GDS-015 Affordable Housing Soft Costs Grant Program Policy (2024)
Saint John, New Brunswick
· adopted 2024-04-29
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Title: AffordableHousingSoftCostsGrantProgramPolicy
Subject: AffordableHousingSoftCostsGrantProgram
Category: GrowthandCommunityServices
PolicyNo.: GDS-015
M&CReportNo.: 2024-120
EffectiveDate: 2024-04-29
NextReviewDate: December, 2026
Area(s) thispolicyappliesto: GrowthandCommunity
OfficeResponsibleforreviewofthisPolicy:
Services
CommunityPlanningandHousing, Growthand
CommunityServices
RelatedInstruments:
PolicySponsors:
M&C2022-304AffordableHousingActionPlan
CommissionerofGrowthandCommunityServices
M&CNo2023-002AffordableHousingGrantProgram
M&CNo2023-289CityofSaintJohnHousing
AcceleratorFund2024-2026ActionPlan
DocumentPages:
Thisdocumentconsistsof7pages.
RevisionHistory:
CommonClerk'sAnnotationforOfficialRecord
DateofPassageofCurrentFramework: ____April29, 2024____________
IcertifythatthisPolicy (Statement) wasadoptedbyCommonCouncilas
indicatedabove.
May1, 2024_______
CommonClerk
Date
Contents
1. PolicyStatement.................................................................................................................................... 3
2. ProgramBackground ..............................................................................................................................
3
3. ProgramEvaluation ................................................................................................................................ 3
4. Definitions ............................................................................................................................................. 3
5. Goals .....................................................................................................................................................
4
6. SoftCostsGrantOverview ...................................................................................................................... 4
6.1GrantDescription ............................................................................................................................. 4
6.2IntakePeriod ................................................................................................................................... 5
6.3EligibleExpenditures ........................................................................................................................ 5
6.4DisbursementofGrantFunds ...........................................................................................................
5
7. ProjectEligibilityRequirements ............................................................................................................. 5
8. GrantEvaluationCriteria ........................................................................................................................ 6
8.1GrantCommittee ............................................................................................................................. 6
8.2EvaluationCriteria ...........................................................................................................................
6
9. OutcomesReport ..................................................................................................................................
7
AffordableHousingSoftCostsGrantProgramPolicy
1. PolicyStatement
1.1TheAffordableHousingSoftCostsGrantProgram, "SoftCostsProgram," willincentivizethe
constructionofdeeplyaffordable housingbyhelpinggrowtheshareofhousingstockinthecity
thatisownedandmaintained byregisterednon-profitorganizations. Grantswillbeofferedto
assistwithpre-construction projectcostsandwillprovidethenon-profitapplicantswithgreater
opportunities totakeadvantageofavailableprovincialandfederalfundingprogramsforhousing.
2. ProgramBackground
TheAffordable HousingSoftCostsGrantProgram, "SoftCostsProgram," isintendedtoincreasethe
supplyofaffordablehousingunitsbyfundingdevelopersduringthepre-construction stageofaproject.
TheCityrecognizesthataffordablehousingdevelopersoftenarerequiredtoincurexpensesduringthe
preliminary stageofaprojectaspartofsubmissionofaproposalforprovincialand/orfederalfunding
programs. Asoftcostsprogramhasthepotentialtoimpacttheworkoflocaldevelopersseekingto
createaffordableunitsatthiscriticalfundingstage. Theprogrammayalsoleverageotherearlyphase
development programssuchasRegionalDevelopment Corporation'sPre-construction Fundand
CMHC'sSeedFundingProgram.
3. ProgramEvaluation
a) TheSoftCostsProgramwillbemonitored andreporteduponannually. AttheendoftheHAF
period, programresultswillbepubliclyreported, ascapturedthroughanoutcomesreport
requiredfromallfundingrecipients. Thefollowingmetricswillbeusedtoevaluatetheoutcomes
oftheprogram:
Totalnumberofapplications/organizations supported
Totalnumberofaffordablehousingunitsfinanciallysupported, permitted, andunder
construction
Totalnumberofprojectcostsleveraged, byyear, throughsoftcostssupport
4. Definitions
Affordablehousingunit" isdefinedbytheProvinceofNewBrunswick'sSocialDevelopment Department
SD) throughitsAffordableHousingRentalProgramand/orCanadaMortgageandHousingCorporation
CMHC). CMHCprogramsrangeindepthofaffordability. InthecaseofCMHC'sRapidHousingInitiative,
affordablehousingunitmeansaunitthatprovidesaminimumdepthofaffordability wheretenantspay
nomorethan30% oftheirbefore-taxincomeonhousingcostsandtheunitremainsaffordablefora
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minimumof20years. Affordableunitmustmeet, atminimum, thedefinitionofCMHC'sCo-Investment
Fund, whereaffordablehousingunitmeansaunitthatmustbelessthan80% oftheMedianMarketRent
andbemaintainedforaminimumof20years.
