Creating Affordable Housing: SEED Funding / PDF Funding Overview  What is affordable housing?  Who creates it?  What approaches work?  What programs are available? CANADA MORTGAGE AND.

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Transcript Creating Affordable Housing: SEED Funding / PDF Funding Overview  What is affordable housing?  Who creates it?  What approaches work?  What programs are available? CANADA MORTGAGE AND.

Slide 1

Creating Affordable Housing:
SEED Funding / PDF Funding

Overview
 What is affordable
housing?
 Who creates it?
 What approaches
work?

 What programs are
available?

CANADA MORTGAGE AND HOUSING CORPORATION

2

What is Affordable Housing?

The Community Housing Continuum
Emergenc
y
Shelters

Transitional
Housing

Social
Housing

Government Subsidized Housing

Affordable
Rental
Housing

Affordable
Home
Ownership

Non-Market Housing

CANADA MORTGAGE AND HOUSING CORPORATION

Rental
Housin
g

Home
Ownership

Market housing

What is Affordable?

 30 per cent of gross household income is
generally considered “affordable”.

 However, affordability criteria typically

differs by program and funding authority.

CANADA MORTGAGE AND HOUSING CORPORATION

4

Affordability Criteria – Two examples
Example 1

Example 2

Canada-Ontario
Affordable Housing
Agreement
(MMAH as IAH)

CMHC Seed
and Proposal
Development Funds
Program

•80 percent of
CMHC average
market rents

•80th rent percentile

•Below average
resale price

•Below average
resale price

CANADA MORTGAGE AND HOUSING CORPORATION

5

Who creates affordable housing?



Community leaders including
non- profit service organizations
and housing providers,
churches, private sector
developers, and municipalities.



Each partnership brings value to
the deal, such as business
knowledge, financial resources or
regulatory flexibility.

CANADA MORTGAGE AND HOUSING CORPORATION

6

What approaches work?
Municipal Tools Used In
Canada

Acquiring and
renovating building

Expedited approval
process

Parkland dedication
fees

Affordable
housing strategy

Grants and loans

Public–private
Partnerships

Allowing infill

Housing agreements
for
new development

Redeveloping/convertin
g
non-residential
buildings/sites

Comprehensive
development zoning

Housing fund

Resale price
restrictions

Designing flexible
Housing

Housing organization

Retaining affordable
housing

Donating land
or facilities

Inclusionary zoning

Secondary and
garden suites

Encouraging building
energy efficient housing

Intensification

Using development
levies

Encouraging
smaller units

Land banking

Waiving or reducing
property taxes

CANADA MORTGAGE AND HOUSING CORPORATION

Ideas that have worked
There are many approaches to creating affordable
housing.
• Benevolent financing & funding
• Donate money
• Lend money
• Property
• Sell property, with conditions
• Lease property
• Donate property
• Developers
• Acquire and rehabilitate
• Build new housing
CANADA MORTGAGE AND HOUSING CORPORATION

8

Programs Available
1. Seed Funding

2. Proposal Development Funds

(PDF)

CANADA MORTGAGE AND HOUSING CORPORATION

9

1. Seed Funding
CMHC’s Seed Funding program offers financial assistance to
housing proponents who are in the early stages of developing
an affordable housing project.

Up to $10,000 in the
form of a grant
 Up to $10,000 in the
form of an interest-free
loan

CANADA MORTGAGE AND HOUSING CORPORATION

10

Seed Funding
What Types of Housing Projects are
Eligible?

Housing project must be affordable

Housing Project must be located in Canada
No restrictions on:
Building form
Tenure type
Future residents of the
housing project
Type of housing proponent
organization
11

Seed Funding
What is Affordable?

 rental housing project in which units will have rents within

CMHC’s Affordability Criteria
 homeowner project - the units must be modest and the
purchase prices must be below the market for units of similar
type, size and number of bedrooms in the subject housing
market and neighbourhood

CANADA MORTGAGE AND HOUSING CORPORATION

12

Seed Funding
Who is Eligible?
• Not-for-profit organization
• Housing co-operative
• First Nations
• Private entrepreneur
• Group of individuals who may or may not
intend
to become incorporated
• Municipalities

CANADA MORTGAGE AND HOUSING CORPORATION

13

Seed Funding
What activities are eligible?
 Housing market studies to evaluate need and

demand for the proposed project
 Development of a business plan
 Exploration of funding sources or options
 Evaluation of procurement options
 Preliminary financial viability analysis
 Environmental site assessment
 Preliminary design of the housing project
 Incorporation of a not-for-profit organization
CANADA MORTGAGE AND HOUSING CORPORATION

14

Seed Funding
What Expenses are not Eligible?
 Not related to the development of the housing
project
 Expenses carried out prior to CMHC’s written
approval of Seed Funding
 Expenses related to “hard” project costs, example
- lot servicing, construction, renovation, and so on

 Ongoing operating expenses of the organization,
example - salaries and benefits, travel, office rental
 Retainer fees paid to consultants or any other
professionals for work to be completed in the future
CANADA MORTGAGE AND HOUSING CORPORATION

15

Seed Funding
Conditions of the Funding

1. Must enter into a Contribution Agreement with CMHC
2.

Must provide a need and demand study satisfactory to
CMHC and an acceptable business plan before further funds
will be advanced

3. Funds will be transferred only for eligible expenses
confirmed with invoices or receipts
4. Eligible activities are expected to be completed within 12
months of the date of the Contribution Agreement. A longer
period may be negotiated.

CANADA MORTGAGE AND HOUSING CORPORATION

16

2. Proposal Development Funding
CMHC’s PDF program provides
interest-free loans to facilitate the development
of affordable housing.
- Up to $100,000, determined by CMHC
- Depending on the size and complexity of
the proposed housing project and how
much development work needs to be
done.

** Not available for housing proposals whose viability or
level of affordability depends upon approval for a
Provincial or Territorial program funded under the
Affordable Housing Agreement
17

Proposal Development Funding
Eligible criteria
 Must have at least five (5) housing units
 If rental – majority of rents must be below market rent

limits established by CMHC for units of similar type, size
and number of bedrooms in the subject housing market
 If home ownership – the sale price must be below the
market value for similar housing in the neighbourhood
 Units – whether rental or homeowner – must be modest
in size and design
 There must be a demonstrated need for the proposed
project
CANADA MORTGAGE AND HOUSING CORPORATION

18

Proposal Development Funding
Who is Eligible?
 Not-for-profit organization
 Housing co-operative
 First Nations
 Private entrepreneur
 Any other housing proponents who can
demonstrate their ability to produce a viable
affordable housing project which meets CMHC’s
criteria

CANADA MORTGAGE AND HOUSING CORPORATION

19

Proposal Development Funding
What activities are eligible?
 Soil load-bearing tests
 Environmental site assessments
 Project drawings and specifications
 Professional fees
 Cost estimates

 Management plan
 Option to purchase
 Development permits
 Contract document
 Application fees
CANADA MORTGAGE AND HOUSING CORPORATION

20

Proposal Development Funding
What Expenses are not Eligible?
 Not related to the development of the housing
project
 Expenses carried out prior to CMHC’s written
approval
 Ongoing operating expenses of the organization,
example - salaries and benefits, travel, office rental

 Retainer fees paid to consultants or any other
professionals for work to be completed in the future

CANADA MORTGAGE AND HOUSING CORPORATION

21

Proposal Development Funding
Conditions of the Funding
1. Must enter into a Contribution Agreement with
CMHC
2. Must provide a comprehensive description of the
project proposal, along with a need and demand
study and a preliminary viability analysis and
business plan

3. Funds will be transferred only for eligible
expenses confirmed with invoices or receipts

CANADA MORTGAGE AND HOUSING CORPORATION

22

Proposal Development Funding
Loan Repayment Requirements
 To be repaid out of the project’s capital financing,
normally from the first advance of the mortgage
loan
 Only the principal amount is repaid
 If project is successful in producing an affordable
housing project, it may be eligible for a portion of
the loan to be forgiven
 If project is successful but unable to produce
affordable housing units, the full amount is
repayable, without interest
CANADA MORTGAGE AND HOUSING CORPORATION

23

www.cmhc.ca/affordablehousing

Locked up suites

Harmony
House

www.cmhc.ca

Jeff Kolibash
Corporate Representative
Northern Ontario
www.cmhc.ca
[email protected]
CANADA MORTGAGE AND HOUSING CORPORATION

26


Slide 2

Creating Affordable Housing:
SEED Funding / PDF Funding

Overview
 What is affordable
housing?
 Who creates it?
 What approaches
work?

 What programs are
available?

CANADA MORTGAGE AND HOUSING CORPORATION

2

What is Affordable Housing?

The Community Housing Continuum
Emergenc
y
Shelters

Transitional
Housing

Social
Housing

Government Subsidized Housing

Affordable
Rental
Housing

Affordable
Home
Ownership

Non-Market Housing

CANADA MORTGAGE AND HOUSING CORPORATION

Rental
Housin
g

Home
Ownership

Market housing

What is Affordable?

 30 per cent of gross household income is
generally considered “affordable”.

 However, affordability criteria typically

differs by program and funding authority.

CANADA MORTGAGE AND HOUSING CORPORATION

4

Affordability Criteria – Two examples
Example 1

Example 2

Canada-Ontario
Affordable Housing
Agreement
(MMAH as IAH)

CMHC Seed
and Proposal
Development Funds
Program

•80 percent of
CMHC average
market rents

•80th rent percentile

•Below average
resale price

•Below average
resale price

CANADA MORTGAGE AND HOUSING CORPORATION

5

Who creates affordable housing?



Community leaders including
non- profit service organizations
and housing providers,
churches, private sector
developers, and municipalities.



Each partnership brings value to
the deal, such as business
knowledge, financial resources or
regulatory flexibility.

CANADA MORTGAGE AND HOUSING CORPORATION

6

What approaches work?
Municipal Tools Used In
Canada

Acquiring and
renovating building

Expedited approval
process

Parkland dedication
fees

Affordable
housing strategy

Grants and loans

Public–private
Partnerships

Allowing infill

Housing agreements
for
new development

Redeveloping/convertin
g
non-residential
buildings/sites

Comprehensive
development zoning

Housing fund

Resale price
restrictions

Designing flexible
Housing

Housing organization

Retaining affordable
housing

Donating land
or facilities

Inclusionary zoning

Secondary and
garden suites

Encouraging building
energy efficient housing

Intensification

Using development
levies

Encouraging
smaller units

Land banking

Waiving or reducing
property taxes

CANADA MORTGAGE AND HOUSING CORPORATION

Ideas that have worked
There are many approaches to creating affordable
housing.
• Benevolent financing & funding
• Donate money
• Lend money
• Property
• Sell property, with conditions
• Lease property
• Donate property
• Developers
• Acquire and rehabilitate
• Build new housing
CANADA MORTGAGE AND HOUSING CORPORATION

8

Programs Available
1. Seed Funding

2. Proposal Development Funds

(PDF)

CANADA MORTGAGE AND HOUSING CORPORATION

9

1. Seed Funding
CMHC’s Seed Funding program offers financial assistance to
housing proponents who are in the early stages of developing
an affordable housing project.

Up to $10,000 in the
form of a grant
 Up to $10,000 in the
form of an interest-free
loan

CANADA MORTGAGE AND HOUSING CORPORATION

10

Seed Funding
What Types of Housing Projects are
Eligible?

Housing project must be affordable

Housing Project must be located in Canada
No restrictions on:
Building form
Tenure type
Future residents of the
housing project
Type of housing proponent
organization
11

Seed Funding
What is Affordable?

 rental housing project in which units will have rents within

CMHC’s Affordability Criteria
 homeowner project - the units must be modest and the
purchase prices must be below the market for units of similar
type, size and number of bedrooms in the subject housing
market and neighbourhood

CANADA MORTGAGE AND HOUSING CORPORATION

12

Seed Funding
Who is Eligible?
• Not-for-profit organization
• Housing co-operative
• First Nations
• Private entrepreneur
• Group of individuals who may or may not
intend
to become incorporated
• Municipalities

CANADA MORTGAGE AND HOUSING CORPORATION

13

Seed Funding
What activities are eligible?
 Housing market studies to evaluate need and

demand for the proposed project
 Development of a business plan
 Exploration of funding sources or options
 Evaluation of procurement options
 Preliminary financial viability analysis
 Environmental site assessment
 Preliminary design of the housing project
 Incorporation of a not-for-profit organization
CANADA MORTGAGE AND HOUSING CORPORATION

14

Seed Funding
What Expenses are not Eligible?
 Not related to the development of the housing
project
 Expenses carried out prior to CMHC’s written
approval of Seed Funding
 Expenses related to “hard” project costs, example
- lot servicing, construction, renovation, and so on

 Ongoing operating expenses of the organization,
example - salaries and benefits, travel, office rental
 Retainer fees paid to consultants or any other
professionals for work to be completed in the future
CANADA MORTGAGE AND HOUSING CORPORATION

15

Seed Funding
Conditions of the Funding

1. Must enter into a Contribution Agreement with CMHC
2.

Must provide a need and demand study satisfactory to
CMHC and an acceptable business plan before further funds
will be advanced

3. Funds will be transferred only for eligible expenses
confirmed with invoices or receipts
4. Eligible activities are expected to be completed within 12
months of the date of the Contribution Agreement. A longer
period may be negotiated.

CANADA MORTGAGE AND HOUSING CORPORATION

16

2. Proposal Development Funding
CMHC’s PDF program provides
interest-free loans to facilitate the development
of affordable housing.
- Up to $100,000, determined by CMHC
- Depending on the size and complexity of
the proposed housing project and how
much development work needs to be
done.

** Not available for housing proposals whose viability or
level of affordability depends upon approval for a
Provincial or Territorial program funded under the
Affordable Housing Agreement
17

Proposal Development Funding
Eligible criteria
 Must have at least five (5) housing units
 If rental – majority of rents must be below market rent

limits established by CMHC for units of similar type, size
and number of bedrooms in the subject housing market
 If home ownership – the sale price must be below the
market value for similar housing in the neighbourhood
 Units – whether rental or homeowner – must be modest
in size and design
 There must be a demonstrated need for the proposed
project
CANADA MORTGAGE AND HOUSING CORPORATION

18

Proposal Development Funding
Who is Eligible?
 Not-for-profit organization
 Housing co-operative
 First Nations
 Private entrepreneur
 Any other housing proponents who can
demonstrate their ability to produce a viable
affordable housing project which meets CMHC’s
criteria

CANADA MORTGAGE AND HOUSING CORPORATION

19

Proposal Development Funding
What activities are eligible?
 Soil load-bearing tests
 Environmental site assessments
 Project drawings and specifications
 Professional fees
 Cost estimates

 Management plan
 Option to purchase
 Development permits
 Contract document
 Application fees
CANADA MORTGAGE AND HOUSING CORPORATION

20

Proposal Development Funding
What Expenses are not Eligible?
 Not related to the development of the housing
project
 Expenses carried out prior to CMHC’s written
approval
 Ongoing operating expenses of the organization,
example - salaries and benefits, travel, office rental

 Retainer fees paid to consultants or any other
professionals for work to be completed in the future

CANADA MORTGAGE AND HOUSING CORPORATION

21

Proposal Development Funding
Conditions of the Funding
1. Must enter into a Contribution Agreement with
CMHC
2. Must provide a comprehensive description of the
project proposal, along with a need and demand
study and a preliminary viability analysis and
business plan

3. Funds will be transferred only for eligible
expenses confirmed with invoices or receipts

CANADA MORTGAGE AND HOUSING CORPORATION

22

Proposal Development Funding
Loan Repayment Requirements
 To be repaid out of the project’s capital financing,
normally from the first advance of the mortgage
loan
 Only the principal amount is repaid
 If project is successful in producing an affordable
housing project, it may be eligible for a portion of
the loan to be forgiven
 If project is successful but unable to produce
affordable housing units, the full amount is
repayable, without interest
CANADA MORTGAGE AND HOUSING CORPORATION

23

www.cmhc.ca/affordablehousing

Locked up suites

Harmony
House

www.cmhc.ca

Jeff Kolibash
Corporate Representative
Northern Ontario
www.cmhc.ca
[email protected]
CANADA MORTGAGE AND HOUSING CORPORATION

26


Slide 3

Creating Affordable Housing:
SEED Funding / PDF Funding

Overview
 What is affordable
housing?
 Who creates it?
 What approaches
work?

 What programs are
available?

CANADA MORTGAGE AND HOUSING CORPORATION

2

What is Affordable Housing?

The Community Housing Continuum
Emergenc
y
Shelters

Transitional
Housing

Social
Housing

Government Subsidized Housing

Affordable
Rental
Housing

Affordable
Home
Ownership

Non-Market Housing

CANADA MORTGAGE AND HOUSING CORPORATION

Rental
Housin
g

Home
Ownership

Market housing

What is Affordable?

 30 per cent of gross household income is
generally considered “affordable”.

 However, affordability criteria typically

differs by program and funding authority.

CANADA MORTGAGE AND HOUSING CORPORATION

4

Affordability Criteria – Two examples
Example 1

Example 2

Canada-Ontario
Affordable Housing
Agreement
(MMAH as IAH)

CMHC Seed
and Proposal
Development Funds
Program

•80 percent of
CMHC average
market rents

•80th rent percentile

•Below average
resale price

•Below average
resale price

CANADA MORTGAGE AND HOUSING CORPORATION

5

Who creates affordable housing?



Community leaders including
non- profit service organizations
and housing providers,
churches, private sector
developers, and municipalities.



Each partnership brings value to
the deal, such as business
knowledge, financial resources or
regulatory flexibility.

CANADA MORTGAGE AND HOUSING CORPORATION

6

What approaches work?
Municipal Tools Used In
Canada

Acquiring and
renovating building

Expedited approval
process

Parkland dedication
fees

Affordable
housing strategy

Grants and loans

Public–private
Partnerships

Allowing infill

Housing agreements
for
new development

Redeveloping/convertin
g
non-residential
buildings/sites

Comprehensive
development zoning

Housing fund

Resale price
restrictions

Designing flexible
Housing

Housing organization

Retaining affordable
housing

Donating land
or facilities

Inclusionary zoning

Secondary and
garden suites

Encouraging building
energy efficient housing

Intensification

Using development
levies

Encouraging
smaller units

Land banking

Waiving or reducing
property taxes

CANADA MORTGAGE AND HOUSING CORPORATION

Ideas that have worked
There are many approaches to creating affordable
housing.
• Benevolent financing & funding
• Donate money
• Lend money
• Property
• Sell property, with conditions
• Lease property
• Donate property
• Developers
• Acquire and rehabilitate
• Build new housing
CANADA MORTGAGE AND HOUSING CORPORATION

8

Programs Available
1. Seed Funding

2. Proposal Development Funds

(PDF)

CANADA MORTGAGE AND HOUSING CORPORATION

9

1. Seed Funding
CMHC’s Seed Funding program offers financial assistance to
housing proponents who are in the early stages of developing
an affordable housing project.

Up to $10,000 in the
form of a grant
 Up to $10,000 in the
form of an interest-free
loan

CANADA MORTGAGE AND HOUSING CORPORATION

10

Seed Funding
What Types of Housing Projects are
Eligible?

Housing project must be affordable

Housing Project must be located in Canada
No restrictions on:
Building form
Tenure type
Future residents of the
housing project
Type of housing proponent
organization
11

Seed Funding
What is Affordable?

 rental housing project in which units will have rents within

CMHC’s Affordability Criteria
 homeowner project - the units must be modest and the
purchase prices must be below the market for units of similar
type, size and number of bedrooms in the subject housing
market and neighbourhood

CANADA MORTGAGE AND HOUSING CORPORATION

12

Seed Funding
Who is Eligible?
• Not-for-profit organization
• Housing co-operative
• First Nations
• Private entrepreneur
• Group of individuals who may or may not
intend
to become incorporated
• Municipalities

CANADA MORTGAGE AND HOUSING CORPORATION

13

Seed Funding
What activities are eligible?
 Housing market studies to evaluate need and

demand for the proposed project
 Development of a business plan
 Exploration of funding sources or options
 Evaluation of procurement options
 Preliminary financial viability analysis
 Environmental site assessment
 Preliminary design of the housing project
 Incorporation of a not-for-profit organization
CANADA MORTGAGE AND HOUSING CORPORATION

14

Seed Funding
What Expenses are not Eligible?
 Not related to the development of the housing
project
 Expenses carried out prior to CMHC’s written
approval of Seed Funding
 Expenses related to “hard” project costs, example
- lot servicing, construction, renovation, and so on

 Ongoing operating expenses of the organization,
example - salaries and benefits, travel, office rental
 Retainer fees paid to consultants or any other
professionals for work to be completed in the future
CANADA MORTGAGE AND HOUSING CORPORATION

15

Seed Funding
Conditions of the Funding

1. Must enter into a Contribution Agreement with CMHC
2.

Must provide a need and demand study satisfactory to
CMHC and an acceptable business plan before further funds
will be advanced

3. Funds will be transferred only for eligible expenses
confirmed with invoices or receipts
4. Eligible activities are expected to be completed within 12
months of the date of the Contribution Agreement. A longer
period may be negotiated.

CANADA MORTGAGE AND HOUSING CORPORATION

16

2. Proposal Development Funding
CMHC’s PDF program provides
interest-free loans to facilitate the development
of affordable housing.
- Up to $100,000, determined by CMHC
- Depending on the size and complexity of
the proposed housing project and how
much development work needs to be
done.

** Not available for housing proposals whose viability or
level of affordability depends upon approval for a
Provincial or Territorial program funded under the
Affordable Housing Agreement
17

Proposal Development Funding
Eligible criteria
 Must have at least five (5) housing units
 If rental – majority of rents must be below market rent

limits established by CMHC for units of similar type, size
and number of bedrooms in the subject housing market
 If home ownership – the sale price must be below the
market value for similar housing in the neighbourhood
 Units – whether rental or homeowner – must be modest
in size and design
 There must be a demonstrated need for the proposed
project
CANADA MORTGAGE AND HOUSING CORPORATION

18

Proposal Development Funding
Who is Eligible?
 Not-for-profit organization
 Housing co-operative
 First Nations
 Private entrepreneur
 Any other housing proponents who can
demonstrate their ability to produce a viable
affordable housing project which meets CMHC’s
criteria

CANADA MORTGAGE AND HOUSING CORPORATION

19

Proposal Development Funding
What activities are eligible?
 Soil load-bearing tests
 Environmental site assessments
 Project drawings and specifications
 Professional fees
 Cost estimates

 Management plan
 Option to purchase
 Development permits
 Contract document
 Application fees
CANADA MORTGAGE AND HOUSING CORPORATION

20

Proposal Development Funding
What Expenses are not Eligible?
 Not related to the development of the housing
project
 Expenses carried out prior to CMHC’s written
approval
 Ongoing operating expenses of the organization,
example - salaries and benefits, travel, office rental

 Retainer fees paid to consultants or any other
professionals for work to be completed in the future

CANADA MORTGAGE AND HOUSING CORPORATION

21

Proposal Development Funding
Conditions of the Funding
1. Must enter into a Contribution Agreement with
CMHC
2. Must provide a comprehensive description of the
project proposal, along with a need and demand
study and a preliminary viability analysis and
business plan

3. Funds will be transferred only for eligible
expenses confirmed with invoices or receipts

CANADA MORTGAGE AND HOUSING CORPORATION

22

Proposal Development Funding
Loan Repayment Requirements
 To be repaid out of the project’s capital financing,
normally from the first advance of the mortgage
loan
 Only the principal amount is repaid
 If project is successful in producing an affordable
housing project, it may be eligible for a portion of
the loan to be forgiven
 If project is successful but unable to produce
affordable housing units, the full amount is
repayable, without interest
CANADA MORTGAGE AND HOUSING CORPORATION

23

www.cmhc.ca/affordablehousing

Locked up suites

Harmony
House

www.cmhc.ca

Jeff Kolibash
Corporate Representative
Northern Ontario
www.cmhc.ca
[email protected]
CANADA MORTGAGE AND HOUSING CORPORATION

26


Slide 4

Creating Affordable Housing:
SEED Funding / PDF Funding

Overview
 What is affordable
housing?
 Who creates it?
 What approaches
work?

 What programs are
available?

CANADA MORTGAGE AND HOUSING CORPORATION

2

What is Affordable Housing?

The Community Housing Continuum
Emergenc
y
Shelters

Transitional
Housing

Social
Housing

Government Subsidized Housing

Affordable
Rental
Housing

Affordable
Home
Ownership

Non-Market Housing

CANADA MORTGAGE AND HOUSING CORPORATION

Rental
Housin
g

Home
Ownership

Market housing

What is Affordable?

 30 per cent of gross household income is
generally considered “affordable”.

 However, affordability criteria typically

differs by program and funding authority.

CANADA MORTGAGE AND HOUSING CORPORATION

4

Affordability Criteria – Two examples
Example 1

Example 2

Canada-Ontario
Affordable Housing
Agreement
(MMAH as IAH)

CMHC Seed
and Proposal
Development Funds
Program

•80 percent of
CMHC average
market rents

•80th rent percentile

•Below average
resale price

•Below average
resale price

CANADA MORTGAGE AND HOUSING CORPORATION

5

Who creates affordable housing?



Community leaders including
non- profit service organizations
and housing providers,
churches, private sector
developers, and municipalities.



Each partnership brings value to
the deal, such as business
knowledge, financial resources or
regulatory flexibility.

