A housing project in Sault Ste. Marie's Steelton neighborhood is being scaled back due to unforeseen expenses. The Sault Ste. Marie Housing Corporation (SSMHC) recently revealed that renovation costs for a key property have surged far beyond initial projections.

The jump from $350,000 to $1 million in renovation costs

The Sault Ste. Marie Housing Corporation (SSMHC) originally estimated that renovating 212 St. George's Avenue West would cost roughly $350,000. However, as the report from the SSMHC indicates, these costs have ballooned to a range between $750,000 and $1 million. This massive discrepancy has fundamentally altered the financial viability of the project and the scale of its impact.

Why Willow West Developments is proposing only 6 to 8 units

Originally, the plan for the Steelton property involved creating up to 13 affordable housing units specifically for women and their children. Following the $50,000 sale of the property to Willow West Developments, the developer requested an amendment to the agreement. this new proposal seeks to reduce the unit count to a maximum of eight , a move driven by the need to manage the skyrocketing renovation budget.

Despite this reduction, the project will still maintain a 20-year affordability commitment. The units will be offered at 80 percent of the average market rental rates for the area,as determined by the Canada Mortgage and Housing Corporation (CMHC).

Navigating Ontario's strict building codes and aging wiring

The project's budget crisis is rooted in the physical realities of an older building. According to the SSMHC, several critical issues were identified during redevelopment planning that significantly increased the scope of work:

  • Building Code compliance: Hallway and stairway widths do not meet current safety standards.
  • Electrical hazards: The building requires the complete replacement of outdated knob and tube wiring.
  • Infrastructure failures: The existing plumbing is insufficient for the intended residential usage.

    • These technical hurdles reflect a broader, systemic challenge across Ontario, where developers frequently encounter "hidden" costs when attempting to convert aging rooming houses into modern, safe housing. The transition from a former rooming house to a regulated residential facility often triggers expensive mandatory upgrades.

    The missing details in the revised SSMHC agreement

    While the SSMHC Board has approved a revised approach to keep the project moving, several critical pieces of information remain absent from the public record. The source does not specify:

    • The exact new timeline for when these units will actually become available to the community.
    • Whether the reduction in units will leave a significant gap in support for the intended demographic of women and children.
    • If the current $1 million ceiling is a hard cap or if further amendments may be required if more structural issues are discovered.

      • The reporting focuses primarily on the SSMHC's perspective, leaving the specific reactions of Willow West Developments or local housing advocates regarding the reduced unit count unaddressed.