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

The Owen Sound Housing Company has requested that the City of Owen Sound assist with construction financing in the amount of $3,125,000 which will be advanced upon the signing of the loan agreement and at the request of the Owen Sound Housing Company and repaid in full plus accrued interest when the long term financing is finalized.

It is anticipated that funds will be required in March 2021 and that repayment will occur by October 2021.  A similar arrangement was made to provide financing to the Owen Sound Municipal Non-Profit Housing Corporation in 2017 and again in 2019.

The interest rate applied to the outstanding loans for 2020 is calculated at 2.5% and represents the rate that the City would pay on a loan of similar size and term with Infrastructure Ontario. Total interest revenue for each month the loan is outstanding is estimated to be $6,500.

source: staff report to Owen Sound Council, May 11, 2020

photo source: JP Commercial Contracting