CANADA MORTGAGE AND HOUSING CORPORATION

6

What approaches work?
Municipal Tools Used In
Canada

Acquiring and
renovating building

Expedited approval
process

Parkland dedication
fees

Affordable
housing strategy

Grants and loans

Public–private
Partnerships

Allowing infill

Housing agreements
for
new development

Redeveloping/convertin
g
non-residential
buildings/sites

Comprehensive
development zoning

Housing fund

Resale price
restrictions

Designing flexible
Housing

Housing organization

Retaining affordable
housing

Donating land
or facilities

Inclusionary zoning

Secondary and
garden suites

Encouraging building
energy efficient housing

Intensification

Using development
levies

Encouraging
smaller units

Land banking

Waiving or reducing
property taxes

CANADA MORTGAGE AND HOUSING CORPORATION

Ideas that have worked
There are many approaches to creating affordable
housing.
• Benevolent financing & funding
• Donate money
• Lend money
• Property
• Sell property, with conditions
• Lease property
• Donate property
• Developers
• Acquire and rehabilitate
• Build new housing
CANADA MORTGAGE AND HOUSING CORPORATION

8

Programs Available
1. Seed Funding

2. Proposal Development Funds

(PDF)

CANADA MORTGAGE AND HOUSING CORPORATION

9

1. Seed Funding
CMHC’s Seed Funding program offers financial assistance to
housing proponents who are in the early stages of developing
an affordable housing project.

Up to $10,000 in the
form of a grant
 Up to $10,000 in the
form of an interest-free
loan

CANADA MORTGAGE AND HOUSING CORPORATION

10

Seed Funding
What Types of Housing Projects are
Eligible?

Housing project must be affordable

Housing Project must be located in Canada
No restrictions on:
Building form
Tenure type
Future residents of the
housing project
Type of housing proponent
organization
11

Seed Funding
What is Affordable?

 rental housing project in which units will have rents within

CMHC’s Affordability Criteria
 homeowner project - the units must be modest and the
purchase prices must be below the market for units of similar
type, size and number of bedrooms in the subject housing
market and neighbourhood

CANADA MORTGAGE AND HOUSING CORPORATION

12

Seed Funding
Who is Eligible?
• Not-for-profit organization
• Housing co-operative
• First Nations
• Private entrepreneur
• Group of individuals who may or may not
intend
to become incorporated
• Municipalities

CANADA MORTGAGE AND HOUSING CORPORATION

13

Seed Funding
What activities are eligible?
 Housing market studies to evaluate need and

demand for the proposed project
 Development of a business plan
 Exploration of funding sources or options
 Evaluation of procurement options
 Preliminary financial viability analysis
 Environmental site assessment
 Preliminary design of the housing project
 Incorporation of a not-for-profit organization
CANADA MORTGAGE AND HOUSING CORPORATION

14

Seed Funding
What Expenses are not Eligible?
 Not related to the development of the housing
project
 Expenses carried out prior to CMHC’s written
approval of Seed Funding
 Expenses related to “hard” project costs, example
- lot servicing, construction, renovation, and so on

 Ongoing operating expenses of the organization,
example - salaries and benefits, travel, office rental
 Retainer fees paid to consultants or any other
professionals for work to be completed in the future
CANADA MORTGAGE AND HOUSING CORPORATION

15

Seed Funding
Conditions of the Funding

1. Must enter into a Contribution Agreement with CMHC
2.

Must provide a need and demand study satisfactory to
CMHC and an acceptable business plan before further funds
will be advanced

3. Funds will be transferred only for eligible expenses
confirmed with invoices or receipts
4. Eligible activities are expected to be completed within 12
months of the date of the Contribution Agreement. A longer
period may be negotiated.

CANADA MORTGAGE AND HOUSING CORPORATION

16

2. Proposal Development Funding
CMHC’s PDF program provides
interest-free loans to facilitate the development
of affordable housing.
- Up to $100,000, determined by CMHC
- Depending on the size and complexity of
the proposed housing project and how
much development work needs to be
done.

** Not available for housing proposals whose viability or
level of affordability depends upon approval for a
Provincial or Territorial program funded under the
Affordable Housing Agreement
17

Proposal Development Funding
Eligible criteria
 Must have at least five (5) housing units
 If rental – majority of rents must be below market rent

limits established by CMHC for units of similar type, size
and number of bedrooms in the subject housing market
 If home ownership – the sale price must be below the
market value for similar housing in the neighbourhood
 Units – whether rental or homeowner – must be modest
in size and design
 There must be a demonstrated need for the proposed
project
CANADA MORTGAGE AND HOUSING CORPORATION

18

Proposal Development Funding
Who is Eligible?
 Not-for-profit organization
 Housing co-operative
 First Nations
 Private entrepreneur
 Any other housing proponents who can
demonstrate their ability to produce a viable
affordable housing project which meets CMHC’s
criteria

CANADA MORTGAGE AND HOUSING CORPORATION

19

Proposal Development Funding
What activities are eligible?
 Soil load-bearing tests
 Environmental site assessments
 Project drawings and specifications
 Professional fees
 Cost estimates

 Management plan
 Option to purchase
 Development permits
 Contract document
 Application fees
CANADA MORTGAGE AND HOUSING CORPORATION

20

Proposal Development Funding
What Expenses are not Eligible?
 Not related to the development of the housing
project
 Expenses carried out prior to CMHC’s written
approval
 Ongoing operating expenses of the organization,
example - salaries and benefits, travel, office rental

 Retainer fees paid to consultants or any other
professionals for work to be completed in the future

CANADA MORTGAGE AND HOUSING CORPORATION

21

Proposal Development Funding
Conditions of the Funding
1. Must enter into a Contribution Agreement with
CMHC
2. Must provide a comprehensive description of the
project proposal, along with a need and demand
study and a preliminary viability analysis and
business plan

3. Funds will be transferred only for eligible
expenses confirmed with invoices or receipts

CANADA MORTGAGE AND HOUSING CORPORATION

22

Proposal Development Funding
Loan Repayment Requirements
 To be repaid out of the project’s capital financing,
normally from the first advance of the mortgage
loan
 Only the principal amount is repaid
 If project is successful in producing an affordable
housing project, it may be eligible for a portion of
the loan to be forgiven
 If project is successful but unable to produce
affordable housing units, the full amount is
repayable, without interest
CANADA MORTGAGE AND HOUSING CORPORATION

23

www.cmhc.ca/affordablehousing

Locked up suites

Harmony
House

www.cmhc.ca

Jeff Kolibash
Corporate Representative
Northern Ontario
www.cmhc.ca
[email protected]
CANADA MORTGAGE AND HOUSING CORPORATION

26


Slide 5

Creating Affordable Housing:
SEED Funding / PDF Funding

Overview
 What is affordable
housing?
 Who creates it?
 What approaches
work?

 What programs are
available?

CANADA MORTGAGE AND HOUSING CORPORATION

2

What is Affordable Housing?

The Community Housing Continuum
Emergenc
y
Shelters

Transitional
Housing

Social
Housing

Government Subsidized Housing

Affordable
Rental
Housing

Affordable
Home
Ownership

Non-Market Housing

CANADA MORTGAGE AND HOUSING CORPORATION

Rental
Housin
g

Home
Ownership

Market housing

What is Affordable?

 30 per cent of gross household income is
generally considered “affordable”.

 However, affordability criteria typically

differs by program and funding authority.

CANADA MORTGAGE AND HOUSING CORPORATION

4

Affordability Criteria – Two examples
Example 1

Example 2

Canada-Ontario
Affordable Housing
Agreement
(MMAH as IAH)

CMHC Seed
and Proposal
Development Funds
Program

•80 percent of
CMHC average
market rents

•80th rent percentile

•Below average
resale price

•Below average
resale price

CANADA MORTGAGE AND HOUSING CORPORATION

5

Who creates affordable housing?



Community leaders including
non- profit service organizations
and housing providers,
churches, private sector
developers, and municipalities.



Each partnership brings value to
the deal, such as business
knowledge, financial resources or
regulatory flexibility.

CANADA MORTGAGE AND HOUSING CORPORATION

6

What approaches work?
Municipal Tools Used In
Canada

Acquiring and
renovating building

Expedited approval
process

Parkland dedication
fees

Affordable
housing strategy

Grants and loans

Public–private
Partnerships

Allowing infill

Housing agreements
for
new development

Redeveloping/convertin
g
non-residential
buildings/sites

Comprehensive
development zoning

Housing fund

Resale price
restrictions

Designing flexible
Housing

Housing organization

Retaining affordable
housing

Donating land
or facilities

Inclusionary zoning

Secondary and
garden suites

Encouraging building
energy efficient housing

Intensification

Using development
levies

Encouraging
smaller units

Land banking

Waiving or reducing
property taxes

CANADA MORTGAGE AND HOUSING CORPORATION

Ideas that have worked
There are many approaches to creating affordable
housing.
• Benevolent financing & funding
• Donate money
• Lend money
• Property
• Sell property, with conditions
• Lease property
• Donate property
• Developers
• Acquire and rehabilitate
• Build new housing
CANADA MORTGAGE AND HOUSING CORPORATION

8

Programs Available
1. Seed Funding

2. Proposal Development Funds

(PDF)

CANADA MORTGAGE AND HOUSING CORPORATION

9

1. Seed Funding
CMHC’s Seed Funding program offers financial assistance to
housing proponents who are in the early stages of developing
an affordable housing project.

Up to $10,000 in the
form of a grant
 Up to $10,000 in the
form of an interest-free
loan

CANADA MORTGAGE AND HOUSING CORPORATION

10

Seed Funding
What Types of Housing Projects are
Eligible?

Housing project must be affordable

Housing Project must be located in Canada
No restrictions on:
Building form
Tenure type
Future residents of the
housing project
Type of housing proponent
organization
11

Seed Funding
What is Affordable?

 rental housing project in which units will have rents within

CMHC’s Affordability Criteria
 homeowner project - the units must be modest and the
purchase prices must be below the market for units of similar
type, size and number of bedrooms in the subject housing
market and neighbourhood

CANADA MORTGAGE AND HOUSING CORPORATION

12

Seed Funding
Who is Eligible?
• Not-for-profit organization
• Housing co-operative
• First Nations
• Private entrepreneur
• Group of individuals who may or may not
intend
to become incorporated
• Municipalities

CANADA MORTGAGE AND HOUSING CORPORATION

13

Seed Funding
What activities are eligible?
 Housing market studies to evaluate need and

demand for the proposed project
 Development of a business plan
 Exploration of funding sources or options
 Evaluation of procurement options
 Preliminary financial viability analysis
 Environmental site assessment
 Preliminary design of the housing project
 Incorporation of a not-for-profit organization
CANADA MORTGAGE AND HOUSING CORPORATION

14

Seed Funding
What Expenses are not Eligible?
 Not related to the development of the housing
project
 Expenses carried out prior to CMHC’s written
approval of Seed Funding
 Expenses related to “hard” project costs, example
- lot servicing, construction, renovation, and so on

 Ongoing operating expenses of the organization,
example - salaries and benefits, travel, office rental
 Retainer fees paid to consultants or any other
professionals for work to be completed in the future
CANADA MORTGAGE AND HOUSING CORPORATION

15

Seed Funding
Conditions of the Funding

1. Must enter into a Contribution Agreement with CMHC
2.

Must provide a need and demand study satisfactory to
CMHC and an acceptable business plan before further funds
will be advanced

3. Funds will be transferred only for eligible expenses
confirmed with invoices or receipts
4. Eligible activities are expected to be completed within 12
months of the date of the Contribution Agreement. A longer
period may be negotiated.

CANADA MORTGAGE AND HOUSING CORPORATION

16

2. Proposal Development Funding
CMHC’s PDF program provides
interest-free loans to facilitate the development
of affordable housing.
- Up to $100,000, determined by CMHC
- Depending on the size and complexity of
the proposed housing project and how
much development work needs to be
done.

** Not available for housing proposals whose viability or
level of affordability depends upon approval for a
Provincial or Territorial program funded under the
Affordable Housing Agreement
17

Proposal Development Funding
Eligible criteria
 Must have at least five (5) housing units
 If rental – majority of rents must be below market rent

limits established by CMHC for units of similar type, size
and number of bedrooms in the subject housing market
 If home ownership – the sale price must be below the
market value for similar housing in the neighbourhood
 Units – whether rental or homeowner – must be modest
in size and design
 There must be a demonstrated need for the proposed
project
CANADA MORTGAGE AND HOUSING CORPORATION

18

Proposal Development Funding
Who is Eligible?
 Not-for-profit organization
 Housing co-operative
 First Nations
 Private entrepreneur
 Any other housing proponents who can
demonstrate their ability to produce a viable
affordable housing project which meets CMHC’s
criteria

CANADA MORTGAGE AND HOUSING CORPORATION

19

Proposal Development Funding
What activities are eligible?
 Soil load-bearing tests
 Environmental site assessments
 Project drawings and specifications
 Professional fees
 Cost estimates

 Management plan
 Option to purchase
 Development permits
 Contract document
 Application fees
CANADA MORTGAGE AND HOUSING CORPORATION

20

Proposal Development Funding
What Expenses are not Eligible?
 Not related to the development of the housing
project
 Expenses carried out prior to CMHC’s written
approval
 Ongoing operating expenses of the organization,
example - salaries and benefits, travel, office rental

 Retainer fees paid to consultants or any other
professionals for work to be completed in the future

CANADA MORTGAGE AND HOUSING CORPORATION

21

Proposal Development Funding
Conditions of the Funding
1. Must enter into a Contribution Agreement with
CMHC
2. Must provide a comprehensive description of the
project proposal, along with a need and demand
study and a preliminary viability analysis and
business plan

3. Funds will be transferred only for eligible
expenses confirmed with invoices or receipts

CANADA MORTGAGE AND HOUSING CORPORATION

22

Proposal Development Funding
Loan Repayment Requirements
 To be repaid out of the project’s capital financing,
normally from the first advance of the mortgage
loan
 Only the principal amount is repaid
 If project is successful in producing an affordable
housing project, it may be eligible for a portion of
the loan to be forgiven
 If project is successful but unable to produce
affordable housing units, the full amount is
repayable, without interest
CANADA MORTGAGE AND HOUSING CORPORATION

23

www.cmhc.ca/affordablehousing

Locked up suites

Harmony
House

www.cmhc.ca

Jeff Kolibash
Corporate Representative
Northern Ontario
www.cmhc.ca
[email protected]
CANADA MORTGAGE AND HOUSING CORPORATION

26


Slide 6

Creating Affordable Housing:
SEED Funding / PDF Funding

Overview
 What is affordable
housing?
 Who creates it?
 What approaches
work?

 What programs are
available?

CANADA MORTGAGE AND HOUSING CORPORATION

2

What is Affordable Housing?

The Community Housing Continuum
Emergenc
y
Shelters

Transitional
Housing

Social
Housing

Government Subsidized Housing

Affordable
Rental
Housing

Affordable
Home
Ownership

Non-Market Housing

CANADA MORTGAGE AND HOUSING CORPORATION

Rental
Housin
g

Home
Ownership

Market housing

What is Affordable?

 30 per cent of gross household income is
generally considered “affordable”.

 However, affordability criteria typically

differs by program and funding authority.

CANADA MORTGAGE AND HOUSING CORPORATION

4

Affordability Criteria – Two examples
Example 1

Example 2

Canada-Ontario
Affordable Housing
Agreement
(MMAH as IAH)

CMHC Seed
and Proposal
Development Funds
Program

•80 percent of
CMHC average
market rents

•80th rent percentile

•Below average
resale price

•Below average
resale price

CANADA MORTGAGE AND HOUSING CORPORATION

5

Who creates affordable housing?



Community leaders including
non- profit service organizations
and housing providers,
churches, private sector
developers, and municipalities.



Each partnership brings value to
the deal, such as business
knowledge, financial resources or
regulatory flexibility.

CANADA MORTGAGE AND HOUSING CORPORATION

6

What approaches work?
Municipal Tools Used In
Canada

Acquiring and
renovating building

Expedited approval
process

Parkland dedication
fees

Affordable
housing strategy

Grants and loans

Public–private
Partnerships

Allowing infill

Housing agreements
for
new development

Redeveloping/convertin
g
non-residential
buildings/sites

Comprehensive
development zoning

Housing fund

Resale price
restrictions

Designing flexible
Housing

Housing organization

Retaining affordable
housing

Donating land
or facilities

Inclusionary zoning

Secondary and
garden suites

Encouraging building
energy efficient housing

Intensification

Using development
levies

Encouraging
smaller units

Land banking

Waiving or reducing
property taxes

CANADA MORTGAGE AND HOUSING CORPORATION

Ideas that have worked
There are many approaches to creating affordable
housing.
• Benevolent financing & funding
• Donate money
• Lend money
• Property
• Sell property, with conditions
• Lease property
• Donate property
• Developers
• Acquire and rehabilitate
• Build new housing
CANADA MORTGAGE AND HOUSING CORPORATION

8

Programs Available
1. Seed Funding

2. Proposal Development Funds

(PDF)

CANADA MORTGAGE AND HOUSING CORPORATION

9

1. Seed Funding
CMHC’s Seed Funding program offers financial assistance to
housing proponents who are in the early stages of developing
an affordable housing project.

Up to $10,000 in the
form of a grant
 Up to $10,000 in the
form of an interest-free
loan

CANADA MORTGAGE AND HOUSING CORPORATION

10

Seed Funding
What Types of Housing Projects are
Eligible?

Housing project must be affordable

Housing Project must be located in Canada
No restrictions on:
Building form
Tenure type
Future residents of the
housing project
Type of housing proponent
organization
11

Seed Funding
What is Affordable?

 rental housing project in which units will have rents within

CMHC’s Affordability Criteria
 homeowner project - the units must be modest and the
purchase prices must be below the market for units of similar
type, size and number of bedrooms in the subject housing
market and neighbourhood

CANADA MORTGAGE AND HOUSING CORPORATION

12

Seed Funding
Who is Eligible?
• Not-for-profit organization
• Housing co-operative
• First Nations
• Private entrepreneur
• Group of individuals who may or may not
intend
to become incorporated
• Municipalities

CANADA MORTGAGE AND HOUSING CORPORATION

13

Seed Funding
What activities are eligible?
 Housing market studies to evaluate need and

demand for the proposed project
 Development of a business plan
 Exploration of funding sources or options
 Evaluation of procurement options
 Preliminary financial viability analysis
 Environmental site assessment
 Preliminary design of the housing project
 Incorporation of a not-for-profit organization
CANADA MORTGAGE AND HOUSING CORPORATION

14

Seed Funding
What Expenses are not Eligible?
 Not related to the development of the housing
project
 Expenses carried out prior to CMHC’s written
approval of Seed Funding
 Expenses related to “hard” project costs, example
- lot servicing, construction, renovation, and so on

 Ongoing operating expenses of the organization,
example - salaries and benefits, travel, office rental
 Retainer fees paid to consultants or any other
professionals for work to be completed in the future
CANADA MORTGAGE AND HOUSING CORPORATION

15

Seed Funding
Conditions of the Funding

1. Must enter into a Contribution Agreement with CMHC
2.

Must provide a need and demand study satisfactory to
CMHC and an acceptable business plan before further funds
will be advanced

3. Funds will be transferred only for eligible expenses
confirmed with invoices or receipts
4. Eligible activities are expected to be completed within 12
months of the date of the Contribution Agreement. A longer
period may be negotiated.

CANADA MORTGAGE AND HOUSING CORPORATION

16

2. Proposal Development Funding
CMHC’s PDF program provides
interest-free loans to facilitate the development
of affordable housing.
- Up to $100,000, determined by CMHC
- Depending on the size and complexity of
the proposed housing project and how
much development work needs to be
done.

** Not available for housing proposals whose viability or
level of affordability depends upon approval for a
Provincial or Territorial program funded under the
Affordable Housing Agreement
17

Proposal Development Funding
Eligible criteria
 Must have at least five (5) housing units
 If rental – majority of rents must be below market rent

limits established by CMHC for units of similar type, size
and number of bedrooms in the subject housing market
 If home ownership – the sale price must be below the
market value for similar housing in the neighbourhood
 Units – whether rental or homeowner – must be modest
in size and design
 There must be a demonstrated need for the proposed
project
CANADA MORTGAGE AND HOUSING CORPORATION

18

Proposal Development Funding
Who is Eligible?
 Not-for-profit organization
 Housing co-operative
 First Nations
 Private entrepreneur
 Any other housing proponents who can
demonstrate their ability to produce a viable
affordable housing project which meets CMHC’s
criteria

CANADA MORTGAGE AND HOUSING CORPORATION

19

Proposal Development Funding
What activities are eligible?
 Soil load-bearing tests
 Environmental site assessments
 Project drawings and specifications
 Professional fees
 Cost estimates

 Management plan
 Option to purchase
 Development permits
 Contract document
 Application fees
CANADA MORTGAGE AND HOUSING CORPORATION

20

Proposal Development Funding
What Expenses are not Eligible?
 Not related to the development of the housing
project
 Expenses carried out prior to CMHC’s written
approval
 Ongoing operating expenses of the organization,
example - salaries and benefits, travel, office rental

 Retainer fees paid to consultants or any other
professionals for work to be completed in the future

CANADA MORTGAGE AND HOUSING CORPORATION

21

Proposal Development Funding
Conditions of the Funding
1. Must enter into a Contribution Agreement with
CMHC
2. Must provide a comprehensive description of the
project proposal, along with a need and demand
study and a preliminary viability analysis and
business plan

3. Funds will be transferred only for eligible
expenses confirmed with invoices or receipts

CANADA MORTGAGE AND HOUSING CORPORATION

22

Proposal Development Funding
Loan Repayment Requirements
 To be repaid out of the project’s capital financing,
normally from the first advance of the mortgage
loan
 Only the principal amount is repaid
 If project is successful in producing an affordable
housing project, it may be eligible for a portion of
the loan to be forgiven
 If project is successful but unable to produce
affordable housing units, the full amount is
repayable, without interest
CANADA MORTGAGE AND HOUSING CORPORATION

23

www.cmhc.ca/affordablehousing

Locked up suites

Harmony
House

www.cmhc.ca

Jeff Kolibash
Corporate Representative
Northern Ontario
www.cmhc.ca
[email protected]
CANADA MORTGAGE AND HOUSING CORPORATION

26


Slide 7

Creating Affordable Housing:
SEED Funding / PDF Funding

Overview
 What is affordable
housing?
 Who creates it?
 What approaches
work?

 What programs are
available?

CANADA MORTGAGE AND HOUSING CORPORATION

2

What is Affordable Housing?

The Community Housing Continuum
Emergenc
y
Shelters

Transitional
Housing

Social
Housing

Government Subsidized Housing

Affordable
Rental
Housing

Affordable
Home
Ownership

Non-Market Housing

CANADA MORTGAGE AND HOUSING CORPORATION

Rental
Housin
g

Home
Ownership

Market housing

What is Affordable?

 30 per cent of gross household income is
generally considered “affordable”.

 However, affordability criteria typically

differs by program and funding authority.

CANADA MORTGAGE AND HOUSING CORPORATION

4

Affordability Criteria – Two examples
Example 1

Example 2

Canada-Ontario
Affordable Housing
Agreement
(MMAH as IAH)

CMHC Seed
and Proposal
Development Funds
Program

•80 percent of
CMHC average
market rents

•80th rent percentile

•Below average
resale price

•Below average
resale price

CANADA MORTGAGE AND HOUSING CORPORATION

5

Who creates affordable housing?



Community leaders including
non- profit service organizations
and housing providers,
churches, private sector
developers, and municipalities.



Each partnership brings value to
the deal, such as business
knowledge, financial resources or
regulatory flexibility.

CANADA MORTGAGE AND HOUSING CORPORATION

6

What approaches work?
Municipal Tools Used In
Canada

Acquiring and
renovating building

Expedited approval
process

Parkland dedication
fees

Affordable
housing strategy

Grants and loans

Public–private
Partnerships

Allowing infill

Housing agreements
for
new development

Redeveloping/convertin
g
non-residential
buildings/sites

Comprehensive
development zoning

Housing fund

Resale price
restrictions

Designing flexible
Housing

Housing organization

Retaining affordable
housing

Donating land
or facilities

Inclusionary zoning

Secondary and
garden suites

Encouraging building
energy efficient housing

Intensification

Using development
levies

Encouraging
smaller units

Land banking

Waiving or reducing
property taxes

CANADA MORTGAGE AND HOUSING CORPORATION

Ideas that have worked
There are many approaches to creating affordable
housing.
• Benevolent financing & funding
• Donate money
• Lend money
• Property
• Sell property, with conditions
• Lease property
• Donate property
• Developers
• Acquire and rehabilitate
• Build new housing
CANADA MORTGAGE AND HOUSING CORPORATION

8

Programs Available
1. Seed Funding

2. Proposal Development Funds

(PDF)

CANADA MORTGAGE AND HOUSING CORPORATION

9

1. Seed Funding
CMHC’s Seed Funding program offers financial assistance to
housing proponents who are in the early stages of developing
an affordable housing project.

Up to $10,000 in the
form of a grant
 Up to $10,000 in the
form of an interest-free
loan

CANADA MORTGAGE AND HOUSING CORPORATION

10

Seed Funding
What Types of Housing Projects are
Eligible?