CMHC/FederalFundingPrograms" meansthesuiteoffundingofferedbyCanadaMortgageandHousing
CorporationwhichincludesbutisnotlimitedtotheNationalHousingCo-InvestmentFundandRapid
HousingInitiative.
Commissioner ofGrowthandCommunity Services" meanstheCommissioner oftheGrowthand
Community ServicesDepartment responsiblefortheoversightofthispolicy, orhis/herdesignate.
Non-profitdeveloper" meansacorporation involvedinthecreationofaffordablehousingnopartofthe
incomeofwhichispayabletoorotherwiseavailableforthepersonalbenefitofanyproprietor, member,
orshareholder thereof.
Softcosts" meansprojectcostsincurreddirectlyinconnection withthedesignandplanningofa
proposedprojectpriortothecommencement ofconstruction.
5. Goals
TheSoftCostsProgramisdesignedtoachievethefollowingoutcomes:
Providingpre-construction fundingtonon-profitdeveloperswhoarepreparingafunding
submissiontotheprovincial/federalgovernmentforthecreationofaffordablehousingunits;
Providingtimelyandrelevantfinancialsupporttodevelopersseekingtoincreasethesupplyof
affordablehousing, withanemphasisonnon-profithousingdevelopers;
FulfillingtheAffordableHousingActionPlan'sprincipleofpromotingpublicinvestmentfor
publicbenefit;
Supportinghousingprojectsinprovidinglong-termaffordablehousingoptions; and,
Addressingthefollowinggapsinthelocalhousingcontinuum identifiedintheAffordable
HousingActionPlan: Supportive/specialneedshousing, housingtothemostvulnerable
households, andaffordablerentalhousing.
6. SoftCostsGrantOverview
6.1GrantDescription
a) TheSoftCostsProgramprovides15% ofthesoftcostspriortoconstruction uptoamaximumof
25,000tosupportthedevelopment ofeligibleaffordablehousingprojects.
b) Whereanapplicanthasbeenunsuccessful inobtainingprovincialorfederalpre-construction
fundingandsubjecttowrittenapprovalbytheCommissioner, theSoftCostsProgramprovidesup
to70% ofthesoftcostspriortoconstructionuptoamaximumof $10,000tosupportthe
development ofeligibleaffordablehousingprojects.
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6.2IntakePeriod
a) GrantapplicationswillbereceivedthroughouttheyearandreviewedbytheGrantCommittee
quarterly (March, June, September, December), orthroughaGrantCommitteemeetingscheduled at
thediscretionoftheCommissioner ofGrowthandCommunity Services, basedonthevolumeof
applications received.
b) GrantintakemaypauseorceasetooccuratthediscretionoftheCommissioner ofGrowthand
Community Services, basedonavailablefunds.
6.3Eligible Expenditures
ThefollowingexpendituresareeligibleundertheSoftCostsProgram:
a) Consultantfeesforprofessionalengineering, architectural, oraccountingservicesincludingthe
preparationofdrawings, designs, sitesurveys, environmental siteassessments andgeotechnical
reports, energyandaccessibility modelingstudiesandprojectviabilitystudies.
b) Buildingpermitfeesandotherrelatedpre-construction fees.
c) NoothercostswillbeconsideredunlessapprovedexplicitlyinwritingbytheCommissioner of
GrowthandCommunityServices
d) Expenditures incurredpriortoJanuary2, 2024willnotbeconsideredeligible, unlessotherwise
approvedinwritingbytheCommissioner ofGrowthandCommunityServices.
6.4Disbursement ofGrantFunds
Grantswillbedisbursedtosuccessfulapplicantsuponthefollowing:
a) TheGrantCommitteeissuinganapprovallettertotheapplicantconfirmingtheirdecision; and,
b) TheFundingRecipientsigninganAffordableHousingSoftCostsGrantProgramFund - Termsand
ConditionsofFundingForm "ScheduleA."
