7. ONTARIO
AFFORDABLE HOUSING PROGRAM and HOusing Delivery Plan
|
HEALTH, RECREATION AND SOCIAL SERVICES COMMITTEE RECOMMENDATIONS as
amended AND CORPORATE SERVICES AND ECONOMIC DEVELOPMENT COMMITTEE
RECOMMENDATION (RECOMMENDATION 2
ONLY)
1. That City Council approve:
a. The City of Ottawa Housing
Delivery Plan (including Home Ownership, Housing Allowances and Rental and
Supported Housing program streams) for submission to the Minister of Municipal
Affairs and Housing, and delegate authority to the City Manager to enter into a
Contribution Agreement with the Province for the purposes of administering the
Canada/Ontario Affordable Housing Program;
b. That if the Province does not
support the proposed approach to delivering one or all of the three program
streams of the Canada/Ontario Affordable Housing Program, that the City of
Ottawa will not participate in that program stream but that Council request
that the funding allocated to that stream remain in Ottawa, for redistribution
to other program streams or for direct delivery by the Province;
c. That, subject to Provincial approval of the City of Ottawa
Housing Delivery Plan, a request for up to $1.3 million in capital funding be considered in the
2007 Capital Budget submission to support participation in the AHP, including
funding for: Building Permit Fee
grants; School Board fee grants; housing accessibility grants; professional
services to support implementation and administration of the new AHP, and a 1%
contingency to deal with unforeseen costs to the program;
d. That the
following lands be allocated to the Action Ottawa program for inclusion in
future Requests for Proposals for affordable housing development: 1143 Randall Avenue in Alta Vista Ward 18;
and 260 Tompkins Avenue in Orleans Ward 1;
e. That a
one-time payment of $59,066 be provided from the funding for the Affordable
Housing Program, with $38,766 to be paid to Ottawa Salus Corporation and $20,300 to be
paid to Centretown Citizens Ottawa Corporation to rebate School Board
Fees paid between July 2005 and today for affordable housing developments.
2. Approve, subject to
Provincial approval of the City of Ottawa Housing Delivery Plan for the Rental
and Supportive Housing program stream, that $2.1 million be transferred from
the Social Housing Reserve to the Affordable Housing Capital Fund to support
full participation in the Affordable Housing Program.
3. That
in the City of Ottawa Program Delivery section regarding “Unit Condition”, the
text be replaced with the following:
A statement by
the landlord confirming that the unit meets all building code, and health and
safety requirements will be provided.
If at any time the unit proves to not meet those standards, the landlord
will be required to bring the unit up to a reasonable standard. Unless the failure of the unit to meet
standards was substantially the result of the willful or negligent act of the
tenant, or another occupant or guest of the tenant, and if the participating
tenant is displaced as a result of this work, an equivalent or better unit must
be provided by the landlord at the same rent as then applicable for the unit
occupied upon entry into this program.
Otherwise, the full amount of subsidy provided from the time the unit is
not in a reasonable state of repair, net of any abatement of rent or
compensation paid to the tenant, will be refunded by the landlord to the City.
4. That
in the City of Ottawa Program Delivery section regarding “Average Subsidy”, the
first paragraph of the text be deleted.
RECOMMENDATIONS modifiÉES Du
COMITÉ de la santÉ, des loisirs et des services sociaux et RECOMMENDATION du
comitÉ des services organisationnels et du dÉveloppement Économique (Recommendation 2 seulement)
1. Que
le Comité de la santé, des loisirs et des services sociaux recommande au
Conseil municipal d’approuver :
a. Le
Plan de création de logements de la Ville d’Ottawa (incluant les volets du
programme Accès à la propriété, Allocations de loyer et Logements locatifs et
en milieu de soutien) pour qu’il soit soumis au ministre des Affaires
municipales et du Logement et qu’il délègue au directeur des Services
municipaux le pouvoir de conclure un accord de contribution avec la Province pour
fins d’administration du Programme Canada-Ontario de logements abordables;
b. Que
si la Province n’appuie pas l’approche proposée pour la prestation de l’un ou
des trois volets du Programme Canada-Ontario de logements abordables, que la
Ville d’Ottawa ne participe pas à ce volet du programme mais que le Conseil
demande que le financement alloué à ce volet demeure à Ottawa, pour être
redistribué à d’autres volets du programme ou pour une exécution directe par la
Province;
c. Que,
sous réserve de l’approbation du Plan de création de logements de la Ville
d’Ottawa, une demande de jusqu’à 1,3 million de dollars en immobilisations
soit envisagée dans la présentation du budget d’immobilisations de 2007 pour
appuyer la participation au PLA, incluant un financement pour :
subventions pour les droits de permis de construire; subventions pour les frais
des conseils scolaires; subventions pour l’accès à la propriété; services
professionnels pour appuyer la mise en œuvre et l’administration du nouveau
PLA, et des fonds de 1 % pour gérer les coûts imprévus du programme;
d. Que
les terrains suivants soient alloués au programme Action Ottawa pour être
inclus dans de futures demandes de propositions de projets de logements
abordables : 1143, avenue Randall dans le quartier 18 – Alta
Vista; et 260, avenue Tompkins dans le quartier 1 – Orléans;
e. Qu’un
paiement unique de 59 066 $ soit accordé pour le financement du
Programme de logements abordables, dont 38 766 $ à être versés à
Salus Corporation d’Ottawa et 20 300 $ au Centretown Citizens Ottawa Corporation pour rembourser les frais engagés par les conseils scolaires entre
juillet 2005 et aujourd’hui pour des projets de logements abordables.
2. Que
le Comité de la santé, des loisirs et des services sociaux recommande au Comité
des services organisationnels et du développement économique que le Conseil
municipal approuve que, sous réserve de l’approbation provinciale du Plan de
création de logements de la Ville d’Ottawa pour le volet du programme Logements
locatifs et en milieu de soutien, la somme de 2,1 millions de dollars soit
transférée de la réserve du logement social au fonds d’investissement du
logement abordable pour soutenir une participation entière au Programme de
logements abordables;
3. Que,
dans la section portant sur « l'état de l'unité de logement » de la
Prestation de programmes de la Ville d'Ottawa, le texte soit remplacé par ce
qui suit :
Une attestation par le propriétaire
devra être produite, confirmant que l'unité de logement répond à toutes les
exigences du Code du bâtiment et de santé et sécurité. À tout moment par la
suite, s'il est constaté que l'unité ne répond pas à ces exigences, le
propriétaire devra faire le nécessaire pour rendre l'unité conforme aux
exigences normales. Sauf dans le cas où la non-conformité de l'unité aux normes
résulte, pour une large part, d'un acte intentionnel ou d'une négligence du
locataire, d'un autre occupant ou d'un invité du locataire, si le locataire
participant doit déménager en raison des travaux à effectuer, le propriétaire
devra lui fournir une unité de logement équivalente ou meilleure au même loyer
que celui alors exigé pour l'unité occupée au moment de l'admission au
programme, à défaut de quoi le montant intégral de la subvention versée à
partir du moment où l'état de l'unité n'était plus acceptable, moins toute
réduction de loyer ou compensation accordée au locataire, devra être remboursé
par le propriétaire à la Ville.
4. Que,
dans la section portant sur « la subvention moyenne » de la
Prestation de programmes de la Ville d'Ottawa, le premier paragraphe du texte
soit supprimé.
Documentation
1. Deputy City Manager, Community and Protective Services report dated 08 May 2006 (ACS2005-CPS-HOU-0008).
2. Health,
Recreation and Social Services Committee memorandum (includes an extract of draft HRSSC Minutes, 15
June 2006).
Report
to/Rapport au :
Health, Recreation and Social Services Committee
Comité de la santé, des loisirs et
des services sociaux
Corporate
Services and Economic Development Committee
Comité des services organisationnels
et du développement économique
and Council / et au Conseil
Submitted by/Soumis par : Steve Kanellakos, Deputy City Manager/Directeur
municipal adjoint,
Community and Protective Services/Services communautaires et de
protection
Contact
Person/Personne ressource : Russell Mawby, Director
Housing/Logement
(613) 580-2424 x, 44162
SUBJECT: |
ONTARIO AFFORDABLE HOUSING PROGRAM and
HOusing Delivery Plan |
|
|
OBJET : |
PROGRAMME DE LOGEMENT ABORDABLE DE L’ONTARIO ET PLAN DE CRÉATION DE
LOGEMENT |
REPORT RECOMMENDATIONS
1. That the Health, Recreation and Social
Services Committee recommend that City Council approve:
a. The City of Ottawa Housing Delivery
Plan (including Home Ownership, Housing Allowances and Rental and Supported
Housing program streams) for submission to the Minister of Municipal Affairs
and Housing, and delegate authority to the City Manager to enter into a
Contribution Agreement with the Province for the purposes of administering the
Canada/Ontario Affordable Housing Program;
b. That if the Province does not support
the proposed approach to delivering one or all of the three program streams of
the Canada/Ontario Affordable Housing Program, that the City of Ottawa will not
participate in that program stream but that Council request that the funding
allocated to that stream remain in Ottawa, for redistribution to other program
streams or for direct delivery by the Province;
c. That, subject to
Provincial approval of the City of Ottawa Housing Delivery Plan, a request for up to $1.3
million in capital funding be considered in the 2007 Capital Budget submission
to support participation in the AHP, including funding for: Building Permit Fee grants; School Board fee
grants; housing accessibility grants; professional services to support
implementation and administration of the new AHP, and a 1% contingency to deal
with unforeseen costs to the program;
d. That the following lands be allocated
to the Action Ottawa program for inclusion in future Requests for Proposals for
affordable housing development: 1143
Randall Avenue in Alta Vista Ward 18; and 260 Tompkins Avenue in Orleans Ward
1;
e. That a one-time payment of $59,066 be
provided from the funding for the Affordable Housing Program, with $38,766 to be
paid to Ottawa Salus Corporation and $20,300 to be paid to Centretown Citizens
Ottawa Corporation to rebate School Board Fees paid between July 2005
and today for affordable housing developments.
2. That
the Health, Recreation and Social
Services Committee recommend to the Corporate Services and Economic
Development Committee that Council approve, subject to Provincial approval of the City of Ottawa Housing Delivery
Plan for the Rental and Supportive Housing program stream, that $2.1 million be
transferred from the Social Housing Reserve to the Affordable Housing Capital
Fund to support full participation in the Affordable Housing Program.
RECOMMANDATIONS DU RAPPORT
1. Que le Comité de la
santé, des loisirs et des services sociaux recommande au Conseil municipal
d’approuver :
a. Le
Plan de création de logements de la Ville d’Ottawa (incluant les volets du
programme Accès à la propriété, Allocations de loyer et Logements locatifs et
en milieu de soutien) pour qu’il soit soumis au ministre des Affaires
municipales et du Logement et qu’il délègue au directeur des Services
municipaux le pouvoir de conclure un accord de contribution avec la Province
pour fins d’administration du Programme Canada-Ontario de logements abordables;
b. Que
si la Province n’appuie pas l’approche proposée pour la prestation de l’un ou
des trois volets du Programme Canada-Ontario de logements abordables, que la
Ville d’Ottawa ne participe pas à ce volet du programme mais que le Conseil
demande que le financement alloué à ce volet demeure à Ottawa, pour être
redistribué à d’autres volets du programme ou pour une exécution directe par la
Province;
c. Que,
sous réserve de l’approbation du Plan de création de logements de la Ville
d’Ottawa, une demande de jusqu’à 1,3 million de dollars en immobilisations
soit envisagée dans la présentation du budget d’immobilisations de 2007 pour
appuyer la participation au PLA, incluant un financement pour :
subventions pour les droits de permis de construire; subventions pour les frais
des conseils scolaires; subventions pour l’accès à la propriété; services
professionnels pour appuyer la mise en œuvre et l’administration du nouveau
PLA, et des fonds de 1 % pour gérer les coûts imprévus du programme;
d. Que
les terrains suivants soient alloués au programme Action Ottawa pour être
inclus dans de futures demandes de propositions de projets de logements
abordables : 1143, avenue Randall dans le quartier 18 – Alta
Vista; et 260, avenue Tompkins dans le quartier 1 – Orléans;
e. Qu’un
paiement unique de 59 066 $ soit accordé pour le financement du
Programme de logements abordables, dont 38 766 $ à être versés à
Salus Corporation d’Ottawa et 20 300 $ au Centretown Citizens Ottawa Corporation pour rembourser les frais engagés par les conseils scolaires entre
juillet 2005 et aujourd’hui pour des projets de logements abordables.