Housing project must be affordable

Housing Project must be located in Canada
No restrictions on:
Building form
Tenure type
Future residents of the
housing project
Type of housing proponent
organization
11

Seed Funding
What is Affordable?

 rental housing project in which units will have rents within

CMHC’s Affordability Criteria
 homeowner project - the units must be modest and the
purchase prices must be below the market for units of similar
type, size and number of bedrooms in the subject housing
market and neighbourhood

CANADA MORTGAGE AND HOUSING CORPORATION

12

Seed Funding
Who is Eligible?
• Not-for-profit organization
• Housing co-operative
• First Nations
• Private entrepreneur
• Group of individuals who may or may not
intend
to become incorporated
• Municipalities

CANADA MORTGAGE AND HOUSING CORPORATION

13

Seed Funding
What activities are eligible?
 Housing market studies to evaluate need and

demand for the proposed project
 Development of a business plan
 Exploration of funding sources or options
 Evaluation of procurement options
 Preliminary financial viability analysis
 Environmental site assessment
 Preliminary design of the housing project
 Incorporation of a not-for-profit organization
CANADA MORTGAGE AND HOUSING CORPORATION

14

Seed Funding
What Expenses are not Eligible?
 Not related to the development of the housing
project
 Expenses carried out prior to CMHC’s written
approval of Seed Funding
 Expenses related to “hard” project costs, example
- lot servicing, construction, renovation, and so on

 Ongoing operating expenses of the organization,
example - salaries and benefits, travel, office rental
 Retainer fees paid to consultants or any other
professionals for work to be completed in the future
CANADA MORTGAGE AND HOUSING CORPORATION

15

Seed Funding
Conditions of the Funding

1. Must enter into a Contribution Agreement with CMHC
2.

Must provide a need and demand study satisfactory to
CMHC and an acceptable business plan before further funds
will be advanced

3. Funds will be transferred only for eligible expenses
confirmed with invoices or receipts
4. Eligible activities are expected to be completed within 12
months of the date of the Contribution Agreement. A longer
period may be negotiated.

CANADA MORTGAGE AND HOUSING CORPORATION

16

2. Proposal Development Funding
CMHC’s PDF program provides
interest-free loans to facilitate the development
of affordable housing.
- Up to $100,000, determined by CMHC
- Depending on the size and complexity of
the proposed housing project and how
much development work needs to be
done.

** Not available for housing proposals whose viability or
level of affordability depends upon approval for a
Provincial or Territorial program funded under the
Affordable Housing Agreement
17

Proposal Development Funding
Eligible criteria
 Must have at least five (5) housing units
 If rental – majority of rents must be below market rent

limits established by CMHC for units of similar type, size
and number of bedrooms in the subject housing market
 If home ownership – the sale price must be below the
market value for similar housing in the neighbourhood
 Units – whether rental or homeowner – must be modest
in size and design
 There must be a demonstrated need for the proposed
project
CANADA MORTGAGE AND HOUSING CORPORATION

18

Proposal Development Funding
Who is Eligible?
 Not-for-profit organization
 Housing co-operative
 First Nations
 Private entrepreneur
 Any other housing proponents who can
demonstrate their ability to produce a viable
affordable housing project which meets CMHC’s
criteria

CANADA MORTGAGE AND HOUSING CORPORATION

19

Proposal Development Funding
What activities are eligible?
 Soil load-bearing tests
 Environmental site assessments
 Project drawings and specifications
 Professional fees
 Cost estimates

 Management plan
 Option to purchase
 Development permits
 Contract document
 Application fees
CANADA MORTGAGE AND HOUSING CORPORATION

20

Proposal Development Funding
What Expenses are not Eligible?
 Not related to the development of the housing
project
 Expenses carried out prior to CMHC’s written
approval
 Ongoing operating expenses of the organization,
example - salaries and benefits, travel, office rental

 Retainer fees paid to consultants or any other
professionals for work to be completed in the future

CANADA MORTGAGE AND HOUSING CORPORATION

21

Proposal Development Funding
Conditions of the Funding
1. Must enter into a Contribution Agreement with
CMHC
2. Must provide a comprehensive description of the
project proposal, along with a need and demand
study and a preliminary viability analysis and
business plan

3. Funds will be transferred only for eligible
expenses confirmed with invoices or receipts

CANADA MORTGAGE AND HOUSING CORPORATION

22

Proposal Development Funding
Loan Repayment Requirements
 To be repaid out of the project’s capital financing,
normally from the first advance of the mortgage
loan
 Only the principal amount is repaid
 If project is successful in producing an affordable
housing project, it may be eligible for a portion of
the loan to be forgiven
 If project is successful but unable to produce
affordable housing units, the full amount is
repayable, without interest
CANADA MORTGAGE AND HOUSING CORPORATION

23

www.cmhc.ca/affordablehousing

Locked up suites

Harmony
House

www.cmhc.ca

Jeff Kolibash
Corporate Representative
Northern Ontario
www.cmhc.ca
[email protected]
CANADA MORTGAGE AND HOUSING CORPORATION

26


Slide 8

Creating Affordable Housing:
SEED Funding / PDF Funding

Overview
 What is affordable
housing?
 Who creates it?
 What approaches
work?

 What programs are
available?

CANADA MORTGAGE AND HOUSING CORPORATION

2

What is Affordable Housing?

The Community Housing Continuum
Emergenc
y
Shelters

Transitional
Housing

Social
Housing

Government Subsidized Housing

Affordable
Rental
Housing

Affordable
Home
Ownership

Non-Market Housing

CANADA MORTGAGE AND HOUSING CORPORATION

Rental
Housin
g

Home
Ownership

Market housing

What is Affordable?

 30 per cent of gross household income is
generally considered “affordable”.

 However, affordability criteria typically

differs by program and funding authority.

CANADA MORTGAGE AND HOUSING CORPORATION

4

Affordability Criteria – Two examples
Example 1

Example 2

Canada-Ontario
Affordable Housing
Agreement
(MMAH as IAH)

CMHC Seed
and Proposal
Development Funds
Program

•80 percent of
CMHC average
market rents

•80th rent percentile

•Below average
resale price

•Below average
resale price

CANADA MORTGAGE AND HOUSING CORPORATION

5

Who creates affordable housing?



Community leaders including
non- profit service organizations
and housing providers,
churches, private sector
developers, and municipalities.



Each partnership brings value to
the deal, such as business
knowledge, financial resources or
regulatory flexibility.

CANADA MORTGAGE AND HOUSING CORPORATION

6

What approaches work?
Municipal Tools Used In
Canada

Acquiring and
renovating building

Expedited approval
process

Parkland dedication
fees

Affordable
housing strategy

Grants and loans

Public–private
Partnerships

Allowing infill

Housing agreements
for
new development

Redeveloping/convertin
g
non-residential
buildings/sites

Comprehensive
development zoning

Housing fund

Resale price
restrictions

Designing flexible
Housing

Housing organization

Retaining affordable
housing

Donating land
or facilities

Inclusionary zoning

Secondary and
garden suites

Encouraging building
energy efficient housing

Intensification

Using development
levies

Encouraging
smaller units

Land banking

Waiving or reducing
property taxes

CANADA MORTGAGE AND HOUSING CORPORATION

Ideas that have worked
There are many approaches to creating affordable
housing.
• Benevolent financing & funding
• Donate money
• Lend money
• Property
• Sell property, with conditions
• Lease property
• Donate property
• Developers
• Acquire and rehabilitate
• Build new housing
CANADA MORTGAGE AND HOUSING CORPORATION

8

Programs Available
1. Seed Funding

2. Proposal Development Funds

(PDF)

CANADA MORTGAGE AND HOUSING CORPORATION

9

1. Seed Funding
CMHC’s Seed Funding program offers financial assistance to
housing proponents who are in the early stages of developing
an affordable housing project.

Up to $10,000 in the
form of a grant
 Up to $10,000 in the
form of an interest-free
loan

CANADA MORTGAGE AND HOUSING CORPORATION

10

Seed Funding
What Types of Housing Projects are
Eligible?

Housing project must be affordable

Housing Project must be located in Canada
No restrictions on:
Building form
Tenure type
Future residents of the
housing project
Type of housing proponent
organization
11

Seed Funding
What is Affordable?

 rental housing project in which units will have rents within

CMHC’s Affordability Criteria
 homeowner project - the units must be modest and the
purchase prices must be below the market for units of similar
type, size and number of bedrooms in the subject housing
market and neighbourhood

CANADA MORTGAGE AND HOUSING CORPORATION

12

Seed Funding
Who is Eligible?
• Not-for-profit organization
• Housing co-operative
• First Nations
• Private entrepreneur
• Group of individuals who may or may not
intend
to become incorporated
• Municipalities

CANADA MORTGAGE AND HOUSING CORPORATION

13

Seed Funding
What activities are eligible?
 Housing market studies to evaluate need and

demand for the proposed project
 Development of a business plan
 Exploration of funding sources or options
 Evaluation of procurement options
 Preliminary financial viability analysis
 Environmental site assessment
 Preliminary design of the housing project
 Incorporation of a not-for-profit organization
CANADA MORTGAGE AND HOUSING CORPORATION

14

Seed Funding
What Expenses are not Eligible?
 Not related to the development of the housing
project
 Expenses carried out prior to CMHC’s written
approval of Seed Funding
 Expenses related to “hard” project costs, example
- lot servicing, construction, renovation, and so on

 Ongoing operating expenses of the organization,
example - salaries and benefits, travel, office rental
 Retainer fees paid to consultants or any other
professionals for work to be completed in the future
CANADA MORTGAGE AND HOUSING CORPORATION

15

Seed Funding
Conditions of the Funding

1. Must enter into a Contribution Agreement with CMHC
2.

Must provide a need and demand study satisfactory to
CMHC and an acceptable business plan before further funds
will be advanced

3. Funds will be transferred only for eligible expenses
confirmed with invoices or receipts
4. Eligible activities are expected to be completed within 12
months of the date of the Contribution Agreement. A longer
period may be negotiated.

CANADA MORTGAGE AND HOUSING CORPORATION

16

2. Proposal Development Funding
CMHC’s PDF program provides
interest-free loans to facilitate the development
of affordable housing.
- Up to $100,000, determined by CMHC
- Depending on the size and complexity of
the proposed housing project and how
much development work needs to be
done.

** Not available for housing proposals whose viability or
level of affordability depends upon approval for a
Provincial or Territorial program funded under the
Affordable Housing Agreement
17

Proposal Development Funding
Eligible criteria
 Must have at least five (5) housing units
 If rental – majority of rents must be below market rent

limits established by CMHC for units of similar type, size
and number of bedrooms in the subject housing market
 If home ownership – the sale price must be below the
market value for similar housing in the neighbourhood
 Units – whether rental or homeowner – must be modest
in size and design
 There must be a demonstrated need for the proposed
project
CANADA MORTGAGE AND HOUSING CORPORATION

18

Proposal Development Funding
Who is Eligible?
 Not-for-profit organization
 Housing co-operative
 First Nations
 Private entrepreneur
 Any other housing proponents who can
demonstrate their ability to produce a viable
affordable housing project which meets CMHC’s
criteria

CANADA MORTGAGE AND HOUSING CORPORATION

19

Proposal Development Funding
What activities are eligible?
 Soil load-bearing tests
 Environmental site assessments
 Project drawings and specifications
 Professional fees
 Cost estimates

 Management plan
 Option to purchase
 Development permits
 Contract document
 Application fees
CANADA MORTGAGE AND HOUSING CORPORATION

20

Proposal Development Funding
What Expenses are not Eligible?
 Not related to the development of the housing
project
 Expenses carried out prior to CMHC’s written
approval
 Ongoing operating expenses of the organization,
example - salaries and benefits, travel, office rental

 Retainer fees paid to consultants or any other
professionals for work to be completed in the future

CANADA MORTGAGE AND HOUSING CORPORATION

21

Proposal Development Funding
Conditions of the Funding
1. Must enter into a Contribution Agreement with
CMHC
2. Must provide a comprehensive description of the
project proposal, along with a need and demand
study and a preliminary viability analysis and
business plan

3. Funds will be transferred only for eligible
expenses confirmed with invoices or receipts

CANADA MORTGAGE AND HOUSING CORPORATION

22

Proposal Development Funding
Loan Repayment Requirements
 To be repaid out of the project’s capital financing,
normally from the first advance of the mortgage
loan
 Only the principal amount is repaid
 If project is successful in producing an affordable
housing project, it may be eligible for a portion of
the loan to be forgiven
 If project is successful but unable to produce
affordable housing units, the full amount is
repayable, without interest
CANADA MORTGAGE AND HOUSING CORPORATION

23

www.cmhc.ca/affordablehousing

Locked up suites

Harmony
House

www.cmhc.ca

Jeff Kolibash
Corporate Representative
Northern Ontario
www.cmhc.ca
[email protected]
CANADA MORTGAGE AND HOUSING CORPORATION

26


Slide 9

Creating Affordable Housing:
SEED Funding / PDF Funding

Overview
 What is affordable
housing?
 Who creates it?
 What approaches
work?

 What programs are
available?

CANADA MORTGAGE AND HOUSING CORPORATION

2

What is Affordable Housing?

The Community Housing Continuum
Emergenc
y
Shelters

Transitional
Housing

Social
Housing

Government Subsidized Housing

Affordable
Rental
Housing

Affordable
Home
Ownership

Non-Market Housing

CANADA MORTGAGE AND HOUSING CORPORATION

Rental
Housin
g

Home
Ownership

Market housing

What is Affordable?

 30 per cent of gross household income is
generally considered “affordable”.

 However, affordability criteria typically

differs by program and funding authority.

CANADA MORTGAGE AND HOUSING CORPORATION

4

Affordability Criteria – Two examples
Example 1

Example 2

Canada-Ontario
Affordable Housing
Agreement
(MMAH as IAH)

CMHC Seed
and Proposal
Development Funds
Program

•80 percent of
CMHC average
market rents

•80th rent percentile

•Below average
resale price

•Below average
resale price

CANADA MORTGAGE AND HOUSING CORPORATION

5

Who creates affordable housing?



Community leaders including
non- profit service organizations
and housing providers,
churches, private sector
developers, and municipalities.



Each partnership brings value to
the deal, such as business
knowledge, financial resources or
regulatory flexibility.

CANADA MORTGAGE AND HOUSING CORPORATION

6

What approaches work?
Municipal Tools Used In
Canada

Acquiring and
renovating building

Expedited approval
process

Parkland dedication
fees

Affordable
housing strategy

Grants and loans

Public–private
Partnerships

Allowing infill

Housing agreements
for
new development

Redeveloping/convertin
g
non-residential
buildings/sites

Comprehensive
development zoning

Housing fund

Resale price
restrictions

Designing flexible
Housing

Housing organization

Retaining affordable
housing

Donating land
or facilities

Inclusionary zoning

Secondary and
garden suites

Encouraging building
energy efficient housing

Intensification

Using development
levies

Encouraging
smaller units

Land banking

Waiving or reducing
property taxes

CANADA MORTGAGE AND HOUSING CORPORATION

Ideas that have worked
There are many approaches to creating affordable
housing.
• Benevolent financing & funding
• Donate money
• Lend money
• Property
• Sell property, with conditions
• Lease property
• Donate property
• Developers
• Acquire and rehabilitate
• Build new housing
CANADA MORTGAGE AND HOUSING CORPORATION

8

Programs Available
1. Seed Funding

2. Proposal Development Funds

(PDF)

CANADA MORTGAGE AND HOUSING CORPORATION

9

1. Seed Funding
CMHC’s Seed Funding program offers financial assistance to
housing proponents who are in the early stages of developing
an affordable housing project.

Up to $10,000 in the
form of a grant
 Up to $10,000 in the
form of an interest-free
loan

CANADA MORTGAGE AND HOUSING CORPORATION

10

Seed Funding
What Types of Housing Projects are
Eligible?

Housing project must be affordable

Housing Project must be located in Canada
No restrictions on:
Building form
Tenure type
Future residents of the
housing project
Type of housing proponent
organization
11

Seed Funding
What is Affordable?

 rental housing project in which units will have rents within

CMHC’s Affordability Criteria
 homeowner project - the units must be modest and the
purchase prices must be below the market for units of similar
type, size and number of bedrooms in the subject housing
market and neighbourhood

CANADA MORTGAGE AND HOUSING CORPORATION

12

Seed Funding
Who is Eligible?
• Not-for-profit organization
• Housing co-operative
• First Nations
• Private entrepreneur
• Group of individuals who may or may not
intend
to become incorporated
• Municipalities

CANADA MORTGAGE AND HOUSING CORPORATION

13

Seed Funding
What activities are eligible?
 Housing market studies to evaluate need and

demand for the proposed project
 Development of a business plan
 Exploration of funding sources or options
 Evaluation of procurement options
 Preliminary financial viability analysis
 Environmental site assessment
 Preliminary design of the housing project
 Incorporation of a not-for-profit organization
CANADA MORTGAGE AND HOUSING CORPORATION

14

Seed Funding
What Expenses are not Eligible?
 Not related to the development of the housing
project
 Expenses carried out prior to CMHC’s written
approval of Seed Funding
 Expenses related to “hard” project costs, example
- lot servicing, construction, renovation, and so on

 Ongoing operating expenses of the organization,
example - salaries and benefits, travel, office rental
 Retainer fees paid to consultants or any other
professionals for work to be completed in the future
CANADA MORTGAGE AND HOUSING CORPORATION

15

Seed Funding
Conditions of the Funding

1. Must enter into a Contribution Agreement with CMHC
2.

Must provide a need and demand study satisfactory to
CMHC and an acceptable business plan before further funds
will be advanced

3. Funds will be transferred only for eligible expenses
confirmed with invoices or receipts
4. Eligible activities are expected to be completed within 12
months of the date of the Contribution Agreement. A longer
period may be negotiated.

CANADA MORTGAGE AND HOUSING CORPORATION

16

2. Proposal Development Funding
CMHC’s PDF program provides
interest-free loans to facilitate the development
of affordable housing.
- Up to $100,000, determined by CMHC
- Depending on the size and complexity of
the proposed housing project and how
much development work needs to be
done.

** Not available for housing proposals whose viability or
level of affordability depends upon approval for a
Provincial or Territorial program funded under the
Affordable Housing Agreement
17

Proposal Development Funding
Eligible criteria
 Must have at least five (5) housing units
 If rental – majority of rents must be below market rent

limits established by CMHC for units of similar type, size
and number of bedrooms in the subject housing market
 If home ownership – the sale price must be below the
market value for similar housing in the neighbourhood
 Units – whether rental or homeowner – must be modest
in size and design
 There must be a demonstrated need for the proposed
project
CANADA MORTGAGE AND HOUSING CORPORATION

18

Proposal Development Funding
Who is Eligible?
 Not-for-profit organization
 Housing co-operative
 First Nations
 Private entrepreneur
 Any other housing proponents who can
demonstrate their ability to produce a viable
affordable housing project which meets CMHC’s
criteria

CANADA MORTGAGE AND HOUSING CORPORATION

19

Proposal Development Funding
What activities are eligible?
 Soil load-bearing tests
 Environmental site assessments
 Project drawings and specifications
 Professional fees
 Cost estimates

 Management plan
 Option to purchase
 Development permits
 Contract document
 Application fees
CANADA MORTGAGE AND HOUSING CORPORATION

20

Proposal Development Funding
What Expenses are not Eligible?
 Not related to the development of the housing
project
 Expenses carried out prior to CMHC’s written
approval
 Ongoing operating expenses of the organization,
example - salaries and benefits, travel, office rental

 Retainer fees paid to consultants or any other
professionals for work to be completed in the future

CANADA MORTGAGE AND HOUSING CORPORATION

21

Proposal Development Funding
Conditions of the Funding
1. Must enter into a Contribution Agreement with
CMHC
2. Must provide a comprehensive description of the
project proposal, along with a need and demand
study and a preliminary viability analysis and
business plan

3. Funds will be transferred only for eligible
expenses confirmed with invoices or receipts

CANADA MORTGAGE AND HOUSING CORPORATION

22

Proposal Development Funding
Loan Repayment Requirements
 To be repaid out of the project’s capital financing,
normally from the first advance of the mortgage
loan
 Only the principal amount is repaid
 If project is successful in producing an affordable
housing project, it may be eligible for a portion of
the loan to be forgiven
 If project is successful but unable to produce
affordable housing units, the full amount is
repayable, without interest
CANADA MORTGAGE AND HOUSING CORPORATION

23

www.cmhc.ca/affordablehousing

Locked up suites

Harmony
House

www.cmhc.ca

Jeff Kolibash
Corporate Representative
Northern Ontario
www.cmhc.ca
[email protected]
CANADA MORTGAGE AND HOUSING CORPORATION

26


Slide 10

Creating Affordable Housing:
SEED Funding / PDF Funding

Overview
 What is affordable
housing?
 Who creates it?
 What approaches
work?

 What programs are
available?

CANADA MORTGAGE AND HOUSING CORPORATION

2

What is Affordable Housing?

The Community Housing Continuum
Emergenc
y
Shelters

Transitional
Housing

Social
Housing

Government Subsidized Housing

Affordable
Rental
Housing

Affordable
Home
Ownership

Non-Market Housing

CANADA MORTGAGE AND HOUSING CORPORATION

Rental
Housin
g

Home
Ownership

Market housing

What is Affordable?

 30 per cent of gross household income is
generally considered “affordable”.

 However, affordability criteria typically

differs by program and funding authority.

CANADA MORTGAGE AND HOUSING CORPORATION

4

Affordability Criteria – Two examples
Example 1

Example 2

Canada-Ontario
Affordable Housing
Agreement
(MMAH as IAH)

CMHC Seed
and Proposal
Development Funds
Program

•80 percent of
CMHC average
market rents

•80th rent percentile

•Below average
resale price

•Below average
resale price

CANADA MORTGAGE AND HOUSING CORPORATION

5

Who creates affordable housing?



Community leaders including
non- profit service organizations
and housing providers,
churches, private sector
developers, and municipalities.



Each partnership brings value to
the deal, such as business
knowledge, financial resources or
regulatory flexibility.

CANADA MORTGAGE AND HOUSING CORPORATION

6

What approaches work?
Municipal Tools Used In
Canada

Acquiring and
renovating building

Expedited approval
process

Parkland dedication
fees

Affordable
housing strategy

Grants and loans

Public–private
Partnerships

Allowing infill

Housing agreements
for
new development

Redeveloping/convertin
g
non-residential
buildings/sites

Comprehensive
development zoning

Housing fund

Resale price
restrictions

Designing flexible
Housing

Housing organization

Retaining affordable
housing

Donating land
or facilities

Inclusionary zoning

Secondary and
garden suites

Encouraging building
energy efficient housing

Intensification

Using development
levies

Encouraging
smaller units

Land banking

Waiving or reducing
property taxes

CANADA MORTGAGE AND HOUSING CORPORATION

Ideas that have worked
There are many approaches to creating affordable
housing.
• Benevolent financing & funding
• Donate money
• Lend money
• Property
• Sell property, with conditions
• Lease property
• Donate property
• Developers
• Acquire and rehabilitate
• Build new housing
CANADA MORTGAGE AND HOUSING CORPORATION

8

Programs Available
1. Seed Funding

2. Proposal Development Funds

(PDF)

CANADA MORTGAGE AND HOUSING CORPORATION

9

1. Seed Funding
CMHC’s Seed Funding program offers financial assistance to
housing proponents who are in the early stages of developing
an affordable housing project.

Up to $10,000 in the
form of a grant
 Up to $10,000 in the
form of an interest-free
loan

CANADA MORTGAGE AND HOUSING CORPORATION

10

Seed Funding
What Types of Housing Projects are
Eligible?

Housing project must be affordable

Housing Project must be located in Canada
No restrictions on:
Building form
Tenure type
Future residents of the
housing project
Type of housing proponent
organization
11

Seed Funding
What is Affordable?

 rental housing project in which units will have rents within

CMHC’s Affordability Criteria
 homeowner project - the units must be modest and the
purchase prices must be below the market for units of similar
type, size and number of bedrooms in the subject housing
market and neighbourhood

CANADA MORTGAGE AND HOUSING CORPORATION

12

Seed Funding
Who is Eligible?
• Not-for-profit organization
• Housing co-operative
• First Nations
• Private entrepreneur
• Group of individuals who may or may not
intend
to become incorporated
• Municipalities

CANADA MORTGAGE AND HOUSING CORPORATION

13

Seed Funding
What activities are eligible?
 Housing market studies to evaluate need and

demand for the proposed project
 Development of a business plan
 Exploration of funding sources or options
 Evaluation of procurement options
 Preliminary financial viability analysis
 Environmental site assessment
 Preliminary design of the housing project
 Incorporation of a not-for-profit organization
CANADA MORTGAGE AND HOUSING CORPORATION

14

Seed Funding
What Expenses are not Eligible?
 Not related to the development of the housing
project
 Expenses carried out prior to CMHC’s written
approval of Seed Funding
 Expenses related to “hard” project costs, example
- lot servicing, construction, renovation, and so on

 Ongoing operating expenses of the organization,
example - salaries and benefits, travel, office rental
 Retainer fees paid to consultants or any other
professionals for work to be completed in the future
CANADA MORTGAGE AND HOUSING CORPORATION

15

Seed Funding
Conditions of the Funding

1. Must enter into a Contribution Agreement with CMHC
2.

Must provide a need and demand study satisfactory to
CMHC and an acceptable business plan before further funds
will be advanced

3. Funds will be transferred only for eligible expenses
confirmed with invoices or receipts
4. Eligible activities are expected to be completed within 12
months of the date of the Contribution Agreement. A longer
period may be negotiated.

CANADA MORTGAGE AND HOUSING CORPORATION

16

2. Proposal Development Funding
CMHC’s PDF program provides
interest-free loans to facilitate the development
of affordable housing.
- Up to $100,000, determined by CMHC
- Depending on the size and complexity of
the proposed housing project and how
much development work needs to be
done.

