3.            2009 CANADA-ONTARIO AFFORDABLE HOUSING PROGRAM

 

                PROGRAMME CANADA-ONTARIO DE LOGEMENT ABORDABLE DE 2009

 

 

 

Committee RecommendationS

 

That Council approve:

 

1.         That Housing Services Staff proceed with a Request for Proposals, under Action Ottawa, to identify construction ready affordable housing projects that meet the  Canada-Ontario New Affordable Housing Program (2003), Rental and Supportive Component, AHP Extension (2009) (Guidelines soon to be released);

 

2.         That the Manager of Housing Services be authorized to recommend to the Minister of Municipal Affairs and Housing successful projects selected by the 2009 Action Ottawa Selection Committee for funding under the extended Canada-Ontario Affordable Housing Program.

 

3.         Upon receipt of confirmation from the Minister of Municipal Affairs and Housing of an allocation to the City for project specific funding under the extended Canada-Ontario Affordable Housing Program, that staff be directed to negotiate a Municipal Housing Project Facilities Agreement for each proponent to secure permanent rental affordable housing units under Action Ottawa and exemption from estimated development charges subject to: (i) the affordable housing proponent executing a contribution agreement with the Minister of Municipal Affairs and Housing that provides for funding under the extended Canada-Ontario Affordable Housing Program for the project, (ii) the Municipal Housing Facilities By-law (2006-1) and (iii) Council enacting a Municipal Housing Project Facilities By-law for this project.

 

4.         That the City Clerk and Solicitor be authorized to forward a project specific Municipal Housing Project Facilities by-law for each project directly to City Council for enactment in accordance with the Municipal Housing Facilities By-law 2006-1, subject to successful negotiation and execution of the Municipal Housing Project Facilities Agreement for the project.

 

 

RECOMMANDATIONS DU COMITÉ

 

Que le Conseil approuve :

 

1.         Que le personnel du service du logement procède à une demande de proposition, dans le cadre du programme Action Ottawa, afin de déterminer les projets de logement abordable prêts pour la mise en chantier et conformes aux lignes directrices du composant Logements locatifs et logements avec services de soutien de la nouvelle prolongation (2009) du Programme Canada-Ontario de logement abordable (PLA) de 2003, et dont les lignes directrices sur le point d'être annoncées.

 

2.         Que le gestionnaire du service du logement soit autorisé à recommander au ministre des Affaires municipales et du Logement les projets retenus par le Comité de sélection d’Action Ottawa de 2009, en vue de leur financement dans le cadre du PLA élargi.

 

3.         Que, sur réception de la confirmation par le ministre des Affaires municipales et du Logement que des fonds seront versés à la Ville pour financer des projets dans le cadre du PLA élargi, le personnel soit chargé de négocier une entente sur les installations des ensembles d’habitations municipales avec chaque promoteur afin de garantir l’aménagement de logements locatifs permanents abordables au titre du programme Action Ottawa ainsi que l’exonération des redevances d'aménagement estimées, sous réserve (i) de la conclusion d’un accord de contribution entre le promoteur de logements abordables et le ministre qui autorise le financement du projet dans le cadre du PLA élargi, (ii) de la conformité au règlement sur les logements municipaux (2006-1) et (iii) de l’adoption par le Conseil d’un règlement sur les installations des ensembles d’habitations municipales pour ce projet.

 

4.         Que le greffier et chef du contentieux soit autorisé à présenter un projet de règlement sur les installations des ensembles d’habitations municipales pour chaque projet directement au Conseil pour leur adoption, conformément au règlement sur les logements municipaux (2006-1) et sous réserve de la négociation fructueuse et de la conclusion de l’entente sur les installations des ensembles d’habitations municipales pour un projet donné.

