London City Council Approves Housing Infrastructure Program Application

London city council approved a staff recommendation to submit an application to a provincial-federal housing-enabled infrastructure program tied to a temporary reduction in residential development charges. The special meeting focused on whether the city could apply without committing new tax-supported funding beyond what is already in the current budget, what financial risks might remain, and how little time council had to review the proposal before the June 19 deadline. Council approved submission of the application, with any transfer payment agreement to return to council later for approval.

Topics Discussed

• DEVELOPMENT CHARGES APPLICATION: Council considered applying to a program that staff said is intended to support a 30% to 50% reduction in residential development charges for three years. Mayor Josh Morgan said, "the ultimate goal is to reduce the cost of housing for potential buyers." He also said, "We're going to target 50%, we want to be at the upper end of the … minimum scale that they're looking for."

• NO NEW TAX DOLLARS IN CURRENT APPLICATION: Much of the discussion turned on a late clarification from the province about the city's required contribution. Deputy City Manager said the program would replace development-charge funding with outside funding and that "there are no new tax dollars that are required to submit into this program." The official added that the city's existing 10% contribution already in the budget would count toward the municipal share. Morgan said that clarification removed what had been "a significant barrier."

• TIGHT TIMELINE AND RETURN TO COUNCIL: Staff said the program was announced June 1 and the application was due Friday, June 19 at 10 a.m. Councillors repeatedly noted the compressed timeline. Staff said the vote was only to authorize submission of an application and that any transfer payment agreement would come back to council. The Deputy City Manager said, "we do not know what a TPA will look like at this point in time," though staff expected terms similar to other agreements with senior governments.

• COUNCILLOR CONCERNS ABOUT INFORMATION AND RISK: Several councillors said they were being asked to vote without enough detail. Councillor Susan Stevenson said, "We won't have provided information, nor will we have nor will we know what our options were," and added that council would later face a "take it or leave it" decision. Councillor Sam Trosow said, "I want to support this, but what am I supporting?" He also said, "I do not want to create a situation where we're creating sort of an unfortunate situation for the next council or for this council during the election season or for the taxpayers later on."

• PROGRAM RISKS AND PROJECT ELIGIBILITY: Council discussed the possibility that development charge relief could exceed grant recovery, leaving a revenue gap. Paul Van Meerbergen said there was "a potential revenue gap that could occur in the event that the DC relief ends up being significantly higher than the lost funding." Trosow asked what source would cover any shortfall "should these risks materialize." Staff replied that eligible projects must already be in the city's development charge background study, must include a municipal contribution, must enable housing units, must begin by 2030, and must be completed by 2035.

• DEBATE OVER MOVING FORWARD NOW: Supporters argued the city needed to apply first and sort out details later if selected. Councillor Peter Cuddy said, "Without this vote today, we have no skin in the game," adding, "Get in the game. Let's be players. And the information will come back to us later."

Motions

• Suspend Council Procedure Bylaw Section 9.7 (speaking only once provision) for the June 17 meeting — Failed, 9-4
• Receive the staff report — Carried, 13-0
• Authorize staff to submit the application to the provincial-federal housing-enabled infrastructure/development charges program — Carried
• Confirmation by-law, first and second reading — Carried, 13-0
• Confirmation by-law, third and final reading — Carried, 11-0, with Councillor Sam Trosow declaring a potential conflict and Councillor Elizabeth Peloza absent for that vote

Attendees

• Present in person: Mayor Josh Morgan; Councillors Peter Cuddy, Elizabeth Peloza, Susan Stevenson, Sam Trosow
• Present online: Councillors Anna Hopkins, Corrine Rahman, Hadleigh McAlister, Paul Van Meerbergen, Skylar Franke, Steven Hillier, Steve Lehman, David Ferreira