SRD To Meet With Cortes Housing Society About Possible Loan

Roy L Hales/Cortes Currents -The Strathcona Regional District (SRD) will be meeting with the Cortes Housing Society to discuss the possibility of making a short term loan to help bring power, water and sewage to some lots in the Rainbow Ridge affordbale housing project.

While the SRD created a Housing Service earlier this year, it has yet to requiistion any funds and the request prompted some discussion at the Wednesday October 30 Board meeting.

Regional Director Mark Vonesch, of Cortes Island, made the motion “that the Regional District work with the Cortes Housing Society to develop a plan for a short term loan through the Regional Housing Service so that the Cortes Housing Society can develop a part of its land with power, water, septic, and road access to facilitate long term lease agreements and thus create affordable housing opportunities on Cortes Island.”

The seconder, Regional Director Robyn Mawhinney of Area C, asked, “I'm curious from staff the likely timeline on the report and if it would be returned in time for the Board to consider the request inclusion in the 2025 financial plan.”

To which Chief Administrative Officer David Leitch replied, “I don't know what kind of model they're looking at in terms of a lease. The motion says a short term loan. I don't really know what that means. I can bring something back as preliminary to high level thoughts about what the society has in mind and bring that to the board, hopefully before the end of the year, there's only two meetings left before the end of the year.”

Campbell River Director Susan Sinnott added, “I'm just curious about staff capacity and coming in with an innovative thing. I would prefer if the Cortes Housing Society wanted to do a delegation present to us and explain to us how they've exhausted their options, including going to B. C. Housing, which seems to me the place you go for this type of funding and shows that they've met the requirements and how they're going to provide housing that goes within the requirements for the provincial funder. I'm not sure if I would appreciate our staff working on this right now. We have a lot of other things that we need to get through.”

“When we create a housing service, does it include the power to grant loans?”

CAO Leitch: “Well, that's also tricky. I don't know if it's just even through the service to grant loans, but I'm going to say it's highly unlikely that the regional and district would offer a loan to society without any security, that would create a significant amount of liability.”

“I'm not saying that's what they're asking for. I haven't had any discussions, but let's say they needed 3 million loan through the regional district, that would create a great deal of risk and vulnerability to the regional district if there is no secured asset to that loan. I don't know what the payback terms of that would be, are we talking about security? I don't know.”

Director Vonesch attempted to clarify the matter, “Obviously the land would back any loan and the initial discussions that I've had is looking for a million dollars put power, water and sewage into 10 lots, sell those to 10 lots in a long term lease for let's say a hundred thousand that would pay back the loan.”