The City of Victoria has established itself as a leader in affordable housing, but that commitment faltered a bit for the first time last week.

Council targeted its Housing Trust Fund as one of the first places it will look to cut in a large-scale review of city functions to find savings in the budget.

On Thursday, a slim majority of councillors voted to reduce the cityB次元官网网址檚 annual contribution to affordable housing by $100,000, for a new total of $400,000.

For most on council, these tough times called for a tough decision.

B次元官网网址淭he vacancy rates have never been so high,B次元官网网址� said Coun. Shellie Gudgeon, who voted in favour of the cut. B次元官网网址淕iven the economic climate, developers are looking to build rental housing. This is an opportunity to save some money and let the business sector fill in the gaps.B次元官网网址�

For others on council, however, affordable housing represents an untouchable city priority.

B次元官网网址淚 donB次元官网网址檛 think itB次元官网网址檚 the right thing to do right now,B次元官网网址� said Coun. Marianne Alto. B次元官网网址淩esolving homelessness starts with housing first.B次元官网网址�

Council did more than cut the housing budget. It also voted to shift more of its housing contributions to the Capital Regional DistrictB次元官网网址檚 housing trust fund.

All municipalities in the region contribute to the CRD fund, but Victoria also has its own fund to encourage affordable housing projects within its own borders.

As part of the budget discussions, Coun. Charlayne Thornton-Joe questioned the logic of having this made-in-Victoria housing fund.

B次元官网网址淚f IB次元官网网址檓 a developer and I want to build affordable housing, I realize I can get money twice if I come to the City of Victoria because I can get money from the CRD and from the city,B次元官网网址�  Thornton-Joe said.

For this reason, she said, most housing projects land in Victoria B次元官网网址� and more specifically, they land in Burnside Gorge where the cost of housing is among the lowest in the city.

As a result, affordable housing projects are concentrated in one area of the city, Thornton-Joe said.

Council agreed, and voted to increase the contribution to the regional fund, which is used to support the development of housing projects anywhere in the region.

Mayor Dean Fortin opposed both decisions.

B次元官网网址淛ust because you shift money to CRD, doesnB次元官网网址檛 mean housing wonB次元官网网址檛 show up in Victoria,B次元官网网址� he said. B次元官网网址淚t depends on whoB次元官网网址檚 willing to accept it.B次元官网网址�

Fortin campaigned on a platform to alleviate VictoriaB次元官网网址檚 severe shortage of affordable housing, and he also opposed the decision to cut the overall housing budget.

B次元官网网址淭he reason it is our priority (is) because it shows up here,B次元官网网址� he said. B次元官网网址淲e do have to pay double duty here.B次元官网网址�

The cut to housing isnB次元官网网址檛 a done deal. The city may launch some form of public engagement before making its final vote at a council meeting.

The ongoing financial savings discussions are for the cityB次元官网网址檚 2013 budget.

Proposed changes to housing budget

Decrease overall annual contributions to affordable housing from $500,000 to $400,000 by:

B次元官网网址� Decreasing funding to the Victoria Housing Trust Fund from $250,000 to $50,000

B次元官网网址� Increasing funding to the Capital Regional District Housing Trust Fund from $250,000 to $350,000.

rholmen@vicnews.com