2. Que le Comité de la
santé, des loisirs et des services sociaux recommande au Comité des services
organisationnels et du développement économique que le Conseil municipal
approuve que, sous réserve de l’approbation provinciale du Plan de création de
logements de la Ville d’Ottawa pour le volet du programme Logements locatifs et
en milieu de soutien, la somme de 2,1 millions de dollars soit transférée
de la réserve du logement social au fonds d’investissement du logement
abordable pour soutenir une participation entière au Programme de logements
abordables;
On April 29, 2005, the Province of Ontario announced the introduction of the Affordable Housing Program (AHP). The AHP replaces the previous Community Rental Housing Program (CRHP), in which the City of Ottawa participated in 2004. There are now three program streams: Homeownership (232 units); Housing Allowances (400 units) and Rental and Supported Housing (315 units). The total funding allocation to Ottawa is $30.16 million.
This will support the development of an additional 315 units of low-income affordable housing. 139 of these units have already been funded in the Strong Start program that council approved in November 2005. An additional 176 units will be delivered as a result of participating in the full AHP.
It is clear that Ottawa is significantly behind on meeting these targets. The commitments from senior levels of government under the CRHP and now the AHP have not met expectations, and do not enable the City to achieve these targets. However, the AHP signals the return of the Provincial government to new housing development after over 10 years of absence, and the lessons learned in delivering the AHP should support both more appropriate funding and better policies to address housing needs.
As required by the Province, City Council expressed “interest in principle” in participating in the three streams of the AHP on October 31, 2005. The City also expressed some concerns as to how the programs were to be delivered.
To deliver the AHP, Service Managers are required to develop and adopt a Housing Delivery Plan (HDP) for each program stream. The deadline for submitting this plan to the Province for review and approval is June 30, 2006. Once the Province approves the City’s delivery plan, the Province will enter into an Administrative Agreement with the City.
This report provides details on each program stream and how it will be delivered, the impact on current programs and policies, and staff recommendations for participation.
Staff support the principles of the AHP, and strongly support the provision of these funds to Ottawa to address pressing needs for affordable housing. However, the program guidelines as presented by the Province create significant difficulties to delivering the programs:
· The principle of having a range of funding tools to work with to address local issues is sound, but this potential has been lost due to the rigid compartmentalization of the programs streams, without the ability to transfer program funding between streams to better meet local needs.
· Programs are too prescriptive in terms of how they are to be administered and delivered, and therefore any flexibility to meet local needs via local capacities is not available. For example, the Housing Allowance program provides a fixed amount of funding, and specifies not just targets but the number of units the City must deliver under the program. This means that the amount of subsidy available to any participant is more or less fixed, and there is no ability to adjust the subsidy to match incomes, rents or other needs.
· Programs have contradictory objectives and outcomes, for example the Housing Allowance program is intended to fill vacant units, but requires tenants to vacate units they are already living in.
· Programs are intended to target low-income housing needs, including households on the waiting list for social housing, but the funding is not sufficient in any program stream to meet those needs.
· Programs leave significant cost and liability with the City in terms of risks in delivery (new construction) or costs when program funds run out (Housing Allowances expire in 5 years regardless of tenant need).
A number of Service Managers have already indicated that they will not participate in the AHP or elements of it, because the risks outweigh the perceived benefits to their communities. City of Ottawa staff have significant concerns about the viability of the AHP and the liability risk to the City of agreeing to deliver the AHP, particularly due to the limited net benefit to the low income people in Ottawa of the relatively shallow subsidies or funding that would be provided. However, these programs are important and necessary to meet some of the housing needs in Ottawa, and are recommending that the Housing Delivery Plan (attached) be submitted to the Province.
The attached Plan describes in general terms how the Homeownership, Housing Allowance and Rental and Supportive Housing programs would be delivered in Ottawa, based on our knowledge and experience. It highlights specific program changes, particularly in the Homeownership and Housing Allowance programs that would address our key concerns. In doing so, our approach does not coincide with all of the requirements and directions of the Province. The province is also seeking more detail about exactly when, where and how the programs will be delivered, which has not been done because we require agreement in principle to our approach before we spend significant time on a detailed delivery plan.
It is not clear at this time whether the province will support the alternative delivery approach being proposed. If the Province does not support any or all of the proposed approaches to the three program streams, Staff recommend that the City not participate in those streams, and further that Council advise the Province that the funds allocated to Ottawa under the AHP should remain in Ottawa, either for redistribution into other program streams or for direct delivery by the Province.
Staff will also implement a number of mainly administrative improvements to the Action Ottawa program as a result of this report.
Three City owned properties will be made available for Action Ottawa, as per the Housing First policy:
· Beaver Barracks, located at 424 Metcalfe St., in Somerset Ward 14;
·
1143 Randall Ave., located in Alta
Vista Ward 18;
·
260 Tompkins
Ave., located in Orleans Ward 1.
A draft version of this report and the Housing Delivery Plan was
circulated to key stakeholders in May 2006, and a stakeholder forum was held on
May 26th, where the Plan was discussed, and feedback incorporated
into the final plan as attached.
It should also be noted that staff have been
negotiating the design of the AHP with Ministry of Municipal Affairs and
Housing staff since November 2004, via the Association of Municipalities of
Ontario Municipal Advisory Group.
Le 29 avril 2005, la Province d’Ontario avait
annoncé la mise sur pied du Programme de logements abordables (PLA). Le PLA
remplace l’ancien Programme de logements locatifs communautaires (PLLC) auquel
la Ville d’Ottawa participait en 2004. À l’heure actuelle, le programme
comporte trois volets : Accès à la
propriété (232 logements); Allocations de loyer (400 logements) et Logements locatifs
et en milieu de soutien (315 logements). Le financement total pour Ottawa
s’établit à 30,16 millions de dollars.
Ces fonds permettront d’aménager 315 autres
logements abordables pour les ménages à faible revenu. Parmi ces logements, 139
ont déjà été financés dans le cadre du programme Bâtir pour l’avenir que
le Conseil a approuvé en novembre 2005. Quelque 176 logements supplémentaires seront créés pour avoir participé à
l’ensemble du PLA.
Il est manifeste que la Ville d’Ottawa accuse
beaucoup de retard dans l’atteinte de ces objectifs. Les engagements pris par
les échelons supérieurs du gouvernement dans le cadre du PLLC et aujourd’hui du
PLA n’ont pas satisfait aux attentes et ne permettent pas à la Ville
d’atteindre ces objectifs. Cependant, le PLA marque la reprise par le
gouvernement provincial dans le dossier de l’aménagement de nouveaux logements
après une absence de plus de dix ans, et les leçons tirées de l’exécution du
PLA devraient donner lieu à la fois à un financement plus adéquat et à des
politiques améliorées permettant de répondre aux besoins de logement.
Conformément aux exigences provinciales, le 31
octobre 2005, le Conseil municipal s’est dit « intéressé en
principe » à participer aux trois volets du PLA. La Ville a également
soulevé certaines préoccupations relativement au mode d’exécution des
programmes.
Pour mener à bien le PLA, les gestionnaires de
service sont tenus d’élaborer et d’adopter un Plan de création de logements
(PCL) pour chacun des volets du programme. Ils ont jusqu’au 30 juin 2006 pour
présenter ce plan à la Province, pour fins d’examen et d’approbation. Une fois
que la Province aura approuvé le plan de création de logements de la Ville,
elle entend conclure une entente administrative avec la Ville.
Ce rapport expose en détail chacun des volets du programme, le mode
d’exécution, les répercussions sur les politiques et les programmes en cours
ainsi que les recommandations du personnel relativement à la
participation.
Le personnel appuie les principes du PLA et
soutient fermement l’affectation de ces fonds à la Ville d’Ottawa afin de
répondre aux besoins pressants en matière de logements abordables. Les lignes
directrices du programme, telles que présentées par la Province, créent toutefois
de grandes difficultés dans l’exécution des programmes :
·
Le
principe selon lequel on disposerait de tout un éventail d’outils de
financement pour régler les problèmes locaux est un principe judicieux, mais
ces possibilités sont perdues en raison du cloisonnement rigoureux des volets
du programme, qui empêche le transfert de fonds entres les divers volets du
programme pour mieux répondre aux besoins locaux.
·
Les
programmes sont trop normatifs quant à la façon dont ils doivent être
gérés et exécutés et, par
conséquent, la latitude
nécessaire pour répondre aux besoins locaux en s’appuyant sur les moyens
offerts localement fait défaut. Ainsi, le programme Allocations de loyer offre
un financement fixe et précise non seulement les objectifs à atteindre, mais
aussi le nombre de logements que la Ville doit offrir dans le cadre du
programme. Cela signifie que le montant de subvention offert à un participant
est plus ou moins fixe et qu’il ne peut être modifié en fonction du revenu, du
loyer ou d’autres besoins.
·
Les
programmes poursuivent des résultats et des objectifs contradictoires; par
exemple, le programme Allocations de loyer cherche à remplir les logements
libres, mais exige des locataires qu’ils quittent les logements qu’ils occupent
déjà.
·
Les
programmes cherchent à répondre aux besoins de logement des ménages à faible
revenu, y compris les ménages figurant sur la liste d’attente pour un logement
social, mais les fonds ne sont pas suffisants dans aucun volet du programme
pour répondre à ces besoins.
·
Les
programmes donnent lieu à d’importants coûts et responsabilités pour la Ville,
sur le plan des risques liés à la production des logements (nouvelles
constructions) ou des coûts lorsqu’il ne reste plus de fonds pour le programme
(les allocations de loyer prennent fin après cinq ans, peu importe les besoins
du locataire).
Un certain nombre de gestionnaires de service
ont déjà fait savoir qu’ils ne participeraient pas au PLA ni à
certaines composantes du programme, du fait que les risques l’emportent sur les
avantages perçus pour leurs collectivités. Le personnel de la Ville d’Ottawa
est très préoccupé par la viabilité du PLA et par les responsabilités
qu’encourt la Ville si elle accepte l’exécution du PLA, particulièrement en
raison de l’avantage net limité que les personnes à faible revenu d’Ottawa
retireraient du financement ou des subventions relativement maigres qui
seraient alloués. Toutefois, ces programmes sont importants et nécessaires pour
répondre à certains des besoins de logement à Ottawa et le personnel recommande
que le Plan de création de logements (ci‑joint) soit présenté à la
Province.
Le Plan ci‑joint décrit de façon générale
comment les programmes Accès à la propriété, Allocations de loyer et Logements
locatifs et en milieu de soutien seraient mis en œuvre à Ottawa, en se basant
sur notre savoir et notre expérience. Il met en lumière certaines modifications
spécifiques au programme, particulièrement dans les programmes Accès à la
propriété et Allocations de loyer qui répondraient à nos préoccupations clés.
