Cathy Dobson/The Independent

Tony Gioiosa says he speaks for about 50 neighbours when he says the Inn of the Good Shepherd’s decision to scrap an affordable housing project at the corner of Exmouth Street and Melrose Avenue is welcome news.

The neighbours don’t like the shelter operation currently there and they also don’t want it replaced by affordable housing, said Gioiosa who owns two nearby commercial properties.

“It all comes down to trust,” he said.  

The Inn operates the controversial shelter that was set up in 2023 by the County of Lambton as a temporary measure to get the homeless out of the cold.

Following a rocky relationship with the neighbours due to substantial police calls, vagrancy, property damage and drug use by some shelter clients outside the facility, the Inn proposed a 56-unit, six-storey affordable apartment building for the property to house low-income earners such as seniors.

But the damage was done, according to Gioiosa.   

“The community is scarred,” he said. “We understand there is a homelessness problem in Sarnia and that we need affordable housing. But we’re happy the Inn’s not going to build there and we will object to any other group that wants to build affordable housing there.”

Gioiosa said the neighbours are disillusioned with the Inn because they say there wasn’t enough communication to keep area residents updated on the plan. 

“I don’t know where affordable housing should go but it needs to be delivered with transparency,” he said. “You have to communicate in order to get neighbourhood buy-in.”

His comments were in reaction to Thursday’s announcement from the Inn of the Good Shepherd that the non-profit’s financial position has changed and the board of directors decided not to proceed with its $19-million housing proposal. 

That’s despite having the design work complete and a contractor already selected, said the Inn’s executive director Jack Christine.   

When the proposal was conceived, the Inn was operated by recently-retired executive director Myles Vanni and capital reserves were healthy. The Inn planned to apply for a Build Canada Homes federal grant.

But Christine said by the time he arrived in late 2025, corporate donations to the Inn were down significantly and it was increasingly difficult to justify investment in affordable housing when the Inn’s core services like its soup kitchen, food bank and emergency shelter were under financial pressure too. 

Donations were down but demand for core services was up.

“The Inn has operated at a deficit for the last couple of years and the capital reserves are depleted,” Christine said. “We are all disappointed.  The intention was very good.  I thought it was a great project, but we have to concentrate on our core services.”

He said funding already spent on planning and design for the affordable housing proposal – including an appeal by the Inn to the Ontario Land Tribunal when city council initially rejected rezoning – has not set the Inn back financially because Lambton County provided $200,000 in “seed” money.

Meanwhile, the temporary shelter at Exmouth and Melrose Avenue in the former Laurel Lea-St. Matthews Church continues to operate under Inn of the Good Shepherd management, although it’s Lambton County that has leased the space from the church.

The neighbours don’t like the shelter operating there but are pleased with numerous security measures taken to make the area safer, according to Gioiosa.

“It has improved,” he said. “Our neighbourhood is calmer, quieter, but we still see drug use; there’s backyard theft, public urination and unstable people on the streets.”

A dramatic difference occurred eight months ago when the HART Hub opened downtown on Lochiel Street and shelter clients were directed there for services during the day.  

“It’s significantly better,” agreed Nolan Dunn who lives directly beside the shelter. “And I have to say the Inn’s staff has always had the best interests of the neighbourhood in mind.”

Some days, there’s no sign of negative behaviour from shelter clientelle.  “Some days you can’t ignore it,” said Dunn.  

Christine said he understands the shelter is a challenge for the neighbourhood and wants to close it as soon as possible.

But that’s going to take at least until the fall of 2027, he said.  That’s when The Inn’s main shelter on Confederation is expected to complete a large expansion that will nearly double its capacity to 79 beds from 39. 

Currently, the temporary shelter has 25 beds and is running at 75-80 percent capacity.  It was nearly full during the recent heat wave.