Is there a connection between the pending decision by the City of Vancouver on an application by the province for a demolition permit for Little Mountain Housing, and the provincial government’s foot-dragging on renewing its continued funding for homeless shelters in the city?

That may sound like a bit of a stretch, and could easily be dismissed as another conspiracy theory.

But let’s take a look at some background.

On March 31, funding ended for the five homeless shelters that were bankrolled by the provincial government, the city, and a private group.

Since April 1, the province has been the sole funder of the shelters.

In May, Vancouver council passed a motion directing staff to continue working with the province in order to keep the shelters open until April 2010.

More than a month later and until today (June 23), there’s no word about whether or not the province will come up with money, which is about $500,000 a month to maintain the shelters.

Meanwhile, the remaining residents of Little Mountain Housing, the city’s oldest social housing project, are getting more anxious, as a big portion of the area was fenced off on June 18 in preparation for demolition.

On June 1, the residents were informed by letter by the provincial government that it has applied for a demolition permit from the city.

Some 450 homeless people will be back on the streets if the five shelters close but there’s no way they’ll be allowed into the vacant units at Little Mountain, which is owned by the province.

The actual redevelopment of Little Mountain isn’t expected to start until after the 2010 Olympics, and critics have been saying it doesn’t make sense to level the social housing project.

There is also persistent speculation that the province wants to turn the six-hectare piece of prime real estate east of Queen Elizabeth Park into a parking lot in time for the 2010 Games.

The site is adjacent to the Vancouver Olympic Centre/Vancouver Paralympic Centre, home of the curling events during the games which are a mere eight months away.

The province cannot just start constructing a parking lot and has to secure permits from the city, a process that takes some time just like anything else.

But allowing the demolition of what look like livable structures at Little Mountain isn’t good optics for the city, especially for Mayor Gregor Robertson, who has promised to end street homelessness.

However, there’s not much council can do, as matters like demolition permit issuance are handled by city staff. And there’s no major reason why such a permit cannot be issued to the owner, which is the province.

In the meantime, the fate of the shelters remains up in the air.