'That solves your housing problems': Could Housing Accelerator Funds be leveraged to build thousands of units?

The City of Windsor is standing firm against certain criteria in the Liberal government’s Housing Accelerator Fund, such as allowing four-plexes to be built anywhere in the city.

Some believe the resistance puts in jeopardy about $40 million of federal funding the city would receive for housing and infrastructure.

“I’m disappointed that we turned down $30-plus million sorely needed for housing sorely needed for infrastructure in this community,” said Irek Kusmierczyk, the Liberal MP for Windsor-Tecumseh.

But according to a local realtor if Windsor isn’t successful with its alternative bid, it could lose out on hundreds of millions more which could cut the affordable housing wait list in half.

“You know, $40 million, nah, what’s $40 million? In this case, 40 million is a lot,” said Rhys Trenhaile of the Vanguard Team with Manor Realty.

Trenhaile points to a Canada Mortgage and Housing Corporation program called “MLI Select.”

He argues the city could invest that $40 million into the program and the CMHC will give a 95 per cent loan to value mortgage over 50 years, at an artificially low rate.

“So that $40 million all of a sudden becomes $800 million,” suggests Trenhaile.

Based on today’s build cost per square foot on a high rise building, Trenhaile estimates the city — or developers or non-profits — could build nearly 3,800 affordable units.

“You're talking about very cheap money, that's bootstrapped to that $40 million. That solves your housing problems,” he said.

To date, 28 communities across Canada have agreed to terms in the federal Housing Accelerator Fund to unlock money for their respective communities.

A majority of council agreed they don’t want to allow the construction of four-plexes “as-of-right.” Windsor pitched a different plan: four-plexes in certain “nodes” of the city where Mayor Drew Dilkens says “it makes sense.”

“We have come forward with a perfectly viable compromise,” said Mayor Dilkens in a recent media conference, where the city laid the alternative plans out.

Kusmierczyk points out most development today is out of reach for the working class — noting the missing middle — is once again missing out.

“We need to build different types of housing that different folks can afford,” Kusmierczyk said. ”We need more diverse housing options, whether it's duplexes, whether it's triplexes, whether it's four-plexes, we need that sort of gentle intensification across our community.”

“Seniors are worried about where they're going to live. Young people are worried about where they're going to live, when they're starting their career here in our community,” added the MP.

Trenhaile says that’s where a huge chunk of change — if leveraged properly — could help.

“I know the narrative to this point has been ‘Oh, you know, we're saying no to $40 million so that a few people in suburbia don't have a four-plex next door to their house,” he said. “That's not the narrative. The narrative is we can build all the social housing we need to solve a lot of the housing crisis. And that's what we're saying no to.”