The Canada Mortgage and Housing Corporation states that the Town of Tecumseh has violated its agreement under the Housing Accelerator Fund Contribution Agreement and could lose $ 3.2 million in funding.
A letter from the CMHC is included in the agenda package for Tuesday night's meeting.
The CMHC says the violation is related to Tecumseh's decision last June not allow four-plexes as a right of way.
It stated that it withheld the disbursement of the second payment of HAF funding last July because it hadn't approved four housing units as a right-of-way in all low-density residential districts.
The first advance of HAF funding totalled $1,095,777.60. That money went to completing initiatives set out in the town's approved action plan.
The corporation has given Tecumseh 37 days to address the violation before the termination process begins.
"Despite the termination of the HAF Agreement, CMHC will not be seeking repayment of the first advance, provided the first advance was used by the recipient as described," said a letter from CMHC. "As a result of the termination, no further advances will be made."
WindsorNewsToday.ca has reached out to Tecumseh Mayor Gary McNamara for comment.
