HRM and Halifax Water need to work more closely on affordable housing

It turns out that Halifax Regional Municipality does not have full water service running along busy Main Street in Dartmouth.

Coming in from the west, the water line runs along the south side of the street, stops near the Shell Station, turns south towards Tacoma Drive; then it comes in from the east and it stops near the Esso Station at Hartlen Street.

There seems to have been some sort of disconnect between urban planning policy and the supply of water in the “Village on Main” Business District and its 185 businesses.

The gap in the water line is about 175 meters, which is of interest because zoning changes that were made a dozen years ago were specific to encouraging re-development of the street.

The planning goals include promoting mixed uses (residential, commercial) and allowing as-of-right development up to 6 storeys on Main Street.

Being developed by the Affirmative Ventures Association, the Main Street Centre is a mixed-use, mixed income housing project located in the gap area on the north side of the street.

Now under construction, this non-profit development includes 45 housing units, social enterprise spaces, mental health offices and an employment training centre.

At its expense, Affirmative Ventures is extending HRM’s water line by about 40 meters so that the Main Street Centre will be able to access an adequate supply of water.

The cost to do this work is being covered by CMHC and Provincial forgivable loans, and since a mortgage is involved, the tenants (mental health consumers and seniors) will also pay as part of their rents.

For affordable housing projects, Halifax Water allows its regional development charges to be deferred for 10 years, but after 2 years, interest will accrue on any balance and a lien will be placed on the property to ensure future payment.

Since there was no benefit in deferring the water fees at the Main Street Centre, they were paid as soon as cash flow allowed.

For this type of work with Halifax Water, non-profit housing groups get treated like any other developer.

The extended water line will be turned over to the utility, and Affirmative Ventures must then guarantee the construction of the line for a 2-year period, again at its cost.

And in the process, the non-profit housing group is creating a benefit for other landowners who will be able to connect their developments to the newly extended water line.

The $17 million Main Street Centre has been supported by HRM from the outset.

Various permits were waived and the project received $162,636 under the first year of HRM’s affordable housing grant program.

Yet in any affordable housing project, all costs get carefully scrutinized, for example, the $350,000 total cost for extending the line plus regional development charges.

Last fall, another grant application was submitted to HRM to offset these costs, but it was not approved.

Had it been approved then the funding would have been used to reduce the amount of the mortgage, and the seniors rents in the building (which are set at market rates) would have been reduced in turn.

HRM and Halifax Water need to work closely together to find more effective ways to support affordable housing.

And since they are on the hook for this type of infrastructure cost as well as the regional development charges, the Province and CMHC should be encouraging a more targeted approach by Halifax Regional Municipality and its water utility in addressing our housing needs.