Aylmer council approved providing a partial tax reduction for an affordable housing project by Walter Ostojic and Sons General Construction Ltd., a 23-unit apartment building at 59 Brown Street.
The annual reduction will be equivalent to the difference between the local taxes calculated using the current year’s tax rate for multi-residential properties, and the local taxes calculated for residential properties.
Multi-residential properties pay double the tax rate of residential, but for affordable housing projects, the local municipality and county have the option to change the tax rate to be equal to the residential rate.
The total cost for this building is assessed at $2.2-million, and the provincial government will cover $1.5-million. The actual assessed value on the project will be determined by the Municipal Property Assessment Corporation (MPAC) when construction is complete.
Twelve units will be designated affordable housing and priced at 20% below market rent, while the remaining 11 units will be market value. Construction is planned to begin this spring and be completed by the end of 2022.
Elgin County council unanimously voted to grant a tax reduction to the property in December 2020. Aylmer is expected to keep the county apprised of the status of assessment on the property.
Late last year, Ostojic and Sons also requested a relief from $128,968 in development charges for apartment building. Aylmer councillors voted to refer the request to staff for a follow-up report, which remains ongoing.
Veronica Reiner, Local Journalism Initiative Reporter, Aylmer Express