4.          ACTION OTTAWA: RE-ALLOCATION OF 2003 CANADA-ONTARIO AFFORDABLE HOUSING PROGRAM FUNDS FROM SAFE HOUSING OTTAWA TO CENTRETOWN CITIZENS OTTAWA CORPORATION

 

ACTION OTTAWA: RÉAFFECTATION DE FONDS DU PROGRAMME CANADA-ONTARIO DE LOGEMENT ABORDABLE DE 2003 DE SAFE HOUSING OTTAWA À LA CENTRETOWN CITIZENS OTTAWA CORPORATION

 

 

 

Committee RecommendationS

 

That Council approve the following recommendations:

 

1.                  In accordance with the 2008 Action Ottawa Selection Committee, direct staff to request authorization from the Ministry of Municipal Affairs and Housing to allocate to Centretown Citizens Ottawa Corporation, for the provision of 29 affordable rental housing units, $1,680,000 of 2003 Canada-Ontario Affordable Housing Program funding that was previously allocated to Safe Housing Ottawa. 

 

2.                  A conditional grant from the City in the amount of $10,000.00 in lieu of building permit fees subject to: (i) the grant being included in a Municipal Housing Project Facilities Agreement between the City and Centretown Citizens Ottawa Corporation respecting 54 Primrose Avenue that provides for 29 rental affordable housing units, (ii) Centretown Citizens Ottawa Corporation executing a contribution agreement with the Ministry of Municipal Affairs and Housing that provides for funding in the amount of $1,680,000 under the 2003 Canada-Ontario Affordable Housing Program for the project, (iii) the provisions of the Municipal Housing Facilities By-law (2006-1), and (iv) Council enacting a Municipal Housing Project Facilities By-law for this project.

 

3.                  That the City Clerk and Solicitor be authorized to forward the project specific Municipal Housing Project Facility By-law directly to City Council for enactment in accordance with the Municipal Housing Facilities By-law 2006-1, upon execution of the Municipal Housing Project Facility Agreement.

 

 

RecommandationS DU Comité

 

Que le Conseil approuve les recommandations suivantes :

 

1.                  Conformément aux directives du Comité de sélection d’Action Ottawa 2008, donner instruction au personnel de demander au ministère des Affaires municipales et du Logement l’autorisation d’affecter à la Centretown Citizens Ottawa Corporation, en vue de la construction de 29 logements locatifs abordables, une somme de 1 680 000 $ provenant du budget du Programme Canada-Ontario de logement abordable de 2003 qui avait d’abord été attribuée à Safe Housing Ottawa

 

2.                  L’octroi par la Ville d’une subvention conditionnelle de 10 000 $ tenant lieu de frais d’obtention de permis de construire, sous réserve (i) de la conclusion d’une entente sur les ensembles de logements municipaux entre la Ville et la Centretown Citizens Ottawa Corporation portant sur 24 logements locatifs abordables au 54, avenue Primrose; (ii) de la conclusion par la Centretown Citizens Ottawa Corporation d’un accord de contribution avec le ministère des Affaires municipales et du Logement prévoyant l’octroi de crédits de 1 680 000 $ aux termes du Programme Canada-Ontario de logement abordable de 2003 en vue de la réalisation de l’ensemble de logements, (iii) des dispositions du Règlement 2006-1 sur les ensembles de logements municipaux; (iv) de l’adoption par le Conseil d’un règlement portant expressément sur cet ensemble de logements.

 

3.                  Que le greffier et chef du contentieux soit autorisé à présenter au Conseil un projet de règlement portant expressément sur cet ensemble de logements, conformément au Règlement sur les logements municipaux (2006-1), au moment de la conclusion d’une entente de logement abordable relativement à ce projet.

 

 

Documentation

 

1.      Deputy City Manager's report, City Operations dated 3 December 2009 (ACS2009-COS-CAS-0019).

 

 


Report to/Rapport au:

 

Community and Protective Services Committee

Comité des services communautaires et de protection

 

and Council / et au Conseil

 

3 December 2009 / le 3 decembre 2009

 

Submitted by/Soumis par:

Steve Kanellakos, Deputy City Manager/Directeur municipal adjoint,

City Operations/Opérations municipales 

 

Contact Person/Personne ressource : Stephen Arbuckle, Acting Manager of Housing,Community and Social Services Department/Gest.Logement,  Services sociaux et communautaires

(613) 580-2424 x44117, Stephen.Arbuckle@ottawa.ca

 

 

Somerset (14)

Ref N°: ACS2009-COS-CAS-0020

 

 

SUBJECT:

Action Ottawa: re-allocation of 2003 canada-ontario affordable housing PROGRAM funds from Safe Housing Ottawa to centretown citizens ottawa corporation

 

 

OBJET :

Action Ottawa : rÉAFFECTATION DE FONDS DU PROGRAMME CANADA-ONTARIO DE LOGEMENT ABORDABLE DE 2003 DE Safe Housing Ottawa À LA centretown citizens ottawa corporation

 

 

REPORT RECOMMENDATIONS

 

That the Community and Protective Services Committee recommend that Council approve the following recommendations:

 

1.                   In accordance with the 2008 Action Ottawa Selection Committee, direct staff to request authorization from the Ministry of Municipal Affairs and Housing to allocate to Centretown Citizens Ottawa Corporation, for the provision of 29 affordable rental housing units, $1,680,000 of 2003 Canada-Ontario Affordable Housing Program funding that was previously allocated to Safe Housing Ottawa. 


