New Housing Reserve Fund is created in Saugeen Shores

As with many other communities, Saugeen Shores is undergoing a shortage when it comes to attainable/affordable housing, including rentals.

Saugeen Shores staff have therefore, recommended that a Housing Reserve Fund be “formally established and designated as a Discretionary Reserve Fund.”

With the recently passed By-law, an optional allocation of up five per cent (5%) of total Development Charges (DCs) payable on a development may be applied to a housging reserve fund to support housing initiatives.  The allocation will “represent an exemption from the Development Charges and will be deposited directly into the reserve”, therefore, the specific Housing Reserve Fund had to established.

The Reserve Fund is to be used to fund any projects related to any housing initiatives in Saugeen Shores. As part of the new Reserve Policy, funds can be reallocated from other reserve funds or a portion of the proceeds from the Sale of Surplus Land Reserve may also be reallocated to the Housing Reserve Fund in addition to other sources of funding directed by Council, including taxation transfers in the annual operating budget.

The Fund is to be used for any project or initiative that is aimed towards assisting with housing policy or increasing the supply of housing within the Town of Saugeen Shores.

Vice Deputy Mayor Mike Myatt said that this is a positive step forward in setting up a Housing Reserve Fund.  “Anything Council can do to incentivize development from an affordability or attainability standpoint is moving in the right direction. There are municipalities that have housing reserve funds but we don’t yet and I am very supportive of this recommendation.”

Treasurer Daniel Waechter said that funds can be used for any Council directed initiative, including studies to determine supply of housing or policy, incentives for development.  “It has been left broad to allow Council flexibility for the the use of the funds.”

“This helps us to enact the recent Development Charges By-law that was passed,” said Mayor Luke Charbonneau. “We are creating an opportunity for developers to contribute a portion of the Development Charges to the reserve and we can then make the funds in the reserve available to those developers to build affordable housing in our community. I am hopeful the fund will be used to directly incentivize developers to build affordable housing as part of their sub-divisions in Saugeen Shores.”