** Not available for housing proposals whose viability or
level of affordability depends upon approval for a
Provincial or Territorial program funded under the
Affordable Housing Agreement
17

Proposal Development Funding
Eligible criteria
 Must have at least five (5) housing units
 If rental – majority of rents must be below market rent

limits established by CMHC for units of similar type, size
and number of bedrooms in the subject housing market
 If home ownership – the sale price must be below the
market value for similar housing in the neighbourhood
 Units – whether rental or homeowner – must be modest
in size and design
 There must be a demonstrated need for the proposed
project
CANADA MORTGAGE AND HOUSING CORPORATION

18

Proposal Development Funding
Who is Eligible?
 Not-for-profit organization
 Housing co-operative
 First Nations
 Private entrepreneur
 Any other housing proponents who can
demonstrate their ability to produce a viable
affordable housing project which meets CMHC’s
criteria

CANADA MORTGAGE AND HOUSING CORPORATION

19

Proposal Development Funding
What activities are eligible?
 Soil load-bearing tests
 Environmental site assessments
 Project drawings and specifications
 Professional fees
 Cost estimates

 Management plan
 Option to purchase
 Development permits
 Contract document
 Application fees
CANADA MORTGAGE AND HOUSING CORPORATION

20

Proposal Development Funding
What Expenses are not Eligible?
 Not related to the development of the housing
project
 Expenses carried out prior to CMHC’s written
approval
 Ongoing operating expenses of the organization,
example - salaries and benefits, travel, office rental

 Retainer fees paid to consultants or any other
professionals for work to be completed in the future

CANADA MORTGAGE AND HOUSING CORPORATION

21

Proposal Development Funding
Conditions of the Funding
1. Must enter into a Contribution Agreement with
CMHC
2. Must provide a comprehensive description of the
project proposal, along with a need and demand
study and a preliminary viability analysis and
business plan

3. Funds will be transferred only for eligible
expenses confirmed with invoices or receipts

CANADA MORTGAGE AND HOUSING CORPORATION

22

Proposal Development Funding
Loan Repayment Requirements
 To be repaid out of the project’s capital financing,
normally from the first advance of the mortgage
loan
 Only the principal amount is repaid
 If project is successful in producing an affordable
housing project, it may be eligible for a portion of
the loan to be forgiven
 If project is successful but unable to produce
affordable housing units, the full amount is
repayable, without interest
CANADA MORTGAGE AND HOUSING CORPORATION

23

www.cmhc.ca/affordablehousing

Locked up suites

Harmony
House

www.cmhc.ca

Jeff Kolibash
Corporate Representative
Northern Ontario
www.cmhc.ca
[email protected]
CANADA MORTGAGE AND HOUSING CORPORATION

26


Slide 11

Creating Affordable Housing:
SEED Funding / PDF Funding

Overview
 What is affordable
housing?
 Who creates it?
 What approaches
work?

 What programs are
available?

CANADA MORTGAGE AND HOUSING CORPORATION

2

What is Affordable Housing?

The Community Housing Continuum
Emergenc
y
Shelters

Transitional
Housing

Social
Housing

Government Subsidized Housing

Affordable
Rental
Housing

Affordable
Home
Ownership

Non-Market Housing

CANADA MORTGAGE AND HOUSING CORPORATION

Rental
Housin
g

Home
Ownership

Market housing

What is Affordable?

 30 per cent of gross household income is
generally considered “affordable”.

 However, affordability criteria typically

differs by program and funding authority.

CANADA MORTGAGE AND HOUSING CORPORATION

4

Affordability Criteria – Two examples
Example 1

Example 2

Canada-Ontario
Affordable Housing
Agreement
(MMAH as IAH)

CMHC Seed
and Proposal
Development Funds
Program

•80 percent of
CMHC average
market rents

•80th rent percentile

•Below average
resale price

•Below average
resale price

CANADA MORTGAGE AND HOUSING CORPORATION

5

Who creates affordable housing?



Community leaders including
non- profit service organizations
and housing providers,
churches, private sector
developers, and municipalities.



Each partnership brings value to
the deal, such as business
knowledge, financial resources or
regulatory flexibility.

CANADA MORTGAGE AND HOUSING CORPORATION

6

What approaches work?
Municipal Tools Used In
Canada

Acquiring and
renovating building

Expedited approval
process

Parkland dedication
fees

Affordable
housing strategy

Grants and loans

Public–private
Partnerships

Allowing infill

Housing agreements
for
new development

Redeveloping/convertin
g
non-residential
buildings/sites

Comprehensive
development zoning

Housing fund

Resale price
restrictions

Designing flexible
Housing

Housing organization

Retaining affordable
housing

Donating land
or facilities

Inclusionary zoning

Secondary and
garden suites

Encouraging building
energy efficient housing

Intensification

Using development
levies

Encouraging
smaller units

Land banking

Waiving or reducing
property taxes

CANADA MORTGAGE AND HOUSING CORPORATION

Ideas that have worked
There are many approaches to creating affordable
housing.
• Benevolent financing & funding
• Donate money
• Lend money
• Property
• Sell property, with conditions
• Lease property
• Donate property
• Developers
• Acquire and rehabilitate
• Build new housing
CANADA MORTGAGE AND HOUSING CORPORATION

8

Programs Available
1. Seed Funding

2. Proposal Development Funds

(PDF)

CANADA MORTGAGE AND HOUSING CORPORATION

9

1. Seed Funding
CMHC’s Seed Funding program offers financial assistance to
housing proponents who are in the early stages of developing
an affordable housing project.

Up to $10,000 in the
form of a grant
 Up to $10,000 in the
form of an interest-free
loan

CANADA MORTGAGE AND HOUSING CORPORATION

10

Seed Funding
What Types of Housing Projects are
Eligible?

Housing project must be affordable

Housing Project must be located in Canada
No restrictions on:
Building form
Tenure type
Future residents of the
housing project
Type of housing proponent
organization
11

Seed Funding
What is Affordable?

 rental housing project in which units will have rents within

CMHC’s Affordability Criteria
 homeowner project - the units must be modest and the
purchase prices must be below the market for units of similar
type, size and number of bedrooms in the subject housing
market and neighbourhood

CANADA MORTGAGE AND HOUSING CORPORATION

12

Seed Funding
Who is Eligible?
• Not-for-profit organization
• Housing co-operative
• First Nations
• Private entrepreneur
• Group of individuals who may or may not
intend
to become incorporated
• Municipalities

CANADA MORTGAGE AND HOUSING CORPORATION

13

Seed Funding
What activities are eligible?
 Housing market studies to evaluate need and

demand for the proposed project
 Development of a business plan
 Exploration of funding sources or options
 Evaluation of procurement options
 Preliminary financial viability analysis
 Environmental site assessment
 Preliminary design of the housing project
 Incorporation of a not-for-profit organization
CANADA MORTGAGE AND HOUSING CORPORATION

14

Seed Funding
What Expenses are not Eligible?
 Not related to the development of the housing
project
 Expenses carried out prior to CMHC’s written
approval of Seed Funding
 Expenses related to “hard” project costs, example
- lot servicing, construction, renovation, and so on

 Ongoing operating expenses of the organization,
example - salaries and benefits, travel, office rental
 Retainer fees paid to consultants or any other
professionals for work to be completed in the future
CANADA MORTGAGE AND HOUSING CORPORATION

15

Seed Funding
Conditions of the Funding

1. Must enter into a Contribution Agreement with CMHC
2.

Must provide a need and demand study satisfactory to
CMHC and an acceptable business plan before further funds
will be advanced

3. Funds will be transferred only for eligible expenses
confirmed with invoices or receipts
4. Eligible activities are expected to be completed within 12
months of the date of the Contribution Agreement. A longer
period may be negotiated.

CANADA MORTGAGE AND HOUSING CORPORATION

16

2. Proposal Development Funding
CMHC’s PDF program provides
interest-free loans to facilitate the development
of affordable housing.
- Up to $100,000, determined by CMHC
- Depending on the size and complexity of
the proposed housing project and how
much development work needs to be
done.

** Not available for housing proposals whose viability or
level of affordability depends upon approval for a
Provincial or Territorial program funded under the
Affordable Housing Agreement
17

Proposal Development Funding
Eligible criteria
 Must have at least five (5) housing units
 If rental – majority of rents must be below market rent

limits established by CMHC for units of similar type, size
and number of bedrooms in the subject housing market
 If home ownership – the sale price must be below the
market value for similar housing in the neighbourhood
 Units – whether rental or homeowner – must be modest
in size and design
 There must be a demonstrated need for the proposed
project
CANADA MORTGAGE AND HOUSING CORPORATION

18

Proposal Development Funding
Who is Eligible?
 Not-for-profit organization
 Housing co-operative
 First Nations
 Private entrepreneur
 Any other housing proponents who can
demonstrate their ability to produce a viable
affordable housing project which meets CMHC’s
criteria

CANADA MORTGAGE AND HOUSING CORPORATION

19

Proposal Development Funding
What activities are eligible?
 Soil load-bearing tests
 Environmental site assessments
 Project drawings and specifications
 Professional fees
 Cost estimates

 Management plan
 Option to purchase
 Development permits
 Contract document
 Application fees
CANADA MORTGAGE AND HOUSING CORPORATION

20

Proposal Development Funding
What Expenses are not Eligible?
 Not related to the development of the housing
project
 Expenses carried out prior to CMHC’s written
approval
 Ongoing operating expenses of the organization,
example - salaries and benefits, travel, office rental

 Retainer fees paid to consultants or any other
professionals for work to be completed in the future

CANADA MORTGAGE AND HOUSING CORPORATION

21

Proposal Development Funding
Conditions of the Funding
1. Must enter into a Contribution Agreement with
CMHC
2. Must provide a comprehensive description of the
project proposal, along with a need and demand
study and a preliminary viability analysis and
business plan

3. Funds will be transferred only for eligible
expenses confirmed with invoices or receipts

CANADA MORTGAGE AND HOUSING CORPORATION

22

Proposal Development Funding
Loan Repayment Requirements
 To be repaid out of the project’s capital financing,
normally from the first advance of the mortgage
loan
 Only the principal amount is repaid
 If project is successful in producing an affordable
housing project, it may be eligible for a portion of
the loan to be forgiven
 If project is successful but unable to produce
affordable housing units, the full amount is
repayable, without interest
CANADA MORTGAGE AND HOUSING CORPORATION

23

www.cmhc.ca/affordablehousing

Locked up suites

Harmony
House

www.cmhc.ca

Jeff Kolibash
Corporate Representative
Northern Ontario
www.cmhc.ca
[email protected]
CANADA MORTGAGE AND HOUSING CORPORATION

26


Slide 12

Creating Affordable Housing:
SEED Funding / PDF Funding

Overview
 What is affordable
housing?
 Who creates it?
 What approaches
work?

 What programs are
available?

CANADA MORTGAGE AND HOUSING CORPORATION

2

What is Affordable Housing?

The Community Housing Continuum
Emergenc
y
Shelters

Transitional
Housing

Social
Housing

Government Subsidized Housing

Affordable
Rental
Housing

Affordable
Home
Ownership

Non-Market Housing

CANADA MORTGAGE AND HOUSING CORPORATION

Rental
Housin
g

Home
Ownership

Market housing

What is Affordable?

 30 per cent of gross household income is
generally considered “affordable”.

 However, affordability criteria typically

differs by program and funding authority.

CANADA MORTGAGE AND HOUSING CORPORATION

4

Affordability Criteria – Two examples
Example 1

Example 2

Canada-Ontario
Affordable Housing
Agreement
(MMAH as IAH)

CMHC Seed
and Proposal
Development Funds
Program

•80 percent of
CMHC average
market rents

•80th rent percentile

•Below average
resale price

•Below average
resale price

CANADA MORTGAGE AND HOUSING CORPORATION

5

Who creates affordable housing?



Community leaders including
non- profit service organizations
and housing providers,
churches, private sector
developers, and municipalities.



Each partnership brings value to
the deal, such as business
knowledge, financial resources or
regulatory flexibility.

CANADA MORTGAGE AND HOUSING CORPORATION

6

What approaches work?
Municipal Tools Used In
Canada

Acquiring and
renovating building

Expedited approval
process

Parkland dedication
fees

Affordable
housing strategy

Grants and loans

Public–private
Partnerships

Allowing infill

Housing agreements
for
new development

Redeveloping/convertin
g
non-residential
buildings/sites

Comprehensive
development zoning

Housing fund

Resale price
restrictions

Designing flexible
Housing

Housing organization

Retaining affordable
housing

Donating land
or facilities

Inclusionary zoning

Secondary and
garden suites

Encouraging building
energy efficient housing

Intensification

Using development
levies

Encouraging
smaller units

Land banking

Waiving or reducing
property taxes

CANADA MORTGAGE AND HOUSING CORPORATION

Ideas that have worked
There are many approaches to creating affordable
housing.
• Benevolent financing & funding
• Donate money
• Lend money
• Property
• Sell property, with conditions
• Lease property
• Donate property
• Developers
• Acquire and rehabilitate
• Build new housing
CANADA MORTGAGE AND HOUSING CORPORATION

8

Programs Available
1. Seed Funding

2. Proposal Development Funds

(PDF)

CANADA MORTGAGE AND HOUSING CORPORATION

9

1. Seed Funding
CMHC’s Seed Funding program offers financial assistance to
housing proponents who are in the early stages of developing
an affordable housing project.

Up to $10,000 in the
form of a grant
 Up to $10,000 in the
form of an interest-free
loan

CANADA MORTGAGE AND HOUSING CORPORATION

10

Seed Funding
What Types of Housing Projects are
Eligible?

Housing project must be affordable

Housing Project must be located in Canada
No restrictions on:
Building form
Tenure type
Future residents of the
housing project
Type of housing proponent
organization
11

Seed Funding
What is Affordable?

 rental housing project in which units will have rents within

CMHC’s Affordability Criteria
 homeowner project - the units must be modest and the
purchase prices must be below the market for units of similar
type, size and number of bedrooms in the subject housing
market and neighbourhood

CANADA MORTGAGE AND HOUSING CORPORATION

12

Seed Funding
Who is Eligible?
• Not-for-profit organization
• Housing co-operative
• First Nations
• Private entrepreneur
• Group of individuals who may or may not
intend
to become incorporated
• Municipalities

CANADA MORTGAGE AND HOUSING CORPORATION

13

Seed Funding
What activities are eligible?
 Housing market studies to evaluate need and

demand for the proposed project
 Development of a business plan
 Exploration of funding sources or options
 Evaluation of procurement options
 Preliminary financial viability analysis
 Environmental site assessment
 Preliminary design of the housing project
 Incorporation of a not-for-profit organization
CANADA MORTGAGE AND HOUSING CORPORATION

14

Seed Funding
What Expenses are not Eligible?
 Not related to the development of the housing
project
 Expenses carried out prior to CMHC’s written
approval of Seed Funding
 Expenses related to “hard” project costs, example
- lot servicing, construction, renovation, and so on

 Ongoing operating expenses of the organization,
example - salaries and benefits, travel, office rental
 Retainer fees paid to consultants or any other
professionals for work to be completed in the future
CANADA MORTGAGE AND HOUSING CORPORATION

15

Seed Funding
Conditions of the Funding

1. Must enter into a Contribution Agreement with CMHC
2.

Must provide a need and demand study satisfactory to
CMHC and an acceptable business plan before further funds
will be advanced

3. Funds will be transferred only for eligible expenses
confirmed with invoices or receipts
4. Eligible activities are expected to be completed within 12
months of the date of the Contribution Agreement. A longer
period may be negotiated.

CANADA MORTGAGE AND HOUSING CORPORATION

16

2. Proposal Development Funding
CMHC’s PDF program provides
interest-free loans to facilitate the development
of affordable housing.
- Up to $100,000, determined by CMHC
- Depending on the size and complexity of
the proposed housing project and how
much development work needs to be
done.

** Not available for housing proposals whose viability or
level of affordability depends upon approval for a
Provincial or Territorial program funded under the
Affordable Housing Agreement
17

Proposal Development Funding
Eligible criteria
 Must have at least five (5) housing units
 If rental – majority of rents must be below market rent

limits established by CMHC for units of similar type, size
and number of bedrooms in the subject housing market
 If home ownership – the sale price must be below the
market value for similar housing in the neighbourhood
 Units – whether rental or homeowner – must be modest
in size and design
 There must be a demonstrated need for the proposed
project
CANADA MORTGAGE AND HOUSING CORPORATION

18

Proposal Development Funding
Who is Eligible?
 Not-for-profit organization
 Housing co-operative
 First Nations
 Private entrepreneur
 Any other housing proponents who can
demonstrate their ability to produce a viable
affordable housing project which meets CMHC’s
criteria

CANADA MORTGAGE AND HOUSING CORPORATION

19

Proposal Development Funding
What activities are eligible?
 Soil load-bearing tests
 Environmental site assessments
 Project drawings and specifications
 Professional fees
 Cost estimates

 Management plan
 Option to purchase
 Development permits
 Contract document
 Application fees
CANADA MORTGAGE AND HOUSING CORPORATION

20

Proposal Development Funding
What Expenses are not Eligible?
 Not related to the development of the housing
project
 Expenses carried out prior to CMHC’s written
approval
 Ongoing operating expenses of the organization,
example - salaries and benefits, travel, office rental

 Retainer fees paid to consultants or any other
professionals for work to be completed in the future

CANADA MORTGAGE AND HOUSING CORPORATION

21

Proposal Development Funding
Conditions of the Funding
1. Must enter into a Contribution Agreement with
CMHC
2. Must provide a comprehensive description of the
project proposal, along with a need and demand
study and a preliminary viability analysis and
business plan

3. Funds will be transferred only for eligible
expenses confirmed with invoices or receipts

CANADA MORTGAGE AND HOUSING CORPORATION

22

Proposal Development Funding
Loan Repayment Requirements
 To be repaid out of the project’s capital financing,
normally from the first advance of the mortgage
loan
 Only the principal amount is repaid
 If project is successful in producing an affordable
housing project, it may be eligible for a portion of
the loan to be forgiven
 If project is successful but unable to produce
affordable housing units, the full amount is
repayable, without interest
CANADA MORTGAGE AND HOUSING CORPORATION

23

www.cmhc.ca/affordablehousing

Locked up suites

Harmony
House

www.cmhc.ca

Jeff Kolibash
Corporate Representative
Northern Ontario
www.cmhc.ca
[email protected]
CANADA MORTGAGE AND HOUSING CORPORATION

26


Slide 13

Creating Affordable Housing:
SEED Funding / PDF Funding

Overview
 What is affordable
housing?
 Who creates it?
 What approaches
work?

 What programs are
available?

CANADA MORTGAGE AND HOUSING CORPORATION

2

What is Affordable Housing?

The Community Housing Continuum
Emergenc
y
Shelters

Transitional
Housing

Social
Housing

Government Subsidized Housing

Affordable
Rental
Housing

Affordable
Home
Ownership

Non-Market Housing

CANADA MORTGAGE AND HOUSING CORPORATION

Rental
Housin
g

Home
Ownership

Market housing

What is Affordable?

 30 per cent of gross household income is
generally considered “affordable”.

 However, affordability criteria typically

differs by program and funding authority.

CANADA MORTGAGE AND HOUSING CORPORATION

4

Affordability Criteria – Two examples
Example 1

Example 2

Canada-Ontario
Affordable Housing
Agreement
(MMAH as IAH)

CMHC Seed
and Proposal
Development Funds
Program

•80 percent of
CMHC average
market rents

•80th rent percentile

•Below average
resale price

•Below average
resale price

CANADA MORTGAGE AND HOUSING CORPORATION

5

Who creates affordable housing?



Community leaders including
non- profit service organizations
and housing providers,
churches, private sector
developers, and municipalities.



Each partnership brings value to
the deal, such as business
knowledge, financial resources or
regulatory flexibility.

CANADA MORTGAGE AND HOUSING CORPORATION

6

What approaches work?
Municipal Tools Used In
Canada

Acquiring and
renovating building

Expedited approval
process

Parkland dedication
fees

Affordable
housing strategy

Grants and loans

Public–private
Partnerships

Allowing infill

Housing agreements
for
new development

Redeveloping/convertin
g
non-residential
buildings/sites

Comprehensive
development zoning

Housing fund

Resale price
restrictions

Designing flexible
Housing

Housing organization

Retaining affordable
housing

Donating land
or facilities

Inclusionary zoning

Secondary and
garden suites

Encouraging building
energy efficient housing

Intensification

Using development
levies

Encouraging
smaller units

Land banking

Waiving or reducing
property taxes

CANADA MORTGAGE AND HOUSING CORPORATION

Ideas that have worked
There are many approaches to creating affordable
housing.
• Benevolent financing & funding
• Donate money
• Lend money
• Property
• Sell property, with conditions
• Lease property
• Donate property
• Developers
• Acquire and rehabilitate
• Build new housing
CANADA MORTGAGE AND HOUSING CORPORATION

8

Programs Available
1. Seed Funding

2. Proposal Development Funds

(PDF)

CANADA MORTGAGE AND HOUSING CORPORATION

9

1. Seed Funding
CMHC’s Seed Funding program offers financial assistance to
housing proponents who are in the early stages of developing
an affordable housing project.

Up to $10,000 in the
form of a grant
 Up to $10,000 in the
form of an interest-free
loan

CANADA MORTGAGE AND HOUSING CORPORATION

10

Seed Funding
What Types of Housing Projects are
Eligible?

Housing project must be affordable

Housing Project must be located in Canada
No restrictions on:
Building form
Tenure type
Future residents of the
housing project
Type of housing proponent
organization
11

Seed Funding
What is Affordable?

 rental housing project in which units will have rents within

CMHC’s Affordability Criteria
 homeowner project - the units must be modest and the
purchase prices must be below the market for units of similar
type, size and number of bedrooms in the subject housing
market and neighbourhood

CANADA MORTGAGE AND HOUSING CORPORATION

12

Seed Funding
Who is Eligible?
• Not-for-profit organization
• Housing co-operative
• First Nations
• Private entrepreneur
• Group of individuals who may or may not
intend
to become incorporated
• Municipalities

CANADA MORTGAGE AND HOUSING CORPORATION

13

Seed Funding
What activities are eligible?
 Housing market studies to evaluate need and

demand for the proposed project
 Development of a business plan
 Exploration of funding sources or options
 Evaluation of procurement options
 Preliminary financial viability analysis
 Environmental site assessment
 Preliminary design of the housing project
 Incorporation of a not-for-profit organization
CANADA MORTGAGE AND HOUSING CORPORATION

14

Seed Funding
What Expenses are not Eligible?
 Not related to the development of the housing
project
 Expenses carried out prior to CMHC’s written
approval of Seed Funding
 Expenses related to “hard” project costs, example
- lot servicing, construction, renovation, and so on

 Ongoing operating expenses of the organization,
example - salaries and benefits, travel, office rental
 Retainer fees paid to consultants or any other
professionals for work to be completed in the future
CANADA MORTGAGE AND HOUSING CORPORATION

15

Seed Funding
Conditions of the Funding

1. Must enter into a Contribution Agreement with CMHC
2.

Must provide a need and demand study satisfactory to
CMHC and an acceptable business plan before further funds
will be advanced

3. Funds will be transferred only for eligible expenses
confirmed with invoices or receipts
4. Eligible activities are expected to be completed within 12
months of the date of the Contribution Agreement. A longer
period may be negotiated.

CANADA MORTGAGE AND HOUSING CORPORATION

16

2. Proposal Development Funding
CMHC’s PDF program provides
interest-free loans to facilitate the development
of affordable housing.
- Up to $100,000, determined by CMHC
- Depending on the size and complexity of
the proposed housing project and how
much development work needs to be
done.

** Not available for housing proposals whose viability or
level of affordability depends upon approval for a
Provincial or Territorial program funded under the
Affordable Housing Agreement
17

Proposal Development Funding
Eligible criteria
 Must have at least five (5) housing units
 If rental – majority of rents must be below market rent

limits established by CMHC for units of similar type, size
and number of bedrooms in the subject housing market
 If home ownership – the sale price must be below the
market value for similar housing in the neighbourhood
 Units – whether rental or homeowner – must be modest
in size and design
 There must be a demonstrated need for the proposed
project
CANADA MORTGAGE AND HOUSING CORPORATION

18

Proposal Development Funding
Who is Eligible?
 Not-for-profit organization
 Housing co-operative
 First Nations
 Private entrepreneur
 Any other housing proponents who can
demonstrate their ability to produce a viable
affordable housing project which meets CMHC’s
criteria

CANADA MORTGAGE AND HOUSING CORPORATION

19

Proposal Development Funding
What activities are eligible?
 Soil load-bearing tests
 Environmental site assessments
 Project drawings and specifications
 Professional fees
 Cost estimates

 Management plan
 Option to purchase
 Development permits
 Contract document
 Application fees
CANADA MORTGAGE AND HOUSING CORPORATION

20

Proposal Development Funding
What Expenses are not Eligible?
 Not related to the development of the housing
project
 Expenses carried out prior to CMHC’s written
approval
 Ongoing operating expenses of the organization,
example - salaries and benefits, travel, office rental

 Retainer fees paid to consultants or any other
professionals for work to be completed in the future

CANADA MORTGAGE AND HOUSING CORPORATION

21

Proposal Development Funding
Conditions of the Funding
1. Must enter into a Contribution Agreement with
CMHC
2. Must provide a comprehensive description of the
project proposal, along with a need and demand
study and a preliminary viability analysis and
business plan

3. Funds will be transferred only for eligible
expenses confirmed with invoices or receipts

CANADA MORTGAGE AND HOUSING CORPORATION

22

Proposal Development Funding
Loan Repayment Requirements
 To be repaid out of the project’s capital financing,
normally from the first advance of the mortgage
loan
 Only the principal amount is repaid
 If project is successful in producing an affordable
housing project, it may be eligible for a portion of
the loan to be forgiven
 If project is successful but unable to produce
affordable housing units, the full amount is
repayable, without interest
CANADA MORTGAGE AND HOUSING CORPORATION

23

www.cmhc.ca/affordablehousing

Locked up suites

Harmony
House

www.cmhc.ca

Jeff Kolibash
Corporate Representative
Northern Ontario
www.cmhc.ca
[email protected]
CANADA MORTGAGE AND HOUSING CORPORATION

26


Slide 14

Creating Affordable Housing:
SEED Funding / PDF Funding

Overview
 What is affordable
housing?
 Who creates it?
 What approaches
work?

