The former Coast High Country Inn in downtown Whitehorse was supposed to be converted into supportive housing by this fall, but word of delays and rising costs have the Yukon’s opposition asking whether that’s still possible.

During question period Wednesday, Yukon Party Leader Currie Dixon and MLA Yvonne Clarke said they’d heard from contractors that work on the former hotel had halted during the summer.

Both asked Ranj Pillai, the minister responsible for the Yukon Housing Corp. (YHC), if the project is still on budget, and when residents can expect to move in.

“The reason for the delay is Safe at Home…are currently assessing the costs required to bring the building up to code.” 

The Safe at Home Society is the organization that officially owns the building; it will also operate and provide supports once it opens.

“There is a change in usage, and that increase in cost is what they are reviewing at this time with CMHC (Canada Mortgage and Housing Corp.) — including more substantial energy-efficiency updates,” Pillai said.

“I think they have applied to different sources to make the building more energy-efficient as well.”

The Coast High Country Inn was purchased earlier this year for $10 million through CMHC funding.

The intent is to convert the former hotel into 55 housing units that would support “Yukoners who are in uncertain housing situations, experiencing or at risk of homelessness, or living in temporary shelters because of the pandemic,” as a Yukon government news release stated last January.

Remaining funding for the project comes the City of Whitehorse’s Rapid Housing Initiative project stream ($5 million) and the YHC ($1.02 million).

The project was expected to be completed this fall.

During the summer, the Safe at Home Society told city council residents could move in as early as the past September.

That early target has passed – and it now appears the housing units won’t be ready until the winter at the soonest.

Speaking with reporters after question period, Dixon said contractors had informed the Yukon Party that work on the facility has stopped – and may have been halted since the summer.

Executive director Kate Mechan of the Safe at Home Society told the Star in an email she cannot comment on the status of the project until she has approvals from the project’s funders and the organization’s board.

All she could say was “Work has been ongoing to keep the project moving,” though she didn’t define what that work has been.

Pillai was also light on details. He told the legislature the YHC has been hands-off on this project, and that he still needs to hear from Safe at Home.

“I am here to support Safe at Home in any way we can at the Yukon Housing Corporation,” Pillai told the House.

“We will wait for the information that they are collecting, and then we will look at how to go forward in supporting them in their endeavours to help vulnerable Yukoners.”

Pillai said he believes the costs have risen above the original project budget.

However, he cannot comment on any changes in financial viability or next steps for the project until he’s heard from Safe at Home. The society is taking the lead on the hotel conversion, he said.

“From the start, it looked like a great project. It looked like a viable project. And now (Safe at Home) has come to the conclusion that there’s more costs involved,” he said. “So we’re waiting to see what that looks like.”

Dixon wasn’t satisfied with that response.

“I would remind the minister that the capital funding support from the Yukon Housing Corporation was contingent on Yukon Government’s final approval of the capital costs, operational plans, and long-term financial and program viability for this project,” he said.

“So, it was the Yukon Housing Corporation that conducted the due diligence — or should have — prior to the funding being approved.”

Pillai said due diligence for the acquisition and structural review of the hotel was undertaken by the CMHC.

He also said the CMHC’s parameters require projects to be completed within 12 months of funding approval,

He said the corporation is working closely with Safe at Home to review any budget changes or work still required on the building, and he’s confident the federal funding isn’t in jeopardy.

Speaking to reporters, Pillai didn’t confirm whether his government or the CMHC had more funds set aside should the project go over-budget. 

“As soon as (CMHC and Safe at Home) finish their due diligence, I'm looking to be able to sit down at the table with all the partners and understand what the best way for us to go forward is,” he said.

The Star requested an interview with a CMHC representative for this article, but did not hear back before deadline.

“It’s another project with another blown timeline,” Dixon told reporters Wednesday.

“But what’s even more concerning is that the minister doesn’t even know how much more money is going to be needed.

“Because these housing units are so needed in our community, we’re concerned that there’s gonna get another delay and perhaps (spend) even more money.”

Pillai urged Dixon and his colleagues in the legislature not to be critical of the work Safe at Home has been doing – which he commended – as he feels it could discourage other NGOs from partnering with the government on future projects.

The High Country Inn is the second delayed project this month that’s involved the YHC.

A Whitehorse development owned by the corporation at Fourth Avenue and Jeckell Street might not open this fall after substandard flooring was installed in the 47-unit affordable housing complex. Pillai told the Star earlier this month he still hopes that project will be completed before year’s end. 

However, both delays could mean more than 100 much-needed units in downtown Whitehorse won’t be ready for the winter.

Pillai told reporters Thursday he regrets that people are still waiting for this housing.

He said the YHC might open additional temporary shelters for unhoused Whitehorse residents if existing shelters are over-capacity this winter.