Funding Condition Removal for the Hope Mission for Basement Construction Under the Low Income Housing Capital Assistance Program (LIHCAP)

Recommendation:
That the condition attached to the Community Services Committee’s approval of the Low Income Housing Capital Assistance Program (LIHCAP) funding for the Hope Mission’s (HM) housing project be removed.

Report Summary

This report recommends that the condition of the HM obtaining written confirmation from the Province for operational funding for the mat spaces in the basement level prior to accessing the City’s LIHCAP grant of $41,780 be removed.

Previous Council/Committee Action

At the April 7, 2003 Community Services Committee meeting, the following motion was passed:

That the allocation of an additional $41,780 from the Low Income Housing Capital Assistance Program (LIHCAP) to the Hope Mission (HM) for its housing project be approved subject to the agency receiving written confirmation of operational funding from the Province.

Report

  • The HM is a non-profit, registered, charitable organization whose primary objective is to provide a wide range of services and programs including emergency shelter. The HM also operates a 30-mat emergency winter shelter program for intoxicated individuals, in a portable trailer located next to the Herb Jamieson Centre.
  • This experience has led the HM to consider adding an emergency mat program for intoxicated individuals in the basement level (“intox area”) of its new facility being constructed at 9908 –106A Avenue. In addition to mat spaces (30 initially with expansion possibilities to 70), the intox area will have a publicly accessible separate bathroom and shower facility to serve the homeless people in the inner-city on 24 hours/seven days per week basis.
  • The HM recently met with the Minister of Alberta Seniors regarding the operational funding for the mat spaces. The Minister did acknowledge the financial advantage of proceeding with the construction of the basement level at the same time the rest of the structure was being constructed and supported its proceeding. However, he could not commit additional operational funding as the Province is currently reviewing the per diem rates for its shelter program Province wide.
  • Emergency shelters for intoxicated individuals are an urgent need in the community as all existing facilities were operating beyond full capacity last year. Inner-city residents and businesses are also concerned that some homeless and intoxicated persons are sleeping in dumpsters, doorways and back alleys creating health and safety hazards. There also exists an urgent need for public washrooms and showers for the homeless people in the inner city.
  • To meet this urgent need, the HM will construct the basement level without waiting for the operational funding approval by the Province. The HM maintains that if the Province does not come through with operational funding, it will fundraise the amount necessary to operate.
  • On June 24, 2003, the Board of Trustees of the Edmonton Housing Trust Fund made a decision to remove a condition for the HM to obtain the confirmation of the provincial operational funding prior to accessing the $376,020 allocated for the construction of the basement. This amount accounts for 90% of the capital cost of the basement development.

Budget / Financial Implications

$41,780 is available in the LIHCAP Capital Budget (XX-21-5500). The annual operating costs associated with the project are estimated at $340,000. In the event that the Province is unable to commit the additional operating funds for the mat program in the intox area, the HM has indicated that it would absorb the costs through fundraising and community support.

Legal Implications

A letter of understanding will be signed between the Hope Mission and the City of Edmonton. This letter will specify that the funding is one time only, that documentation of project completion will be necessary, and that the Hope Mission will be responsible for all operational funding of the intox program in the basement if the Province is unable to provide necessary funding.

Justification of Recommendation

The removal of the condition of obtaining written confirmation of operational funding from the Province will facilitate the immediate construction of the needed facility. It will also demonstrate the City’s active participation with the community to address urgent social needs.

Background Information Available on Request

The Hope Mission’s LIHCAP proposal for the Construction of the Basement Level

Others Approving this Report

Randy Garvey, General Manager, Corporate Services Department

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