Redwood Park Communities is not eligible for a half-million-dollar rebate for City of Barrie building charges because those fees were never paid.
“You can’t get refunded what you haven’t paid,” said Coun. Gary Harvey, chairman of the city’s finance and responsible governance committee. “It appears that Redwood's interpretation was inaccurate with the new legislation.”
The city received a request from Redwood for community improvement plan (CIP) funding in support of its family transitional housing project in the north end at 151 Lillian Cres., said Shelby White, Barrie’s supervisor of growth management (housing).
In its letter to city council dated Feb. 4, 2025, Redwood indicated it has a funding shortfall and was seeking $510,480 in equivalency grant funding through the city’s CIP, White said.
Redwood officials said the Lillian Crescent project had been completed despite significant pandemic-related hurdles that led to cost overruns on the project of more than $1.8 million.
The Redwood request was framed as a release of CIP funds previously applied by the city to cover the building permit fees and development charges (DCs) for the project, due to legislative changes to the Provincial Development Charges Act, 1997 introduced by Bill 134, the Affordable Homes and Good Jobs Act, 2023, White said.
But under the current DC legislation, Redwood’s project would be exempt from DCs because it is an affordable housing development, by a non-profit housing provider.
The Development Charges Act requires DCs to be calculated at the rate in effect the day before the building permit is issued, which was in 2020, before the Bill 134 changes.
The Act does not allow the city to refund the DCs that Redwood paid or, in this case, the CIP grants the city paid into the DC reserve fund to cover the DCs owed, as there are transition rules to the new legislation, and they don’t apply to this circumstance.
White said Redwood’s project is not eligible for CIP funding under the current housing CIP. The housing CIP per door grant program eligibility requirements include applying during an intake window, before a project receives occupancy, among other things.
That funding is also to be awarded on a competitive basis by the grant review committee. Redwood did not apply for the per-door grant program during the intake window of the current housing CIP, which ran from July 22 until Aug. 31, in 2024, or prior to 151 Lillian receiving occupancy permissions.
Tim Kent, chief executive officer and co-founder of Redwood Park Communities, said it agrees with the city’s assessment.
“As a charity that builds affordable housing, we owe it to our partners, our donors and ultimately the people who need our housing to pursue every dollar of government funding for housing,” he said in a statement to BarrieToday, an affiliate of BradfordToday and InnisfilToday.
“In our initial conversation with staff, we understood this to be an eligible request for CIP funding,” Kent added. “After reviewing (the) memo to staff, we see that it is not, but that there are other opportunities for council to support Redwood if they choose to. We are grateful for the ongoing support of city council and staff as we work to create safe, affordable, hopeful housing for those who need it in our community.”
The completion of the project was supported by the City of Barrie’s in providing a $3-million interest-free loan in March 2024, due to be repaid by Redwood by Dec. 31, 2025.
Council has also financially supported Redwood’s project by waiving $67,164 in cash-in-lieu of parkland fees.
This project is also funded by the Canada Mortgage and Housing Corporation (CMHC), the Salvation Army and community donations.
Council has other options to help, including forgiving a portion of Redwood’s $3-million, interest-free construction loan and/or awarding Housing Accelerator Fund (HAF) money, as an investment in affordable housing – construction.
City councillors next meet, as general committee, on Wednesday, Feb. 26.
Redwood said that on Jan. 31, 2025, it received an occupancy certificate at 151 Lillian Cres., and began moving 12 families currently experiencing homelessness into this housing.
Development charges are designed to recover the capital and infrastructure costs associated with residential and non-residential (commercial, industrial, institutional) growth within a municipality from developers, so that existing residents don’t have to foot the bill.
The housing CIP applies city-wide and is intended to encourage rapid investment in new housing units by providing financial incentives and other programs to facilitate the development of housing supply, with an emphasis on affordable housing.