Now hold a meeting that is closed to the public, pursuant to the Municipal Act, to consider: Update Expression of Interest – 170 Stephenie Drive…

2:19:29I am a community and affordable housing specialist

2:19:32within the Strategic Initiatives

2:19:34and Intergovernmental Services Division.

2:19:40Tonight, I will provide an overview

2:19:42of the proposed multi-unit accelerator grant program,

2:19:45which plans to enable the acceleration

2:19:48of multi-unit residential projects

2:19:50that are already within the development pipeline in Guelph.

2:19:54The proposed program plans to use housing accelerator fund

2:19:58or half resources to stimulate earlier permit issuance.

2:20:03I will begin with the connection

2:20:05to the housing accelerator fund

2:20:06and then walk through the details of the proposed program.

2:20:13On January 8th, 2024, the city signed

2:20:16its contribution agreement

2:20:17with the Canada Mortgage and Housing Corporation,

2:20:20or CMHC for the housing accelerator fund.

2:20:24Through the agreement, the city was awarded $21.4 million

2:20:28delivered through four annual installments.

2:20:32Receipt of the third and fourth installments

2:20:35are dependent on the city,

2:20:36meeting both of its required

2:20:38housing accelerator fund initiative milestones,

2:20:41as well as its identified housing unit targets.

2:20:45In March, 2026, the city received

2:20:48its third full half installment.

2:20:52To date, we've made strong progress

2:20:54on our milestone initiatives,

2:20:56completing 81% of these initiatives,

2:20:59including the delivery of the affordable housing CIP,

2:21:02as well as the Stone Edinburgh CPPS.

2:21:05All information on these incentives and milestones

2:21:08have been made online and publicly available

2:21:11through our half web pages,

2:21:13and progress has been regularly documented

2:21:16through our semi-annual housing reports.

2:21:20Regarding the housing unit target,

2:21:22as of January, we still had 2,401 units left to achieve

2:21:27by January 7th, 2027, despite unlocking the potential

2:21:32for over 20,000 new units through the introduction

2:21:36of new policy pieces and or refinements to existing policy.

2:21:41Although the remaining unit figure

2:21:43has decreased slightly in early 2026

2:21:45because of additional permitted units,

2:21:48this gap remains substantial and poses a real risk

2:21:52to securing the full fourth installment of $5.4 million.

2:22:00Over the last two years, Guelph has seen a significant decline

2:22:03in permit issuance for new residential units.

2:22:07While we have made significant structural changes

2:22:09through the half initiatives,

2:22:11market conditions have been difficult

2:22:13for our development partners to deliver on new projects.

2:22:18That said, the city does have over 3,000 units

2:22:21that are site plan approved and could pull building permits

2:22:25to construct new units,

2:22:26which is the next stage in the approval process.

2:22:30We know that our community needs housing now,

2:22:33and to help meet our half housing unit targets,

2:22:36staff are proposing the multi-unit accelerator grant

2:22:39to help encourage these projects to advance.

2:22:46Staff recognize that other initiatives

2:22:49like continuing to advance affordable housing development

2:22:52through acquisition or longer term projects

2:22:56delivered through our housing affordability strategy

2:22:58remain important.

2:23:00However, they will not deliver permitted units

2:23:02within the next year.

2:23:05When the city received the third full half installment

2:23:07in March, staff quickly assessed what actions

2:23:11could meaningfully accelerate units

2:23:13before the half deadline.

2:23:15A grant program structured through section 107

2:23:18of the municipal act is one of the few tools available

2:23:21that can be implemented quickly and tied directly

2:23:24to near and short-term building permit issuance.

2:23:28City councils have authority under section 107

2:23:31of the municipal act to create grant programs

2:23:34when they serve the general interest of the municipality.

2:23:38Section 106 of the municipal act prohibits

2:23:41bonusing to private businesses.

2:23:43So the key distinction is council's determination

2:23:47that the rationale for the establishment

2:23:49of the grant program is for the general benefit

2:23:52of the municipality and not a gift or preference

2:23:55for the private benefit of recipients.