En faisant ainsi, notre approche ne satisfait pas à toutes les exigences et
directives de la Province. La Province souhaite qu’on lui communique des
renseignements beaucoup plus détaillés sur les modalités d’exécution des
programmes (où, quand et comment), ce qui n’a pas été fait parce que nous
demandons que notre approche soit acceptée en principe avant que nous mettions
beaucoup de temps à élaborer un plan détaillé de création de logements.
Nous ne savons pas à ce moment‑ci si la
Province acceptera l’approche d’exécution proposée. Si la Province n’accepte
pas l’une ou l’autre ou toutes les approches proposées des trois volets du
programme, le personnel recommande que la Ville ne participe pas à ces volets,
et de plus que le Conseil transmette à la Province un avis selon lequel les
fonds destinés à Ottawa en fonction du PLA devraient continuer d’être mis à sa
disposition soit pour être distribués dans d’autres volets du programme, soit
pour une exécution directe par la Province.
À la suite de ce rapport, le personnel mettra
aussi en œuvre un certain nombre d’améliorations, surtout de nature
administrative, au programme Action Ottawa.
Trois propriétés appartenant à la
Ville seront mises à la disposition d’Action Ottawa selon la politique de priorité
au logement :
·
La
caserne Beaver, située au 424, rue Metcalfe, dans le quartier 14 –
Somerset;
·
1143,
avenue Randall, située dans le quartier 18 – Alta Vista;
·
260,
avenue Tompkins, située dans le quartier 1 – Orléans.
Une version provisoire de ce rapport et du Plan
de création de logements a été présentée aux intervenants clés en
mai 2006, et un forum des intervenants a eu lieu le 26 mai, pendant
lequel on a discuté du plan et dont les commentaires figurent dans le plan
final ci‑joint.
Veuillez prendre note également que le
personnel a négocié la conception du PLA avec le ministère des Affaires
municipales et du Logement depuis novembre 2004, par le truchement de
l’Association des municipalités de l’Ontario.
On April 29, 2005, the Province
of Ontario announced the introduction of the Affordable Housing Program (AHP),
in which the Province agreed to match the $301 million in Federal funding
remaining from the initial allocation of $320 million made in May 2002, and
also to develop programs for municipalities to build or otherwise provide
housing affordable to lower-income households.
In total, the program is
intended to help 20,000 Ontario households by 2010. Under the AHP there are three program
streams: Homeownership, Housing Allowances
and Rental and Supported Housing.
The AHP replaces the previous Community Rental Housing Program (CRHP), which was a pilot program in which $25,000 in Federal funding per unit was combined with $2,000 (later increased to $4,000) in Provincial tax credits to address similar needs.
The City of Ottawa participated in the CRHP and delivered 5 projects and 271 new units of low to moderate-income housing. The total project cost was about $35.7 million. The City provided $3.3 million in capital and $3.3 million in incentives and land, matched by $6.8 million from the Federal government and $1.2 million in tax credits from the Province of Ontario. National Homelessness Initiative funding totalling $1.22 million was also provided to 2 projects in this program.
The main changes between the CRHP and the AHP are:
Under the new AHP “Wave 1” the unit allocations to Ottawa are as follows:
Current Program |
AHP Allocation Ontario |
Allocation to Ottawa |
||
|
# Units |
$ million |
# Units |
$ million |
Home Ownership |
3,470 |
$28.4 |
232 |
$2.03 |
Housing Allowances |
5,000 |
$80.0 |
400 |
$6.08 |
Rental and Supported Housing |
4,320 |
$302.4 |
315 |
$22.05 |
Totals |
|
$410.8 |
|
$30.16 |
Ottawa was originally allocated 305 units in the Rental and Supported stream, but on March 27, 2006, the Province provided 10 additional supported units.
It is expected that a second “wave” of the AHP will be made available within the next 3 years, however, according to the AHP agreement, the number of units is significantly less – approximately 880 units for the whole Province.
As required by the Province, City Council expressed “interest in principle” in participating in the three streams of the AHP on October 31, 2005. The City also expressed some concerns as to how the programs were to be delivered.
To deliver the AHP, Service Managers are required to develop and adopt a Housing Delivery Plan (HDP) for each program stream. The deadline for submitting this plan to the Province for review and approval is June 30, 2006. Once the Province approves the City’s delivery plan, the Province will enter into an Administrative Agreement with the City.
The HDP is intended to be a concise 5 to 10 page statement of the Service Manager’s affordable housing strategy. The HDP is to address all components of the Affordable Housing Program that the Service Manager intends to deliver. The introduction of the new AHP program and new program streams requires review of current programs and policies. This report provides details on each program stream and how it will be delivered, the impact on current programs and policies, and staff recommendations for participation.
In 2002, the City adopted the Affordable Housing Strategy, which set targets for the development of affordable housing and established Action Ottawa as the City’s primary vehicle for delivering new affordable housing units. Since 2002, the City has provided funding for 11 projects and 619 units of affordable housing, ranging from new co-operative housing developments to supportive housing for people with mental health issues and other support needs. This includes housing developed with funds from the CRHP and Strong Start.
Table 2: Action Ottawa Summary 2002 to 2006
Action
Ottawa |
#
units funded |
Total
Project Cost ($M) |
Fed ($M) |
Prov. ($M) |
City
Capital ($M) |
City
Other ($M) |
Target |
Gap Units |
2002 |
39 |
$4.7 |
- |
- |
$1.0 |
$0.8 |
- |
|
2003 |
0 |
$0 |
- |
- |
- |
- |
- |
|
2004 |
271 |
$35.7 |
$6.8* |
$0.9 |
$3.3 |
$3.3 |
- |
|
2005 |
139 |
$23.4 |
$3.3 |
$5.0 |
$4.5 |
$0.8 |
500 |
(361) |
2006
est. |
176* |
$29.6 |
$5.2 |
$8.5 |
$5.3 |
$1.2 |
500 |
(324) |
2007 |
- |
- |
- |
- |
$0
avail |
- |
500 |
(500) |
Total |
625 |
$93.4 |
$15.3 |
$14.4 |
$14.1 |
$6.1 |
1,500 |
(1,185) |
Note: this table includes recent adjustments to
the cost sharing between federal and provincial programs
* includes 85
“supported” housing units targeted to specific client populations
**Federal
Homelessness funding of $1.2 million was also provided to 2 projects in this
program.
In 2004, staff undertook a series of consultations with community stakeholders to review the City’s affordable housing programs and establish a framework for the future. The consultation included both private and non-profit sector developers and landlords, social service agencies and other partners in the housing system. The consultations were intended to better define the principles and objectives for the City’s current and future housing delivery programs.
1. Development of affordable housing is a participatory process.
2. A range of housing options is required to meet the diverse needs of our community.
3. Assistance should be targeted to people in need.
4. Returns on City investments in affordable housing should be proportional to amount invested: larger investments should return greater housing affordability.
5. Predictability is necessary to support affordable housing development.
6. Opportunities for innovation are created and supported.
The Province has recently provided guidelines for the Housing Allowance Program, Home Ownership Program, and the Rental and Supported Housing Program. Based on the principles outlined above, and analysis of the program guidelines and their applicability to Ottawa, staff developed a Housing Delivery Plan (Attachment 1) outlining how the City and our partners will deliver the various streams of the Affordable Housing Program (AHP).
Staff support the principles of the AHP, and strongly support the provision of these funds to Ottawa to address pressing needs for affordable housing. However, the program guidelines as presented by the Province create significant difficulties to delivering the programs:
· The principle of having a range of funding tools to work with to address local issues is sound, but this potential has been lost due to the rigid compartmentalization of the programs streams, without the ability to transfer program funding between streams to better meet local needs.
· Programs are too prescriptive in terms of how they are to be administered and delivered, and therefore any flexibility to meet local needs via local capacities is not available. For example, the Housing Allowance program provides a fixed amount of funding, and specifies not just targets but the number of units the City must deliver under the program. This means that the amount of subsidy available to any participant is more or less fixed, and there is no ability to adjust the subsidy to match incomes, rents or other needs.
· Programs have contradictory objectives and outcomes, for example the Housing Allowance program is intended to fill vacant units, but requires tenants to vacate units they are already living in.
· Programs are targeted to meet low-income housing needs, including households on the waiting list for social housing, but the funding provided is not sufficient in any program stream to meet those targeted needs.
· Programs leave significant cost and liability with the City in terms of risks in delivery (new construction) or costs when program funds run out (Housing Allowances expire in 5 years regardless of tenant need).
Specific issues of concern, by program element are:
1. Requirement to allocate the downpayment grants (up to $10,000) to the public by an open application “lottery” process
Our experience
suggests allocating a block of downpayment grants to a specific affordable
ownership development would be a more effective approach. The City can then “bundle” incentives, such
as deferral of Development Charges, to achieve even greater affordability. This approach is consistent with the
Province’s pilot project in Toronto.
2. Provincial guidelines suggests funding be targeted to people on the social housing waiting list.
The 5% down
payment assistance alone is not enough to assist households on our waiting
lists, who tend to have incomes at or below the 20th income
percentile ($31,453).. Households at
the 30th to 40th income percentile (incomes of $44,314 to
$56,798) can afford a home priced between $162,000 and $207,000 which is
possible in the Ottawa housing market and is consistent with Official Plan
policies and targets for affordable housing.
Downpayment assistance could be very effective if partnered with a
housing developer that has the ability and mandate to make housing affordable
to households with very low incomes.
3.
There is significant overhead involved
in administering this program.
Each
downpayment grant requires a separate application, unit inspection, and
registration of a second mortgage as security.
Mortgage registration alone (at $500/mortgage) is conservatively
expected to cost about $100,000. The
province is providing administration funding of about $68,000 for the whole
program.
4. Requires establishing a Revolving Loan Fund for repayments and interest, where funds can be reused on an on-going basis to support grants to future homeowners.
The principle of this reuse of funds is good, but confers a significant and on-going cost to the City to administer such a Fund. No such vehicle exists at this time, and the expected benefit of such a program is minimal, especially as housing costs continue to rise. Staff recommend that repaid funds be deposited to a Housing Trust Fund that would be used to support future affordable housing programs that may include home ownership assistance, new affordable rental housing, housing allowances or any other program as approved by City Council.
Key barriers to participating in this program:
1. Fixed
shallow subsidies that cannot be effectively adjusted to meet varying needs or
opportunities.
The program sets the total budget and specifies how many units must be delivered by the Service Manager, in effect defining the amount of subsidy that can be applied per unit regardless of actual costs or tenant needs and ability to pay. An “envelope” approach that specifies the total amount of funding and allows flexibility in how that funding is used would ensure that the program is able to be adapted to support local needs.
2. The 5-year limit on funding with current program structure.
As currently proposed, the program imposes a significant potential financial risk to the City and to some of the participating tenants, because some participating tenants will likely be forced to vacate their units when the program expires unless the City is willing and able to step in and continue the subsidy funding to those tenants. One option is for the City to establish funding to bridge the close-out of the Federal AHP funding, or to increase the level of subsidy and/or the number of units. If the Province agrees to the City’s approach for this program stream, these alternate options will be costed, and in the meantime staff would implement the housing allowance program with AHP funding only. While recognizing and supporting the intention that this program only provides short-term assistance, it may be preferable to subsidize fewer tenants but with the capacity to continue the subsidies beyond five years if necessary.
3. The program requires participating tenants to vacate their existing housing in order to occupy vacant units elsewhere.
This does nothing to address the core program principle of reducing vacancies and imposes additional costs to tenants to pay for moving in order to benefit from the program. Further, the program could drive up rental costs in the private market, as tenants vacate units and rent new units with the housing allowance.
