$5.7M of anonymous $25M donation will go toward Old South housing project

A plan to convert a former long-term care home in London's Old South neighbourhood into 50 supportive housing units will be funded in part by the $25 million anonymous donation to the city announced in early 2023. 

On Wednesday, Mayor Josh Morgan —  along with London MPs Peter Fragiskatos and Ariel Kayabaga — were joined by four of London's largest developers to announce the funding plan for the project at 46 Elmwood Place.

Indwell will manage the facility and the funding will come from the following sources:

• The federal government's Housing Accelerator Fund ($2 million in one-time capital). 
• The Health and Homelessness Fund for Change ($5.7 million). This is the $25 million anonymous donation to the city managed by the London Community Foundation. This includes $1.7 million for one-time development costs and $4 million in capital costs to convert the building. 
• An annual housing supplement budget for up to $500,000 in city money. 

A group of London's four largest development companies (Auburn Group, Drewlo Holdings, Sifton Properties and Tricar) helped acquire the property and will manage its construction and retrofits.

"This project is a prime example of how different partners can come together to create meaningful change for those who need it in our city," said Morgan. 

He said once it's endorsed by council, work to convert the building can start as early as this summer with tenants moving in next year. 

Morgan said highly supportive housing, in which residents aren't only provided shelter but also services such as mental health support and addiction counselling, is crucial to addressing the need on London's streets. 

He pointed to the House for Hope on Dundas Street, which is a partnership with London Health Sciences Centre and London Cares, as an example. 

"We know there is an individual in that space who the year before ... consumed emergency room visits 221 times," he said. "Since being in supportive housing, that person has only been to the emergency two or three times. That's the type of thing we're talking about." 

Another person who'd had more than 800 contacts with police in one year had no contacts with them after going into supportive housing, Morgan said. Police were concerned the person had died because their contacts with them had stopped. 

"Supportive housing can fundamentally change what's happening on our city," said Morgan. "It is transformational."

A report about the project is coming to the city council's Strategic Priorities and Policy Committee next week and then to council on June 25.