Council to consider purchase of former school property for future affordable housing

Chatham-Kent councilors will consider a staff recommendation Monday to purchase a former school property for future affordable housing.

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The building and property at 55 Croydon St. in Chatham, formerly St. Agnes elementary school, was bought in 2021 by Indwell Community Homes from the St. Clair Catholic District School Board for $635,000.

Indwell, a Christian-based organization which provides supportive and affordable housing in other communities, partnered with several local organizations, including the municipality, in recent years to try to create up to 150 supportive housing units throughout Chatham-Kent.

However, the project did not receive federal funding and Indwell halted its plans, which included up to 95 units at the Croydon Street site.

According to an agenda report posted online Thursday, municipal staff are recommending Chatham-Kent purchase the one hectare property from Indwell for $1.05 million, plus closing costs.

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If approved, administration would be authorized to demolish the original school building except for the new gymnasium area and coinciding infrastructure at an estimated cost of $200,000, to prepare the property for future development.

“The cost of acquisition, demolition and general maintenance (would) be treated as an investment in property on the municipal balance sheet until future permanent decisions on the use of the facility are made by council,” the report stated.

Administration would continue to “consider the site for future supportive and/or affordable housing projects and continue to seek out grant funding from upper-level governments for both operating and capital costs and potential partnerships, and report back to council with options for consideration by early 2025.”

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The report stated the building is vacant and the property owners have agreed to a sale to the municipality.

The gymnasium is in “excellent condition” and could be considered for a community recreation center as a stand-alone facility, staff said, adding the school portion is in poor condition and recommended for demolition.

An Indwell partnership is also possible, depending on the financial circumstances.

“Indwell is open to continue to explore opportunities to work with Chatham-Kent to provide supportive housing as an operator if capital and operational funding needs are satisfied,” the report stated.

Staff noted the property would enhance the municipality’s future affordable housing grant proposals that are geared to shovel-ready projects and compressed timelines, including the Canada Mortgage and Housing Corp.’s rapid housing initiative second-round funding opportunities.

“Funding from the second round of the housing accelerator fund is available only to previous applicants who were not approved in the 2023 application window,” the report stated.

“While the (municipality’s) 2023 application was not successful, positive feedback was received from CMHC and administration is working on strengthening the 2024 application further.”

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