 

 

Documentation

 

1.      Deputy City Manager's report, City Operations dated 26 June 2009 (ACS2009-COS-SOC-0014).

2.      Extract of Draft Minutes, 6 July 2009 will be distributed prior to Council


Report to/Rapport au:

 

Community and Protective Services Committee

Comité des services communautaires et de protection

 

and Council / et au Conseil

 

26 June 2009 / le 26 juin 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

 

City Wide/à l'échelle de la Ville

Ref N°: ACS2009-COS-SOC-0014

 

 

SUBJECT:

2009 CANADA-ONTARIO AFFORDABLE HOUSING PROGRAM

 

 

OBJET :

PROGRAMME CANADA-ONTARIO DE LOGEMENT ABORDABLE DE 2009

 

REPORT RECOMMENDATIONS

 

That Community and Protective Services Committee recommend that Council approve:

 

1.      That Housing Services Staff proceed with a Request for Proposals, under Action Ottawa, to identify construction ready affordable housing projects that meet the 2009 Canada-Ontario New Affordable Housing Program (2003), Rental and Supportive Component, AHP Extension (2009) (Guidelines (soon to be released);

 

2.      That the Manager of Housing Services be authorized to recommend to the Minister of Municipal Affairs and Housing successful projects selected by the 2009 Action Ottawa Selection Committee for funding under the extended Canada-Ontario Affordable Housing Program.

 

3.      Upon receipt of confirmation from the Minister of Municipal Affairs and Housing of an allocation to the City for project specific funding under the extended Canada-Ontario Affordable Housing Program, that staff be directed to negotiate a Municipal Housing Project Facilities Agreement for each proponent to secure permanent rental affordable housing units under Action Ottawa and exemption from estimated development charges subject to: (i) the affordable housing proponent executing a contribution agreement with the Minister of Municipal Affairs and Housing that provides for funding under the extended Canada-Ontario Affordable Housing Program for the project, (ii) the Municipal Housing Facilities By-law (2006-1) and (iii) Council enacting a Municipal Housing Project Facilities By-law for this project.

 

4.      That the City Clerk and Solicitor be authorized to forward a project specific Municipal Housing Project Facilities by-law for each project directly to City Council for enactment in accordance with the Municipal Housing Facilities By-law 2006-1, subject to successful negotiation and execution of the Municipal Housing Project Facilities Agreement for the project.

 

RECOMMANDATIONS DU RAPPORT

 

Que le Comité des services communautaires et de protection recommande au Conseil d’approuver ce qui suit :

 

1.      Que le personnel du service du logement procède à une demande de proposition, dans le cadre du programme Action Ottawa, afin de déterminer les projets de logement abordable prêts pour la mise en chantier et conformes aux lignes directrices du composant Logements locatifs et logements avec services de soutien de la nouvelle prolongation (2009) du Programme Canada-Ontario de logement abordable (PLA) de 2003, et dont les lignes directrices sur le point d'être annoncées.

 

2.      Que le gestionnaire du service du logement soit autorisé à recommander au ministre des Affaires municipales et du Logement les projets retenus par le Comité de sélection d’Action Ottawa de 2009, en vue de leur financement dans le cadre du PLA élargi.

 

3.      Que, sur réception de la confirmation par le ministre des Affaires municipales et du Logement que des fonds seront versés à la Ville pour financer des projets dans le cadre du PLA élargi, le personnel soit chargé de négocier une entente sur les installations des ensembles d’habitations municipales avec chaque promoteur afin de garantir l’aménagement de logements locatifs permanents abordables au titre du programme Action Ottawa ainsi que l’exonération des redevances d'aménagement estimées, sous réserve (i) de la conclusion d’un accord de contribution entre le promoteur de logements abordables et le ministre qui autorise le financement du projet dans le cadre du PLA élargi, (ii) de la conformité au règlement sur les logements municipaux (2006-1) et (iii) de l’adoption par le Conseil d’un règlement sur les installations des ensembles d’habitations municipales pour ce projet.

