Rossland City Council is extending the City’s loan to the Rossland Seniors Housing Society for another two years. The Society operates as a non-profit institution for the purpose of providing, maintaining, renting and managing Esling Park Lodge and says they currently have a wait list of 95 people. They were expected to pay back the full principal amount of $270,000 as of January 2019, but that’s now moved to February 2021. Mayor Kathy Moore explains why the extension was granted.
“It creates a difficult situation for them because they have kind of low rents in there and they can only raised them 2.5 [per cent] a year or something, so they were struggling to come up with the money while they still have a bit mortgage, their first mortgage with BC Housing outstanding.”
The Society was proposing an interest rate increase from 2.2 per cent ($5,940.00 per year) to 3 per cent ($8,100.00 per year); however, council agreed on 4. 29 per cent. Mayor Kathy Moore feels it’s a fair deal.
“So we said, yeah, we’ll do it, but you know you need to pay us more similar to a market rate, but that ‘s still below market rate for a mortgage intrest rate but, you knokw, it’s inching up there. And this is just for two years and after two years they’ll be refinancing their other mortgage and we’ll expect full repayment at that point.”
The City says the Society has paid all interest payments in a timely manner, as well as 100 per cent of property taxes and utility fees with no exemptions or waivers.
