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Grey County purchasing motel for emergency housing

County will use the motel to add to its supply of short-term emergency housing, more than 10,000 nights of accommodation were required in 2023
grey-county-hotel-property
Grey County is purchasing a motel in Owen Sound to use as emergency housing units.

Grey County is planning an expansion of emergency housing access with the purchase of the Diamond Motel in Owen Sound.

At its meeting on Jan. 25, county council directed staff to finalize an agreement of purchase and sale with the motel operator at a cost of $3,050,000. The property is located at 713 9th Avenue East in Owen Sound. A bylaw to finalize the sale will come to council for approval on Feb. 8.

“Homelessness is a problem we see growing in communities across the province and Grey County is no exception,” said Warden Brian Milne. “Investing in this motel is an investment in safety and security for the residents of our communities who are being left out in the cold.”

Grey County is responsible for providing homelessness services and programs in the area. The current supply of short-term emergency and transitional housing is not sufficient to meet demand now or in the future.

Operating 22 rooms at the Diamond Motel is predicted to provide nearly 10,000 nights of accommodation annually through single, double, and family occupancy. It will also add stability to the county’s short-term emergency housing program which utilizes motels. With the purchase, the county will be able to offer upwards of 13,000 nights of accommodation to residents experiencing homelessness throughout the year.

As of November 31, 2023, the county provided 9,173 nights of accommodation through the program. An additional 992 are expected when December numbers are reported. This growing need led to a deficit of $427,000 in 2023.

“As the demand for homelessness services rises in our community, the purchase of the motel provides more options for people while staying within our available funding. It’s a long-term, sustainable opportunity,” said Milne.

The short-term emergency housing program currently costs around $120 per night per room. The purchase of the Diamond Inn projects a reduction in this cost to $52 per night.

The purchase of the motel will be funded through the Affordable Housing Fund and will have no impact on the county’s 2024 tax levy. Future capital costs will be built into the county’s capital budget. The county estimates approximately $95,000 in additional investment will be needed in the next 10 years. Initial property upgrades will be funded through the Canada-Ontario Community Housing Initiatives.