Chatham.
A joint report by CK Director of Housing Services and Operations Josh Myers and Director of Municipal Housing Development Ray Harper to be presented at the Council meeting Monday night said the total cost for the 50 cabins includes the estimated pre-site development work, cabin procurement, and installation costs.
They recommend the project be funded through a 15-year internal debenture at 4 per cent interest, with the final debenture amount to be determined after the project is completed and if any government funding is received.
The tiny cabins will replace the homeless shelter at Victoria Park Place in Chatham and include a community building, a washroom pavilion, a security cabin, and a utility cabin on municipally owned land at 378, 390, 392, and 396 Park Street in Chatham.
The municipality said the proposed work is planned to begin this Fall and be completed by the end of April 2025.
"The annual debt payment will be added to the operating cost and be brought to Council for Base Budget funding in the 2025 Budget update this fall," wrote Myers and Harper. "In absence of Provincial funding, the estimated annual debt servicing cost at 4% interest is $341,927 and will be included in the 2025 Budget Update, and subsequently adjusted in the 2026 Budget update based on final costs spent and any upper level grants received for the Capital portion."
Municipal funding for the Victoria Park Place shelter will end in May 2025, meaning both operations and debt servicing will need additional taxpayer funding in the 2025 and 2026 budgets, according to administration.