A legal battle is brewing after the cost of an affordable housing project in Chatham doubled over the years.
Chatham-Kent's (CK) council is trying to recoup $8 million from a builder who got fired in 2024 because of significant delays at a 27-unit modular affordable housing project at 101 McNaughton Avenue West in Chatham.
The project is now estimated at $19 million, double its original estimate, and the municipality admits it might be difficult to recover any money because the original builder has gone bankrupt.
To make matters worse, the new builder has found significant water damage that wasn't discovered before because the building was not safe to enter due to unfinished work.
Council heard on Monday night that six modules (3 units) had to be removed by crane to repair structural steel, and all units needed to be either fully repaired or partially repaired because of the water damage.
Councillor Anthony Ceccacci said it's unfortunate this project turned out this way.
"I just want to make sure the community knows that we are trying. It's been a significantly challenging process, and we are just as frustrated as the community that drives by the building that hasn't been used for a long time, and we are now on the right path," said Ceccacci.
Chief Administrative Officer (CAO) Michael Duben explained that other municipalities are having trouble with modular builds as well.
"A number of municipalities took advantage of the same funding, and unfortunately, it didn't work out all that well for them. One of the reasons is that when things go south, you don't have the same ability to address it as you would in a normal bricks and mortar [situation] because it's an intellectual property kind of thing," Duben said.
Councillors heard that this round of funding was tied to modular projects only.
The municipality said the project should be ready by Spring 2026.