Owen Sound Approves Fee Waiver to Support 40-Unit St. Clare Place Affordable Housing Build
Council approves fee relief for St. Clare Place, a 40-unit affordable housing project by non-profit Lutheran Social Services, as the organization says it is facing rising construction costs.
Owen Sound council has voted to waive building permit fees for a proposed 40-unit affordable housing development, providing additional financial support to a project already facing funding pressures.
The decision follows a request from Lutheran Social Services for its planned St. Clare Place development, a mixed-use building intended to include affordable and rent-geared-to-income units.
Funding Gap Prompted Request
In a letter to council, Lutheran Social Services representative Donald Statham said the project is facing a shortfall of approximately $300,000 due to rising construction costs and interest rate changes.
“CMHC has informed us that they can not put additional funds into the project above the amount promised,” Statham wrote, noting the organization had already secured additional contributions, including $400,000 from Lutheran Outreach Ministries.
The organization asked council to waive building permit fees to help close the remaining gap.
Estimated Fees Exceed $127,000
City staff estimated the building permit fees at approximately $127,575, though final costs depend on detailed building plans.
Councillor Brock Hamley introduced a motion to waive the full amount, later amending it to remove the specific dollar figure and instead waive the fees entirely to avoid the need for a revised approval if estimates change.
“I think we get so few opportunities to support housing,” Hamley said. “There’s just not a lot of tools in our toolbox. And this is one tool that we have to actually help and advance it.”
Debate Highlights Costs and Precedent
Deputy Mayor Scott Greig spoke in opposition, pointing to the cumulative financial support already committed to the project.
“I think there’s a very real cost to the actions that have to be taken in terms of building inspection,” he said, noting waived development charges and other incentives already total significant amounts.
Staff confirmed earlier supports include approximately $389,000 in city development charges, $242,000 in county development charges, and a proposed $398,000 brownfield tax incentive.
During discussion, council referenced a previous instance where building permit fees were waived entirely for the city’s hospice project, establishing a precedent for similar support.
Councillor Carol Merton supported the motion, citing both the need for housing and past examples of municipal support.
“We know there’s a need,” she said, referencing Grey County data showing hundreds of seniors on a housing waitlist. “This group has explored every possible opportunity for funding… it’s positive for our community to be able to assist them in finally taking this home past home plate.”
Councillor Jon Farmer also supported the waiver, emphasizing the importance of non-market housing.
“If there’s any kind of housing that we should be supporting, it should be the explicitly affordable non-profit, like non-market housing,” he said.
Motion Passes with Opposition
Council ultimately voted in favour of waiving the building permit fees, with two members opposed.
As the decision was announced, there was audible applause from members of the public gallery.
Mayor Ian Boddy acknowledged the challenges involved in the decision.
“It isn’t always easy for us to waive, because we’re worried about setting precedents,” he said. “It’s a real fee… However, given the importance of the project… I think this one works.”
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