A more appropriate approach would be to allow the use of these allowances “in-situ”, to provide a longer-term assistance to tenants who are in danger of losing their current housing due to lack of income, and who might otherwise become homeless. This approach would dovetail well with other programs and services already in place, such as the Rent Bank.
Alternatively, unallocated Housing Allowance funds could be used to supplement existing rent supplement programs over the short term, allowing re-deployment of longer-term supplements.
4.
Administrative Costs
Funding to support the administration of the
Housing Allowance program is being provided as part of the Provincial
allocation, based on $15.60 per month for the first 50 housing allowances, and
$13.00 per month for the remainder.
Based on the 5-year time frame of this program, and the allocation of
400 units, this will result in a payment of approximately $319,800.
1. The principle that on average, units funded under this program should not exceed 80% of Average Market Rent is appropriate, but achieving this goal requires significantly more capital funding than the Province is prepared to provide.
In the Strong Start portion of this program, in addition to the $60,000 average per unit funding provided by the AHP, the City of Ottawa provided a per unit average of $32,000 in capital plus $9,000 in waived DC’s, fees and land, and other incentives. This additional funding was necessary to ensure that the rents are significantly below Average Market Rents in Ottawa. In our experience, achieving the rent levels expected under the AHP requires more than $70,000-$75,000 per unit provided under the AHP.
The AHP requires a much different approach to delivery and administration than previous social housing programs, which tended to be largely self-contained in terms of access to financing, cash flow and other parameters. AHP projects need to compete in the private market for land, mortgage financing and other supports, and in effect, the approach needs to be more like that of an investor in development than an administrator.
3. Administration
The AHP does provide some funding for administration of the Rental and Supported Housing program, based on a lump sum payment of about 1.4% of the total capital contribution to each project. In Strong Start, this amounts to $108,420. In the remaining portion of the AHP this will amount to approximately $207,730 for the Rental and Supportive Housing Stream for a program total of up to $316,150. This is sufficient to retain approximately 3 person/years of staffing, however, the delivery of this program will take about 3 years, and administration of the contracts is required for at least 20 years after that. There are currently 2 FTE’s in the Affordable Housing Unit. Council approved the addition of up to 2 FTE’s in 2006 based on access to AHP funding.
While Federal (and any Municipal funding) will flow to developers based on achieving standard construction milestones, the provincial funding is not “up front” cash, but instead a monthly “Affordability Payment” to be paid over 20 years. This approach requires developers to take out additional mortgage financing equivalent to the total value of the provincial share. This poses some additional risk to the developers because the Province is prepared to pay a maximum of the CMHC ceiling rate set out in the CMHC certificate of insurance pertaining to the project. It is still unclear what happens if mortgage rates go up when refinancing. It is also clear that the Province will not provide additional funds to cover the cost of borrowing during construction.
It is also not clear if the Provincial cash flow payments are guaranteed. The federal and municipal contributions are “guaranteed equity” because they are provided in cash to the developer based on the achievement of construction milestones. The province needs to guarantee payment of their contribution until the project is deemed to be in default and action is being taken to recover funding and/or transfer the operations.
The supported housing element of this program is another cause for concern. The program guidelines specify that 85 “supported” units must be funded under this program, and that these units must be made available to victims of domestic violence (45 units) and people with mental illness (30 units). The principle of including these client groups in housing communities is sound, however there is concern about the level of supports offered through referral agreements and the lack of dedicated support dollars for the housing provider.
In supported
housing services are linked to the tenant and provided by an external service
provider. In supportive housing there
are on-site support services linked to the housing provider. Tenants living in supportive housing may
also have additional supports through other external service providers. Experience has shown that these clients
(particularly mental health) often require significant levels of on-site
support in order to live independently in the community. Housing providers continue to be concerned
that without support dollars for on site support, both clients and their neighbours
may be at increased risk in the event of crisis. The community has indicated a need and capacity to provide both
types of housing.
Supports for victims of domestic violence are mainly through Referral Agreements for services between established service providers and housing agencies. The Ministry of Community and Social Services has committed to improving the capacity of the existing system, both in general terms as well as specifically for any units that might be developed via the AHP. However, options for dedicated transitional or second stage housing need to be considered for funding under the AHP, but there is no provision in the AHP for this level of support service.
For people with mental illness, there are some good models in Ottawa to address these housing needs through referral agreements such as with CMHA, as well as through supportive housing provided by Ottawa Salus and Options Bytown where there are on-site supports. The AHP program does not provide funding for on-site support and instead is relies on linkage between these housing providers and the community-wide support of case workers and Assertive Community Treatment (ACT) teams.
The ACT program (MOHLTC) and VDV support services (MCSS) are supposed to be getting additional funding in order to support the 30 mental health units and 45 units for victims of domestic violence. City staff support any efforts to improve the capacity of the service system to provide supports throughout our community.
Given the significant need for supported housing, staff recommend that the City facilitate access to the supported housing program. The Housing Branch proposes to manage the delivery of the capital funding and development elements of this housing, in accordance with the Action Ottawa program, and will facilitate engagement between MCSS and MOHLTC and the housing provider to ensure coordination of the available support services. The Housing Branch does not currently have the capacity to work on developing these linkages, and MCSS and MOHLTC staff will need to engage in capacity building and developing linkages in cooperation with the City’s Housing Branch.
The City should
not take responsibility for the delivery of those support services, given that
those services remain under the jurisdiction of the Province, the respective
ministries, and their dedicated service agencies.
Staff has significant concerns about the viability of the AHP and the liability risk to the City of agreeing to deliver the AHP, particularly due to the limited net benefit to the low income people in Ottawa of the relatively shallow subsidies or funding that would be provided.
The AHP includes funding to administer the various programs, which will result in approximately $703,950 being provided to the service manager if we fully participate. However, the delivery and administration of these programs ranges from 5 to 20 years, and possibly longer in the case of the Revolving Loan Fund required under the Home Ownership Program. Given staff experience in administering Rent Supplement programs, Action Ottawa and the new affordable home ownership initiatives, this funding is clearly inadequate. The AHP confers significant costs to deliver with on-going costs to the City to administer and monitor.
A number of Service Managers have already indicated that they will not participate in the AHP or elements of it, because the risks outweigh the perceived benefits to their communities. However, City of Ottawa staff believe that these programs are important and necessary to meet some of the housing needs in Ottawa, and are recommending that the Housing Delivery Plan (attached) be submitted to the Province.
The Plan describes in general terms how staff recommend the Homeownership, Housing Allowances and Rental And Supportive Housing Program streams be delivered in Ottawa, based on our experience. Our approach does not coincide with all of the requirements and directions of the Province, particularly in the Homeownership and Housing Allowance streams. Also, the province is seeking more detail about exactly when, where and how the programs will be delivered. For example, we are recommending that the Housing Allowances program be made available, at least in part on, subsidize tenants in danger of losing their housing due to short-term crisis. The Provincial guidelines do not permit this. Since it is not clear at this time whether the province will support the alternative delivery approach staff propose, we have not put significant energy in a detailed delivery plan.
The City of Ottawa has established and successful approaches to undertake the delivery of the AHP, and staff anticipate no difficulties in delivering the programs provided the Province is willing to permit flexibility in the way the programs are delivered.
It is not clear at this time whether the province will support the alternative delivery approach being proposed. If the Province does not support any or all of the proposed approaches to the three program streams, Staff recommend that the City not participate in those streams, and further that Council advise the Province that the funds allocated to Ottawa under the AHP should remain in Ottawa, either for redistribution into other program streams or for direct delivery by the Province.
As a result of the past 4 years of experience, stakeholder consultations, and in order to support full participation in the AHP, the following changes to the Action Ottawa guidelines will be implemented:
1. Using Zone and City-wide
Average Market Rents
Average Market Rents (AMR) are defined by CMHC in their annual reporting of rental rates. Previously, staff have used the City Wide AMR, which can be more restrictive than the AMR’s by zones within the City. In the AHP and in future programs, staff will apply the AMR’s based on the most equitable and appropriate rate for the specific project depending on location. However, all units will be either “city-wide” or zone, not a mix of the two.
2. Unit Sizes
Proponents will use the maximum unit sizes as a guideline, however, as long as the project meets the City’s affordability requirements, is financially viable, and there is no difference in size between AMR units and affordable rent units in a given project, the City will not impose a size limit on the unit. It is recognized that accessible units will generally be larger than conventional units.
3. School Board Development Charges
In July 2004, the School Boards instituted changes to the School Board Development Charges. School Board Development Charges as of Sept 2004 are as follows:
$367/unit Carleton Roman Catholic School Board
$518/unit Carleton District School Board
$ 68/unit French Public School Board
$ 41/unit French Separate School Board
$994/unit Total School Board
Development Charges.
The City has no authority to waive school board fees as they are Provincially mandated and controlled through the school boards. In keeping with past practice of waiving development fees and charges, staff propose that the City’s capital contribution to affordable housing under the Action Ottawa, including the AHP or successor program, includes a grant-in-lieu of school fees.
Also, staff are requesting that the school fees paid by Action Ottawa projects since the new fees were levied be rebated, as follows:
- CCOC - 1142 Richmond Road = $20,300
- Ottawa Salus = $38,766
5. Building Permit Fees – Grant In Lieu
In June 2005, legislative changes were made that no longer allow the City to waive building permit fees for non-profits. In any future affordable housing programs, the City’s capital contribution will include a grant in lieu of these fees to ensure that the City policy to relieve development fees to non-profit housing developers continues to be implemented. On April 12, 2006, in adopting the recommendations for Fee Relief for Construction/Renovation of Charitable and Non-Profit Affordable Housing (ACS2006-CPS-HOU-0004), Council directed staff to bring forward a report to identify 2007 budget pressures to continue to fund permit relief for affordable housing projects. The estimated fees for new construction under the AHP totals approximately $300,000.
6. Environmental Efficiency
criteria
Action Ottawa encourages projects that are energy efficient and that incorporate measures that will reduce utility and heating costs either to the tenant or housing provider.
7. City owned properties
The following City owned properties are to be made available for Action Ottawa, as per the Housing First policy:
· Beaver Barracks, located at 424 Metcalfe St., in Somerset Ward 14. The site is 0.54 hectares, and would support approximately 180 units of housing and other uses. This site has already been approved for disposition to the Action Ottawa program, and staff intend to issue an RFQ to develop a costed design plan for this site to ensure that the complex site requirements are met and that appropriate funding is made available.
· 1143 Randall Ave., located in Alta Vista Ward 18. The site is 0.28 hectares and would support approximately 23 units of housing.
·
260 Tompkins
Ave., located in Orleans Ward 1. The site is 0.6 hectares and would support
approximately 22 units of housing.
CONSULTATION
Stakeholders in the Action Ottawa program were consulted through 2004 on
principles and objectives of the City’s involvement in supporting affordable
housing, and those recommendations are incorporated into this report and the
proposed Housing Delivery Plan, attached.
A draft version of this report and the Housing Delivery Plan was circulated
to key stakeholders in May 2006, and a stakeholder forum was held on May 26th,
where the Plan was discussed and feedback received.
It should also be noted that staff have been negotiating the design of
the AHP with Ministry of Municipal Affairs and Housing staff since November
2004, via the Association of Municipalities of Ontario Municipal Advisory
Group.
FINANCIAL IMPLICATIONS
Operating
Council approved the addition of up to 2 FTE’s in the 2006 based on access to AHP funding. The Administration funding provided by the AHP is sufficient to support the initial delivery of these programs, but will not address all program costs. Funding to support potential delivery costs is included the request for capital funding, as below.
