Barrie Housing looking to add new units to reconstructed 100 Little property
A bigger building will likely rise from the ashes at 100 Little Ave.
Barrie Municipal Non-Profit Housing Corporation plans to build 11 additional units onto the new fourth floor at 100 Little — the scene of a dramatic fire that forced the evacuation of nearly 70 people in April — Mayor Jeff Lehman told city council June 25.
To build the new units, Barrie Housing requires a $2.5-million loan.
Barrie Housing plans to apply for Canada Mortgage and Housing Corporation funding for the 100 Little expansion.
If that application is denied, financing costs from a private lender will result in a roughly $30,000 annual deficit for the organization.
“(We) decided to restore the original building and pursue the addition of a fourth storey containing 11 one-bedroom affordable rental apartment units,” executive director Erika Erteki said. “Restoration of the original 23 units will be covered by insurance proceeds. Should our application be successful, this program will provide a low-interest loan with a grant component that would greatly assist in meeting the cost of the new units. CMHC emphasized to us that approval is by no means guaranteed. As a result, CMHC has encouraged us to identify a second option for financing the project.”
There is a backup plan. If the CMHC denies funding, the city will give Barrie Housing a $75,000 grant, under a recommendation approved by council Monday night. This money would offset the anticipated operating deficits until mid-2021, when Barrie Housing pays off its mortgage for the Southfields apartment complex and can refinance its debt.
“Barrie Housing is required to have financing sources identified to ensure the carrying costs of the project are met without generating an operating deficit,” Lehman said. “We don’t want to delay construction. It’s a fairly creative opportunity.”
The fire left 23 families homeless, though Barrie Housing has since found permanent accommodations for everyone displaced. This incident also triggered an outpouring of support from the community — a warehouse was filled with donated items and more than $37,000 in cash was collected through Go Fund Me accounts.
Construction should be complete by the end of 2019, Erteki said.