 

2.                  A conditional grant from the City in the amount of $10,000.00 in lieu of building permit fees subject to: (i) the grant being included in a Municipal Housing Project Facilities Agreement between the City and Centretown Citizens Ottawa Corporation respecting 54 Primrose Avenue that provides for 29 rental affordable housing units, (ii) Centretown Citizens Ottawa Corporation executing a contribution agreement with the Ministry of Municipal Affairs and Housing that provides for funding in the amount of $1,680,000 under the 2003 Canada-Ontario Affordable Housing Program for the project, (iii) the provisions of the Municipal Housing Facilities By-law (2006-1), and (iv) Council enacting a Municipal Housing Project Facilities By-law for this project.

 

3.                  That the City Clerk and Solicitor be authorized to forward the project specific Municipal Housing Project Facility By-law directly to City Council for enactment in accordance with the Municipal Housing Facilities By-law 2006-1, upon execution of the Municipal Housing Project Facility Agreement.

 

 

RECOMMANDATIONS DU RAPPORT

 

Que le Comité des services communautaires et de protection recommande au Conseil d’approuver les recommandations suivantes :

 

1.                  Conformément aux directives du Comité de sélection d’Action Ottawa 2008, donner instruction au personnel de demander au ministère des Affaires municipales et du Logement l’autorisation d’affecter à la Centretown Citizens Ottawa Corporation, en vue de la construction de 29 logements locatifs abordables, une somme de 1 680 000 $ provenant du budget du Programme Canada-Ontario de logement abordable de 2003 qui avait d’abord été attribuée à Safe Housing Ottawa

 

2.                  L’octroi par la Ville d’une subvention conditionnelle de 10 000 $ tenant lieu de frais d’obtention de permis de construire, sous réserve (i) de la conclusion d’une entente sur les ensembles de logements municipaux entre la Ville et la Centretown Citizens Ottawa Corporation portant sur 24 logements locatifs abordables au 54, avenue Primrose; (ii) de la conclusion par la Centretown Citizens Ottawa Corporation d’un accord de contribution avec le ministère des Affaires municipales et du Logement prévoyant l’octroi de crédits de 1 680 000 $ aux termes du Programme Canada-Ontario de logement abordable de 2003 en vue de la réalisation de l’ensemble de logements, (iii) des dispositions du Règlement 2006-1 sur les ensembles de logements municipaux; (iv) de l’adoption par le Conseil d’un règlement portant expressément sur cet ensemble de logements.

 

3.                  Que le greffier et chef du contentieux soit autorisé à présenter au Conseil un projet de règlement portant expressément sur cet ensemble de logements, conformément au Règlement sur les logements municipaux (2006-1), au moment de la conclusion d’une entente de logement abordable relativement à ce projet.


BACKGROUND

 

On September 10th 2008, Council approved the 2008 Action Ottawa Selection Committee recommendation to allocate $1.68M of Federal-Provincial Funds under the Canada-Ontario Affordable Housing Program to the Safe Housing Ottawa to support the construction of 24 new affordable rental apartment units on lands being developed by Parkway House and Windmill Corporation (ACS2008-CPS-HOU-0011).

 

The Minister of Municipal Affairs and Housing accepted Council’s recommendation and a conditional letter of commitment was issued by the Minister allocating $1.68M of capital funding to the project. In October 2009 Safe Housing Ottawa advised staff that they would be unable to meet project timelines and milestones under the Canada-Ontario Affordable Housing Program and indicated that they would seek AHP funding in 2011.

 

As reported to Council on March 26, 2008 (ACS2008-CPS-HOU-0001), the level of funding available in the 2003 AHP was increasingly insufficient to support the development of new housing.  Staff recommended that options to use AHP funding to acquire and rehabilitate existing residential properties be pursued as a more cost-effective way of providing low-income affordable housing, and also to help slow the loss of existing lower-cost market (especially rental) housing due to conversion, redevelopment or escalating costs to operate and maintain buildings.  Staff began discussions with the Ministry of Municipal Affairs and Housing and in 2008, the Action Ottawa Selection Committee selected three projects. Two of the proposed projects which received funding were Multifaith Housing Initiative to acquire and renovate a 27- unit apartment building on Blake Street and LiveWorkPlay’s acquisition of condominium units for supportive rental housing. 

