The Municipality of Chatham-Kent said re-entry for the residents of 99 McNaughton Avenue West in Chatham will take at least several months. (Photo via municipality)
Chatham

Price tag for emergency response at 99 McNaughton is north of $2M

The bill to respond to the fire and evacuation of the municipally-owned housing building at 99 McNaughton Avenue West in Chatham has reached millions of dollars so far.

Chatham-Kent Director of Housing Services and Operations Josh Myers said the true financial costs of the emergency have yet to be finalized because the municipality is still waiting for several invoices, but he estimates the price tag to date is nearly $2.1 million.

Chatham-Kent Council will receive an update and breakdown of the costs at the Council meeting Monday night.

Myers noted the hotel cost among others is estimated at $210,000, the Red Cross price tag for shelter and food is approximately $200,000, the tab for Park Street Place is gauged at $306,000 for three months, other retirement home placements for six months is estimated at $400,000, security costs at 99 McNaughton for six months is about $240,000, and the loss of municipal rental revenues is pegged at $308,000.

Around 120 people were displaced following the fire in the early morning hours of August 25.

The municipality noted some were put up in hotels and the Red Cross prepared and delivered meals twice a day to them, while others stayed at the temporary evacuation shelter open for about two weeks and operated by the Red Cross at the former St. Agnes School.

The shortage of affordable housing also forced the opening of Park Street Place Retirement Home in Dresden to house up to 50 individuals and provide three meals per day, said Myers.

The people staying in hotels eventually transitioned to Park Street Place, but had to pay for their stay, according to the municipality. Residents were told they would need to contribute approximately 75 per cent of their income for rent and meals; however, case managers would review individual circumstances when setting the rate, according to a report going before Council.

Myers said work to complete repairs at 99 McNaughton is progressing without delays and a phased approach will be used to return residents home. He noted that all residents in section D will very likely be allowed to return home by November 15, while the timeline for residents in section C to return home will be announced in the "very near future." There is currently no estimated timeline for the return to sections A and B because they require extensive repairs and remediation, which will take several months, according to Myers.

He noted that all Chatham-Kent Housing residents are required to purchase and maintain tenants’ insurance while residing in municipally owned housing.

Myers said staff have seen insurance coverage range from $4,000-$10,000 for increased living expenses, but it does not provide the necessary income to cover a lengthy period of time that is required for approximately 50 per cent of residents.

"This emergency and the corresponding response remains fluid as over 120 residents with various levels of need, insurance coverage, and ability continue to face significant challenges," wrote Myers in his report. "The amount of coverage as well as the provider is a personal decision, but given that many residents struggle to afford basic necessities, even with subsidized rent, due to their low incomes, many do not have adequate coverage."

Myers said efforts to reduce costs continues to be the focus now that the situation has stabilized. Plans are also being developed to phase out of the municipal agreement with Park Street Place, which will lower costs further, he said.

"Administration has taken a triaged approach to responding to this emergency in order to respond quickly and efficiently. The number of people in need of immediate assistance has not been experienced before," he said.

The emergency will continue for the remaining residents of sections A and B and staff will continue to do "their best" to assist, said Myers.

He added that both the governments of Canada and Ontario have deemed housing a human right, but funding for this right has not been adequate.

Myers said staff have submitted a business case and formal request to the province requesting financial assistance and are also working with the municipal insurer to pursue every available option to help recoup costs.

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