Capital
No capital funding is required to participate in the Home Ownership or
Housing Allowance streams of the Canada/Ontario Affordable Housing Program,
however a portion of the capital funding budget for the AHP includes the costs
to deliver these programs.
In order to achieve the desired level of low-income affordability in the
Rental and Supportive stream of the AHP, staff estimate that up to $10.7
million in capital will be required, as follows:
-
$9,450,000 for
capital grants at an average of $30,000 per unit for 315 units
-
$474,500
(estimated) for grants in lieu of Building Permit Fees and School Board fees
-
$340,000 for
capital grants to provide accessibility for physically disabled tenants, based
on $10,000 per unit for 34 units
-
$59,066 for
rebate of School Board fees paid by two previous Action Ottawa projects (Ottawa
Salus at 309 Athlone Ave., and Centertown Citizens of Ottawa Corp at 1140
Richmond Rd.)
-
$273,600 for
temporary staff and other resources to set up, administer and monitor the AHP
programs over the next 5 years
-
$100,000
contingency based on 1% of total capital project budget
On August 25, 2004, $7.3 million in operational savings within the
Housing Branch programs was transferred to the Social Housing Reserve to
support Action Ottawa projects. An additional
amount of up to $3.4 million will be required to fully support the AHP.
These funds are available in the Social Housing Reserve, which, as of
April 30, 2006 has a balance of $5.6 million.
However, about $3.5 million in current costs for social housing programs
has been identified against this balance, leaving an effective balance of $2.1
million.
Staff recommend the transfer of $2.1 million from the Social Housing
Reserve to the Affordable Housing Building Fund. Staff will also bring forward a recommendation that up to $1.3
million be provided from the City Wide Reserves in 2007 to
support the remainder of the program.
Any funds remaining in the Affordable Housing Building Fund after all
approved projects I the AHP have been built and occupied will be deposited back
to the Social Housing Reserve.
With specific respect to recommendation 3, there is presently no current
budget identified to fund this initiative.
As part of the 2007 budget, the Community and Protective Services
Department will bring forward a budget pressure identifying the funding
requirement. The tax increase forecast
for 2007 as presented in the 2006 Draft Budget Summary document was projected
to be 8.1%. The impact of this
additional requirement in 2007 will result in an 0.14% tax increase. All additional requirements approved by
Council that have a 2007 budget implication will be summarized and presented in
the City’s Quarterly Status Report.
If the additional capital funding
identified in recommendation 3 is not provided, the result will be a reduction
in total number of units that can be delivered under this program by about 40
units, for a program total of about 275.
SUPPORTING DOCUMENTATION
Document 1: City Of Ottawa Housing Delivery Plan
DISPOSITION
Housing Branch will submit Council approved Housing Delivery Plan to the
Province.
Upon approval of the HDP by the Province, the City Manager on behalf of
the City will enter into a Contribution Agreement for the Affordable Housing
Program.
Housing Branch will
develop and administer Requests for Proposals for the rental stream of the AHP
according to established practices under Action Ottawa, and including access to
City owned lands located at 424 Metcalfe St., 1143 Randall Avenue and 260
Tompkins Avenue.
Housing Branch will solicit interest from developers to implement the Home Ownership program.
Housing Branch will work with the Employment and Financial Assistance Branch, private and non-profit landlords, and other community agencies to deliver the Housing Allowance program in accordance with the Housing Delivery Plan.
Finance will transfer $2.1 million from the Social Housing Reserve to the Affordable Housing Capital Fund and will include a request for an additional $1.3 million in the 2007 Capital Budget request.
DOCUMENT 1
City of Ottawa Housing
Delivery Plan
This Housing Delivery Plan is a statement of the
City of Ottawa’s intentions for the delivery of the Canada-Ontario Affordable
Housing Program (AHP). The Plan
continues the policies and practices established in the 2002 Affordable Housing
Strategy, the Action Ottawa program, and the Official Plan policies to
encourage affordable housing in Ottawa.
The Housing Delivery Plan addresses the
Homeownership Program, Housing Allowance Program, and the Rental and Supportive
Housing Program. It is a statement of intentions that will communicate program
priorities to the community and the Province, and will govern the delivery of
the Affordable Housing Program in Ottawa.
Homeownership Program
The
Homeownership component of the AHP was developed to assist low to
moderate-income rental households in purchasing affordable homes. The objectives of the program are to:
·
Ease
the demand for rental housing by assisting renter households across the
province in purchasing affordable homes;
This section of the Housing Delivery
Plan (HDP) relating to the Homeownership component of the AHP addresses:
The Provincial allocation to
Ottawa under this program is 232 units for a total amount of $2.025
million. The maximum per unit grant is
$10,000.
Provincial Program Guidelines |
City of Ottawa Program Delivery |
Purchaser Selection Purchasers
will be selected through a fair and open process developed by the Service
Manager based on local criteria and defined needs specified in the Service
Manager’s Housing Delivery Plan. The
Service Manager must make information about the Homeownership component –
including administrative procedures – available to the public. This must include information about the
application process and selection procedures in the Service Manager’s
area. This allows potential purchasers
to self-identify and submit their names for consideration for down payment
assistance under the Homeownership component. |
Downpayment subsidies will
be provided to purchasers by working with developers of ownership housing who
are willing to provide affordable housing units at or below $196,000. Private sector developers
will be expected to match the value of the downpayment subsidy and/or other
any incentives offered by the City such as deferral of specified Development
Charges and fees by offering an equivalent reduction in the price of the
unit. Non-profit developers will
not be expected to provide matching subsidies. Preference will be given
to projects that provide long term affordability (at least 20 years), that
reach a deeper level of affordability, and provide mechanisms to control sale
and resale of participating units.
Projects that include mixed income opportunities are preferred. |
Target
Groups Service
Managers are encouraged to address target groups identified under the new Affordable
Housing Program Agreement, and/or appropriate provincial targets (e.g.
seniors and social assistance recipients), and/or groups identified through
municipal needs assessments or other methods (e.g. first-time home buyers,
new immigrants, single parent households, recent graduates). |
The
Housing Branch will use the existing City of Ottawa policies for supporting
affordable home ownership programs as outlined in the Official Plan and as
approved by Council. All of the
Provincial target groups will be eligible for participation in this program,
but will not be targeted. |
Purchaser
Eligibility To be eligible for down payment assistance under the Homeownership
component of the AHP, prospective purchasers must meet the following minimum
criteria: -
Be a renter household buying a sole and principal residence; -
Have incomes at or below the 50th percentile income level
for the Service Manager area or the province, whichever is lower; and -
Meet any additional
criteria as established and communicated by Service Managers. |
Eligibility
will be restricted to renter households buying a sole and principle
residence. The
City of Ottawa has established policies for affordable housing in the
Official Plan, which include a maximum income level at the 40th
income percentile. In 2005, this
meant incomes at or below $56,798, which would allow the purchase of a house
worth no more than $207,871. This is
the upper income level that will be supported in this program. However, the maximum unit price allowed in
this program will be $196,000 as per Provincial guidelines. |
Eligible Housing Homes eligible under the Homeownership component
of the AHP include: -
New units, including conversions from non-residential use that
include a new home warranty; -
Resale homes, provided a home inspection is undertaken at the
prospective homeowner’s expense. (It is strongly recommended that all
prospective homeowners undertake an inspection for new homes); -
Homes where the purchase price
does not exceed prices affordable to households at the 50th percentile of
income or levels affordable to target groups who are on, or are eligible to
be on, social housing waiting lists. |
Homes eligible under the Homeownership component of the AHP will
include: -
New units, including conversions from non-residential use that
include a new home warranty; -
Resale homes will only be eligible if part of a bulk acquisition and
renovation project of at least 7 units; -
Condo units that are currently in use as affordable rental housing
are not eligible. -
Homes where the purchase price does not exceed prices affordable to
households at the 40th percentile of income or levels affordable to target
groups who are on, or are eligible to be on, social housing waiting lists. |
Unit location Units are to be located in
urban revitalization areas as defined by Service Managers for the purposes of
the Program. |
Units
may be located anywhere within the boundaries of the City of Ottawa. |
Unit Form Units may be detached,
semi-detached, town (condo and freehold), stacked homes, row houses, or
apartments. The home must be modest
in size, relative to community norms, in terms of floor area and amenities,
as determined by the province and the Service Manager. The home must be the sole and principal
residence of the purchaser. |
Units may be detached,
semi-detached, town (condo and freehold), stacked homes, row houses, or
apartments. The home must be modest
in size, relative to community norms, in terms of floor area and amenities,
as determined by the province and the Service Manager. The home must be the sole and principal
residence of the purchaser. |
Maximum unit
price
The purchaser’s housing costs must be at or below
the average market-selling price for the area, and must not exceed $196,000
or what is affordable to households at the 50th percentile of
income for the Service Manager area or province, whichever is lower (see
Appendix B). Service Managers may
establish their own maximum house price and household income level, provided
it is consistent with mandatory program requirements. |
Maximum
income levels shall be no greater than the 40th income percentile
as published by the City of Ottawa year to year. In 2006, the 40th income percentile income was
$56,798. Maximum
unit prices shall be $196,000, which is within the maximum affordable house
price for a household earning the 40th income percentile income of
$56,798, and paying 30% of their income on occupancy cost. |
Use
of Downpayment Assistance An
eligible purchaser will use Homeownership assistance as a down payment on the
purchase of a new or resale home. The
down payment assistance will be five percent of the cost of an eligible home
under the Homeownership component. |
The
down payment assistance will be five percent of the total purchase cost of an
eligible home, and must be used by the purchaser as a downpayment. |
Income Verification
Service
Managers should establish an approach to income verification in order to
target households in need. |
Incomes will be verified at the time of purchase. |
Securitization
and Repayment Service
Managers register an appropriate security agreement (e.g. a mortgage) with
the purchaser on title to provide a mechanism for the repayment of the down
payment assistance, and five percent of the realized capital gain. to the
Homeownership Revolving Fund, when ownership changes as a result of the sale
of the house or the death of the homeowner. Service Managers may
choose to allow homeowners to repay the down payment assistance within the
20-year affordability period without selling the home. Homeowners are still be required to repay
five percent of the realized capital gains if the house is sold within 20
years of the date of purchase. |
The
City of Ottawa will register a Second Mortgage for the value of all public
contributions, including any downpayment assistance under the AHP. Homeowners
may repay the down payment assistance within the 20-year affordability period
without selling the home. Homeowners
are required to repay five percent of the realized capital gains if the house
is sold within 20 years of the date of purchase. Repayment
provisions will require that upon change in ownership or other sale of the
participating unit, the principle (initial downpayment subsidy) plus 5% of
any realized capital gains will be repaid to the City unless the home is sold
at an affordable price according to the City’s Official plan to a qualifying
household. The
service manager will deposit all proceeds from the sale of participating
units, including but not limited to: -
the Homeownership Assistance
payment; -
5% of the realized capital
gains; the value of any incentives or investments made by the City to improve
affordability, into a dedicated Housing Trust Fund that will be used to
support affordable housing initiatives in the City of Ottawa that may include
home ownership assistance, new affordable rental housing, housing allowances
or any other program as approved by City Council. |
Waiver
of Repayment In
cases where a home is sold within the 20-year affordability period but the
seller experiences a capital loss, repayment of the Homeownership down
payment assistance would be waived provided the sale meets the following
criteria: -
The unit is sold at a fair market value; and -
The purchase and sale of the
unit is an arm’s-length transaction. |
In
cases where a home is sold within the 20-year affordability period but the
seller experiences a capital loss, repayment of the Homeownership down
payment assistance would be waived provided the sale meets the following
criteria: -
The unit is sold at a fair market value; and -
The purchase and sale of the
unit is an arm’s-length transaction. Repayment may be waived or
reduced in cases where there are restrictions on resale that ensure the long
term affordability of the unit. |
Right to Purchase Funded Units |
The service manager shall
retain the right to purchase participating units upon resale, and will ensure
that fair resale values are offered as determined by a fair appraisal
undertaken at the service managers expense, unless City approved alternate
arrangements are in place to restrict resale to qualified households. |
Training and Education |
The
service manager will explore training and education programs in partnership
with CMHC, area banks and developers. |
Reporting |
The
service manager will provide annual reports on the progress of the
Homeownership component as per Provincial requirements. |
The Housing Allowance program is a component of the broader Affordable
Housing Program (AHP), a partnership program cost-shared between the federal
and provincial governments.
