After Windsor rejected for housing money, feds give tentative yes to Tecumseh

The Town of Tecumseh has received a tentative approval for more than $4 million in Housing Accelerator Fund money, just weeks after Windsor was denied a hefty chunk of the money.

In a report to council on Tuesday, staff said the town's application for HAF money, approved by council and submitted over the summer, was approved "subject to some adjustments."

"The proposed adjustments modify the Town's housing unit targets and projected funding to account for work already underway or planned and to reflect growth rates generally consistent with municipal peers. Further considerations include as of right zoning to permit 4-unit housing in low density areas and to adjust timing for planned initiatives," staff wrote.

"The proposed adjustments to the number of accelerated housing units and the total funding and timing of initiatives can be accommodated with modifications to the Town's original HAP program."

It means the town is could receive about $4.3 million, the bulk of which will be used for capital projects to accommodate 137 more units in the town.

The town had originally applied for $7.8 million in funding for 267 units, which was adjusted down by the Canada Mortgage and Housing Corporation (CMHC) with this tentative approval.

Tecumseh Mayor Gary McNamara says the news of the approval has come quickly but he believes the application and its changes are manageable.

"I think when we put an application ... obviously they they were dealing with the bigger centres, bigger cities across the country and now they're focusing more on smaller communities," McNamara said.

"We got the call on Monday and so here we are."

While council endorsedthe suggested changes on Tuesday night, the application isn't yet a done deal and a formal agreement finalizing details will be inked, followed, McNamara says, by an announcement with the federal government.

But council on Tuesday night gave staff the go-ahead to continue moving forward in the process.

"For years we've been basically looking at fulfilling the requirements ofnot only building more houses but making them more affordable and attainable," McNamara said. "It's important for us to be able to make sure that we have access to a whole host of housing [options]."

On the issue of fourplexes the HAF requirement that turned out to be a deal breaker for the City of Windsor McNamara said they should be included in a mix of housing options.

"We're not going to take all of our official plan and our bylaws and throw them out the window," he said.

"If you look at it right now, we can put threeunits per lot. So we're talking one more unit to help satisfy some of the biggest housing needs this region as required in many, many years.

He pointed to two projects, one on Lesperance Road and one on Tecumseh Road, that are both multi-unit residential, including six-unit developments.

Windsor's application for at least $30 million, and as much as $70 million, in HAF money was rejected last month.

"The Minister rejected our reasonable proposals and said 'no' to densification along 47 km of transit corridors," Dilkens said in a statement after the decision.

At the time, housing minister Sean Fraser said only the most "ambitious" proposals would receive money from the $4-billion pot.

Windsor's application was rejected largely over a refusal by council to allow fourplexes to be built by right in any area of the city. Instead, council opted to allow them in some high-density areas and did not change their mind after a chance to reconsider, despite advice from the federal government advising them it would impact their chances at the money.

Dale Langlois, director of finance for the Town of LaSalleconfirmed the town had not submitted an application for HAF funding, citing both the tight timelines in the application process and challenges around densification requirements to receive the funding.