The Owen Sound Housing Corporation has acquired property on the East side of the City and has submitted a proposed site plan to build 90 residential units.

The first phase planned is a 28 unit townhouse development consisting of 20 one bedroom and 8 two bedroom units. Of these 28 units, 18 will be fully or partially modified for persons with disabilities. The total cost of phase one of the proposed site plan is $4,904,213. Federal and Provincial governments are providing funding of $2,550,000 and the Owen Sound Housing Company has contributed approximately $1,100,000 in land and funding. The balance of the project will be funded by mortgage upon completion of the units.
The Owen Sound Housing Company has requested that the City of Owen Sound assist with an additional construction financing loan
in the amount of $800,000 which will be advanced upon the signing of the loan agreement and repaid in full plus accrued interest when the final mortgage is released once the units are ready for occupancy. It is anticipated that this will occur by May 31, 2018.
The current outstanding loan of $865,000 will be repaid once CMHC construction financing is approved and advanced to the Housing Corporation leaving only this draw of $800,000 owing until completion of the project, and no later than August 31, 2022 at which time the City may request to be registered on title (as a mortgage holder) should the Housing Company not attain financing with another lender.

A similar arrangement was made to provide construction financing to the Owen Sound Municipal Non- Profit Housing Corporation in 2009 and earlier this year.
The interest rate applied to the loan is calculated at 2% and represents the rate that the City would pay on a loan of similar size and term with Infrastructure Ontario. Should the balance be repaid by May 31, 2018 as anticipated by the OSHC the total interest revenue to be earned by the City is estimated to be $9,380.
The funds to provide the loan will be drawn on the Georgian Bay Energy Reserve. The interest income earned on the outstanding balance will be accrued and added to the reserve balance upon maturity or repayment.

source: Owen Sound staff report CR-17-102