The Housing Allowance program was developed as an exceptional, interim
measure to enable service managers to respond immediately to requests by
low-income households for affordable housing by creating affordable rental housing
in rental markets with high vacancy rates.
A “housing allowance” is a supplement paid to the landlord on behalf of
households in need of rental assistance.
It is meant to help bridge the difference between the rent that a
household can afford to pay and the actual market rents.
Provincial Program Guidelines |
City of
Ottawa Program Delivery |
Eligible
Households To
be eligible for the program, households must on or be eligible to be on
social housing waiting lists. To be
eligible to be on the list, households must meet Household Income Limits
(HILS), as updated annually. Households
in receipt in rent-geared-to-income (RGI) benefits are not eligible to
participate in this program. |
Households
will be on or eligible to be on the centralized waiting list as administered
by The Registry. The HILS and
associated affordable rents for Ottawa are: Bachelor
unit = $26,500 = $662.50 per month 1
Bedroom unit = $31,500 = $787.50 per month 2
Bedroom unit = $38,500 = $962.50 per month 3
Bedroom unit = $47,500 = $1,187.50 per month 4+
Bedroom unit = $55,000 = $1,375.00 per month Households
in receipt of rent-geared-to-income (RGI) benefits are not eligible to
participate in this program. |
Target
Populations 10%
of each Service Managers total unit allocation is to be dedicated to victims
of domestic violence (VDV). Service
managers must fulfill their target through household referrals from Ministry
of Community and Social Services (MCSS) designated agencies assisting VDV
clients. |
The
City of Ottawa will reserve a minimum of 10% of the 400 units, or 40 units,
allocated to Ottawa for VDV and will work with MCSS designated agencies to
enable take-up of these units. |
Eligible Units To
be eligible, units must be self-contained.
Hostel units, group home or congregate living arrangements, nursing
and retirement homes are not eligible. Units
occupied by applicant households (i.e., in-situ arrangements) are not
eligible. |
Only
self-contained units will be eligible, including Rooming House units. Supported hostel (shelter) units, group
home or congregate living arrangements, nursing and retirement homes are not
eligible. The
Service Manager reserves the right to provide Housing Allowance subsidies to
in-situ arrangements depending on tenant need and landlord willingness to
participate in the program. |
Maximum
Rents Service
managers are responsible for ensuring that the gross monthly rent for a unit
(fully serviced, including heat, water, hot water, stove and refrigerator)
does not exceed the Canada Mortgage and Housing Corporation (CMHC) market
rent for the area. |
CMHC
average market rents will be used to define the maximum rent to be charged
under this program does not exceed the published Average Market Rents for the
zone in which the unit is located.
CMHC AMR rents do not distinguish between whether utilities are
included or not. |
Unit
Condition Units
must be in satisfactory state of repair. |
A
statement by the landlord confirming that the unit meets all building code,
and health and safety requirements will be provided. If at any time the unit proves to not meet
those standards, the landlord will be required to bring the unit up to a
reasonable standard. If the
participating tenant is displaced as a result of this work, an equivalent or
better unit must be provided by the landlord at the same rent as agreed upon
when entering into this program.
Otherwise, the full amount of subsidy provided to the time of the unit
not being in reasonable state of repair will be refunded by the landlord. |
Procurement
Procedures Service
managers must issue a public notice requesting landlord participation in the
program. Landlords may then be
selected through one or more of the following options: -
A competitive process
(previous or current) -
Pre-existing inventories of
units established for other programs -
An open process to identify
potential landlords (e.g., advertisements through associations such as the
Fair Rental Policy Organization and Greater Toronto Apartment Association,
etc.) -
Household’s own selection |
Public
notice of the program will be provided.
Selection of participants will be undertaken via a combination of the
prescribed options. |
Income
Verification Service
Managers must conduct annual income testing of selected households to ensure
their continued eligibility, but may exempt specific types of households from
income testing (e.g., seniors on
fixed incomes). |
Annual
income testing of selected households will be undertaken as part of the
contractual agreement with landlords.
Some types of households may be exempted based on income sources. |
Take Up Plan To
be eligible for funding, service managers are required to submit a Housing
Allowance Take-Up Plan and to maintain and modify it throughout the duration
of the Agreement. |
The
Housing AllowanceTake-Up Plan is a document that records the number of units
committed and the program expenditures for those units by quarter. The report will be submitted on an annual
basis. |
Average
Subsidy Based
on a requirement to fund 400 units under this program, the average per unit
subsidy in Ottawa under this program will be $240. |
The
shallow subsidy will not generally reach households on the waiting list, and
the requirement to fund a specified number of units minimizes service manager
flexibility to apply funding to meet stated program objectives or to respond
to local needs and housing availability.
The
service manager will make every effort to achieve the stated unit target, but
will reserve the right to adjust the subsidy on a case-by-case basis to
ensure that appropriate levels of affordability are being supported on a
case-by-case basis. |
Term
of Program There
is a maximum 5-year term for each housing allowance agreement between the
service manager and the landlord. Expenditures
of funding under the Program cannot continue after March 31, 2013. |
The
termination of this funding may mean that some tenants will be forced to
vacate their units. The
service manager will target the program to households that are not in core
housing need and thus are more likely to only require subsidy for a short
period of time, which may require applying the subsidy “in-situ” to prevent
housing loss. Expenditures
of funding under the Program will not continue beyond March 31, 2013 |
Payment
Flow Housing
Allowances must be unit-oriented, and payments must flow to landlords. |
This
approach makes the program significantly administratively heavy, and the
Service Manager reserves the right to make payments directly to tenants
depending on situation and need. |
Stacking
of Subsidies Program
funding within the AHP may be stacked, within the following funding limits: -
For any AHP Pilot Project that
received federal funding under the Community Rental Housing Program, the
maximum combined federal funding for each unit cannot exceed $25,000. -
For units receiving funding
under the current AHP, the maximum combined Federal funding is $75,000 over
the 5-year term. |
Affordable
housing projects funded under the CRHP were funded to the maximum amount of
$25,000 of federal funding. Proposals
to stack the Housing Allowances on top of new AHP capital funding will be
considered, but in most cases it is expected that the maximum federal funding
will be provided as part of the capital contribution under the Rental and
Supported Housing program stream. Any
projects seeking both AHP capital funding and stacked Housing Allowances
Mechanisms must demonstrate how they will maintain financial viability
without additional operating subsidies when the Housing Allowance funding
ends after 5 years. |
Reduction
of OW and ODSP Shelter Payments In
cases where the combination of the shelter component of Ontario Works (OW) or
Ontario Disability Support Payments (ODSP) and the housing allowance results
in a reduction of shelter payments, housing allowance payments must be
reduced so that there is no reduction of the shelter component of benefits. |
Housing
allowance payments will be reduced so that there is no reduction of the
shelter component of benefits from Ontario Works (OW) or Ontario Disability
Support Payments (ODSP). |
Rental and Supportive Housing Program
The City of Ottawa Housing
Delivery Plan for the Rental and Supportive stream of the Affordable Housing
Program is based continues
the policies and practices established in the 2002 Affordable Housing Strategy,
the Action Ottawa program, and the Official Plan policies to encourage
affordable housing in Ottawa.
The Rental and
Supportive program provides federal and provincial funding that reduces the
cost to develop and provide housing units.
An
average program contribution of $70,000 per unit (38% federal and 62%
provincial) is available from the Affordable Housing Program for eligible
rental and supportive housing projects.
The federal funding will be provided during construction and at initial
occupancy. The provincial funding will
be provided via monthly payments over 20 years.
The City of Ottawa will deliver this program
through the existing Action Ottawa program, that includes the provision of
additional municipal capital, development incentives and in some cases, land to
further increase the affordability of the housing produced. Projects are selected via Request for
Proposals.
The total allocation to Ottawa under this
program is 315 units. 139 have already
been funded under the Strong Start portion of the AHP in the fall of
2005. The remaining 176 units are
divided into 91 low-income rental units and 85 “supported” housing units,
targeting victims of domestic violence (45 units) and people with mental
illness (30 units).
Table A: Affordable Housing
Program Summary
Action
Ottawa |
# units
allocated |
Total
Project Cost ($M) |
AHP |
City
Capital ($M) |
City
Incentives ($M) |
|
Fed ($M) @ 40% |
Prov. ($M) @ 60% |
|||||
2005 Strong Start |
139 |
$23.4 |
$3.3 |
$5.0 |
$4.5 |
$0.8 |
|
|
|
38% |
62% |
|
|
2006 AHP (est.) |
91 |
$15.3 |
$2.1 |
$3.4 |
$2.8 |
$0.6 |
Supported Housing Units (est.) |
85* |
$14.3 |
$3.1** |
$5.1** |
$2.6 |
$0.6 |
Total |
315 |
$53.0 |
$8.5 |
$13.5 |
$9.8 |
$2.0 |
* Additional 10
units allocated March 27, 2006
** Supported Housing
units are eligible for increased Federal/Provincial AHP funding, based on an
average of approx. $93,700 per unit compared to $60,000 on average for
non-supported units. The overall average per unit contribution for
Federal/Provincial funds for the program as a whole cannot exceed $70,000.
The
specified funding streams will flow to the CMSM as follows:
-
federal funding will be provided
to the CMSM for projects based on the achievement of construction milestones.
-
provincial funding will flow
monthly to the CMSM as a 20-year Provincial Affordability Payment, beginning
with the proponent’s first payment against long term take-out financing. The
payment will flow monthly to the CMSM based on annual qualifying criteria. The provincial payment will cover borrowing costs up to 5.5% or at a rate equal to the
rate established by the Ontario Mortgage Partnership Initiative.
Project
Development Funding is available to proponents once they have a signed
contribution agreement with the CMSM. $150,000 is available for PDF and is
considered part of the total federal funding available for a project.
CMHC
mortgage insurance is available to AHP projects based on capital costs of
project. CMHC insurance premiums will be waived for AHP approved projects. CMHC
insurance is required in order to access OMHI financing.
