Audit report details what went wrong with notorious public housing unit

An audit has revealed that a development on Base Line Road in London for vulnerable people is a target for violence. CTV's Daryl Newcombe has more from city hal

An independent auditor’s report sounds the alarm about the mistakes made since opening one of London’s worst public housing buildings in 2022.

On Wednesday, the Audit Committee received a report detailing the lessons learned since constructing the 61-unit building at 122 Base Line Rd. W. which is operated by London and Middlesex Community Housing (LMCH).

“I had no idea we put women into that building - and children. I hear all kinds of terrible stories about that building!” Councillor Susan Stevenson told colleagues on the committee.

In June 2024, residents of the building contacted CTV News about drugs and violence in the new building, as well as persistent problems with insects and graffiti.

In July, 48-year-old tenant Darko Lukic died in hospital after being found critically injured outside the building - four people have been charged in relation to his death.

The audit report explains that the building was initially designed as affordable housing for individuals not requiring social supports on site, but the tenant mix was changed to qualify for federal Rapid Housing Initiative (RHI) funding.

Instead, every tenant came from a high-acuity background:

The residents require supports related to mental health, poverty, substance abuse, and child protection.

“I am quite frankly shocked that we have not heard from the women’s advocates in this city about this concern,” Stevenson said.

In 2022, the building had an annual maintenance budget of $444,000, however, two years later the amount has jumped by 35 per cent.

The report warns, “There is a risk that the planned annual replacement reserve funding will be insufficient to maintain this asset in good condition.”

City staff say they’re working with LMCH to address the concerns contained in the audit report.

“We specifically spoke about this building and some of the challenges that have been identified by outside auditors,” explained City Manager Sandra Datars Bere. “So, we are certainly committed to working with them to ensure their work (is) keeping their tenants safe.”

Scott Mathers, Deputy City Manager, Planning and Economic Development added, “What we were discussing (is) looking at the population moving forward and making those course corrections, but we are actively working with them on it.”

Deputy Mayor Shawn Lewis - who sits on the board of LMCH - said changing the tenant mix in the building could take time because turnover of public housing units is slow, and the tenants being evicted for problematic behaviour can appeal to Ontario’s Landlord and Tenant Board.

“I don’t want us to put words in in the mouths of everyone on the LMCH board, but I would say there’s a general consensus that if this same offer to manage this property was brought forward to LMCH again under these existing conditions, we would not touch it,” admitted Lewis. “From an LMCH perspective, it’s not a sustainable model. We are not a highly supportive housing provider.”

“I don’t think we can wait. There are people living in situations that they don’t feel safe,” Stevenson told CTV News after the committee meeting. “I’ve got grown men at 122 Baseline telling me how terrified they are. And so, to find out that we have women and children who’ve been through trauma and are fleeing domestic violence there is very concerning.”

Councillor Elizabeth Peloza suggested some steps that should be considered.

“Looking at how to either upgrade the building to accommodate (who is) there and looking to see if we can bring in some wraparound supports to help individuals who are there,” Peloza explained. “If space is made available in another building, offering perhaps more appropriate placements for them.”

The City of London contributed $3.7 million of the $19.1 million construction cost to build 122 Baseline Road.

Stevenson believes the city needs to do more due diligence before jumping at opportunities to leverage funding from the federal Rapid Housing Initiative, “Other municipalities are saying no to the funds because they understand the strings that are attached and they don’t support the policies that are being mandated as a requirement to take the funding.”

Lessons learned from 122 Baseline Rd. have been implemented in the design and tenant selection for the newest LMCH building at 345 Sylvan Street.