 

4.      Que le greffier et chef du contentieux soit autorisé à présenter un projet de règlement sur les installations des ensembles d’habitations municipales pour chaque projet directement au Conseil pour leur adoption, conformément au règlement sur les logements municipaux (2006-1) et sous réserve de la négociation fructueuse et de la conclusion de l’entente sur les installations des ensembles d’habitations municipales pour un projet donné.

 

EXECUTIVE SUMMARY

 

On June 9, 2009 the Federal and Provincial Governments signed agreements resulting in a joint investment of more than $1.2 billion over the next two years in new social and affordable housing programs (Document 1).  The total of the two-year investment of $1.2 Billion would see 4,500 new affordable rental units built and 50,000 social housing units renovated across Ontario. The 2009/10/11 extension to the Canada-Ontario Affordable Housing Program (AHP) will consist of $540 million in funding available over two years for the creation of new affordable housing units with dedicated funding for low-income seniors ($307.76 million) and persons with disabilities ($57.7 million).  The extended AHP is intended to maximize the economic stimulus package put forward by the Federal and Provincial Governments while allowing flexibility to meet local housing needs. It also incorporates Federal and Provincial objectives for energy efficiency. Program guidelines related to construction starts are expected to be very challenging for the City and may provide significant obstacles for proponents who do not have all of their required legal agreements initiated and planning and building permit approvals in place or near approval when receiving a conditional letter of commitment for funding. Funding is also expected to be released in two to three month waves and be allocated on a first come first serve basis across the Province, therefore the city will not receive a guaranteed allocation as in the previous AHP streams.

 

The purpose of this report is to allow the Housing Services Branch to proceed immediately with a Request for Proposals under Action to identify and recommend to the Minister of Municipal Affairs and Housing projects that may be selected by the 2009 Action Ottawa Selection Committee. Potential projects would be subject to or have been subject to Planning Approvals processes and any required public consultation requirements.

 

RÉSUMÉ

 

Le 9 juin 2009, les gouvernements fédéral et provincial ont signé des ententes qui se traduiront par un investissement conjoint de plus de 1,2 milliard de dollars au cours des deux prochaines années, investissement affecté à de nouveaux programmes de logement social et de logement à prix abordable (Document 1). Dans sa totalité, cette somme servira à construire 4 500 nouveaux logements locatifs abordables et à rénover 50 000 unités de logement social partout en Ontario. Le renouvellement jusqu’en 2011 du Programme Canada-Ontario de logement abordable (PLA) comprendra un financement de 540 millions de dollars sur deux ans pour la création de logements locatifs abordables; de cette somme, 307,76 millions seront réservés aux aînés à faible revenu et 57,7 millions, aux personnes handicapées. L’objectif de ce renouvellement du PLA est d’optimiser le plan de stimulation de l’économie mis de l’avant par les deux paliers de gouvernement tout en accordant la flexibilité nécessaire pour répondre aux besoins locaux en matière de logement. De plus, le PLA inclut les objectifs fédéraux et provinciaux en ce qui concerne l’efficacité énergétique. Les lignes directrices du programme relatives au début des travaux risquent de poser de nombreuses difficultés à la Ville ainsi qu’aux promoteurs qui n’ont pas entrepris de démarches pour obtenir tous les accords juridiques nécessaires et qui n’auront pas reçu (ou ne seront pas sur le point de recevoir) l’approbation des permis d’aménagement et de construction au moment où ils recevront une lettre conditionnelle d’engagement des fonds.

Les fonds devraient être débloqués par périodes de deux ou trois mois et être alloués selon le principe du premier arrivé, premier servi dans l'ensemble de la province. Par conséquent, il n’est pas garanti qu’Ottawa en recevra comme dans les volets précédents du PLA.