Provincial Program Guidelines |
City of
Ottawa Program Delivery |
Program Criteria The following program criteria will be used by the CMSM in selection projects and are established as baseline requirements for project to be considered for AHP funding. CMSMs are encouraged to expand the list to meet local needs and criteria. -
Type of Development: New
construction, renovation and rehabilitation, additions, acquisition of rental
buildings or buildings for conversion to rental, conversion of
non-residential buildings, repair to private rental housing, repair to social
housing not receiving ongoing federal subsidies, creation of secondary suites
in ownership housing. Some other restrictions apply. -
Units: housing must be within provincial guidelines for unit size, or
otherwise meet municipally established requirements for size and amenities. -
20 year
Affordability: Projects must demonstrate they will be affordable to target
populations for a minimum of 20 years. -
Special Considerations: Disabled
access, brown fields redevelopment and growth management, need to be
addressed in CMSMs’ selection of projects. -
Equity Requirements: Private-sector proponents will be required to
provide 10% of the lending value of the project. If a private sector developer should partner with a non-profit
housing provider, the equity contribution is reduced to 4%. A non-profit housing provider/developer is
not required to provide equity to receive AHP funding. -
Project Financial
Viability: CMSM must confirm the
proponent’s demonstrated viable financial plan, adequate construction and
property management experience to undertake the project. -
Secure Site: Confirmation that a suitable site has been
secured or for which an offer to purchase or lease is pending. -
Energy Efficiency:
Incorporation of energy efficiency measures. (Criteria is subject to further
discussion) -
Condominium Registration: Will
not be restricted by the Ministry, but may be restricted by individual CMSMs
with council approval. |
Action
Ottawa is primarily focused on new development, conversions and additions,
but proposals for alternative forms of provision of new affordable housing
units including acquisition of rental units will be considered. Repairs and renovations to
existing non-subsidized housing will be considered under exceptional circumstances
only. The circumstances may include: -
Potential loss of stock if the repairs are not carried out; -
There is no need for increased supply; -
A compelling case must be submitted and endorsed by the Service
Manager that all other resources e.g. CMHC RRAP have been exhausted, and that
the owner is prepared to enter into a Municipal Housing Facilities agreement
for at least 20 years, which will include commitments to make 100% of funded
units available to tenants from the centralized waiting list (The
Registry). -
Provincially established
requirements for size and amenities will be respected subject to case-by-case
analysis of proposals, which may require municipally approved exception to
those standards to meet identified client needs.(e.g. accessibility) -
Action Ottawa projects must
provide a minimum of 20 years of affordability. Projects that provide longer terms of affordability are given
priority in the assessment process. -
Action Ottawa includes
provisions and requirements for accessibility and visitability. City owned land that is potentially made
available to Action Ottawa projects are selected based on analysis of
suitability and support for City growth and development policies and
objectives. -
Action Ottawa requires that
private sector proponents provide 10% of the lending value of the project;
private and non-profit partnerships provide 4% of the required equity;
non-profit developers are not required to provide equity contributions,
though are encouraged to do so where possible. -
Financial and management
viability is a key component of the Action Ottawa selection process. -
Proposals must confirm that
the proposed site has been secured. -
Action Ottawa includes
recognition of and preference for improved energy efficiency. -
In general, only rental
developments are supported by Action Ottawa, although condominium
registration which clearly remains as rental housing over the life of the
program will be considered. (e.g. air rights or other reason that condo is
necessary) |
Repairs
to Social Housing Social
Housing repair is an eligible type of development for funding in locations
where new affordable rental stock is not a pressing need. Service managers may decide to repair and
maintain existing social housing stock, making it habitable while ensuring
that a loss of social housing stock does not occur. The new AHP includes repairs to social housing currently not in
receipt of ongoing federal funding. Eligible
Projects -
Units in receipt of federal
assistance eligible for AHP funding are the Rural and Native Housing
homeowner units. -
Projects that no longer
receive federal funding are eligible under the AHP. Any project that has terminated its Operating Agreement is
eligible. -
100 provincially funded social
housing projects are also eligible for AHP funding. Projects
not eligible for funding -
Section 95 Urban Native
non-profits, projects built under former federal/provincial non-profit
housing programs and former Ontario Housing Corporation projects are not
eligible for AHP funding since they are in receipt of on-going federal
funding. -
Section 26 and 27 projects are
not eligible for AHP funding because, although they do not receive an
on-going federal subsidy, their mortgage financing is subsidized and this
continues to be a cost to the federal government. Circumstances
when social housing repair funding can be used Although
social housing repair is an eligible mode of development under the new AHP,
it is important to note that social housing providers proposing repair
projects will be considered under exceptional circumstances only. The circumstances may include: -
Potential loss of stock if the
repairs are not carried out; -
There is no need for increased
supply; -
The exiting stock receives no
federal operating subsidy. A
compelling case must be submitted and endorsed by the Service Manager that
all other resources e.g., capital operating reserves, has been exercised. |
The
primary need in Ottawa for the Rental stream of the AHP is for new
units. Eligible
social housing providers proposing repair projects will be only be considered
under exceptional circumstances as outlined by the Province. A
compelling case must be submitted and endorsed by the Service Manager that
all other resources e.g., capital operating reserves, has been exhausted. |
Target PopulationsPersons on or eligible to be on social housing waiting lists,
persons with mental illness, victims of domestic violence, Aboriginals, the
physically and mentally disabled, recent immigrants, low-income seniors and
the working poor. -
Priority
Groups: Target other priority tenant
group that meet income ceilings established by CMSMs. -
Income
verification: Tenant initial income
verification will be the responsibility of the CMSM. The CMSM will establish the income
levels. The province will require
confirmation at the time of occupancy that tenants’ incoming income meets
local criteria. Annual income
verification process will be at CMSM discretion. |
Action
Ottawa allows proposals for projects that meet a range of client and tenant
needs. Action Ottawa is targeted to
low and moderate income households.
Action Ottawa requires that below market units be rented to households
on the Social Housing Registry waiting list.
Units target the Registry waiting list and working poor. All groups targeted by the Province are on
the registry waiting list. -
60% of Action Ottawa units
must be provided at rents that are at or below 70% of the Average Market Rent
for that unit type. Projects that are able to provide lower cost rents are
generally given priority for funding. -
Proponents will be required to
commit to initial income verification. |
Targets CMSM's
are responsible for meeting both the rental and supportive unit targets in
their areas. |
The
City of Ottawa will attempt to fully deliver both the rental and supported
housing targets, but will not be held liable or otherwise responsible for
lack of take up by developers or other housing agencies. |
Supportive UnitsEach CMSM has been allocated a number of supportive
units to be developed during the life of this program. The supportive units have been designated
to address the specific needs of Victims of Domestic Violence, persons living
with mental illness and persons living with a dual diagnosis. CMSMs must coordinate with the regional
offices of MCSS and MOHTLC to ensure a co-ordinated approach to achieve
community supports for people living in the supportive units. |
The
service manager is prepared to facilitate access to the supported housing
program by providing details of the program to potentially interested
developers. If there is take-up by
the community, the service manager will manage the delivery of the capital
funding in accordance with the Action Ottawa program, and will facilitate
engagement between MCSS and MOHLTC and the housing provider to ensure
coordination of the available support services. |
Procurement Procedures Projects must be selected through the implementation
of a municipally approved procurement process consistent with the provisions
of the Municipal Act 2001. |
The
Action Ottawa procurement process has been in place since 2002, and fully
complies with municipal procurement policies and best practices. |
Take Up Plan A
strategy for the take-up and delivery of the AHP units including a
preliminary timeline for implementation of the AHP; including multi-year
forecast, project construction starts (by unit) and project completion dates
(by unit) |
The
City of Ottawa participated in the Strong Start component of this program and
is in the process of funding the development of 139 units in 4 projects. Development is expected to be completed by
early 2007. All
of the remaining allocation of 91 units of rental housing (not including the
supported housing component) will be delivered via an RFP that is expected to
be issued in 2007.
Pending
final approval by the Province, construction would be expected to start by
the end of 2007 and completion expected in 2008/09. The Action Ottawa procurement process does not allow for
prediction of the number of projects that will be funded, nor the unit types
and locations. In previous calls for
proposals, all available resources have been allocated. |
Municipal
Contributions |
Action
Ottawa units will be eligible for funding and other incentives, as follows: -
Up to $26,600 per unit on
average federal capital funding -
Up to $43,400 per unit on
average provincial funding to be paid over 20 years. -
Up to $30,000 per unit on
average City of Ottawa funding. -
Waiver of Development Charges
and fees -
Up to $10,000 per unit to a
maximum of nine units to assist the development of accessible housing -
A grant in lieu of payment of
Building Permit fees and School Board fees -
In some cases, City-owned land
may be provided at nominal cost to the developer. |
Municipal
Housing Facility Bylaw A
Consolidated Municipal Service Manager (CMSM) Council is encouraged to pass a
Municipal Housing Facility Bylaw for affordable housing. |
The
City of Ottawa introduced a Municipal Housing Facilities Bylaw in 2002, which
was revised based on experiences with Action Ottawa and other housing
initiatives on August 24, 2005. |
Multi Unit Property Tax Rates A
CMSM Council is required to demonstrate that AHP projects have property taxes
equal to or lower than the rate applied to single-residential
properties. |
The
City of Ottawa adopted a new Multi-residential tax class with a tax rate
equivalent to the single family residential tax rate for all new multi-unit
residential construction as of the 2002 tax year. |
Municipal Planning Approvals
Plan
for compliance with municipal planning approvals, and with the goals and
requirements of the province’s growth plan; |
Proposals
to Action Ottawa are assessed by Planning staff for compliance with and
ability to meet planning approvals in a timely manner. |
Maximum
Funding
For
any project receiving federal funding under the AHP, the maximum combined
federal funding for that unit cannot exceed $75,000. |
For
any project receiving federal funding under the AHP, the maximum combined
federal funding for that unit will not exceed $75,000. |
Initial Rents The
initial rents for a project may not exceed the CMHC AMR for the CMSM area for
any AHP-funded unit. Mixed-use
projects with rents higher than this maximum are possible, but only units
with qualifying rents may receive funding.
The average rent for all AHP-funded units in a project must be at or
below 80% of CMHC AMR. Average rent
will be calculated using the actual rent paid by a tenant including rent
supplement or housing allowance assistance.
Other reasonable methods of achieving 80% below CMHC AMR will be
considered on a case-by-case basis. |
Action
Ottawa specifies that maximum rents in any funded project cannot exceed
Average Market Rents for that unit type in that zone. Action
Ottawa also requires that a minimum of 60% of funded units have rents at or
below 70% of the Average Market Rent for units of that type in that zone Action
Ottawa funded units may be established as a component of a market rent or
ownership development, but funding will only be provided to qualifying units. Rents may or may not include utilities. |
Rent IncreasesRent increases will be required to be made in
accordance with the rules established under the Ontario Tenant Protection Act
(TPA) Annual Rent Increase Guidelines, or as otherwise permitted under
legislation. Social Housing and new rental buildings (built after 1991) are
exempt from the TPA rent increase guidelines, but will be subject to terms
and conditions in a Contribution Agreement. |
Rent increases for funded units will be limited to
the TPA annual guidelines, providing the resulting rent does not exceed the
CMHC Average Market Rent. Mechanisms to allow Below Market Rents to be
adjusted over time in alignment with tenant capacity to pay will be
considered, with the condition that any additional rental revenues be used
within the funded project to reduce rents such that the average rent in the
project does not exceed 80% of Average Market Rent for units in that zone. |
Rent
Supplements Strong
Community Rent Supplements and other existing rent supplement program funding
can be applied to an AHP funded unit. |
If additional Strong Community Rent Supplements are
available, the “economic” rent for that unit for the purposes of calculating
rent supplement subsidies shall not exceed the maximum allowable rent of that
unit as per the original Action Ottawa funding. I.e., if a unit was funded as a 70% of AMR unit, then 70% of
AMR for units of that type in that zone shall be deemed to be the maximum
“economic” rent for that unit for the purposes of calculating rent supplement
subsidies. In no case shall the
economic rent for the purposes of rent supplement calculations exceed the
Average Market Rent for units of that type in that zone. |
Ontario
Mortgage and Housing Initiative The OMHI will
be a vehicle to facilitate the financing of affordable housing projects in
Ontario. Once established, it will
facilitate access to financing for projects approved by Municipal Service
Managers and MMAH under the AHP. Projects that have not arranged permanent
financing once the OMHI has been established will be required to access their
financing through the OMHI. |
The
service manager will encourage use of the OMHI, but will not restrict access
to other forms of mortgage financing that a proponent may choose to use, as
long as such use can be clearly demonstrated to no appreciably increase
either the cost to the project or risk to the service manager. |
M E M O / N O T E D E S E R V I C E |
|
To / Destinataire |
The Mayor and Members of the Corporate Services and Economic Development Committee |
File/N° de
fichier : ACS2006-CPS-HOU-0008 |
From / Expéditeur |
Rosemary Nelson,
Committee Coordinator |
|
Subject / Objet |
Ontario Affordable Housing Program and Housing Delivery Plan |
Date: 16 June 2006 |
The above-noted report is listed as Item 9 on the Corporate Services and Economic Development Committee Agenda for Tuesday, 20 June 2006. The CSEDC is only being requested to consider Recommendation 2 of the staff report.
