Moncton OKs initial Rising Tide spending, despite unmet conditions

Moncton, N.B., councillors voted Monday to release $2 million to a non-profit seeking to open affordable housing units in the city before it has met some of the conditions council set when originally approving the funding.

Rising Tide Community Initiatives Inc. plans to buy property to open 125 units of affordable housing and support services for tenants over three years.

City council voted to approve spending $6 million on the plan in November, but attached four conditions.

Those included obtaining matching provincial start-up funding, securing long-term funding beyond the three years, and two related to establishing a long-term plan and the organization's governance.

While the province agreed to provide matching support, city staff told council that the other conditions have yet to be fully met.

Dale Hicks, a co-founder of Rising Tide, said several governance-related things like obtaining charity status are still underway, but there are properties that could be purchased soon.

"We've been working with city staff and everybody was quite aware that the some of the conditions that were outlined in that motion could be addressed right away, that was going to take several months for them to be addressed," Hicks said Monday evening.

Hicks said the organization is preparing to hire a few staff members and has a list of potential properties to purchase, one that keeps changing because of the region's hot housing market.

He said Rising Tide is also awaiting word on whether it will receive federal funding through theRapid Housing Initiative, which could alter its plans. That money needs to be spent within a year.

Rising Tide was launched last year to meet the city's affordable housing strategy objective that calls for creation of an entity that would boost the amount of lower-cost housing in the city.

Rising Tide's business plan called for those living in the units to be charged $300 per month, with the organization hiring staff who would provide tenants with wraparound support services.

The first year would see 25 housing units opened. Hicks said he expects to be able to accomplish that goal this year and the city releasing the funding will help make that possible.

Monday's council vote followed a previous debate about the issue during a private council meeting, with Monday's discussion mainly around whether to require the organization to provide public updates on its progress through the year.

"What came out of the meeting, my understanding was that we were going to try to get this out to them as quickly as possible that this was done," Coun. Bryan Butler said.

Marc Landry, the city manager, told councillors staff are working with the organization to ensure the other conditions are met.

Money from reserve accounts

A condition for Rising Tide to provide three updates this year was added before council voted unanimously to release the funding.

Coun. Susan Edgett suggested those updates happen before the city authorizes releasing the 2022 contribution of $2 million.

The money to pay for this year's contribution will come from reserve accounts, money already collected through taxes but held for future city spending.