 

Ce rapport vise à permettre au service du logement de procéder immédiatement à une demande de propositions dans le cadre du programme Action Ottawa afin de déterminer les projets qui peuvent être retenus par le Comité de sélection d’Action Ottawa de 2009 et de les recommander au ministre des Affaires municipales et du Logement. Les projets éventuels feraient l’objet ou ont fait l’objet de processus d’approbation des demandes d’aménagement et satisferaient ou ont satisfait à toutes les exigences prévues en matière de consultation publique.

 

DISCUSSION

 

The anticipated AHP Extension aims to create new affordable rental housing units, with a specific focus on housing for low-income seniors and persons with disabilities. There will be an average of $100,000 to $120,000 AHP funding per unit with a maximum of $150,000 per unit for housing providers who are also providing support services. However, the City must maintain an overall average of $120,000 per unit when calculated for all units approved and constructed during the two year extension period. This will result in some projects receiving less than the $120,000 unit maximum and projects with strong supports possibly receiving a higher allocation of up to $150,000 per unit. The funding also addresses the Government’s Green commitment with required energy efficiency measures in design of AHP funded projects, which must also meet Federal and Provincial requirements. Projects showing accessibility of design are also expected to be given priority for selection purposes.

 

This two-year extension of the AHP is strictly a capital program with no new support service funding available. Staff are currently working with a number of interested proponents from the non-profit and private sectors and are conducting an Expression of Interest to identify the number of proponents and organizations interested in building affordable housing during the next two years. Staff will evaluate all projects submitted to prepare a Housing Delivery Plan, which will detail the expected take up plan for the extended AHP, for Council Approval in early August 2009. Staff are also working to partnerships between various housing providers and local support service agencies who have access to other funding sources to initiate projects. Proponents showing a willingness to work with support service providers will be given priority ranking during the selection committee process.

 

Early communication with the Ministry of Municipal Affairs and Housing indicates that Proponents and Service Managers will have to enter into a Contribution Agreement within 30 days of signing a Conditional Letter of Commitment with the Province and that construction must begin within 90 days of signing the contribution agreement. The Service Manager must also certify that each project can meet the projected construction milestones in keeping with the 90-day deadline, otherwise the funding is retracted and re-allocated elsewhere in the Province. Therefore projects, in order to be considered construction ready must have site plan approval in place or be well along the way, have strong development teams showing experience in the housing sector, and viable capital and operating budgets.

 

In terms of City incentives, staff are not recommending any additional capital grant to supplement the program, nor any grant to offset building permit fees or school board charges. The remaining funds in the Affordable Housing Capital Building Fund are not sufficient to provide such grants to Affordable Housing Projects that are expected to utilize this funding over the next two years. In addition, the average per unit contribution of $120,000 per unit exceeds that previously provided by the AHP, when the City was providing a $30,000 per unit grant in addition to Federal and Provincial grants, as well grants in lieu of building permit fees and school board charges. However, staff are recommending that Development Charges be exempted for projects subject to the proponents entering into a Municipal Housing Capital Facility Agreement with the City. Staff will review and update potential Action Ottawa Incentives in the Housing Delivery Plan. 

 

In order to submit projects quickly and to meet the 90 to 120 day funding deadlines following a funding commitment from the Province, staff are requesting that a Request for Proposals under Action Ottawa be released immediately after the extended Canada-Ontario Affordable Housing Program Guidelines are provided to the City and that Council allow the Manager of Housing Services to recommend such projects as approved by the 2009 Action Ottawa Selection Committee to the Minister of Municipal Affairs and Housing for funding under the Canada-Ontario Affordable Housing. 

 

 

CONSULTATION

 

This report was not subject to consultation

 

 

LEGAL/RISK MANAGEMENT IMPLICATIONS:

 

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

 

FINANCIAL IMPLICATIONS

 

There are no financial implications associated with this report.

 

 

SUPPORTING DOCUMENTATION

 

Document 1 – Letter from Ministry of Municipal Affairs and Housing

 

DISPOSITION

 

Housing Services will action any direction received as part of consideration of this report.