 What programs are
available?

CANADA MORTGAGE AND HOUSING CORPORATION

2

What is Affordable Housing?

The Community Housing Continuum
Emergenc
y
Shelters

Transitional
Housing

Social
Housing

Government Subsidized Housing

Affordable
Rental
Housing

Affordable
Home
Ownership

Non-Market Housing

CANADA MORTGAGE AND HOUSING CORPORATION

Rental
Housin
g

Home
Ownership

Market housing

What is Affordable?

 30 per cent of gross household income is
generally considered “affordable”.

 However, affordability criteria typically

differs by program and funding authority.

CANADA MORTGAGE AND HOUSING CORPORATION

4

Affordability Criteria – Two examples
Example 1

Example 2

Canada-Ontario
Affordable Housing
Agreement
(MMAH as IAH)

CMHC Seed
and Proposal
Development Funds
Program

•80 percent of
CMHC average
market rents

•80th rent percentile

•Below average
resale price

•Below average
resale price

CANADA MORTGAGE AND HOUSING CORPORATION

5

Who creates affordable housing?



Community leaders including
non- profit service organizations
and housing providers,
churches, private sector
developers, and municipalities.



Each partnership brings value to
the deal, such as business
knowledge, financial resources or
regulatory flexibility.

CANADA MORTGAGE AND HOUSING CORPORATION

6

What approaches work?
Municipal Tools Used In
Canada

Acquiring and
renovating building

Expedited approval
process

Parkland dedication
fees

Affordable
housing strategy

Grants and loans

Public–private
Partnerships

Allowing infill

Housing agreements
for
new development

Redeveloping/convertin
g
non-residential
buildings/sites

Comprehensive
development zoning

Housing fund

Resale price
restrictions

Designing flexible
Housing

Housing organization

Retaining affordable
housing

Donating land
or facilities

Inclusionary zoning

Secondary and
garden suites

Encouraging building
energy efficient housing

Intensification

Using development
levies

Encouraging
smaller units

Land banking

Waiving or reducing
property taxes

CANADA MORTGAGE AND HOUSING CORPORATION

Ideas that have worked
There are many approaches to creating affordable
housing.
• Benevolent financing & funding
• Donate money
• Lend money
• Property
• Sell property, with conditions
• Lease property
• Donate property
• Developers
• Acquire and rehabilitate
• Build new housing
CANADA MORTGAGE AND HOUSING CORPORATION

8

Programs Available
1. Seed Funding

2. Proposal Development Funds

(PDF)

CANADA MORTGAGE AND HOUSING CORPORATION

9

1. Seed Funding
CMHC’s Seed Funding program offers financial assistance to
housing proponents who are in the early stages of developing
an affordable housing project.

Up to $10,000 in the
form of a grant
 Up to $10,000 in the
form of an interest-free
loan

CANADA MORTGAGE AND HOUSING CORPORATION

10

Seed Funding
What Types of Housing Projects are
Eligible?

Housing project must be affordable

Housing Project must be located in Canada
No restrictions on:
Building form
Tenure type
Future residents of the
housing project
Type of housing proponent
organization
11

Seed Funding
What is Affordable?

 rental housing project in which units will have rents within

CMHC’s Affordability Criteria
 homeowner project - the units must be modest and the
purchase prices must be below the market for units of similar
type, size and number of bedrooms in the subject housing
market and neighbourhood

CANADA MORTGAGE AND HOUSING CORPORATION

12

Seed Funding
Who is Eligible?
• Not-for-profit organization
• Housing co-operative
• First Nations
• Private entrepreneur
• Group of individuals who may or may not
intend
to become incorporated
• Municipalities

CANADA MORTGAGE AND HOUSING CORPORATION

13

Seed Funding
What activities are eligible?
 Housing market studies to evaluate need and

demand for the proposed project
 Development of a business plan
 Exploration of funding sources or options
 Evaluation of procurement options
 Preliminary financial viability analysis
 Environmental site assessment
 Preliminary design of the housing project
 Incorporation of a not-for-profit organization
CANADA MORTGAGE AND HOUSING CORPORATION

14

Seed Funding
What Expenses are not Eligible?
 Not related to the development of the housing
project
 Expenses carried out prior to CMHC’s written
approval of Seed Funding
 Expenses related to “hard” project costs, example
- lot servicing, construction, renovation, and so on

 Ongoing operating expenses of the organization,
example - salaries and benefits, travel, office rental
 Retainer fees paid to consultants or any other
professionals for work to be completed in the future
CANADA MORTGAGE AND HOUSING CORPORATION

15

Seed Funding
Conditions of the Funding

1. Must enter into a Contribution Agreement with CMHC
2.

Must provide a need and demand study satisfactory to
CMHC and an acceptable business plan before further funds
will be advanced

3. Funds will be transferred only for eligible expenses
confirmed with invoices or receipts
4. Eligible activities are expected to be completed within 12
months of the date of the Contribution Agreement. A longer
period may be negotiated.

CANADA MORTGAGE AND HOUSING CORPORATION

16

2. Proposal Development Funding
CMHC’s PDF program provides
interest-free loans to facilitate the development
of affordable housing.
- Up to $100,000, determined by CMHC
- Depending on the size and complexity of
the proposed housing project and how
much development work needs to be
done.

** Not available for housing proposals whose viability or
level of affordability depends upon approval for a
Provincial or Territorial program funded under the
Affordable Housing Agreement
17

Proposal Development Funding
Eligible criteria
 Must have at least five (5) housing units
 If rental – majority of rents must be below market rent

limits established by CMHC for units of similar type, size
and number of bedrooms in the subject housing market
 If home ownership – the sale price must be below the
market value for similar housing in the neighbourhood
 Units – whether rental or homeowner – must be modest
in size and design
 There must be a demonstrated need for the proposed
project
CANADA MORTGAGE AND HOUSING CORPORATION

18

Proposal Development Funding
Who is Eligible?
 Not-for-profit organization
 Housing co-operative
 First Nations
 Private entrepreneur
 Any other housing proponents who can
demonstrate their ability to produce a viable
affordable housing project which meets CMHC’s
criteria

CANADA MORTGAGE AND HOUSING CORPORATION

19

Proposal Development Funding
What activities are eligible?
 Soil load-bearing tests
 Environmental site assessments
 Project drawings and specifications
 Professional fees
 Cost estimates

 Management plan
 Option to purchase
 Development permits
 Contract document
 Application fees
CANADA MORTGAGE AND HOUSING CORPORATION

20

Proposal Development Funding
What Expenses are not Eligible?
 Not related to the development of the housing
project
 Expenses carried out prior to CMHC’s written
approval
 Ongoing operating expenses of the organization,
example - salaries and benefits, travel, office rental

 Retainer fees paid to consultants or any other
professionals for work to be completed in the future

CANADA MORTGAGE AND HOUSING CORPORATION

21

Proposal Development Funding
Conditions of the Funding
1. Must enter into a Contribution Agreement with
CMHC
2. Must provide a comprehensive description of the
project proposal, along with a need and demand
study and a preliminary viability analysis and
business plan

3. Funds will be transferred only for eligible
expenses confirmed with invoices or receipts

CANADA MORTGAGE AND HOUSING CORPORATION

22

Proposal Development Funding
Loan Repayment Requirements
 To be repaid out of the project’s capital financing,
normally from the first advance of the mortgage
loan
 Only the principal amount is repaid
 If project is successful in producing an affordable
housing project, it may be eligible for a portion of
the loan to be forgiven
 If project is successful but unable to produce
affordable housing units, the full amount is
repayable, without interest
CANADA MORTGAGE AND HOUSING CORPORATION

23

www.cmhc.ca/affordablehousing

Locked up suites

Harmony
House

www.cmhc.ca

Jeff Kolibash
Corporate Representative
Northern Ontario
www.cmhc.ca
[email protected]
CANADA MORTGAGE AND HOUSING CORPORATION

26


Slide 15

Creating Affordable Housing:
SEED Funding / PDF Funding

Overview
 What is affordable
housing?
 Who creates it?
 What approaches
work?

 What programs are
available?

CANADA MORTGAGE AND HOUSING CORPORATION

2

What is Affordable Housing?

The Community Housing Continuum
Emergenc
y
Shelters

Transitional
Housing

Social
Housing

Government Subsidized Housing

Affordable
Rental
Housing

Affordable
Home
Ownership

Non-Market Housing

CANADA MORTGAGE AND HOUSING CORPORATION

Rental
Housin
g

Home
Ownership

Market housing

What is Affordable?

 30 per cent of gross household income is
generally considered “affordable”.

 However, affordability criteria typically

differs by program and funding authority.

CANADA MORTGAGE AND HOUSING CORPORATION

4

Affordability Criteria – Two examples
Example 1

Example 2

Canada-Ontario
Affordable Housing
Agreement
(MMAH as IAH)

CMHC Seed
and Proposal
Development Funds
Program

•80 percent of
CMHC average
market rents

•80th rent percentile

•Below average
resale price

•Below average
resale price

CANADA MORTGAGE AND HOUSING CORPORATION

5

Who creates affordable housing?



Community leaders including
non- profit service organizations
and housing providers,
churches, private sector
developers, and municipalities.



Each partnership brings value to
the deal, such as business
knowledge, financial resources or
regulatory flexibility.

CANADA MORTGAGE AND HOUSING CORPORATION

6

What approaches work?
Municipal Tools Used In
Canada

Acquiring and
renovating building

Expedited approval
process

Parkland dedication
fees

Affordable
housing strategy

Grants and loans

Public–private
Partnerships

Allowing infill

Housing agreements
for
new development

Redeveloping/convertin
g
non-residential
buildings/sites

Comprehensive
development zoning

Housing fund

Resale price
restrictions

Designing flexible
Housing

Housing organization

Retaining affordable
housing

Donating land
or facilities

Inclusionary zoning

Secondary and
garden suites

Encouraging building
energy efficient housing

Intensification

Using development
levies

Encouraging
smaller units

Land banking

Waiving or reducing
property taxes

CANADA MORTGAGE AND HOUSING CORPORATION

Ideas that have worked
There are many approaches to creating affordable
housing.
• Benevolent financing & funding
• Donate money
• Lend money
• Property
• Sell property, with conditions
• Lease property
• Donate property
• Developers
• Acquire and rehabilitate
• Build new housing
CANADA MORTGAGE AND HOUSING CORPORATION

8

Programs Available
1. Seed Funding

2. Proposal Development Funds

(PDF)

CANADA MORTGAGE AND HOUSING CORPORATION

9

1. Seed Funding
CMHC’s Seed Funding program offers financial assistance to
housing proponents who are in the early stages of developing
an affordable housing project.

Up to $10,000 in the
form of a grant
 Up to $10,000 in the
form of an interest-free
loan

CANADA MORTGAGE AND HOUSING CORPORATION

10

Seed Funding
What Types of Housing Projects are
Eligible?

Housing project must be affordable

Housing Project must be located in Canada
No restrictions on:
Building form
Tenure type
Future residents of the
housing project
Type of housing proponent
organization
11

Seed Funding
What is Affordable?

 rental housing project in which units will have rents within

CMHC’s Affordability Criteria
 homeowner project - the units must be modest and the
purchase prices must be below the market for units of similar
type, size and number of bedrooms in the subject housing
market and neighbourhood

CANADA MORTGAGE AND HOUSING CORPORATION

12

Seed Funding
Who is Eligible?
• Not-for-profit organization
• Housing co-operative
• First Nations
• Private entrepreneur
• Group of individuals who may or may not
intend
to become incorporated
• Municipalities

CANADA MORTGAGE AND HOUSING CORPORATION

13

Seed Funding
What activities are eligible?
 Housing market studies to evaluate need and

demand for the proposed project
 Development of a business plan
 Exploration of funding sources or options
 Evaluation of procurement options
 Preliminary financial viability analysis
 Environmental site assessment
 Preliminary design of the housing project
 Incorporation of a not-for-profit organization
CANADA MORTGAGE AND HOUSING CORPORATION

14

Seed Funding
What Expenses are not Eligible?
 Not related to the development of the housing
project
 Expenses carried out prior to CMHC’s written
approval of Seed Funding
 Expenses related to “hard” project costs, example
- lot servicing, construction, renovation, and so on

 Ongoing operating expenses of the organization,
example - salaries and benefits, travel, office rental
 Retainer fees paid to consultants or any other
professionals for work to be completed in the future
CANADA MORTGAGE AND HOUSING CORPORATION

15

Seed Funding
Conditions of the Funding

1. Must enter into a Contribution Agreement with CMHC
2.

Must provide a need and demand study satisfactory to
CMHC and an acceptable business plan before further funds
will be advanced

3. Funds will be transferred only for eligible expenses
confirmed with invoices or receipts
4. Eligible activities are expected to be completed within 12
months of the date of the Contribution Agreement. A longer
period may be negotiated.

CANADA MORTGAGE AND HOUSING CORPORATION

16

2. Proposal Development Funding
CMHC’s PDF program provides
interest-free loans to facilitate the development
of affordable housing.
- Up to $100,000, determined by CMHC
- Depending on the size and complexity of
the proposed housing project and how
much development work needs to be
done.

** Not available for housing proposals whose viability or
level of affordability depends upon approval for a
Provincial or Territorial program funded under the
Affordable Housing Agreement
17

Proposal Development Funding
Eligible criteria
 Must have at least five (5) housing units
 If rental – majority of rents must be below market rent

limits established by CMHC for units of similar type, size
and number of bedrooms in the subject housing market
 If home ownership – the sale price must be below the
market value for similar housing in the neighbourhood
 Units – whether rental or homeowner – must be modest
in size and design
 There must be a demonstrated need for the proposed
project
CANADA MORTGAGE AND HOUSING CORPORATION

18

Proposal Development Funding
Who is Eligible?
 Not-for-profit organization
 Housing co-operative
 First Nations
 Private entrepreneur
 Any other housing proponents who can
demonstrate their ability to produce a viable
affordable housing project which meets CMHC’s
criteria

CANADA MORTGAGE AND HOUSING CORPORATION

19

Proposal Development Funding
What activities are eligible?
 Soil load-bearing tests
 Environmental site assessments
 Project drawings and specifications
 Professional fees
 Cost estimates

 Management plan
 Option to purchase
 Development permits
 Contract document
 Application fees
CANADA MORTGAGE AND HOUSING CORPORATION

20

Proposal Development Funding
What Expenses are not Eligible?
 Not related to the development of the housing
project
 Expenses carried out prior to CMHC’s written
approval
 Ongoing operating expenses of the organization,
example - salaries and benefits, travel, office rental

 Retainer fees paid to consultants or any other
professionals for work to be completed in the future

CANADA MORTGAGE AND HOUSING CORPORATION

21

Proposal Development Funding
Conditions of the Funding
1. Must enter into a Contribution Agreement with
CMHC
2. Must provide a comprehensive description of the
project proposal, along with a need and demand
study and a preliminary viability analysis and
business plan

3. Funds will be transferred only for eligible
expenses confirmed with invoices or receipts

CANADA MORTGAGE AND HOUSING CORPORATION

22

Proposal Development Funding
Loan Repayment Requirements
 To be repaid out of the project’s capital financing,
normally from the first advance of the mortgage
loan
 Only the principal amount is repaid
 If project is successful in producing an affordable
housing project, it may be eligible for a portion of
the loan to be forgiven
 If project is successful but unable to produce
affordable housing units, the full amount is
repayable, without interest
CANADA MORTGAGE AND HOUSING CORPORATION

23

www.cmhc.ca/affordablehousing

Locked up suites

Harmony
House

www.cmhc.ca

Jeff Kolibash
Corporate Representative
Northern Ontario
www.cmhc.ca
[email protected]
CANADA MORTGAGE AND HOUSING CORPORATION

26


Slide 16

Creating Affordable Housing:
SEED Funding / PDF Funding

Overview
 What is affordable
housing?
 Who creates it?
 What approaches
work?

 What programs are
available?

CANADA MORTGAGE AND HOUSING CORPORATION

2

What is Affordable Housing?

The Community Housing Continuum
Emergenc
y
Shelters

Transitional
Housing

Social
Housing

Government Subsidized Housing

Affordable
Rental
Housing

Affordable
Home
Ownership

Non-Market Housing

CANADA MORTGAGE AND HOUSING CORPORATION

Rental
Housin
g

Home
Ownership

Market housing

What is Affordable?

 30 per cent of gross household income is
generally considered “affordable”.

 However, affordability criteria typically

differs by program and funding authority.

CANADA MORTGAGE AND HOUSING CORPORATION

4

Affordability Criteria – Two examples
Example 1

Example 2

Canada-Ontario
Affordable Housing
Agreement
(MMAH as IAH)

CMHC Seed
and Proposal
Development Funds
Program

•80 percent of
CMHC average
market rents

•80th rent percentile

•Below average
resale price

•Below average
resale price

CANADA MORTGAGE AND HOUSING CORPORATION

5

Who creates affordable housing?



Community leaders including
non- profit service organizations
and housing providers,
churches, private sector
developers, and municipalities.



Each partnership brings value to
the deal, such as business
knowledge, financial resources or
regulatory flexibility.

CANADA MORTGAGE AND HOUSING CORPORATION

6

What approaches work?
Municipal Tools Used In
Canada

Acquiring and
renovating building

Expedited approval
process

Parkland dedication
fees

Affordable
housing strategy

Grants and loans

Public–private
Partnerships

Allowing infill

Housing agreements
for
new development

Redeveloping/convertin
g
non-residential
buildings/sites

Comprehensive
development zoning

Housing fund

Resale price
restrictions

Designing flexible
Housing

Housing organization

Retaining affordable
housing

Donating land
or facilities

Inclusionary zoning

Secondary and
garden suites

Encouraging building
energy efficient housing

Intensification

Using development
levies

Encouraging
smaller units

Land banking

Waiving or reducing
property taxes

CANADA MORTGAGE AND HOUSING CORPORATION

Ideas that have worked
There are many approaches to creating affordable
housing.
• Benevolent financing & funding
• Donate money
• Lend money
• Property
• Sell property, with conditions
• Lease property
• Donate property
• Developers
• Acquire and rehabilitate
• Build new housing
CANADA MORTGAGE AND HOUSING CORPORATION

8

Programs Available
1. Seed Funding

2. Proposal Development Funds

(PDF)

CANADA MORTGAGE AND HOUSING CORPORATION

9

1. Seed Funding
CMHC’s Seed Funding program offers financial assistance to
housing proponents who are in the early stages of developing
an affordable housing project.

Up to $10,000 in the
form of a grant
 Up to $10,000 in the
form of an interest-free
loan

CANADA MORTGAGE AND HOUSING CORPORATION

10

Seed Funding
What Types of Housing Projects are
Eligible?

Housing project must be affordable

Housing Project must be located in Canada
No restrictions on:
Building form
Tenure type
Future residents of the
housing project
Type of housing proponent
organization
11

Seed Funding
What is Affordable?

 rental housing project in which units will have rents within

CMHC’s Affordability Criteria
 homeowner project - the units must be modest and the
purchase prices must be below the market for units of similar
type, size and number of bedrooms in the subject housing
market and neighbourhood

CANADA MORTGAGE AND HOUSING CORPORATION

12

Seed Funding
Who is Eligible?
• Not-for-profit organization
• Housing co-operative
• First Nations
• Private entrepreneur
• Group of individuals who may or may not
intend
to become incorporated
• Municipalities

CANADA MORTGAGE AND HOUSING CORPORATION

13

Seed Funding
What activities are eligible?
 Housing market studies to evaluate need and

demand for the proposed project
 Development of a business plan
 Exploration of funding sources or options
 Evaluation of procurement options
 Preliminary financial viability analysis
 Environmental site assessment
 Preliminary design of the housing project
 Incorporation of a not-for-profit organization
CANADA MORTGAGE AND HOUSING CORPORATION

14

Seed Funding
What Expenses are not Eligible?
 Not related to the development of the housing
project
 Expenses carried out prior to CMHC’s written
approval of Seed Funding
 Expenses related to “hard” project costs, example
- lot servicing, construction, renovation, and so on

 Ongoing operating expenses of the organization,
example - salaries and benefits, travel, office rental
 Retainer fees paid to consultants or any other
professionals for work to be completed in the future
CANADA MORTGAGE AND HOUSING CORPORATION

15

Seed Funding
Conditions of the Funding

1. Must enter into a Contribution Agreement with CMHC
2.

Must provide a need and demand study satisfactory to
CMHC and an acceptable business plan before further funds
will be advanced

3. Funds will be transferred only for eligible expenses
confirmed with invoices or receipts
4. Eligible activities are expected to be completed within 12
months of the date of the Contribution Agreement. A longer
period may be negotiated.

CANADA MORTGAGE AND HOUSING CORPORATION

16

2. Proposal Development Funding
CMHC’s PDF program provides
interest-free loans to facilitate the development
of affordable housing.
- Up to $100,000, determined by CMHC
- Depending on the size and complexity of
the proposed housing project and how
much development work needs to be
done.

** Not available for housing proposals whose viability or
level of affordability depends upon approval for a
Provincial or Territorial program funded under the
Affordable Housing Agreement
17

Proposal Development Funding
Eligible criteria
 Must have at least five (5) housing units
 If rental – majority of rents must be below market rent

limits established by CMHC for units of similar type, size
and number of bedrooms in the subject housing market
 If home ownership – the sale price must be below the
market value for similar housing in the neighbourhood
 Units – whether rental or homeowner – must be modest
in size and design
 There must be a demonstrated need for the proposed
project
CANADA MORTGAGE AND HOUSING CORPORATION

18

Proposal Development Funding
Who is Eligible?
 Not-for-profit organization
 Housing co-operative
 First Nations
 Private entrepreneur
 Any other housing proponents who can
demonstrate their ability to produce a viable
affordable housing project which meets CMHC’s
criteria

CANADA MORTGAGE AND HOUSING CORPORATION

19

Proposal Development Funding
What activities are eligible?
 Soil load-bearing tests
 Environmental site assessments
 Project drawings and specifications
 Professional fees
 Cost estimates

 Management plan
 Option to purchase
 Development permits
 Contract document
 Application fees
CANADA MORTGAGE AND HOUSING CORPORATION

20

Proposal Development Funding
What Expenses are not Eligible?
 Not related to the development of the housing
project
 Expenses carried out prior to CMHC’s written
approval
 Ongoing operating expenses of the organization,
example - salaries and benefits, travel, office rental

 Retainer fees paid to consultants or any other
professionals for work to be completed in the future

CANADA MORTGAGE AND HOUSING CORPORATION

21

Proposal Development Funding
Conditions of the Funding
1. Must enter into a Contribution Agreement with
CMHC
2. Must provide a comprehensive description of the
project proposal, along with a need and demand
study and a preliminary viability analysis and
business plan

3. Funds will be transferred only for eligible
expenses confirmed with invoices or receipts

CANADA MORTGAGE AND HOUSING CORPORATION

22

Proposal Development Funding
Loan Repayment Requirements
 To be repaid out of the project’s capital financing,
normally from the first advance of the mortgage
loan
 Only the principal amount is repaid
 If project is successful in producing an affordable
housing project, it may be eligible for a portion of
the loan to be forgiven
 If project is successful but unable to produce
affordable housing units, the full amount is
repayable, without interest
CANADA MORTGAGE AND HOUSING CORPORATION

23

www.cmhc.ca/affordablehousing

Locked up suites

Harmony
House

www.cmhc.ca

Jeff Kolibash
Corporate Representative
Northern Ontario
www.cmhc.ca
[email protected]
CANADA MORTGAGE AND HOUSING CORPORATION

26


Slide 17

Creating Affordable Housing:
SEED Funding / PDF Funding

Overview
 What is affordable
housing?
 Who creates it?
 What approaches
work?

 What programs are
available?

CANADA MORTGAGE AND HOUSING CORPORATION

2

What is Affordable Housing?

The Community Housing Continuum
Emergenc
y
Shelters

Transitional
Housing

Social
Housing

Government Subsidized Housing

Affordable
Rental
Housing

Affordable
Home
Ownership

Non-Market Housing

CANADA MORTGAGE AND HOUSING CORPORATION

Rental
Housin
g

Home
Ownership

Market housing

What is Affordable?

 30 per cent of gross household income is
generally considered “affordable”.

 However, affordability criteria typically

differs by program and funding authority.

CANADA MORTGAGE AND HOUSING CORPORATION

4

Affordability Criteria – Two examples
Example 1

Example 2

Canada-Ontario
Affordable Housing
Agreement
(MMAH as IAH)

CMHC Seed
and Proposal
Development Funds
Program

•80 percent of
CMHC average
market rents

•80th rent percentile

•Below average
resale price

•Below average
resale price

CANADA MORTGAGE AND HOUSING CORPORATION

5

Who creates affordable housing?