2:24:00In considering the recommendations of this report,

2:24:03council should consider and assess

2:24:05the intended community benefit.

2:24:08And also determine whether this is

2:24:11in the municipality's best interest.

2:24:13The public benefit as identified by staff

2:24:16is the accelerated delivery of new units

2:24:19by October 16, 2026 tied directly

2:24:22to building permit issuance.

2:24:25Related broader community benefits includes

2:24:28improved achievement of municipal housing targets,

2:24:32stimulated economic activity in the municipality,

2:24:36complementary impacts to other funding programs,

2:24:39further support for mixed rent projects

2:24:44that include affordable housing,

2:24:46and better positions the municipality

2:24:48in relation to securing the fourth half installment

2:24:51that this may unlock.

2:24:53To remain neutral and transparent,

2:24:56the program is designed to be broad,

2:24:58procedurally neutral, and first come, first serve.

2:25:04Here are the highlights of the program.

2:25:06So we are proposing a dedicated budget

2:25:08of $2 million, which is made available

2:25:11through cost savings and achievement

2:25:13of other half commitments.

2:25:15This grant program would not impact

2:25:17the municipal tax levy.

2:25:20Units would receive an incentive of $10,000

2:25:24for 20% of the eligible units in a project.

2:25:27To meet eligibility requirements,

2:25:29project must first include at least five new

2:25:33self-contained residential units

2:25:35as defined by Statistics Canada.

2:25:37And secondly, applicants must have assigned

2:25:40attestation that their project is accelerating

2:25:43the planned building permit issuance from 2027

2:25:46or later into 2026.

2:25:50The intent is to fund units

2:25:51that would otherwise not be permitted this year.

2:25:55So for example, if a 100-unit project applied

2:25:59and satisfied all eligibility criteria,

2:26:02the project could receive funding for 20 units,

2:26:05resulting in an incentive of $200,000.

2:26:08There are no affordability conditions

2:26:11attached to this grant program.

2:26:13However, the funding could support the market rate units

2:26:17of a mixed market project where the affordable units

2:26:20are receiving the affordable housing CIP incentive,

2:26:23and this provides $25,000 a unit.

2:26:26While funding can be stacked on a project basis,

2:26:29it cannot be stacked on a unit basis.

2:26:32Any unit receiving CIP funding would not be eligible

2:26:35for the accelerator grant.

2:26:40Staff will leverage online tools

2:26:42to create a submission portal.

2:26:44The portal would be open from June 1st to July 5th.

2:26:48Applications will be reviewed on a first come,

2:26:50first serve basis that is based

2:26:52on the timestamp of submission.

2:26:55As mentioned, applicants must identify

2:26:57their original intended permit issuance date

2:27:00and the identified accelerated permit issuance date,

2:27:03assuming funding is received to accelerate development.

2:27:07Applicants will upload supplemental information

2:27:10to the portal to confirm this information,

2:27:12like a detailed project schedule or a revised pro forma.

2:27:17Funding is not a credit toward any municipal fees

2:27:21like building permit application fees,

2:27:23and instead funding is transferred directly through a check.

2:27:27Funds would be released at permit issuance,

2:27:29which must be received by October 16, 2026.

2:27:33This date allows staff to finalize

2:27:36and to close out the entire suite of half projects

2:27:39while also leaving enough time

2:27:42to complete our annual CMHC reporting.

2:27:45If a building permit is revoked due to inactivity

2:27:49or failure to commence work in a serious manner,

2:27:52the funds will be repayable immediately.

2:27:58We understand this proposal may feel quick.

2:28:01As mentioned, there was uncertainty

2:28:03in receiving the third half installment.

2:28:05Because of this uncertainty,

2:28:07the receipt of the full third half payment

2:28:10led to opportunities for us to realize cost savings

2:28:13on other half initiatives that have been completed

2:28:17while looking at other ways to incentivize new units.

2:28:21Staff reviewed all potential near term options

2:28:24and found very few incentives capable of delivering permits

2:28:28and accelerating the permitted units

2:28:30before January 7, 2027.

2:28:33The program complements existing municipal incentives

2:28:37and aligns with anticipated provincial

2:28:39and federal initiatives such as the Canada-Ontario

2:28:42Partnership to Build Fund.

