CMHA to take ownership of 30-unit supportive housing project in financial trouble

A staff report is calling for the City of London spend $300,000 to cover debts and fund an ownership transition for a 28-unit affordable housing project for vulnerable women that's fallen into financial trouble. 

Operating under the name Nicole's Choice, the property at 446 King St. provides supportive housing units for women who are low-income and deemed to be at risk for homelessness. In addition to rents at about half the market value, the property provides on-site supports for tenants, including those with mental health and addiction issues.

It opened in 2009 and cost $3.5 million to build with about 70 per cent of that total coming through grants from all three levels of government. Tenants are referred to Nicole's Choice by the Canadian Mental Health Association (CMHA). The property is currently owned by The Council of LIFT Non-Profit Housing Corporation which also operates the property as a charitable entity. 

However, a report coming to city council meeting on Monday says the project has run into financial trouble and that LIFT's four-member board is no longer running operations. 

"Over the last fear years, members have either stepped away or have passed away," the city report said. "There are three directors of the corporation on file, but they are not actively engaged." 

The property is now in "financial distress," the report said, with deficits growing each year due to rental rates that are 50 per cent of average market value and increasing operating costs. 

The report shows the property operating with a $106,000 deficit in 2022. Last September the city had to provide $31,000 in emergency funding to avoid a mortgage default.

The report calls on the city to contribute another $300,000 to help the project transition to ownership by CMHA. The transition plan spelled out in the report also calls on CMHA to use money it's secured from a private donour to cover a $680,000 partial mortgage payout. The plan also said the province will be tapped to help provide rent supplements for up to 14 units. 

Dean Astolfi, CMHA London's director of supportive housing, said getting the debt down will allow the property to reduce its operating expenses. 

"When you look at solving the housing crisis, you also have to look at what housing you retain," he said. "The supports you need to keep people stabilized, you can't lose that. If that went back out to market ... you'd have 25 women in a very precarious situation." 

The report will be considered by council members on the community and protective services committee at its Monday meeting.