Community leaders including
non- profit service organizations
and housing providers,
churches, private sector
developers, and municipalities.



Each partnership brings value to
the deal, such as business
knowledge, financial resources or
regulatory flexibility.

CANADA MORTGAGE AND HOUSING CORPORATION

6

What approaches work?
Municipal Tools Used In
Canada

Acquiring and
renovating building

Expedited approval
process

Parkland dedication
fees

Affordable
housing strategy

Grants and loans

Public–private
Partnerships

Allowing infill

Housing agreements
for
new development

Redeveloping/convertin
g
non-residential
buildings/sites

Comprehensive
development zoning

Housing fund

Resale price
restrictions

Designing flexible
Housing

Housing organization

Retaining affordable
housing

Donating land
or facilities

Inclusionary zoning

Secondary and
garden suites

Encouraging building
energy efficient housing

Intensification

Using development
levies

Encouraging
smaller units

Land banking

Waiving or reducing
property taxes

CANADA MORTGAGE AND HOUSING CORPORATION

Ideas that have worked
There are many approaches to creating affordable
housing.
• Benevolent financing & funding
• Donate money
• Lend money
• Property
• Sell property, with conditions
• Lease property
• Donate property
• Developers
• Acquire and rehabilitate
• Build new housing
CANADA MORTGAGE AND HOUSING CORPORATION

8

Programs Available
1. Seed Funding

2. Proposal Development Funds

(PDF)

CANADA MORTGAGE AND HOUSING CORPORATION

9

1. Seed Funding
CMHC’s Seed Funding program offers financial assistance to
housing proponents who are in the early stages of developing
an affordable housing project.

Up to $10,000 in the
form of a grant
 Up to $10,000 in the
form of an interest-free
loan

CANADA MORTGAGE AND HOUSING CORPORATION

10

Seed Funding
What Types of Housing Projects are
Eligible?

Housing project must be affordable

Housing Project must be located in Canada
No restrictions on:
Building form
Tenure type
Future residents of the
housing project
Type of housing proponent
organization
11

Seed Funding
What is Affordable?

 rental housing project in which units will have rents within

CMHC’s Affordability Criteria
 homeowner project - the units must be modest and the
purchase prices must be below the market for units of similar
type, size and number of bedrooms in the subject housing
market and neighbourhood

CANADA MORTGAGE AND HOUSING CORPORATION

12

Seed Funding
Who is Eligible?
• Not-for-profit organization
• Housing co-operative
• First Nations
• Private entrepreneur
• Group of individuals who may or may not
intend
to become incorporated
• Municipalities

CANADA MORTGAGE AND HOUSING CORPORATION

13

Seed Funding
What activities are eligible?
 Housing market studies to evaluate need and

demand for the proposed project
 Development of a business plan
 Exploration of funding sources or options
 Evaluation of procurement options
 Preliminary financial viability analysis
 Environmental site assessment
 Preliminary design of the housing project
 Incorporation of a not-for-profit organization
CANADA MORTGAGE AND HOUSING CORPORATION

14

Seed Funding
What Expenses are not Eligible?
 Not related to the development of the housing
project
 Expenses carried out prior to CMHC’s written
approval of Seed Funding
 Expenses related to “hard” project costs, example
- lot servicing, construction, renovation, and so on

 Ongoing operating expenses of the organization,
example - salaries and benefits, travel, office rental
 Retainer fees paid to consultants or any other
professionals for work to be completed in the future
CANADA MORTGAGE AND HOUSING CORPORATION

15

Seed Funding
Conditions of the Funding

1. Must enter into a Contribution Agreement with CMHC
2.

Must provide a need and demand study satisfactory to
CMHC and an acceptable business plan before further funds
will be advanced

3. Funds will be transferred only for eligible expenses
confirmed with invoices or receipts
4. Eligible activities are expected to be completed within 12
months of the date of the Contribution Agreement. A longer
period may be negotiated.

CANADA MORTGAGE AND HOUSING CORPORATION

16

2. Proposal Development Funding
CMHC’s PDF program provides
interest-free loans to facilitate the development
of affordable housing.
- Up to $100,000, determined by CMHC
- Depending on the size and complexity of
the proposed housing project and how
much development work needs to be
done.

** Not available for housing proposals whose viability or
level of affordability depends upon approval for a
Provincial or Territorial program funded under the
Affordable Housing Agreement
17

Proposal Development Funding
Eligible criteria
 Must have at least five (5) housing units
 If rental – majority of rents must be below market rent

limits established by CMHC for units of similar type, size
and number of bedrooms in the subject housing market
 If home ownership – the sale price must be below the
market value for similar housing in the neighbourhood
 Units – whether rental or homeowner – must be modest
in size and design
 There must be a demonstrated need for the proposed
project
CANADA MORTGAGE AND HOUSING CORPORATION

18

Proposal Development Funding
Who is Eligible?
 Not-for-profit organization
 Housing co-operative
 First Nations
 Private entrepreneur
 Any other housing proponents who can
demonstrate their ability to produce a viable
affordable housing project which meets CMHC’s
criteria

CANADA MORTGAGE AND HOUSING CORPORATION

19

Proposal Development Funding
What activities are eligible?
 Soil load-bearing tests
 Environmental site assessments
 Project drawings and specifications
 Professional fees
 Cost estimates

 Management plan
 Option to purchase
 Development permits
 Contract document
 Application fees
CANADA MORTGAGE AND HOUSING CORPORATION

20

Proposal Development Funding
What Expenses are not Eligible?
 Not related to the development of the housing
project
 Expenses carried out prior to CMHC’s written
approval
 Ongoing operating expenses of the organization,
example - salaries and benefits, travel, office rental

 Retainer fees paid to consultants or any other
professionals for work to be completed in the future

CANADA MORTGAGE AND HOUSING CORPORATION

21

Proposal Development Funding
Conditions of the Funding
1. Must enter into a Contribution Agreement with
CMHC
2. Must provide a comprehensive description of the
project proposal, along with a need and demand
study and a preliminary viability analysis and
business plan

3. Funds will be transferred only for eligible
expenses confirmed with invoices or receipts

CANADA MORTGAGE AND HOUSING CORPORATION

22

Proposal Development Funding
Loan Repayment Requirements
 To be repaid out of the project’s capital financing,
normally from the first advance of the mortgage
loan
 Only the principal amount is repaid
 If project is successful in producing an affordable
housing project, it may be eligible for a portion of
the loan to be forgiven
 If project is successful but unable to produce
affordable housing units, the full amount is
repayable, without interest
CANADA MORTGAGE AND HOUSING CORPORATION

23

www.cmhc.ca/affordablehousing

Locked up suites

Harmony
House

www.cmhc.ca

Jeff Kolibash
Corporate Representative
Northern Ontario
www.cmhc.ca
[email protected]
CANADA MORTGAGE AND HOUSING CORPORATION

26


Slide 18

Creating Affordable Housing:
SEED Funding / PDF Funding

Overview
 What is affordable
housing?
 Who creates it?
 What approaches
work?

 What programs are
available?

CANADA MORTGAGE AND HOUSING CORPORATION

2

What is Affordable Housing?

The Community Housing Continuum
Emergenc
y
Shelters

Transitional
Housing

Social
Housing

Government Subsidized Housing

Affordable
Rental
Housing

Affordable
Home
Ownership

Non-Market Housing

CANADA MORTGAGE AND HOUSING CORPORATION

Rental
Housin
g

Home
Ownership

Market housing

What is Affordable?

 30 per cent of gross household income is
generally considered “affordable”.

 However, affordability criteria typically

differs by program and funding authority.

CANADA MORTGAGE AND HOUSING CORPORATION

4

Affordability Criteria – Two examples
Example 1

Example 2

Canada-Ontario
Affordable Housing
Agreement
(MMAH as IAH)

CMHC Seed
and Proposal
Development Funds
Program

•80 percent of
CMHC average
market rents

•80th rent percentile

•Below average
resale price

•Below average
resale price

CANADA MORTGAGE AND HOUSING CORPORATION

5

Who creates affordable housing?



Community leaders including
non- profit service organizations
and housing providers,
churches, private sector
developers, and municipalities.



Each partnership brings value to
the deal, such as business
knowledge, financial resources or
regulatory flexibility.

CANADA MORTGAGE AND HOUSING CORPORATION

6

What approaches work?
Municipal Tools Used In
Canada

Acquiring and
renovating building

Expedited approval
process

Parkland dedication
fees

Affordable
housing strategy

Grants and loans

Public–private
Partnerships

Allowing infill

Housing agreements
for
new development

Redeveloping/convertin
g
non-residential
buildings/sites

Comprehensive
development zoning

Housing fund

Resale price
restrictions

Designing flexible
Housing

Housing organization

Retaining affordable
housing

Donating land
or facilities

Inclusionary zoning

Secondary and
garden suites

Encouraging building
energy efficient housing

Intensification

Using development
levies

Encouraging
smaller units

Land banking

Waiving or reducing
property taxes

CANADA MORTGAGE AND HOUSING CORPORATION

Ideas that have worked
There are many approaches to creating affordable
housing.
• Benevolent financing & funding
• Donate money
• Lend money
• Property
• Sell property, with conditions
• Lease property
• Donate property
• Developers
• Acquire and rehabilitate
• Build new housing
CANADA MORTGAGE AND HOUSING CORPORATION

8

Programs Available
1. Seed Funding

2. Proposal Development Funds

(PDF)

CANADA MORTGAGE AND HOUSING CORPORATION

9

1. Seed Funding
CMHC’s Seed Funding program offers financial assistance to
housing proponents who are in the early stages of developing
an affordable housing project.

Up to $10,000 in the
form of a grant
 Up to $10,000 in the
form of an interest-free
loan

CANADA MORTGAGE AND HOUSING CORPORATION

10

Seed Funding
What Types of Housing Projects are
Eligible?

Housing project must be affordable

Housing Project must be located in Canada
No restrictions on:
Building form
Tenure type
Future residents of the
housing project
Type of housing proponent
organization
11

Seed Funding
What is Affordable?

 rental housing project in which units will have rents within

CMHC’s Affordability Criteria
 homeowner project - the units must be modest and the
purchase prices must be below the market for units of similar
type, size and number of bedrooms in the subject housing
market and neighbourhood

CANADA MORTGAGE AND HOUSING CORPORATION

12

Seed Funding
Who is Eligible?
• Not-for-profit organization
• Housing co-operative
• First Nations
• Private entrepreneur
• Group of individuals who may or may not
intend
to become incorporated
• Municipalities

CANADA MORTGAGE AND HOUSING CORPORATION

13

Seed Funding
What activities are eligible?
 Housing market studies to evaluate need and

demand for the proposed project
 Development of a business plan
 Exploration of funding sources or options
 Evaluation of procurement options
 Preliminary financial viability analysis
 Environmental site assessment
 Preliminary design of the housing project
 Incorporation of a not-for-profit organization
CANADA MORTGAGE AND HOUSING CORPORATION

14

Seed Funding
What Expenses are not Eligible?
 Not related to the development of the housing
project
 Expenses carried out prior to CMHC’s written
approval of Seed Funding
 Expenses related to “hard” project costs, example
- lot servicing, construction, renovation, and so on

 Ongoing operating expenses of the organization,
example - salaries and benefits, travel, office rental
 Retainer fees paid to consultants or any other
professionals for work to be completed in the future
CANADA MORTGAGE AND HOUSING CORPORATION

15

Seed Funding
Conditions of the Funding

1. Must enter into a Contribution Agreement with CMHC
2.

Must provide a need and demand study satisfactory to
CMHC and an acceptable business plan before further funds
will be advanced

3. Funds will be transferred only for eligible expenses
confirmed with invoices or receipts
4. Eligible activities are expected to be completed within 12
months of the date of the Contribution Agreement. A longer
period may be negotiated.

CANADA MORTGAGE AND HOUSING CORPORATION

16

2. Proposal Development Funding
CMHC’s PDF program provides
interest-free loans to facilitate the development
of affordable housing.
- Up to $100,000, determined by CMHC
- Depending on the size and complexity of
the proposed housing project and how
much development work needs to be
done.

** Not available for housing proposals whose viability or
level of affordability depends upon approval for a
Provincial or Territorial program funded under the
Affordable Housing Agreement
17

Proposal Development Funding
Eligible criteria
 Must have at least five (5) housing units
 If rental – majority of rents must be below market rent

limits established by CMHC for units of similar type, size
and number of bedrooms in the subject housing market
 If home ownership – the sale price must be below the
market value for similar housing in the neighbourhood
 Units – whether rental or homeowner – must be modest
in size and design
 There must be a demonstrated need for the proposed
project
CANADA MORTGAGE AND HOUSING CORPORATION

18

Proposal Development Funding
Who is Eligible?
 Not-for-profit organization
 Housing co-operative
 First Nations
 Private entrepreneur
 Any other housing proponents who can
demonstrate their ability to produce a viable
affordable housing project which meets CMHC’s
criteria

CANADA MORTGAGE AND HOUSING CORPORATION

19

Proposal Development Funding
What activities are eligible?
 Soil load-bearing tests
 Environmental site assessments
 Project drawings and specifications
 Professional fees
 Cost estimates

 Management plan
 Option to purchase
 Development permits
 Contract document
 Application fees
CANADA MORTGAGE AND HOUSING CORPORATION

20

Proposal Development Funding
What Expenses are not Eligible?
 Not related to the development of the housing
project
 Expenses carried out prior to CMHC’s written
approval
 Ongoing operating expenses of the organization,
example - salaries and benefits, travel, office rental

 Retainer fees paid to consultants or any other
professionals for work to be completed in the future

CANADA MORTGAGE AND HOUSING CORPORATION

21

Proposal Development Funding
Conditions of the Funding
1. Must enter into a Contribution Agreement with
CMHC
2. Must provide a comprehensive description of the
project proposal, along with a need and demand
study and a preliminary viability analysis and
business plan

3. Funds will be transferred only for eligible
expenses confirmed with invoices or receipts

CANADA MORTGAGE AND HOUSING CORPORATION

22

Proposal Development Funding
Loan Repayment Requirements
 To be repaid out of the project’s capital financing,
normally from the first advance of the mortgage
loan
 Only the principal amount is repaid
 If project is successful in producing an affordable
housing project, it may be eligible for a portion of
the loan to be forgiven
 If project is successful but unable to produce
affordable housing units, the full amount is
repayable, without interest
CANADA MORTGAGE AND HOUSING CORPORATION

23

www.cmhc.ca/affordablehousing

Locked up suites

Harmony
House

www.cmhc.ca

Jeff Kolibash
Corporate Representative
Northern Ontario
www.cmhc.ca
[email protected]
CANADA MORTGAGE AND HOUSING CORPORATION

26


Slide 19

Creating Affordable Housing:
SEED Funding / PDF Funding

Overview
 What is affordable
housing?
 Who creates it?
 What approaches
work?

 What programs are
available?

CANADA MORTGAGE AND HOUSING CORPORATION

2

What is Affordable Housing?

The Community Housing Continuum
Emergenc
y
Shelters

Transitional
Housing

Social
Housing

Government Subsidized Housing

Affordable
Rental
Housing

Affordable
Home
Ownership

Non-Market Housing

CANADA MORTGAGE AND HOUSING CORPORATION

Rental
Housin
g

Home
Ownership

Market housing

What is Affordable?

 30 per cent of gross household income is
generally considered “affordable”.

 However, affordability criteria typically

differs by program and funding authority.

CANADA MORTGAGE AND HOUSING CORPORATION

4

Affordability Criteria – Two examples
Example 1

Example 2

Canada-Ontario
Affordable Housing
Agreement
(MMAH as IAH)

CMHC Seed
and Proposal
Development Funds
Program

•80 percent of
CMHC average
market rents

•80th rent percentile

•Below average
resale price

•Below average
resale price

CANADA MORTGAGE AND HOUSING CORPORATION

5

Who creates affordable housing?



Community leaders including
non- profit service organizations
and housing providers,
churches, private sector
developers, and municipalities.



Each partnership brings value to
the deal, such as business
knowledge, financial resources or
regulatory flexibility.

CANADA MORTGAGE AND HOUSING CORPORATION

6

What approaches work?
Municipal Tools Used In
Canada

Acquiring and
renovating building

Expedited approval
process

Parkland dedication
fees

Affordable
housing strategy

Grants and loans

Public–private
Partnerships

Allowing infill

Housing agreements
for
new development

Redeveloping/convertin
g
non-residential
buildings/sites

Comprehensive
development zoning

Housing fund

Resale price
restrictions

Designing flexible
Housing

Housing organization

Retaining affordable
housing

Donating land
or facilities

Inclusionary zoning

Secondary and
garden suites

Encouraging building
energy efficient housing

Intensification

Using development
levies

Encouraging
smaller units

Land banking

Waiving or reducing
property taxes

CANADA MORTGAGE AND HOUSING CORPORATION

Ideas that have worked
There are many approaches to creating affordable
housing.
• Benevolent financing & funding
• Donate money
• Lend money
• Property
• Sell property, with conditions
• Lease property
• Donate property
• Developers
• Acquire and rehabilitate
• Build new housing
CANADA MORTGAGE AND HOUSING CORPORATION

8

Programs Available
1. Seed Funding

2. Proposal Development Funds

(PDF)

CANADA MORTGAGE AND HOUSING CORPORATION

9

1. Seed Funding
CMHC’s Seed Funding program offers financial assistance to
housing proponents who are in the early stages of developing
an affordable housing project.

Up to $10,000 in the
form of a grant
 Up to $10,000 in the
form of an interest-free
loan

CANADA MORTGAGE AND HOUSING CORPORATION

10

Seed Funding
What Types of Housing Projects are
Eligible?

Housing project must be affordable

Housing Project must be located in Canada
No restrictions on:
Building form
Tenure type
Future residents of the
housing project
Type of housing proponent
organization
11

Seed Funding
What is Affordable?

 rental housing project in which units will have rents within

CMHC’s Affordability Criteria
 homeowner project - the units must be modest and the
purchase prices must be below the market for units of similar
type, size and number of bedrooms in the subject housing
market and neighbourhood

CANADA MORTGAGE AND HOUSING CORPORATION

12

Seed Funding
Who is Eligible?
• Not-for-profit organization
• Housing co-operative
• First Nations
• Private entrepreneur
• Group of individuals who may or may not
intend
to become incorporated
• Municipalities

CANADA MORTGAGE AND HOUSING CORPORATION

13

Seed Funding
What activities are eligible?
 Housing market studies to evaluate need and

demand for the proposed project
 Development of a business plan
 Exploration of funding sources or options
 Evaluation of procurement options
 Preliminary financial viability analysis
 Environmental site assessment
 Preliminary design of the housing project
 Incorporation of a not-for-profit organization
CANADA MORTGAGE AND HOUSING CORPORATION

14

Seed Funding
What Expenses are not Eligible?
 Not related to the development of the housing
project
 Expenses carried out prior to CMHC’s written
approval of Seed Funding
 Expenses related to “hard” project costs, example
- lot servicing, construction, renovation, and so on

 Ongoing operating expenses of the organization,
example - salaries and benefits, travel, office rental
 Retainer fees paid to consultants or any other
professionals for work to be completed in the future
CANADA MORTGAGE AND HOUSING CORPORATION

15

Seed Funding
Conditions of the Funding

1. Must enter into a Contribution Agreement with CMHC
2.

Must provide a need and demand study satisfactory to
CMHC and an acceptable business plan before further funds
will be advanced

3. Funds will be transferred only for eligible expenses
confirmed with invoices or receipts
4. Eligible activities are expected to be completed within 12
months of the date of the Contribution Agreement. A longer
period may be negotiated.

CANADA MORTGAGE AND HOUSING CORPORATION

16

2. Proposal Development Funding
CMHC’s PDF program provides
interest-free loans to facilitate the development
of affordable housing.
- Up to $100,000, determined by CMHC
- Depending on the size and complexity of
the proposed housing project and how
much development work needs to be
done.

** Not available for housing proposals whose viability or
level of affordability depends upon approval for a
Provincial or Territorial program funded under the
Affordable Housing Agreement
17

Proposal Development Funding
Eligible criteria
 Must have at least five (5) housing units
 If rental – majority of rents must be below market rent

limits established by CMHC for units of similar type, size
and number of bedrooms in the subject housing market
 If home ownership – the sale price must be below the
market value for similar housing in the neighbourhood
 Units – whether rental or homeowner – must be modest
in size and design
 There must be a demonstrated need for the proposed
project
CANADA MORTGAGE AND HOUSING CORPORATION

18

Proposal Development Funding
Who is Eligible?
 Not-for-profit organization
 Housing co-operative
 First Nations
 Private entrepreneur
 Any other housing proponents who can
demonstrate their ability to produce a viable
affordable housing project which meets CMHC’s
criteria

CANADA MORTGAGE AND HOUSING CORPORATION

19

Proposal Development Funding
What activities are eligible?
 Soil load-bearing tests
 Environmental site assessments
 Project drawings and specifications
 Professional fees
 Cost estimates

 Management plan
 Option to purchase
 Development permits
 Contract document
 Application fees
CANADA MORTGAGE AND HOUSING CORPORATION

20

Proposal Development Funding
What Expenses are not Eligible?
 Not related to the development of the housing
project
 Expenses carried out prior to CMHC’s written
approval
 Ongoing operating expenses of the organization,
example - salaries and benefits, travel, office rental

 Retainer fees paid to consultants or any other
professionals for work to be completed in the future

CANADA MORTGAGE AND HOUSING CORPORATION

21

Proposal Development Funding
Conditions of the Funding
1. Must enter into a Contribution Agreement with
CMHC
2. Must provide a comprehensive description of the
project proposal, along with a need and demand
study and a preliminary viability analysis and
business plan

3. Funds will be transferred only for eligible
expenses confirmed with invoices or receipts

CANADA MORTGAGE AND HOUSING CORPORATION

22

Proposal Development Funding
Loan Repayment Requirements
 To be repaid out of the project’s capital financing,
normally from the first advance of the mortgage
loan
 Only the principal amount is repaid
 If project is successful in producing an affordable
housing project, it may be eligible for a portion of
the loan to be forgiven
 If project is successful but unable to produce
affordable housing units, the full amount is
repayable, without interest
CANADA MORTGAGE AND HOUSING CORPORATION

23

www.cmhc.ca/affordablehousing

Locked up suites

Harmony
House

www.cmhc.ca

Jeff Kolibash
Corporate Representative
Northern Ontario
www.cmhc.ca
[email protected]
CANADA MORTGAGE AND HOUSING CORPORATION

26


Slide 20

Creating Affordable Housing:
SEED Funding / PDF Funding

Overview
 What is affordable
housing?
 Who creates it?
 What approaches
work?

 What programs are
available?

CANADA MORTGAGE AND HOUSING CORPORATION

2

What is Affordable Housing?

The Community Housing Continuum
Emergenc
y
Shelters

Transitional
Housing

Social
Housing

Government Subsidized Housing

Affordable
Rental
Housing

Affordable
Home
Ownership

Non-Market Housing

CANADA MORTGAGE AND HOUSING CORPORATION

Rental
Housin
g

Home
Ownership

Market housing

What is Affordable?

 30 per cent of gross household income is
generally considered “affordable”.

 However, affordability criteria typically

differs by program and funding authority.

CANADA MORTGAGE AND HOUSING CORPORATION

4

Affordability Criteria – Two examples
Example 1

Example 2

Canada-Ontario
Affordable Housing
Agreement
(MMAH as IAH)

CMHC Seed
and Proposal
Development Funds
Program

•80 percent of
CMHC average
market rents

•80th rent percentile

•Below average
resale price

•Below average
resale price

CANADA MORTGAGE AND HOUSING CORPORATION

5

Who creates affordable housing?



Community leaders including
non- profit service organizations
and housing providers,
churches, private sector
developers, and municipalities.



Each partnership brings value to
the deal, such as business
knowledge, financial resources or
regulatory flexibility.

CANADA MORTGAGE AND HOUSING CORPORATION

6

What approaches work?
Municipal Tools Used In
Canada

Acquiring and
renovating building

Expedited approval
process

Parkland dedication
fees

Affordable
housing strategy

Grants and loans

Public–private
Partnerships

Allowing infill

Housing agreements
for
new development

Redeveloping/convertin
g
non-residential
buildings/sites

Comprehensive
development zoning

Housing fund

Resale price
restrictions

Designing flexible
Housing

Housing organization

Retaining affordable
housing

Donating land
or facilities

Inclusionary zoning

Secondary and
garden suites

Encouraging building
energy efficient housing

Intensification

Using development
levies

Encouraging
smaller units

Land banking

Waiving or reducing
property taxes

CANADA MORTGAGE AND HOUSING CORPORATION

Ideas that have worked
There are many approaches to creating affordable
housing.
• Benevolent financing & funding
• Donate money
• Lend money
• Property
• Sell property, with conditions
• Lease property
• Donate property
• Developers
• Acquire and rehabilitate
• Build new housing
CANADA MORTGAGE AND HOUSING CORPORATION

8

Programs Available
1. Seed Funding

2. Proposal Development Funds

(PDF)

CANADA MORTGAGE AND HOUSING CORPORATION

9

1. Seed Funding
CMHC’s Seed Funding program offers financial assistance to
housing proponents who are in the early stages of developing
an affordable housing project.

Up to $10,000 in the
form of a grant
 Up to $10,000 in the
form of an interest-free
loan

CANADA MORTGAGE AND HOUSING CORPORATION

10

Seed Funding
What Types of Housing Projects are
Eligible?

