Body: RULAC Type: Document Meeting: Regular Date: Date unknown Collection: Documents Municipality: Frontenac County
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Document Text
CITY OF KINGSTON
REPORT TO HOUSING AND HOMELESSNESS ADVISORY COMMITTEE Report No.:
HHC-12-003
TO:
Chair, Housing and Homelessness Advisory Committee
FROM:
Lanie Hurdle, Commissioner, Community Services Group
RESOURCE STAFF:
Sheldon Laidman, Director, Housing Department
DATE OF MEETING:
January 12, 2012
SUBJECT:
Points of Discussion for Criteria of Affordable Housing Capital and Reserve Funds
EXECUTIVE SUMMARY: City Council recently approved two (2) new capital programs for the development of affordable housing: 1. Land acquisition and 2. Capital investment in affordable housing projects. These programs do not yet have criteria and require policies in order to be able to properly allocate funds. Furthermore, the City has existing affordable housing reserve funds that were set up in previous years but for which there were either limited informal criteria or which require amendments. The following two (2) reserve funds were set up in the past. a. Affordable Housing Construction Reserve b. Social Housing Capital Reserve Fund The City will also be receiving Provincial Funding through the Investment in Affordable Housing (IAH) program in 2012 and therefore that funding needs to be taken into consideration with capital funds and reserve funds. This report provides high level criteria for discussion purposes with the Housing and Homelessness Committee. Information and feedback will be utilized to develop policies for the various funds. RECOMMENDATION: This report is for information only.
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RECOMMENDATION REPORT TO HOUSING AND HOMELESSNESS COMMITTEE Report No.: HHC-12-003 January 12, 2012
- Page 2 AUTHORIZING SIGNATURES: ORIGINAL SIGNED BY COMMISSIONER
Lanie Hurdle, Commissioner, Community Services
ORIGINAL SIGNED BY CHIEF ADMINISTRATIVE OFFICER
Gerard Hunt, Chief Administrative Officer
CONSULTATION WITH THE FOLLOWING COMMISSIONERS: Cynthia Beach, Sustainability and Growth Denis Leger, Transportation, Emergency Services
NR
Properties
&
Jim Keech, President and CEO, Utilities Kingston (N/R indicates consultation not required)
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N/R N/R
RECOMMENDATION REPORT TO HOUSING AND HOMELESSNESS COMMITTEE Report No.: HHC-12-003 January 12, 2012
- Page 3 OPTIONS/DISCUSSION: With two (2) new capital programs, two (2) existing affordable housing reserve funds and provincial funding for affordable housing to be allocated in 2012, it is important and necessary to review and establish purpose and criteria for the various funding streams. Listed below are the various capital funds and reserve funds with some high level criteria for discussion purposes. Staff expect to facilitate a discussion with the committee at the January 12, 2012 meeting.,The Feedback from this discussion will enable staff to develop appropriate policies for each capital and reserve fund.
Land Acquisition/Disposition – Capital/New Fund ($1M per year from municipal contribution) Considerations: Set up the Land Acquisition/Disposition fund as a revolving fund. Land should be sold back at a reduced rate to encourage affordable housing. Generally should be sold back at 75% of the purchase price, unless there is a clear demonstrated benefit to sell for less, i.e. part of a larger redevelopment. Acquisition should generally be handled by a third party, realtor, so that price is kept at a market rate. Land to be acquired can be from agencies such as school boards or from the private market. Locational analysis should be used as a guideline for land acquisition but is not the only factor of consideration. All acquisition and disposal have to be approved by Council. Funds may be used to cover the cost of environmental clean up of a city owned property that may be made available for affordable housing purpose. Funds may be used to invest in a project which could provide land at no cost to the City in exchange. Staff may recommend the transfer of funds to and/or from this capital fund to the Capital Investment depending on the need and opportunity.
Capital Investment in Affordable Housing Projects – Capital/New Fund – ($1M per year from municipal contribution) Considerations:
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RECOMMENDATION REPORT TO HOUSING AND HOMELESSNESS COMMITTEE Report No.: HHC-12-003 January 12, 2012
- Page 4 Contribution will be in a form of a grant and will be applicable to cover development related fees, construction cost and associated costs for affordable housing through new development or conversion of existing properties. Available to both not-for-profit and private sector builders. Affordable housing to be defined as 80% of CMHC market rent. Projects providing more affordability (lower than 80% CMHC market rents) will receive priority. General limit of $50,000 per unit for a guarantee of a minimum of 15 years. Greater amount may be considered for a longer period of affordability. Projects will be considered and reviewed on an ongoing basis. No RFP will be issued. Must be willing to add rent supplements to affordable units to accommodate individuals on the Waiting List. Prioritize projects that include 1 and 2 bedroom rental units and available to all ages. Developer needs to demonstrate financial ability and experience in developing residential projects. Projects supporting intensification, remediation of brownfields and affordable housing in underserved areas will be considered as priorities as long as they meet all other requirements. Projects fostering a community and sustainable development including availability of services in surrounding area and support services in partnership with other partners will be given priority. Staff may recommend the transfer of funds to and/or from this reserve fund to the Land Acquisition Fund depending on the need and opportunity. Time frame of construction (how shovel ready the project is).
Investment in Affordable Housing – Capital/New Fund (One-time $1.6M Provincial Funding) Considerations: Available only to not-for-profit organizations. Provincial guidelines and time frames will be applicable and RFP to be issued in 2012.
Affordable Housing Construction Reserve – Existing Reserve Fund ($850,000 in 2012.) Considerations: Available only to social housing providers. Available to cover development related fees, construction costs and/or seed money for project development.
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RECOMMENDATION REPORT TO HOUSING AND HOMELESSNESS COMMITTEE Report No.: HHC-12-003 January 12, 2012
- Page 5 5. Social Housing Capital Reserve Fund – Existing Reserve Fund (Set up with former federal funding) Considerations: Used for loans and forgivable loans (criteria are being developed) for social housing providers only. By-law exists to regulate use of this reserve fund. Funding source will be through a percentage of Housing providers yearly surpluses.
EXISTING POLICY/BY LAW: N/A NOTICE PROVISIONS: N/A ACCESSIBILITY CONSIDERATIONS: N/A FINANCIAL CONSIDERATIONS: N/A CONTACTS: Lanie Hurdle, Commissioner, Community Services OTHER CITY OF KINGSTON STAFF CONSULTED: Mary McIntyre, Housing Programs Administrator, Housing Department Lee Campbell, Acting Housing Manager, Housing Department Rob Rowe, Housing programs Administrator, Housing Department Desiree Kennedy, Director of Financial Services and City Treasurer EXHIBITS ATTACHED: N/A
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613-546-4291 ext. 1231