 

The proposal by Centretown Citizens Ottawa Corporation to acquire the 29-unit apartment building located at 54 Primrose Avenue was submitted in 2008 to the Housing Branch and selected for funding by the 2008 Action Ottawa Selection Committee. However, the proposal was not submitted to Council or the Ministry for funding at the time due to limited funding and due to on-going discussions with staff from the Ministry of Municipal Affairs and Housing regarding criteria for the acquisition and rehabilitation of existing buildings in the City. The March 26, 2008 report stated that, “The sixth project proposal is not being recommended for funding at time because of restrictions in the AHP program guidelines.  Staff has worked with the Province to try to open the AHP program guidelines to enable straight acquisition of existing rental housing and conversion to long-term low-income affordable housing. 

 

However, the Federal program guidelines require that AHP funding be used to provide new housing, which has been interpreted as:

-           new development,

-           conversion of non-residential to residential,

-         acquisition of existing residential to prevent it’s absolute loss (demolition or conversion to non-residential use or condominium tenure), or

-        acquisition and significant renovation of existing residential properties.

 


 

The sixth proposal was for straight acquisition of an existing rental building without any significant conversion or renovation.  The selection committee recommended this project for funding, however Ministry staff have indicated that it would therefore be unlikely to receive Ministerial approval.  Therefore staff are withholding recommendation for this project at this time.” 

 

Staff have since requested that CCOC modify their proposal to include significant renovations that improve the building life cycle and overall energy efficiency. In addition, CCOC have been able to modify their proposal to acquire the 29-unit apartment building with 24 units of funding (i.e., $70,000 per unit totalling $1.68M in funding), further improving the merits of the original proposal.  Renovations to the apartment building are planned to include the following:

 

1.      Asbestos abatement;

2.       Roofing replacement & flashing & roof hatch;

3.      Miscellaneous masonry repairs;

4.      Caulking / exterior painting;

5.      Window wall replacement;

6.      Vinyl window replacement;

7.      Boiler replacement;

8.      Electrical update/repairs in units and throughout building as required;

9.      Flooring replacement in common areas;

10.  Bathroom updates/ energy/water efficient fixtures / install exhaust fans;

11.  Miscellaneous safety concerns/maintenance door and hardware replace/repair to fire safety code, common area lighting; and

12.  Repairs to sidewalks and walkways.

 

Given the above, staff are recommending that CCOC’s proposal be awarded the $1.68M of 2003 Canada-Ontario Affordable Housing Program funding for the acquisition and rehabilitation of the 29 unit apartment building at 54 Primrose Avenue. Housing Services staff have notified the Ministry of Municipal Affairs and Housing of Safe Housing Ottawa’s decision to withdraw from the Affordable Housing Program and of the potential re-allocation of funds to Centretown Citizens Ottawa Corporation if approved by Council. 

 

Staff recommend fee relief in the form of a conditional grant in the amount of $10,000.00 in lieu of building permit fees to further support this project. The grant shall be included in the Municipal Housing Project Facilities Agreement for the project and is conditional as the Agreement provides that all funding, including fee relief, is to be repaid to the City in the event of non-compliance with the Agreement that includes a twenty-five year affordability requirement for the project.

 

RURAL IMPLICATIONS

 

There are no rural implications with this report.

 

CONSULTATION

 

This report was not subject to consultation.

 

 

LEGAL/RISK MANAGEMENT IMPLICATIONS:

 

There are no legal/risk management impediments to implementing the recommendations in this report.

 

 

FINANCIAL IMPLICATIONS

 

With the approval of the recommendations contained in this report Capital Project  "Safeway Housing Ottawa” with authority of $304,000 will be closed, $294,000 will be transferred to the Affordable Housing Capital Building Fund, and $10,000 will be used to created Capital Project  “Centretown Citizens Ottawa Corporation  (Primrose).

 

The $1.68M in funding from the 2003 Canada-Ontario Affordable Housing Program will be provided in accordance with milestones in the Provincial-Contribution Agreement, which will be provided directly to the proponent by Ministry of Municipal Affairs and Housing.

 

 

SUPPORTING DOCUMENTATION

 

N/A

 

 

DISPOSITION

 

Housing Services will notify the Ministry of Municipal Affairs and Housing of Council approval and recommendation. Upon receiving Ministry approval, the Housing Branch will inform the proponent that they may proceed with the project.

 

Housing Services will work to ensure timely implementation of all necessary funding agreements for the Centretown Citizens Ottawa Corporation Proposal.

 

Corporate Development & Environmental Law Branch will forward the project specific Municipal Housing Project Facility By-law to Council for enactment.

 

Corporate Development & Environmental Law Branch will review and approve the form and content of the Municipal Housing Project Facility Agreement (MHPFA) for the project.