Housing project must be affordable

Housing Project must be located in Canada
No restrictions on:
Building form
Tenure type
Future residents of the
housing project
Type of housing proponent
organization
11

Seed Funding
What is Affordable?

 rental housing project in which units will have rents within

CMHC’s Affordability Criteria
 homeowner project - the units must be modest and the
purchase prices must be below the market for units of similar
type, size and number of bedrooms in the subject housing
market and neighbourhood

CANADA MORTGAGE AND HOUSING CORPORATION

12

Seed Funding
Who is Eligible?
• Not-for-profit organization
• Housing co-operative
• First Nations
• Private entrepreneur
• Group of individuals who may or may not
intend
to become incorporated
• Municipalities

CANADA MORTGAGE AND HOUSING CORPORATION

13

Seed Funding
What activities are eligible?
 Housing market studies to evaluate need and

demand for the proposed project
 Development of a business plan
 Exploration of funding sources or options
 Evaluation of procurement options
 Preliminary financial viability analysis
 Environmental site assessment
 Preliminary design of the housing project
 Incorporation of a not-for-profit organization
CANADA MORTGAGE AND HOUSING CORPORATION

14

Seed Funding
What Expenses are not Eligible?
 Not related to the development of the housing
project
 Expenses carried out prior to CMHC’s written
approval of Seed Funding
 Expenses related to “hard” project costs, example
- lot servicing, construction, renovation, and so on

 Ongoing operating expenses of the organization,
example - salaries and benefits, travel, office rental
 Retainer fees paid to consultants or any other
professionals for work to be completed in the future
CANADA MORTGAGE AND HOUSING CORPORATION

15

Seed Funding
Conditions of the Funding

1. Must enter into a Contribution Agreement with CMHC
2.

Must provide a need and demand study satisfactory to
CMHC and an acceptable business plan before further funds
will be advanced

3. Funds will be transferred only for eligible expenses
confirmed with invoices or receipts
4. Eligible activities are expected to be completed within 12
months of the date of the Contribution Agreement. A longer
period may be negotiated.

CANADA MORTGAGE AND HOUSING CORPORATION

16

2. Proposal Development Funding
CMHC’s PDF program provides
interest-free loans to facilitate the development
of affordable housing.
- Up to $100,000, determined by CMHC
- Depending on the size and complexity of
the proposed housing project and how
much development work needs to be
done.

** Not available for housing proposals whose viability or
level of affordability depends upon approval for a
Provincial or Territorial program funded under the
Affordable Housing Agreement
17

Proposal Development Funding
Eligible criteria
 Must have at least five (5) housing units
 If rental – majority of rents must be below market rent

limits established by CMHC for units of similar type, size
and number of bedrooms in the subject housing market
 If home ownership – the sale price must be below the
market value for similar housing in the neighbourhood
 Units – whether rental or homeowner – must be modest
in size and design
 There must be a demonstrated need for the proposed
project
CANADA MORTGAGE AND HOUSING CORPORATION

18

Proposal Development Funding
Who is Eligible?
 Not-for-profit organization
 Housing co-operative
 First Nations
 Private entrepreneur
 Any other housing proponents who can
demonstrate their ability to produce a viable
affordable housing project which meets CMHC’s
criteria

CANADA MORTGAGE AND HOUSING CORPORATION

19

Proposal Development Funding
What activities are eligible?
 Soil load-bearing tests
 Environmental site assessments
 Project drawings and specifications
 Professional fees
 Cost estimates

 Management plan
 Option to purchase
 Development permits
 Contract document
 Application fees
CANADA MORTGAGE AND HOUSING CORPORATION

20

Proposal Development Funding
What Expenses are not Eligible?
 Not related to the development of the housing
project
 Expenses carried out prior to CMHC’s written
approval
 Ongoing operating expenses of the organization,
example - salaries and benefits, travel, office rental

 Retainer fees paid to consultants or any other
professionals for work to be completed in the future

CANADA MORTGAGE AND HOUSING CORPORATION

21

Proposal Development Funding
Conditions of the Funding
1. Must enter into a Contribution Agreement with
CMHC
2. Must provide a comprehensive description of the
project proposal, along with a need and demand
study and a preliminary viability analysis and
business plan

3. Funds will be transferred only for eligible
expenses confirmed with invoices or receipts

CANADA MORTGAGE AND HOUSING CORPORATION

22

Proposal Development Funding
Loan Repayment Requirements
 To be repaid out of the project’s capital financing,
normally from the first advance of the mortgage
loan
 Only the principal amount is repaid
 If project is successful in producing an affordable
housing project, it may be eligible for a portion of
the loan to be forgiven
 If project is successful but unable to produce
affordable housing units, the full amount is
repayable, without interest
CANADA MORTGAGE AND HOUSING CORPORATION

23

www.cmhc.ca/affordablehousing

Locked up suites

Harmony
House

www.cmhc.ca

Jeff Kolibash
Corporate Representative
Northern Ontario
www.cmhc.ca
[email protected]
CANADA MORTGAGE AND HOUSING CORPORATION

26


Slide 21

Creating Affordable Housing:
SEED Funding / PDF Funding

Overview
 What is affordable
housing?
 Who creates it?
 What approaches
work?

 What programs are
available?

CANADA MORTGAGE AND HOUSING CORPORATION

2

What is Affordable Housing?

The Community Housing Continuum
Emergenc
y
Shelters

Transitional
Housing

Social
Housing

Government Subsidized Housing

Affordable
Rental
Housing

Affordable
Home
Ownership

Non-Market Housing

CANADA MORTGAGE AND HOUSING CORPORATION

Rental
Housin
g

Home
Ownership

Market housing

What is Affordable?

 30 per cent of gross household income is
generally considered “affordable”.

 However, affordability criteria typically

differs by program and funding authority.

CANADA MORTGAGE AND HOUSING CORPORATION

4

Affordability Criteria – Two examples
Example 1

Example 2

Canada-Ontario
Affordable Housing
Agreement
(MMAH as IAH)

CMHC Seed
and Proposal
Development Funds
Program

•80 percent of
CMHC average
market rents

•80th rent percentile

•Below average
resale price

•Below average
resale price

CANADA MORTGAGE AND HOUSING CORPORATION

5

Who creates affordable housing?



Community leaders including
non- profit service organizations
and housing providers,
churches, private sector
developers, and municipalities.



Each partnership brings value to
the deal, such as business
knowledge, financial resources or
regulatory flexibility.

CANADA MORTGAGE AND HOUSING CORPORATION

6

What approaches work?
Municipal Tools Used In
Canada

Acquiring and
renovating building

Expedited approval
process

Parkland dedication
fees

Affordable
housing strategy

Grants and loans

Public–private
Partnerships

Allowing infill

Housing agreements
for
new development

Redeveloping/convertin
g
non-residential
buildings/sites

Comprehensive
development zoning

Housing fund

Resale price
restrictions

Designing flexible
Housing

Housing organization

Retaining affordable
housing

Donating land
or facilities

Inclusionary zoning

Secondary and
garden suites

Encouraging building
energy efficient housing

Intensification

Using development
levies

Encouraging
smaller units

Land banking

Waiving or reducing
property taxes

CANADA MORTGAGE AND HOUSING CORPORATION

Ideas that have worked
There are many approaches to creating affordable
housing.
• Benevolent financing & funding
• Donate money
• Lend money
• Property
• Sell property, with conditions
• Lease property
• Donate property
• Developers
• Acquire and rehabilitate
• Build new housing
CANADA MORTGAGE AND HOUSING CORPORATION

8

Programs Available
1. Seed Funding

2. Proposal Development Funds

(PDF)

CANADA MORTGAGE AND HOUSING CORPORATION

9

1. Seed Funding
CMHC’s Seed Funding program offers financial assistance to
housing proponents who are in the early stages of developing
an affordable housing project.

Up to $10,000 in the
form of a grant
 Up to $10,000 in the
form of an interest-free
loan

CANADA MORTGAGE AND HOUSING CORPORATION

10

Seed Funding
What Types of Housing Projects are
Eligible?

Housing project must be affordable

Housing Project must be located in Canada
No restrictions on:
Building form
Tenure type
Future residents of the
housing project
Type of housing proponent
organization
11

Seed Funding
What is Affordable?

 rental housing project in which units will have rents within

CMHC’s Affordability Criteria
 homeowner project - the units must be modest and the
purchase prices must be below the market for units of similar
type, size and number of bedrooms in the subject housing
market and neighbourhood

CANADA MORTGAGE AND HOUSING CORPORATION

12

Seed Funding
Who is Eligible?
• Not-for-profit organization
• Housing co-operative
• First Nations
• Private entrepreneur
• Group of individuals who may or may not
intend
to become incorporated
• Municipalities

CANADA MORTGAGE AND HOUSING CORPORATION

13

Seed Funding
What activities are eligible?
 Housing market studies to evaluate need and

demand for the proposed project
 Development of a business plan
 Exploration of funding sources or options
 Evaluation of procurement options
 Preliminary financial viability analysis
 Environmental site assessment
 Preliminary design of the housing project
 Incorporation of a not-for-profit organization
CANADA MORTGAGE AND HOUSING CORPORATION

14

Seed Funding
What Expenses are not Eligible?
 Not related to the development of the housing
project
 Expenses carried out prior to CMHC’s written
approval of Seed Funding
 Expenses related to “hard” project costs, example
- lot servicing, construction, renovation, and so on

 Ongoing operating expenses of the organization,
example - salaries and benefits, travel, office rental
 Retainer fees paid to consultants or any other
professionals for work to be completed in the future
CANADA MORTGAGE AND HOUSING CORPORATION

15

Seed Funding
Conditions of the Funding

1. Must enter into a Contribution Agreement with CMHC
2.

Must provide a need and demand study satisfactory to
CMHC and an acceptable business plan before further funds
will be advanced

3. Funds will be transferred only for eligible expenses
confirmed with invoices or receipts
4. Eligible activities are expected to be completed within 12
months of the date of the Contribution Agreement. A longer
period may be negotiated.

CANADA MORTGAGE AND HOUSING CORPORATION

16

2. Proposal Development Funding
CMHC’s PDF program provides
interest-free loans to facilitate the development
of affordable housing.
- Up to $100,000, determined by CMHC
- Depending on the size and complexity of
the proposed housing project and how
much development work needs to be
done.

** Not available for housing proposals whose viability or
level of affordability depends upon approval for a
Provincial or Territorial program funded under the
Affordable Housing Agreement
17

Proposal Development Funding
Eligible criteria
 Must have at least five (5) housing units
 If rental – majority of rents must be below market rent

limits established by CMHC for units of similar type, size
and number of bedrooms in the subject housing market
 If home ownership – the sale price must be below the
market value for similar housing in the neighbourhood
 Units – whether rental or homeowner – must be modest
in size and design
 There must be a demonstrated need for the proposed
project
CANADA MORTGAGE AND HOUSING CORPORATION

18

Proposal Development Funding
Who is Eligible?
 Not-for-profit organization
 Housing co-operative
 First Nations
 Private entrepreneur
 Any other housing proponents who can
demonstrate their ability to produce a viable
affordable housing project which meets CMHC’s
criteria

CANADA MORTGAGE AND HOUSING CORPORATION

19

Proposal Development Funding
What activities are eligible?
 Soil load-bearing tests
 Environmental site assessments
 Project drawings and specifications
 Professional fees
 Cost estimates

 Management plan
 Option to purchase
 Development permits
 Contract document
 Application fees
CANADA MORTGAGE AND HOUSING CORPORATION

20

Proposal Development Funding
What Expenses are not Eligible?
 Not related to the development of the housing
project
 Expenses carried out prior to CMHC’s written
approval
 Ongoing operating expenses of the organization,
example - salaries and benefits, travel, office rental

 Retainer fees paid to consultants or any other
professionals for work to be completed in the future

CANADA MORTGAGE AND HOUSING CORPORATION

21

Proposal Development Funding
Conditions of the Funding
1. Must enter into a Contribution Agreement with
CMHC
2. Must provide a comprehensive description of the
project proposal, along with a need and demand
study and a preliminary viability analysis and
business plan

3. Funds will be transferred only for eligible
expenses confirmed with invoices or receipts

CANADA MORTGAGE AND HOUSING CORPORATION

22

Proposal Development Funding
Loan Repayment Requirements
 To be repaid out of the project’s capital financing,
normally from the first advance of the mortgage
loan
 Only the principal amount is repaid
 If project is successful in producing an affordable
housing project, it may be eligible for a portion of
the loan to be forgiven
 If project is successful but unable to produce
affordable housing units, the full amount is
repayable, without interest
CANADA MORTGAGE AND HOUSING CORPORATION

23

www.cmhc.ca/affordablehousing

Locked up suites

Harmony
House

www.cmhc.ca

Jeff Kolibash
Corporate Representative
Northern Ontario
www.cmhc.ca
[email protected]
CANADA MORTGAGE AND HOUSING CORPORATION

26


Slide 22

Creating Affordable Housing:
SEED Funding / PDF Funding

Overview
 What is affordable
housing?
 Who creates it?
 What approaches
work?

 What programs are
available?

CANADA MORTGAGE AND HOUSING CORPORATION

2

What is Affordable Housing?

The Community Housing Continuum
Emergenc
y
Shelters

Transitional
Housing

Social
Housing

Government Subsidized Housing

Affordable
Rental
Housing

Affordable
Home
Ownership

Non-Market Housing

CANADA MORTGAGE AND HOUSING CORPORATION

Rental
Housin
g

Home
Ownership

Market housing

What is Affordable?

 30 per cent of gross household income is
generally considered “affordable”.

 However, affordability criteria typically

differs by program and funding authority.

CANADA MORTGAGE AND HOUSING CORPORATION

4

Affordability Criteria – Two examples
Example 1

Example 2

Canada-Ontario
Affordable Housing
Agreement
(MMAH as IAH)

CMHC Seed
and Proposal
Development Funds
Program

•80 percent of
CMHC average
market rents

•80th rent percentile

•Below average
resale price

•Below average
resale price

CANADA MORTGAGE AND HOUSING CORPORATION

5

Who creates affordable housing?



Community leaders including
non- profit service organizations
and housing providers,
churches, private sector
developers, and municipalities.



Each partnership brings value to
the deal, such as business
knowledge, financial resources or
regulatory flexibility.

CANADA MORTGAGE AND HOUSING CORPORATION

6

What approaches work?
Municipal Tools Used In
Canada

Acquiring and
renovating building

Expedited approval
process

Parkland dedication
fees

Affordable
housing strategy

Grants and loans

Public–private
Partnerships

Allowing infill

Housing agreements
for
new development

Redeveloping/convertin
g
non-residential
buildings/sites

Comprehensive
development zoning

Housing fund

Resale price
restrictions

Designing flexible
Housing

Housing organization

Retaining affordable
housing

Donating land
or facilities

Inclusionary zoning

Secondary and
garden suites

Encouraging building
energy efficient housing

Intensification

Using development
levies

Encouraging
smaller units

Land banking

Waiving or reducing
property taxes

CANADA MORTGAGE AND HOUSING CORPORATION

Ideas that have worked
There are many approaches to creating affordable
housing.
• Benevolent financing & funding
• Donate money
• Lend money
• Property
• Sell property, with conditions
• Lease property
• Donate property
• Developers
• Acquire and rehabilitate
• Build new housing
CANADA MORTGAGE AND HOUSING CORPORATION

8

Programs Available
1. Seed Funding

2. Proposal Development Funds

(PDF)

CANADA MORTGAGE AND HOUSING CORPORATION

9

1. Seed Funding
CMHC’s Seed Funding program offers financial assistance to
housing proponents who are in the early stages of developing
an affordable housing project.

Up to $10,000 in the
form of a grant
 Up to $10,000 in the
form of an interest-free
loan

CANADA MORTGAGE AND HOUSING CORPORATION

10

Seed Funding
What Types of Housing Projects are
Eligible?

Housing project must be affordable

Housing Project must be located in Canada
No restrictions on:
Building form
Tenure type
Future residents of the
housing project
Type of housing proponent
organization
11

Seed Funding
What is Affordable?

 rental housing project in which units will have rents within

CMHC’s Affordability Criteria
 homeowner project - the units must be modest and the
purchase prices must be below the market for units of similar
type, size and number of bedrooms in the subject housing
market and neighbourhood

CANADA MORTGAGE AND HOUSING CORPORATION

12

Seed Funding
Who is Eligible?
• Not-for-profit organization
• Housing co-operative
• First Nations
• Private entrepreneur
• Group of individuals who may or may not
intend
to become incorporated
• Municipalities

CANADA MORTGAGE AND HOUSING CORPORATION

13

Seed Funding
What activities are eligible?
 Housing market studies to evaluate need and

demand for the proposed project
 Development of a business plan
 Exploration of funding sources or options
 Evaluation of procurement options
 Preliminary financial viability analysis
 Environmental site assessment
 Preliminary design of the housing project
 Incorporation of a not-for-profit organization
CANADA MORTGAGE AND HOUSING CORPORATION

14

Seed Funding
What Expenses are not Eligible?
 Not related to the development of the housing
project
 Expenses carried out prior to CMHC’s written
approval of Seed Funding
 Expenses related to “hard” project costs, example
- lot servicing, construction, renovation, and so on

 Ongoing operating expenses of the organization,
example - salaries and benefits, travel, office rental
 Retainer fees paid to consultants or any other
professionals for work to be completed in the future
CANADA MORTGAGE AND HOUSING CORPORATION

15

Seed Funding
Conditions of the Funding

1. Must enter into a Contribution Agreement with CMHC
2.

Must provide a need and demand study satisfactory to
CMHC and an acceptable business plan before further funds
will be advanced

3. Funds will be transferred only for eligible expenses
confirmed with invoices or receipts
4. Eligible activities are expected to be completed within 12
months of the date of the Contribution Agreement. A longer
period may be negotiated.

CANADA MORTGAGE AND HOUSING CORPORATION

16

2. Proposal Development Funding
CMHC’s PDF program provides
interest-free loans to facilitate the development
of affordable housing.
- Up to $100,000, determined by CMHC
- Depending on the size and complexity of
the proposed housing project and how
much development work needs to be
done.

** Not available for housing proposals whose viability or
level of affordability depends upon approval for a
Provincial or Territorial program funded under the
Affordable Housing Agreement
17

Proposal Development Funding
Eligible criteria
 Must have at least five (5) housing units
 If rental – majority of rents must be below market rent

limits established by CMHC for units of similar type, size
and number of bedrooms in the subject housing market
 If home ownership – the sale price must be below the
market value for similar housing in the neighbourhood
 Units – whether rental or homeowner – must be modest
in size and design
 There must be a demonstrated need for the proposed
project
CANADA MORTGAGE AND HOUSING CORPORATION

18

Proposal Development Funding
Who is Eligible?
 Not-for-profit organization
 Housing co-operative
 First Nations
 Private entrepreneur
 Any other housing proponents who can
demonstrate their ability to produce a viable
affordable housing project which meets CMHC’s
criteria

CANADA MORTGAGE AND HOUSING CORPORATION

19

Proposal Development Funding
What activities are eligible?
 Soil load-bearing tests
 Environmental site assessments
 Project drawings and specifications
 Professional fees
 Cost estimates

 Management plan
 Option to purchase
 Development permits
 Contract document
 Application fees
CANADA MORTGAGE AND HOUSING CORPORATION

20

Proposal Development Funding
What Expenses are not Eligible?
 Not related to the development of the housing
project
 Expenses carried out prior to CMHC’s written
approval
 Ongoing operating expenses of the organization,
example - salaries and benefits, travel, office rental

 Retainer fees paid to consultants or any other
professionals for work to be completed in the future

CANADA MORTGAGE AND HOUSING CORPORATION

21

Proposal Development Funding
Conditions of the Funding
1. Must enter into a Contribution Agreement with
CMHC
2. Must provide a comprehensive description of the
project proposal, along with a need and demand
study and a preliminary viability analysis and
business plan

3. Funds will be transferred only for eligible
expenses confirmed with invoices or receipts

CANADA MORTGAGE AND HOUSING CORPORATION

22

Proposal Development Funding
Loan Repayment Requirements
 To be repaid out of the project’s capital financing,
normally from the first advance of the mortgage
loan
 Only the principal amount is repaid
 If project is successful in producing an affordable
housing project, it may be eligible for a portion of
the loan to be forgiven
 If project is successful but unable to produce
affordable housing units, the full amount is
repayable, without interest
CANADA MORTGAGE AND HOUSING CORPORATION

23

www.cmhc.ca/affordablehousing

Locked up suites

Harmony
House

www.cmhc.ca

Jeff Kolibash
Corporate Representative
Northern Ontario
www.cmhc.ca
[email protected]
CANADA MORTGAGE AND HOUSING CORPORATION

26


Slide 23

Creating Affordable Housing:
SEED Funding / PDF Funding

Overview
 What is affordable
housing?
 Who creates it?
 What approaches
work?

 What programs are
available?

CANADA MORTGAGE AND HOUSING CORPORATION

2

What is Affordable Housing?

The Community Housing Continuum
Emergenc
y
Shelters

Transitional
Housing

Social
Housing

Government Subsidized Housing

Affordable
Rental
Housing

Affordable
Home
Ownership

Non-Market Housing

CANADA MORTGAGE AND HOUSING CORPORATION

Rental
Housin
g

Home
Ownership

Market housing

What is Affordable?

 30 per cent of gross household income is
generally considered “affordable”.

 However, affordability criteria typically

differs by program and funding authority.

CANADA MORTGAGE AND HOUSING CORPORATION

4

Affordability Criteria – Two examples
Example 1

Example 2

Canada-Ontario
Affordable Housing
Agreement
(MMAH as IAH)

CMHC Seed
and Proposal
Development Funds
Program

•80 percent of
CMHC average
market rents

•80th rent percentile

•Below average
resale price

•Below average
resale price

CANADA MORTGAGE AND HOUSING CORPORATION

5

Who creates affordable housing?



Community leaders including
non- profit service organizations
and housing providers,
churches, private sector
developers, and municipalities.



Each partnership brings value to
the deal, such as business
knowledge, financial resources or
regulatory flexibility.

CANADA MORTGAGE AND HOUSING CORPORATION

6

What approaches work?
Municipal Tools Used In
Canada

Acquiring and
renovating building

Expedited approval
process

Parkland dedication
fees

Affordable
housing strategy

Grants and loans

Public–private
Partnerships

Allowing infill

Housing agreements
for
new development

Redeveloping/convertin
g
non-residential
buildings/sites

Comprehensive
development zoning

Housing fund

Resale price
restrictions

Designing flexible
Housing

Housing organization

Retaining affordable
housing

Donating land
or facilities

Inclusionary zoning

Secondary and
garden suites

Encouraging building
energy efficient housing

Intensification

Using development
levies

Encouraging
smaller units

Land banking

Waiving or reducing
property taxes

CANADA MORTGAGE AND HOUSING CORPORATION

Ideas that have worked
There are many approaches to creating affordable
housing.
• Benevolent financing & funding
• Donate money
• Lend money
• Property
• Sell property, with conditions
• Lease property
• Donate property
• Developers
• Acquire and rehabilitate
• Build new housing
CANADA MORTGAGE AND HOUSING CORPORATION

8

Programs Available
1. Seed Funding

2. Proposal Development Funds

(PDF)

CANADA MORTGAGE AND HOUSING CORPORATION

9

1. Seed Funding
CMHC’s Seed Funding program offers financial assistance to
housing proponents who are in the early stages of developing
an affordable housing project.

Up to $10,000 in the
form of a grant
 Up to $10,000 in the
form of an interest-free
loan

CANADA MORTGAGE AND HOUSING CORPORATION

10

Seed Funding
What Types of Housing Projects are
Eligible?

Housing project must be affordable

Housing Project must be located in Canada
No restrictions on:
Building form
Tenure type
Future residents of the
housing project
Type of housing proponent
organization
11

Seed Funding
What is Affordable?

 rental housing project in which units will have rents within

CMHC’s Affordability Criteria
 homeowner project - the units must be modest and the
purchase prices must be below the market for units of similar
type, size and number of bedrooms in the subject housing
market and neighbourhood

CANADA MORTGAGE AND HOUSING CORPORATION

12

Seed Funding
Who is Eligible?
• Not-for-profit organization
• Housing co-operative
• First Nations
• Private entrepreneur
• Group of individuals who may or may not
intend
to become incorporated
• Municipalities

CANADA MORTGAGE AND HOUSING CORPORATION

13

Seed Funding
What activities are eligible?
 Housing market studies to evaluate need and

demand for the proposed project
 Development of a business plan
 Exploration of funding sources or options
 Evaluation of procurement options
 Preliminary financial viability analysis
 Environmental site assessment
 Preliminary design of the housing project
 Incorporation of a not-for-profit organization
CANADA MORTGAGE AND HOUSING CORPORATION

14

Seed Funding
What Expenses are not Eligible?
 Not related to the development of the housing
project
 Expenses carried out prior to CMHC’s written
approval of Seed Funding
 Expenses related to “hard” project costs, example
- lot servicing, construction, renovation, and so on

 Ongoing operating expenses of the organization,
example - salaries and benefits, travel, office rental
 Retainer fees paid to consultants or any other
professionals for work to be completed in the future
CANADA MORTGAGE AND HOUSING CORPORATION

15

Seed Funding
Conditions of the Funding

1. Must enter into a Contribution Agreement with CMHC
2.

Must provide a need and demand study satisfactory to
CMHC and an acceptable business plan before further funds
will be advanced

3. Funds will be transferred only for eligible expenses
confirmed with invoices or receipts
4. Eligible activities are expected to be completed within 12
months of the date of the Contribution Agreement. A longer
period may be negotiated.