On 15 June 2006, the Health, Recreation and Social Services Committee approved the remainder of the staff recommendations, as amended by the following additional Motions:
1. Whereas the flawed design of the so-called Provincial “Housing allowance” program requires that the allowances be paid to landlords;
Whereas that
requirement makes landlord acceptance critical to the success of the program,
and;
Whereas the
staff proposal inadvertently imposed unduly onerous and unfair conditions on
landlords;
Be it resolved
that in the City of Ottawa Program Delivery section regarding “Unit Condition”,
the text be replaced with the following:
A
statement by the landlord confirming that the unit meets all building code, and
health and safety requirements will be provided. If at any time the unit proves to not meet those standards, the
landlord will be required to bring the unit up to a reasonable standard. Unless the failure of the unit to meet
standards was substantially the result of the willful or negligent act of the
tenant, or another occupant or guest of the tenant, and if the participating
tenant is displaced as a result of this work, an equivalent or better unit must
be provided by the landlord at the same rent as then applicable for the unit
occupied upon entry into this program.
Otherwise, the full amount of subsidy provided from the time the unit is
not in a reasonable state of repair, net of any abatement of rent or
compensation paid to the tenant, will be refunded by the landlord to the City.
2. Whereas an average subsidy of $250 per month
(or $3,000 per year) would be of substantial assistance to those in deep core
need even though it might not remove them from core need entirely;
Whereas the
available housing allowance funding should be directed to those in the most
need, subject to their desire to receive the funding knowing that it requires a
move and carries a time limit of 5 years, and;
Whereas much of
the prejudice to the recipients can be eliminated by allowing them to continue
to move up the social housing waiting list toward a unit with a full
rent-geared-to-income subsidy while they receive the housing allowance;
Be it resolved
that in the City of Ottawa Program Delivery section regarding “Average
Subsidy”, the first paragraph of the text be deleted.
An extract of the draft Minute is appended for your information.
The recommendations of the HRSS and the CSED Committees will rise to Council on 28 June 2008 in CSEDC Report 50.
Rosemary Nelson
cc: Steve Kanellakos, Deputy City Manager, Community and Protective Services
Russell Mawby, Director of Housing
Ontario Affordable
Housing Program And Housing Delivery Plan
Programme de logement abordable et plan de création de logement de
l'Ontario
ACS2006-CPS-HOU-0008 CITY WIDE / À
L'ÉCHELLE DE LA VILLE
John Dickie, Chair of the Eastern Ontario Landlord Organization (EOLO) advised that they own and manage 34,000 rental units in Ottawa. While they are largely supportive of most of the comments of the Housing Branch on these programs, he suggested two amendments to the Housing Delivery Plan (Housing Allowances), which he had consulted with the Director of Housing on previously and which were previously distributed with his submission to members of the committee. The first change was directed at the unduly onerous conditions placed on landlords with respect to unit conditions under the Housing Allowance Program.
The second proposed change was broken down in two parts. The first suggests deleting the first part of the paragraph under “Average Subsidy” and the second recommends extensive changes to the text at the City of Ottawa Program Delivery column under “Term of Program” within the Housing Allowances Program at Document 1. Since staff had previously advised him that they could only support the first part of his second recommended change, Mr. Dickie was willing to develop a more minor change to that portion. He referred the committee to his submission, which reflected that in the report and in which it is suggested that the word “not” be struck from the paragraph so as to read: “The service manager will target the program to households that are in core housing need…” Mr. Dickie further suggested removing the word “thus” from the rest of that paragraph to further read: “…and are more likely to only require subsidy for a short period of time…” He explained that in the report, one of the key barriers shown as Point 1 under Housing Allowances, i.e., “fixed shallow subsidies cannot effectively be adjusted to meet varying needs or opportunities.” He agreed that while the province fixes the average subsidy, it can vary and EOLO is of the opinion that there is some ability to target to the issues. The EOLO’s recommended change would be very beneficial in taking families out of deep core need and moving them into shallow core need. A copy of his submission is held on file.
Prior to responding to these changes, Mr. Mawby pointed out that the approach staff have taken to the provincial request for a housing delivery plan is not really in concordance with what the province has been asking municipalities to do. Staff agree with the principles of the Affordable Housing Program, but fundamentally disagree with the very prescriptive approach to dealing with these matters. He believed the province would have difficulty supporting the City’s approach to the Housing Allowance Program.
In response to the first suggested change brought forward by the delegation, Mr. Mawby agreed that landlords should not be incurring penalties as a result of damages caused by tenants. The Landlord and Tenant Act deals with those issues.
With regards to the second change, he indicated that the problem staff have with this program is that it is a shallow subsidy and the City is bound by the province not only to the amount of money it receives, but the number of units it has to commit to doing. Funding for this program will run out in five years and the City will have to find people who will not require the subsidy in five years. Staff’s concern is making sure that the program is helping those, who may be having a relatively short-term difficulty (6-12 months), to maintain their housing, and gives the City an opportunity to enter into contracts to help them bridge those difficulties, rather than subsidizing people who are otherwise waiting for social housing and who are quite likely to continue to need that subsidy five years from now. Mr. Mawby recommended that the committee not support the second part of Mr. Dickie’s suggested change as it stands before the committee, but would support the alternative suggestion for the Terms of Program section as discussed above. The committee agreed to consider the first change suggested and only the first part of the second change and these are reflected as follows:
Moved by R. Chiarelli
Whereas
the flawed design of the so-called Provincial “Housing allowance” program
requires that the allowances be paid to landlords;
Whereas
that requirement makes landlord acceptance critical to the success of the
program, and;
Whereas
the staff proposal inadvertently imposed unduly onerous and unfair conditions
on landlords;
Be it
resolved that in the City of Ottawa Program Delivery section regarding “Unit
Condition”, the text be replaced with the following:
A
statement by the landlord confirming that the unit meets all building code, and
health and safety requirements will be provided. If at any time the unit proves to not meet those standards, the
landlord will be required to bring the unit up to a reasonable standard. Unless the failure of the unit to meet
standards was substantially the result of the willful or negligent act of the
tenant, or another occupant or guest of the tenant, and if the
participating tenant is displaced as a result of this work, an equivalent or
better unit must be provided by the landlord at the same rent as then
applicable for the unit occupied upon entry into this program. Otherwise, the full amount of subsidy
provided from the time the unit is not in a reasonable state of repair, net
of any abatement of rent or compensation paid to the tenant, will be
refunded by the landlord to the City.
CARRIED
Moved by J. Stavinga
Whereas an
average subsidy of $250 per month (or $3,000 per year) would be of substantial
assistance to those in deep core need even though it might not remove them from
core need entirely;
Whereas
the available housing allowance funding should be directed to those in the most
need, subject to their desire to receive the funding knowing that it requires a
move and carries a time limit of 5 years, and;
Whereas
much of the prejudice to the recipients can be eliminated by allowing them to
continue to move up the social housing waiting list toward a unit with a full
rent-geared-to-income subsidy while they receive the housing allowance;
Be it
resolved that in the City of Ottawa Program Delivery section regarding “Average
Subsidy”, the first paragraph of the text be deleted.
CARRIED
1. That the Health,
Recreation and Social Services Committee recommend that City Council approve:
a. The
City of Ottawa Housing Delivery Plan (including Home Ownership, Housing
Allowances and Rental and Supported Housing program streams) for submission to
the Minister of Municipal Affairs and Housing, and delegate authority to the
City Manager to enter into a Contribution Agreement with the Province for the
purposes of administering the Canada/Ontario Affordable Housing Program;
b. That
if the Province does not support the proposed approach to delivering one or all
of the three program streams of the Canada/Ontario Affordable Housing Program,
that the City of Ottawa will not participate in that program stream but that
Council request that the funding allocated to that stream remain in Ottawa, for
redistribution to other program streams or for direct delivery by the Province;
c. That,
subject to Provincial approval of the City of Ottawa Housing Delivery
Plan, a request for up to $1.3 million in capital
funding be considered in the 2007 Capital Budget submission to support
participation in the AHP, including funding for: Building Permit Fee grants; School Board fee grants; housing
accessibility grants; professional services to support implementation and
administration of the new AHP, and a 1% contingency to deal with unforeseen
costs to the program;
d. That the following
lands be allocated to the Action Ottawa program for inclusion in future
Requests for Proposals for affordable housing development: 1143 Randall Avenue in Alta Vista Ward 18;
and 260 Tompkins Avenue in Orleans Ward 1;
e. That a one-time payment of $59,066 be provided from the funding for the Affordable Housing Program, with $38,766 to be paid to Ottawa Salus Corporation and $20,300 to be paid to Centretown Citizens Ottawa Corporation to rebate School Board Fees paid between July 2005 and today for affordable housing developments.
2. That the Health,
Recreation and Social Services Committee recommend to the Corporate
Services and Economic Development Committee that Council approve, subject to Provincial approval of the City
of Ottawa Housing Delivery Plan for the Rental and Supportive Housing program
stream, that $2.1 million be transferred from the Social Housing Reserve to the
Affordable Housing Capital Fund to support full participation in the Affordable
Housing Program.
3. Whereas the
flawed design of the so-called Provincial “Housing allowance” program requires
that the allowances be paid to landlords;
Whereas
that requirement makes landlord acceptance critical to the success of the
program, and;
Whereas
the staff proposal inadvertently imposed unduly onerous and unfair conditions
on landlords;
Be it
resolved that in the City of Ottawa Program Delivery section regarding “Unit
Condition”, the text be replaced with the following:
A
statement by the landlord confirming that the unit meets all building code, and
health and safety requirements will be provided. If at any time the unit proves to not meet those standards, the
landlord will be required to bring the unit up to a reasonable standard. Unless the failure of the unit to meet
standards was substantially the result of the willful or negligent act of the
tenant, or another occupant or guest of the tenant, and if the
participating tenant is displaced as a result of this work, an equivalent or
better unit must be provided by the landlord at the same rent as then
applicable for the unit occupied upon entry into this program. Otherwise, the full amount of subsidy
provided from the time the unit is not in a reasonable state of repair, net
of any abatement of rent or compensation paid to the tenant, will be
refunded by the landlord to the City.
4. Whereas an
average subsidy of $250 per month (or $3,000 per year) would be of substantial
assistance to those in deep core need even though it might not remove them from
core need entirely;
Whereas
the available housing allowance funding should be directed to those in the most
need, subject to their desire to receive the funding knowing that it requires a
move and carries a time limit of 5 years, and;
Whereas
much of the prejudice to the recipients can be eliminated by allowing them to
continue to move up the social housing waiting list toward a unit with a full
rent-geared-to-income subsidy while they receive the housing allowance;
Be it
resolved that in the City of Ottawa Program Delivery section regarding “Average
Subsidy”, the first paragraph of the text be deleted.
CARRIED,
as amended