2:28:45Our federal partners will be reviewing the efforts

2:28:47we are doing to incentivize quicker development

2:28:50and to meet our housing targets.

2:28:52Approving a program like this would signal

2:28:56that wealth is taking our housing targets seriously

2:28:59and strengthening our position

2:29:01in receiving the fourth installment.

2:29:03Accelerating construction also supports

2:29:05broader economic activity at a time

2:29:08when housing permits and starts are slowing.

2:29:14The recommendation before council tonight is today

2:29:17is to approve the proposed multi-unit

2:29:19accelerator grant program.

2:29:21If approved, the application portal would open

2:29:24from June 1st to July 5th.

2:29:26Applications would be reviewed on a first come,

2:29:28first serve basis allocated in the order they are received.

2:29:33Funds would be released upon building permit issuance

2:29:35to construct new residential units.

2:29:38As with all grant programs offered under section 107

2:29:42of the Municipal Act, council must determine

2:29:46whether the program delivers a clear community benefit.

2:29:49In this case, the accelerated permit issuance

2:29:52of new housing units before October 16, 2026.

2:29:57Given the tight timelines required to meet half deadlines,

2:30:01staff do not recommend delaying approval

2:30:03for revisions or amendment.

2:30:06Furthermore, there is strategic risk associated

2:30:09with not approving this program.

2:30:11As it may signal to federal partners

2:30:13that the city is not fully leveraging available tools

2:30:17to support development.

2:30:21Thank you.

2:30:23Thank you.

2:30:25Andrew, we know this is your first time as well.

2:30:28Good job.

2:30:29You and Emily number two.

2:30:32Thank you very much.

2:30:34Councillor, you wanna move it for us?

2:30:36Would that be okay?

2:30:38And then Colosson, I saw your hand go up.

2:30:41Or Kateen, either one.

2:30:42Kateen, would you second?

2:30:44Yeah, Kate.

2:30:46It's on the floor from the two of you.

2:30:48Thank you.

2:30:48Is there any questions on this one?

2:30:51No.

2:30:53May I look to call the vote?

2:30:56I'm calling the, oh, close.

2:30:58Councillor Caron.

2:30:59We ask for questions, not comments.

2:31:01Kind of a question comment.

2:31:03Guelph is, we're probably doing better

2:31:06than all of our comparator municipalities.

2:31:08Is there anyone who else who met their targets

2:31:10and got as much housing accelerator funding as we did?

2:31:16Through the mayor to Councillor Caron.

2:31:19In collaboration and communications

2:31:21with our relative comparator municipalities,

2:31:24we're actually not meeting the same level

2:31:28of unit delivery that they're meeting.

2:31:31And furthermore, municipalities that have been receiving

2:31:35less units than us have had reduced funding installments.

2:31:39Great, thanks.

2:31:40Well, at least I'm glad to see this report

2:31:43and get it moved forward.

2:31:46This is why these types of programs are so important

2:31:48to show, like as an observation,

2:31:50like show to the government that we're doing all we can.

2:31:56Is there anything further then?

2:31:58Questions or comments?

2:31:59No, I'll call the vote then.

2:32:02Anyone against?

2:32:05Nobody, that's unanimous.

2:32:06Unanimous vote, hopefully sends a strong signal.

2:32:10Okay, perfect, thank you.

2:32:13We're not gonna do the bylaws yet

2:32:16because we're gonna move back into closed session.

2:32:19But Councillor Caton, you'll be on in the wings

2:32:22to move the bylaws when we come back, okay?

2:32:24So can I have a motion to move back into closed

2:32:29on the same two items that we did at the beginning?

2:32:34Alt and Hauser, great.

2:32:37And I'll call the vote.

2:32:38Is anyone against moving back into closed

2:32:40on those two items?

2:32:42Okay, that's so unanimous.

2:32:43So thank you very much.

2:32:44We'll close up our conversations in regards to that.

2:32:47And then again, come back out for the high level summary

2:32:50and to do the bylaws and adjournment.

2:32:52Thank you.