CANADA MORTGAGE AND HOUSING CORPORATION

16

2. Proposal Development Funding
CMHC’s PDF program provides
interest-free loans to facilitate the development
of affordable housing.
- Up to $100,000, determined by CMHC
- Depending on the size and complexity of
the proposed housing project and how
much development work needs to be
done.

** Not available for housing proposals whose viability or
level of affordability depends upon approval for a
Provincial or Territorial program funded under the
Affordable Housing Agreement
17

Proposal Development Funding
Eligible criteria
 Must have at least five (5) housing units
 If rental – majority of rents must be below market rent

limits established by CMHC for units of similar type, size
and number of bedrooms in the subject housing market
 If home ownership – the sale price must be below the
market value for similar housing in the neighbourhood
 Units – whether rental or homeowner – must be modest
in size and design
 There must be a demonstrated need for the proposed
project
CANADA MORTGAGE AND HOUSING CORPORATION

18

Proposal Development Funding
Who is Eligible?
 Not-for-profit organization
 Housing co-operative
 First Nations
 Private entrepreneur
 Any other housing proponents who can
demonstrate their ability to produce a viable
affordable housing project which meets CMHC’s
criteria

CANADA MORTGAGE AND HOUSING CORPORATION

19

Proposal Development Funding
What activities are eligible?
 Soil load-bearing tests
 Environmental site assessments
 Project drawings and specifications
 Professional fees
 Cost estimates

 Management plan
 Option to purchase
 Development permits
 Contract document
 Application fees
CANADA MORTGAGE AND HOUSING CORPORATION

20

Proposal Development Funding
What Expenses are not Eligible?
 Not related to the development of the housing
project
 Expenses carried out prior to CMHC’s written
approval
 Ongoing operating expenses of the organization,
example - salaries and benefits, travel, office rental

 Retainer fees paid to consultants or any other
professionals for work to be completed in the future

CANADA MORTGAGE AND HOUSING CORPORATION

21

Proposal Development Funding
Conditions of the Funding
1. Must enter into a Contribution Agreement with
CMHC
2. Must provide a comprehensive description of the
project proposal, along with a need and demand
study and a preliminary viability analysis and
business plan

3. Funds will be transferred only for eligible
expenses confirmed with invoices or receipts

CANADA MORTGAGE AND HOUSING CORPORATION

22

Proposal Development Funding
Loan Repayment Requirements
 To be repaid out of the project’s capital financing,
normally from the first advance of the mortgage
loan
 Only the principal amount is repaid
 If project is successful in producing an affordable
housing project, it may be eligible for a portion of
the loan to be forgiven
 If project is successful but unable to produce
affordable housing units, the full amount is
repayable, without interest
CANADA MORTGAGE AND HOUSING CORPORATION

23

www.cmhc.ca/affordablehousing

Locked up suites

Harmony
House

www.cmhc.ca

Jeff Kolibash
Corporate Representative
Northern Ontario
www.cmhc.ca
[email protected]
CANADA MORTGAGE AND HOUSING CORPORATION

26


Slide 24

Creating Affordable Housing:
SEED Funding / PDF Funding

Overview
 What is affordable
housing?
 Who creates it?
 What approaches
work?

 What programs are
available?

CANADA MORTGAGE AND HOUSING CORPORATION

2

What is Affordable Housing?

The Community Housing Continuum
Emergenc
y
Shelters

Transitional
Housing

Social
Housing

Government Subsidized Housing

Affordable
Rental
Housing

Affordable
Home
Ownership

Non-Market Housing

CANADA MORTGAGE AND HOUSING CORPORATION

Rental
Housin
g

Home
Ownership

Market housing

What is Affordable?

 30 per cent of gross household income is
generally considered “affordable”.

 However, affordability criteria typically

differs by program and funding authority.

CANADA MORTGAGE AND HOUSING CORPORATION

4

Affordability Criteria – Two examples
Example 1

Example 2

Canada-Ontario
Affordable Housing
Agreement
(MMAH as IAH)

CMHC Seed
and Proposal
Development Funds
Program

•80 percent of
CMHC average
market rents

•80th rent percentile

•Below average
resale price

•Below average
resale price

CANADA MORTGAGE AND HOUSING CORPORATION

5

Who creates affordable housing?



Community leaders including
non- profit service organizations
and housing providers,
churches, private sector
developers, and municipalities.



Each partnership brings value to
the deal, such as business
knowledge, financial resources or
regulatory flexibility.

CANADA MORTGAGE AND HOUSING CORPORATION

6

What approaches work?
Municipal Tools Used In
Canada

Acquiring and
renovating building

Expedited approval
process

Parkland dedication
fees

Affordable
housing strategy

Grants and loans

Public–private
Partnerships

Allowing infill

Housing agreements
for
new development

Redeveloping/convertin
g
non-residential
buildings/sites

Comprehensive
development zoning

Housing fund

Resale price
restrictions

Designing flexible
Housing

Housing organization

Retaining affordable
housing

Donating land
or facilities

Inclusionary zoning

Secondary and
garden suites

Encouraging building
energy efficient housing

Intensification

Using development
levies

Encouraging
smaller units

Land banking

Waiving or reducing
property taxes

CANADA MORTGAGE AND HOUSING CORPORATION

Ideas that have worked
There are many approaches to creating affordable
housing.
• Benevolent financing & funding
• Donate money
• Lend money
• Property
• Sell property, with conditions
• Lease property
• Donate property
• Developers
• Acquire and rehabilitate
• Build new housing
CANADA MORTGAGE AND HOUSING CORPORATION

8

Programs Available
1. Seed Funding

2. Proposal Development Funds

(PDF)

CANADA MORTGAGE AND HOUSING CORPORATION

9

1. Seed Funding
CMHC’s Seed Funding program offers financial assistance to
housing proponents who are in the early stages of developing
an affordable housing project.

Up to $10,000 in the
form of a grant
 Up to $10,000 in the
form of an interest-free
loan

CANADA MORTGAGE AND HOUSING CORPORATION

10

Seed Funding
What Types of Housing Projects are
Eligible?

Housing project must be affordable

Housing Project must be located in Canada
No restrictions on:
Building form
Tenure type
Future residents of the
housing project
Type of housing proponent
organization
11

Seed Funding
What is Affordable?

 rental housing project in which units will have rents within

CMHC’s Affordability Criteria
 homeowner project - the units must be modest and the
purchase prices must be below the market for units of similar
type, size and number of bedrooms in the subject housing
market and neighbourhood

CANADA MORTGAGE AND HOUSING CORPORATION

12

Seed Funding
Who is Eligible?
• Not-for-profit organization
• Housing co-operative
• First Nations
• Private entrepreneur
• Group of individuals who may or may not
intend
to become incorporated
• Municipalities

CANADA MORTGAGE AND HOUSING CORPORATION

13

Seed Funding
What activities are eligible?
 Housing market studies to evaluate need and

demand for the proposed project
 Development of a business plan
 Exploration of funding sources or options
 Evaluation of procurement options
 Preliminary financial viability analysis
 Environmental site assessment
 Preliminary design of the housing project
 Incorporation of a not-for-profit organization
CANADA MORTGAGE AND HOUSING CORPORATION

14

Seed Funding
What Expenses are not Eligible?
 Not related to the development of the housing
project
 Expenses carried out prior to CMHC’s written
approval of Seed Funding
 Expenses related to “hard” project costs, example
- lot servicing, construction, renovation, and so on

 Ongoing operating expenses of the organization,
example - salaries and benefits, travel, office rental
 Retainer fees paid to consultants or any other
professionals for work to be completed in the future
CANADA MORTGAGE AND HOUSING CORPORATION

15

Seed Funding
Conditions of the Funding

1. Must enter into a Contribution Agreement with CMHC
2.

Must provide a need and demand study satisfactory to
CMHC and an acceptable business plan before further funds
will be advanced

3. Funds will be transferred only for eligible expenses
confirmed with invoices or receipts
4. Eligible activities are expected to be completed within 12
months of the date of the Contribution Agreement. A longer
period may be negotiated.

CANADA MORTGAGE AND HOUSING CORPORATION

16

2. Proposal Development Funding
CMHC’s PDF program provides
interest-free loans to facilitate the development
of affordable housing.
- Up to $100,000, determined by CMHC
- Depending on the size and complexity of
the proposed housing project and how
much development work needs to be
done.

** Not available for housing proposals whose viability or
level of affordability depends upon approval for a
Provincial or Territorial program funded under the
Affordable Housing Agreement
17

Proposal Development Funding
Eligible criteria
 Must have at least five (5) housing units
 If rental – majority of rents must be below market rent

limits established by CMHC for units of similar type, size
and number of bedrooms in the subject housing market
 If home ownership – the sale price must be below the
market value for similar housing in the neighbourhood
 Units – whether rental or homeowner – must be modest
in size and design
 There must be a demonstrated need for the proposed
project
CANADA MORTGAGE AND HOUSING CORPORATION

18

Proposal Development Funding
Who is Eligible?
 Not-for-profit organization
 Housing co-operative
 First Nations
 Private entrepreneur
 Any other housing proponents who can
demonstrate their ability to produce a viable
affordable housing project which meets CMHC’s
criteria

CANADA MORTGAGE AND HOUSING CORPORATION

19

Proposal Development Funding
What activities are eligible?
 Soil load-bearing tests
 Environmental site assessments
 Project drawings and specifications
 Professional fees
 Cost estimates

 Management plan
 Option to purchase
 Development permits
 Contract document
 Application fees
CANADA MORTGAGE AND HOUSING CORPORATION

20

Proposal Development Funding
What Expenses are not Eligible?
 Not related to the development of the housing
project
 Expenses carried out prior to CMHC’s written
approval
 Ongoing operating expenses of the organization,
example - salaries and benefits, travel, office rental

 Retainer fees paid to consultants or any other
professionals for work to be completed in the future

CANADA MORTGAGE AND HOUSING CORPORATION

21

Proposal Development Funding
Conditions of the Funding
1. Must enter into a Contribution Agreement with
CMHC
2. Must provide a comprehensive description of the
project proposal, along with a need and demand
study and a preliminary viability analysis and
business plan

3. Funds will be transferred only for eligible
expenses confirmed with invoices or receipts

CANADA MORTGAGE AND HOUSING CORPORATION

22

Proposal Development Funding
Loan Repayment Requirements
 To be repaid out of the project’s capital financing,
normally from the first advance of the mortgage
loan
 Only the principal amount is repaid
 If project is successful in producing an affordable
housing project, it may be eligible for a portion of
the loan to be forgiven
 If project is successful but unable to produce
affordable housing units, the full amount is
repayable, without interest
CANADA MORTGAGE AND HOUSING CORPORATION

23

www.cmhc.ca/affordablehousing

Locked up suites

Harmony
House

www.cmhc.ca

Jeff Kolibash
Corporate Representative
Northern Ontario
www.cmhc.ca
[email protected]
CANADA MORTGAGE AND HOUSING CORPORATION

26


Slide 25

Creating Affordable Housing:
SEED Funding / PDF Funding

Overview
 What is affordable
housing?
 Who creates it?
 What approaches
work?

 What programs are
available?

CANADA MORTGAGE AND HOUSING CORPORATION

2

What is Affordable Housing?

The Community Housing Continuum
Emergenc
y
Shelters

Transitional
Housing

Social
Housing

Government Subsidized Housing

Affordable
Rental
Housing

Affordable
Home
Ownership

Non-Market Housing

CANADA MORTGAGE AND HOUSING CORPORATION

Rental
Housin
g

Home
Ownership

Market housing

What is Affordable?

 30 per cent of gross household income is
generally considered “affordable”.

 However, affordability criteria typically

differs by program and funding authority.

CANADA MORTGAGE AND HOUSING CORPORATION

4

Affordability Criteria – Two examples
Example 1

Example 2

Canada-Ontario
Affordable Housing
Agreement
(MMAH as IAH)

CMHC Seed
and Proposal
Development Funds
Program

•80 percent of
CMHC average
market rents

•80th rent percentile

•Below average
resale price

•Below average
resale price

CANADA MORTGAGE AND HOUSING CORPORATION

5

Who creates affordable housing?



Community leaders including
non- profit service organizations
and housing providers,
churches, private sector
developers, and municipalities.



Each partnership brings value to
the deal, such as business
knowledge, financial resources or
regulatory flexibility.

CANADA MORTGAGE AND HOUSING CORPORATION

6

What approaches work?
Municipal Tools Used In
Canada

Acquiring and
renovating building

Expedited approval
process

Parkland dedication
fees

Affordable
housing strategy

Grants and loans

Public–private
Partnerships

Allowing infill

Housing agreements
for
new development

Redeveloping/convertin
g
non-residential
buildings/sites

Comprehensive
development zoning

Housing fund

Resale price
restrictions

Designing flexible
Housing

Housing organization

Retaining affordable
housing

Donating land
or facilities

Inclusionary zoning

Secondary and
garden suites

Encouraging building
energy efficient housing

Intensification

Using development
levies

Encouraging
smaller units

Land banking

Waiving or reducing
property taxes

CANADA MORTGAGE AND HOUSING CORPORATION

Ideas that have worked
There are many approaches to creating affordable
housing.
• Benevolent financing & funding
• Donate money
• Lend money
• Property
• Sell property, with conditions
• Lease property
• Donate property
• Developers
• Acquire and rehabilitate
• Build new housing
CANADA MORTGAGE AND HOUSING CORPORATION

8

Programs Available
1. Seed Funding

2. Proposal Development Funds

(PDF)

CANADA MORTGAGE AND HOUSING CORPORATION

9

1. Seed Funding
CMHC’s Seed Funding program offers financial assistance to
housing proponents who are in the early stages of developing
an affordable housing project.

Up to $10,000 in the
form of a grant
 Up to $10,000 in the
form of an interest-free
loan

CANADA MORTGAGE AND HOUSING CORPORATION

10

Seed Funding
What Types of Housing Projects are
Eligible?

Housing project must be affordable

Housing Project must be located in Canada
No restrictions on:
Building form
Tenure type
Future residents of the
housing project
Type of housing proponent
organization
11

Seed Funding
What is Affordable?

 rental housing project in which units will have rents within

CMHC’s Affordability Criteria
 homeowner project - the units must be modest and the
purchase prices must be below the market for units of similar
type, size and number of bedrooms in the subject housing
market and neighbourhood

CANADA MORTGAGE AND HOUSING CORPORATION

12

Seed Funding
Who is Eligible?
• Not-for-profit organization
• Housing co-operative
• First Nations
• Private entrepreneur
• Group of individuals who may or may not
intend
to become incorporated
• Municipalities

CANADA MORTGAGE AND HOUSING CORPORATION

13

Seed Funding
What activities are eligible?
 Housing market studies to evaluate need and

demand for the proposed project
 Development of a business plan
 Exploration of funding sources or options
 Evaluation of procurement options
 Preliminary financial viability analysis
 Environmental site assessment
 Preliminary design of the housing project
 Incorporation of a not-for-profit organization
CANADA MORTGAGE AND HOUSING CORPORATION

14

Seed Funding
What Expenses are not Eligible?
 Not related to the development of the housing
project
 Expenses carried out prior to CMHC’s written
approval of Seed Funding
 Expenses related to “hard” project costs, example
- lot servicing, construction, renovation, and so on

 Ongoing operating expenses of the organization,
example - salaries and benefits, travel, office rental
 Retainer fees paid to consultants or any other
professionals for work to be completed in the future
CANADA MORTGAGE AND HOUSING CORPORATION

15

Seed Funding
Conditions of the Funding

1. Must enter into a Contribution Agreement with CMHC
2.

Must provide a need and demand study satisfactory to
CMHC and an acceptable business plan before further funds
will be advanced

3. Funds will be transferred only for eligible expenses
confirmed with invoices or receipts
4. Eligible activities are expected to be completed within 12
months of the date of the Contribution Agreement. A longer
period may be negotiated.

CANADA MORTGAGE AND HOUSING CORPORATION

16

2. Proposal Development Funding
CMHC’s PDF program provides
interest-free loans to facilitate the development
of affordable housing.
- Up to $100,000, determined by CMHC
- Depending on the size and complexity of
the proposed housing project and how
much development work needs to be
done.

** Not available for housing proposals whose viability or
level of affordability depends upon approval for a
Provincial or Territorial program funded under the
Affordable Housing Agreement
17

Proposal Development Funding
Eligible criteria
 Must have at least five (5) housing units
 If rental – majority of rents must be below market rent

limits established by CMHC for units of similar type, size
and number of bedrooms in the subject housing market
 If home ownership – the sale price must be below the
market value for similar housing in the neighbourhood
 Units – whether rental or homeowner – must be modest
in size and design
 There must be a demonstrated need for the proposed
project
CANADA MORTGAGE AND HOUSING CORPORATION

18

Proposal Development Funding
Who is Eligible?
 Not-for-profit organization
 Housing co-operative
 First Nations
 Private entrepreneur
 Any other housing proponents who can
demonstrate their ability to produce a viable
affordable housing project which meets CMHC’s
criteria

CANADA MORTGAGE AND HOUSING CORPORATION

19

Proposal Development Funding
What activities are eligible?
 Soil load-bearing tests
 Environmental site assessments
 Project drawings and specifications
 Professional fees
 Cost estimates

 Management plan
 Option to purchase
 Development permits
 Contract document
 Application fees
CANADA MORTGAGE AND HOUSING CORPORATION

20

Proposal Development Funding
What Expenses are not Eligible?
 Not related to the development of the housing
project
 Expenses carried out prior to CMHC’s written
approval
 Ongoing operating expenses of the organization,
example - salaries and benefits, travel, office rental

 Retainer fees paid to consultants or any other
professionals for work to be completed in the future

CANADA MORTGAGE AND HOUSING CORPORATION

21

Proposal Development Funding
Conditions of the Funding
1. Must enter into a Contribution Agreement with
CMHC
2. Must provide a comprehensive description of the
project proposal, along with a need and demand
study and a preliminary viability analysis and
business plan

3. Funds will be transferred only for eligible
expenses confirmed with invoices or receipts

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Proposal Development Funding
Loan Repayment Requirements
 To be repaid out of the project’s capital financing,
normally from the first advance of the mortgage
loan
 Only the principal amount is repaid
 If project is successful in producing an affordable
housing project, it may be eligible for a portion of
the loan to be forgiven
 If project is successful but unable to produce
affordable housing units, the full amount is
repayable, without interest
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23

www.cmhc.ca/affordablehousing

Locked up suites

Harmony
House

www.cmhc.ca

Jeff Kolibash
Corporate Representative
Northern Ontario
www.cmhc.ca
[email protected]
CANADA MORTGAGE AND HOUSING CORPORATION

26


Slide 26

Creating Affordable Housing:
SEED Funding / PDF Funding

Overview
 What is affordable
housing?
 Who creates it?
 What approaches
work?

 What programs are
available?

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What is Affordable Housing?

The Community Housing Continuum
Emergenc
y
Shelters

Transitional
Housing

Social
Housing

Government Subsidized Housing

Affordable
Rental
Housing

Affordable
Home
Ownership

Non-Market Housing

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Rental
Housin
g

Home
Ownership

Market housing

What is Affordable?

 30 per cent of gross household income is
generally considered “affordable”.

 However, affordability criteria typically

differs by program and funding authority.

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Affordability Criteria – Two examples
Example 1

Example 2

Canada-Ontario
Affordable Housing
Agreement
(MMAH as IAH)

CMHC Seed
and Proposal
Development Funds
Program

•80 percent of
CMHC average
market rents

•80th rent percentile

•Below average
resale price

•Below average
resale price

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Who creates affordable housing?



Community leaders including
non- profit service organizations
and housing providers,
churches, private sector
developers, and municipalities.



Each partnership brings value to
the deal, such as business
knowledge, financial resources or
regulatory flexibility.

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What approaches work?
Municipal Tools Used In
Canada

Acquiring and
renovating building

Expedited approval
process

Parkland dedication
fees

Affordable
housing strategy

Grants and loans

Public–private
Partnerships

Allowing infill

Housing agreements
for
new development

Redeveloping/convertin
g
non-residential
buildings/sites

Comprehensive
development zoning

Housing fund

Resale price
restrictions

Designing flexible
Housing

Housing organization

Retaining affordable
housing

Donating land
or facilities

Inclusionary zoning

Secondary and
garden suites

Encouraging building
energy efficient housing

Intensification

Using development
levies

Encouraging
smaller units

Land banking

Waiving or reducing
property taxes

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Ideas that have worked
There are many approaches to creating affordable
housing.
• Benevolent financing & funding
• Donate money
• Lend money
• Property
• Sell property, with conditions
• Lease property
• Donate property
• Developers
• Acquire and rehabilitate
• Build new housing
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Programs Available
1. Seed Funding

2. Proposal Development Funds

(PDF)

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1. Seed Funding
CMHC’s Seed Funding program offers financial assistance to
housing proponents who are in the early stages of developing
an affordable housing project.

Up to $10,000 in the
form of a grant
 Up to $10,000 in the
form of an interest-free
loan

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Seed Funding
What Types of Housing Projects are
Eligible?

Housing project must be affordable

Housing Project must be located in Canada
No restrictions on:
Building form
Tenure type
Future residents of the
housing project
Type of housing proponent
organization
11

Seed Funding
What is Affordable?

 rental housing project in which units will have rents within

CMHC’s Affordability Criteria
 homeowner project - the units must be modest and the
purchase prices must be below the market for units of similar
type, size and number of bedrooms in the subject housing
market and neighbourhood

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Seed Funding
Who is Eligible?
• Not-for-profit organization
• Housing co-operative
• First Nations
• Private entrepreneur
• Group of individuals who may or may not
intend
to become incorporated
• Municipalities

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Seed Funding
What activities are eligible?
 Housing market studies to evaluate need and

demand for the proposed project
 Development of a business plan
 Exploration of funding sources or options
 Evaluation of procurement options
 Preliminary financial viability analysis
 Environmental site assessment
 Preliminary design of the housing project
 Incorporation of a not-for-profit organization
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Seed Funding
What Expenses are not Eligible?
 Not related to the development of the housing
project
 Expenses carried out prior to CMHC’s written
approval of Seed Funding
 Expenses related to “hard” project costs, example
- lot servicing, construction, renovation, and so on

 Ongoing operating expenses of the organization,
example - salaries and benefits, travel, office rental
 Retainer fees paid to consultants or any other
professionals for work to be completed in the future
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Seed Funding
Conditions of the Funding

1. Must enter into a Contribution Agreement with CMHC
2.

Must provide a need and demand study satisfactory to
CMHC and an acceptable business plan before further funds
will be advanced

3. Funds will be transferred only for eligible expenses
confirmed with invoices or receipts
4. Eligible activities are expected to be completed within 12
months of the date of the Contribution Agreement. A longer
period may be negotiated.

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2. Proposal Development Funding
CMHC’s PDF program provides
interest-free loans to facilitate the development
of affordable housing.
- Up to $100,000, determined by CMHC
- Depending on the size and complexity of
the proposed housing project and how
much development work needs to be
done.

** Not available for housing proposals whose viability or
level of affordability depends upon approval for a
Provincial or Territorial program funded under the
Affordable Housing Agreement
17

Proposal Development Funding
Eligible criteria
 Must have at least five (5) housing units
 If rental – majority of rents must be below market rent

limits established by CMHC for units of similar type, size
and number of bedrooms in the subject housing market
 If home ownership – the sale price must be below the
market value for similar housing in the neighbourhood
 Units – whether rental or homeowner – must be modest
in size and design
 There must be a demonstrated need for the proposed
project
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Proposal Development Funding
Who is Eligible?
 Not-for-profit organization
 Housing co-operative
 First Nations
 Private entrepreneur
 Any other housing proponents who can
demonstrate their ability to produce a viable
affordable housing project which meets CMHC’s
criteria

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Proposal Development Funding
What activities are eligible?
 Soil load-bearing tests
 Environmental site assessments
 Project drawings and specifications
 Professional fees
 Cost estimates

 Management plan
 Option to purchase
 Development permits
 Contract document
 Application fees
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Proposal Development Funding
What Expenses are not Eligible?
 Not related to the development of the housing
project
 Expenses carried out prior to CMHC’s written
approval
 Ongoing operating expenses of the organization,
example - salaries and benefits, travel, office rental

 Retainer fees paid to consultants or any other
professionals for work to be completed in the future

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Proposal Development Funding
Conditions of the Funding
1. Must enter into a Contribution Agreement with
CMHC
2. Must provide a comprehensive description of the
project proposal, along with a need and demand
study and a preliminary viability analysis and
business plan

3. Funds will be transferred only for eligible
expenses confirmed with invoices or receipts

CANADA MORTGAGE AND HOUSING CORPORATION

22

Proposal Development Funding
Loan Repayment Requirements
 To be repaid out of the project’s capital financing,
normally from the first advance of the mortgage
loan
 Only the principal amount is repaid
 If project is successful in producing an affordable
housing project, it may be eligible for a portion of
the loan to be forgiven
 If project is successful but unable to produce
affordable housing units, the full amount is
repayable, without interest
CANADA MORTGAGE AND HOUSING CORPORATION

23

www.cmhc.ca/affordablehousing

Locked up suites

Harmony
House

www.cmhc.ca

Jeff Kolibash
Corporate Representative
Northern Ontario
www.cmhc.ca
[email protected]
CANADA MORTGAGE AND HOUSING CORPORATION

26