Some organizations might be left scrambling after about half of Area D’s grant-in-aid program was allotted to one recipient Thursday — the South Skaha Housing Society, which is working towards building 26 affordable seniors housing units in Okanagan Falls.
After an update presentation from Andy Orr, a consultant from Atcorr Development representing South Skaha Housing Society, directors at the Regional District of Okanagan-Similkameen voted to provide $10,000 in grant-in-aid and $6,165 from Area D’s contingency fund to help cover costs of building permit fees. Orr said it would have a large impact on the cost of rental units for seniors on pensions.
“In this particular case for the Okanagan Falls project, 26 units, just to give the board sort of the idea of the magnitude if the board approves the recommendations … the average savings is about $85 per unit per month. So, for example, a one-bedroom is currently earmarked at $725 which is below market, that unit would drop to $630 per unit per month and for seniors on a fixed income. That’s quite a significant savings.”
Also in that meeting, directors voted to waive about $109,000 in Development Cost Charge and provide a one-year tax exemption for the property.
Tom Siddon, Area D (Kaleden/Okanagan Falls) director, told his fellow board members that waiving building permit fees was against the Local Government Act, but he was in favour of supplying grant-in-aid and dipping into the area’s contingency fund for the project.
“The immediate alternative would be to dip into grant-in-aid … which would allow us to provide an amount of $21,165. It means that a number of other groups that are accustomed to getting grant funding each year may not get that funding,” he said. “This year, this is our priority for 2018 and I support this recommendation.”
In 2017, just over $18,000 was handed out to community organizations ranging from fire brigades, children’s programs, music in the park series, junior triathalon club, Kaleden Community Association, Lower Nipit Improvement District, Okanagan Falls Lions Club and more.
During the presentation, Orr told directors B.C. Housing increased funding to the project by about $400,000 for a total of $5.4 million to address inflated construction costs related to the current demand on the industry. The price tag of the entire project is about $6.7 million with the society holding a mortgage for the shortfall. Greyback Construction was hired to handle the project at 5080 9th Ave. from design to finished construction.
Earlier in the process the project was plagued with siting problems. The group has since entered into agreement on the property on 9th Avenue in Okanagan Falls.
The South Skaha Housing Society has been working on building affordable housing for seniors in Okanagan Falls since 2008.
A temporary use permit is expected at RDOS at a later date to allow for the project to be built without a commercial component in its original phase. The community plan for OK Falls state that property should include commercial.