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.
Download ReportTranscript 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
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 26
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
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
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 26
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