7. ProjectEligibilityRequirements
Tobeeligibleforconsideration, grantapplications mustmeetthefollowingrequirements:
a) Theapplicantmustsubmitacompleteapplication formthatincludesallrequiredinformation. The
GrantCommittee reservestherighttodeterminewhethertheapplicationiscompleteorincomplete.
b) Atleast50% oftheproposeddevelopment mustconsistofaffordablehousingunits.
c) Theapplicantmustbetheregisteredowner, actingonbehalfoftheregisteredownerwithwritten
permission, orprovideproofofanoptionagreementorpurchaseandsaleagreementofthe
property.
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d) Theapplicantmustbearegisterednon-profitorganization, unlessotherwiseapprovedbythe
Commissioner ofGrowthandCommunityServices.
e) Theprojectmustproposethecreationofaminimumof5netnewaffordablehousingunits.
f) Eligibleprojectsmustproposeoneofthefollowing:
i. Newconstruction
ii.
Conversionofanexistingcommercialorinstitutional use
iii.
Rehabilitation ofaresidentialbuildingthatwillresultinnetnewhousingunits
g) Eligibleprojecttypesincludethefollowing:
i. Communityandaffordablehousing
ii.
Mixed-housing (market / affordablerentalunits)
iii.
Transitionalorsupportivehousing
h) TheprojectmustbelocatedwithintheCity'sPrimaryDevelopment Area, asdefinedbythe
MunicipalPlanandbeinconformitywiththeMunicipalPlan.
i) Theprojectmusthavereceivedorhaveanapplicationinthequeueforallrequiredplanning
approvalswithapositivestaffrecommendation.
j) TheapplicantortheiraffiliatemustbeingoodstandingwiththeCityintermsofanyotherexisting
agreements, noticestocomply, By-lawviolations, propertytaxes, oroverduefeesorcharges.
8. GrantEvaluationCriteria
8.1GrantCommittee
a) ApplicationswillbereviewedandawardedbyaGrantCommitteeappointedbytheCommissioner
ofGrowthandCommunity Services.
b) TheCommitteemayrequestadditionaldocumentation fromtheapplicanttosupporttheir
application, includingfinancialstatementsoftheorganization, correspondence fromotherfunding
partners, andquotesorinvoices.
8.2Evaluation Criteria
ApplicationswillbereviewedandprioritizedbytheGrantCommitteeinaccordance withthefollowing
criteria. Applications canscoreuptoamaximumof50points:
a) Theapplicantisanon-profitdeveloperwithademonstrated trackrecordinbuildingand
managingaffordablehousingwithfinancialstatementsdemonstrating thestabilityofthe
organization (10points);
b) Theextenttowhichtheprojectwilladdressthefollowingcriticalhousinggapsidentifiedbythe
City'sHousingNeedsAssessment: supportive/specialneedshousingandhousingforthemost
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vulnerablehouseholds (10points);
c) Thequalityofsubmissionintermsofprojectreadiness, timelinesforfundingsubmissions, and
anticipatedconstruction dates (10points);
d) AlignmentoftheprojectwithCityplans, by-lawsandstrategiessuchastheMunicipalPlan,
AffordableHousingActionPlan, HAFActionPlan, Zoning (5points)
e) Theprojectisundertakenonlandthathasalreadyreceivedappropriate planningapprovals (5
points);
f) TheCityisabletoconfirmtheapplicanthasenteredintoanapplicationprocesswithCanada
MortgageHousingCorporationorNBHousingtosupportthedevelopment (5points);
g) TheCityisabletoconfirmtheapplicanthasenteredintoanapplication processtoseekother
pre-construction fundingthroughothersourcessuchastheRegionalDevelopment Corporation
andCanadaMortgageHousingCorporation (5points);
h) Consideration willalsobegiventoensuringequitabledistribution ofsoftcostsgrantsonan
annualbasis.
9. OutcomesReport
9.1Fundingrecipientswillberequiredtosubmitanoutcomesreportoutlininghowthefundswere
used. Thesereportswillbemadepubliclyavailable.
9.2TheCityreservestherighttorequestadditionalinformationorexplanation ofsuchreports.
9.3Thefundingrecipientshallbeliabletoreimbursetheentiretyoftheamountpaidunderthe
followingconditions:
a. Ifthefundingrecipientutilizesthefundingforpurposesotherthanthatwhichiscontemplated
intheirapplicationwithoutwrittenconsentoftheCity; and,
b. IftheoutcomesreporttoevaluateuseofthefundingisnotdeliveredtotheCitybythedate
specifiedintheTermsandConditionsofFundingwithoutwrittenconsentoftheCity.
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