District refers decommissioning uninhabitable housing units to Health and Planning committees

The cost to redevelop the units would be in excess of $31 million

On September 15^th, District of Muskoka Council was faced with an uninhabitable housing matter in Gravenhurst and Huntsville, with a recommendation that would force tenants to relocate.

Staff reported that 36 affordable housing units in both Towns that are “uninhabitable and/or in need of significant repair” have been considered for decommissioning and replacement with 78 new modern units.

They explained that aging semi-detached units on Pinedale Road in Gravenhurst and Meadow Park Drive in Huntsville are in dire need of repair or replacement due to water and structural damage.

They indicated that Huntsville location involves demolition of 20 aging units with combined apartments and duplexes, and retaining 28 units that are in fair condition, and proposing a new 44-unit 3-storey apartment building.

Manager of Capital Projects, Kevin Boyle, indicated that redevelopment for the Gravenhurst units involves replacing 14 units with 34 units in a 3-storey apartment building.

The properties were also considered “opportunities for housing intensification and redevelopment through the Highest and Best Use (HABU) Study on select community-based housing sites which provides an opportunity to increase overall housing supply while improving quality and efficiency,” reported staff.

They added that there will also be “an unfavourable variance to the budget through a loss of rent revenue.” For instance, if both locations are vacant the revenue loss for the 20 units would be approximately $246,000 per year.

Staff initially reported that the cost to rehabilitate the current units would be at least $625,000, and the cost to redevelop both locations is $31.6 million for 78 units, however, today they indicated that these numbers were an estimate while drafting the report at the time and will likely be lower.

In today’s Council meeting, members expressed concerns about the units getting to this point in the first place, the cost of rebuilding, and expressed interest in rehabilitating the units instead.

Councillor, Heidi Lorenz, used a $400,000 house as an example of whether it makes sense to tear it down completely or repair it. She said, “I think I would spend $100,000 to fix the house.”

Councillor, Scott Morrison, experienced in the housing industry concurred, indicating “the taxpayer’s dollars will be significant to say the least.”

He added, “There is no business case for tearing these units down.”

Staff advised that asbestos and other issues make it unsafe for tenants to remain in 4 of the units.

After a lengthy discussion and ongoing questions, Council agreed to refer the matter to a joint Health and Planning committee meeting this Thursday, and staff have been directed to provide more detailed financial information about the buildings. 

In the meantime, residents of the 4 units have been given notice to vacate the premises. Staff advised they must determine whether the units will be renovated or demolished before they can issue further notices because it impacts how the tenants will be relocated.