Tenant worried about future as New Dawn sells affordable housing units in Sydney
Social welfare agency says rents for vulnerable people can't rise enough to cover increasing cost of operation
Meaghan Morrison is worried about the future of affordable housing in Sydney, N.S., after finding out the social welfare agency that owns her apartment building is selling the property.
She looks after her four-year-old daughter and aging father and pays the non-profit New Dawn Enterprises $900 a month for a three-bedroom townhouse-style unit on Havelock Street in the north end.
"It felt like there was some longevity here, like even if I got a job, if it was minimal income, I could still basically afford myself and my family and I'm petrified now, because I don't know what's happening," Morrison said. "If they sell the property, who are they selling it to and what does that mean for the tenants that are in here?"
Morrison said she is afraid the new owner will increase rents, making it unaffordable for her to stay and forcing her out into the community, where vacancies are low and rents are higher.
"We're in the midst of a housing crisis and the rental market is basically non-existent and super fragile and I'm scared to go back through it," she said.
Morrison has been happy with her housing from New Dawn, saying the rental unit is affordable, clean and well maintained.
Tenant questions why properties being sold
"Here, it just felt like you were just part of the community, like you had a fair rental and you could live," she said.
"They could be expanding New Dawn. I don't know why this is happening."
New Dawn CEO Erika Shea said the social welfare agency is selling four residential properties and one commercial building in Sydney to Irwin Simon, owner of the Cape Breton Eagles major junior hockey team and the Cambridge Suites Hotel in downtown Sydney.
Rent for vulnerable people simply cannot rise fast enough to cover the increasing cost of operating housing units, she said.
"Without any support from government, the margins on affordable housing are small and getting smaller," Shea said.
The sale is expected to close at the end of the month and includes New Dawn continuing to manage the properties for the new owner.
That should provide a level of comfort for residents, said Shea.
"Day to day, nothing really changes for the tenants, but I will say I understand, of course, their concerns and apprehensions. I would feel exactly the same way."
In addition, Shea said, New Dawn's board of directors believes the new owner will continue to look after tenants.
"We've been getting to know and developing a relationship with Mr. Simon over the last six months and feel fully confident that his commitment is our commitment, which is to safe, well-maintained and affordable housing."
Shea said before New Dawn decided to sell, it spent months talking to provincial and federal government officials, trying to find a way to maintain ownership of the affordable housing units.
New Dawn looking to build
The agency could have continued with an extra $100 a month per unit, but the governments would not subsidize operations, she said.
The federal government has just announced a third round of funding under its rapid housing initiative that Shea said will supply much of the capital needed for construction of new affordable housing units.
New Dawn still has other affordable and market-based rentals and intends to apply for federal funding to expand the number of affordable housing units in Cape Breton.
Shea said the sale to Simon includes a commercial property at 714 Alexandra Street, plus residential units at:
- 745 Alexandra Street,
- 173 George Street,
- 503 Charlotte Street,
- 4 Havelock Street.
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