The Municipality of Lakeshore decided not to apply for round two of the Housing Accelerator Fund during Tuesday's meeting.
Council was presented with a report asking if they would like to move forward with applying and in a 4-3 vote decided not to.
In 2023, the federal government launched the $4-billion HAF aimed at supporting initiatives that remove barriers to housing supply.
In August 2023, council supported the plan and submitted an application - however they were not successful in the first intake.
Canada Mortgage and Housing Corporation re-opened with $400-million in funding and new requirements - including implementing by-laws to allow four units as-of-right.
Kelsey Santarossa, ward 3 councillor for the Municipality of Lakeshore, says she was hoping to see four units as-of-right considered by council.
"Particularly to give us an opportunity as well to build the infrastructure, the zoning by-law requirements, the necessary amendments and the infrastructure municipally to help us support getting to that point."
She says she does understand why council voted no.
"I think I understand too where some of the concerns from council were considering we have infrastructure challenges in the municipality. But it's really tough to understand what risk, and what costs are associated with this type of intensification on existing sanitary systems, water, parks, and facilities."
She says currently the municipality offers three units as-of-right.
"We haven't seen massive demand that people are clambering at the municipal doors for three units, ADU's are a new topic of conversation. I think there may be some fears for massive conversion rates happening in our municipalities, but I think it's also important to have a conversation about net new development, and what is the future of our communities."
Santarossa, along with councillor Ryan McNamara, and mayor Tracey Bailey were opposed to the motion to not move forward with an application.
Councillor John Kerr, councillor Larissa Vogler, councillor Ian Ruston, and deputy mayor Kirk Walstedt voted in favour.
Santarossa adds that even though council didn't move forward with the application to receive federal funding, they are still implementing many of the HAF measures to ensure the Municipality is able to support housing developments.
In March 2024, the Town of Tecumseh was awarded $4.4-million from the federal government's fund to expedite the construction of 137 housing units over the next three years.
