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12. FEE RELIEF FOR CONSTRUCTION/RENOVATION OF CHARITABLE and
NON-PROFIT AFFORDABLE HOUSING
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That Council approve the reimbursement of
$47,284.00 in building permit fees collected between July 1, 2005 and March 17,
2006, as set out in Document 1 to this report, and the provision of additional
grants in lieu of building permit fees in an amount up to $52,716 for
qualifying construction projects in 2006 that are not funded through Action
Ottawa.
Que le Conseil approuve l’approbation du remboursement des droits de
permis de construire d’un montant de 47 284 $ collectés entre le 1er
juillet 2005 et le 17 mars 2006, tel qu’indiqué dans le document 1 de ce
rapport, et le versement de subventions supplémentaires en guise et lieu de
droits de permis de construire jusqu’à concurrence de 52 716 $ pour
les projets de construction de 2006 qui ne sont pas financés par
l’intermédiaire d’Action Ottawa.
1. Community
and Protective Services, Deputy City Manager’s report dated
04 April 2006
(ACS2006-CPS-HOU-0004).
Report
to/Rapport au :
Corporate Services and Economic Development Committee
Comité des services organisationnels
et du développement économique
4 April 2006 / le 4 avril 2006
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 of Housing
Housing/Logement
(613) 580-2424 x 44162,
russell.mawby@ottawa.ca
REPORT RECOMMENDATION
That the Corporate Services and
Economic Development Committee recommend that Council approve the reimbursement
of $47,284.00 in building permit fees collected between July 1, 2005 and March
17, 2006, as set out in Document 1 to this report, and the provision of
additional grants in lieu of building permit fees in an amount up to $52,716
for qualifying construction projects in 2006 that are not funded through Action
Ottawa.
RECOMMANDATION DU
RAPPORT
Le Comité des services
organisationnels et du développement économique recommande l’approbation par le
Conseil du remboursement des droits de permis de construire d’un montant de
47 284 $ collectés entre le 1er juillet 2005 et le 17 mars
2006, tel qu’indiqué dans le document 1 de ce rapport, et le versement de
subventions supplémentaires en guise et lieu de droits de permis de construire
jusqu’à concurrence de 52 716 $ pour les projets de construction de
2006 qui ne sont pas financés par l’intermédiaire d’Action Ottawa.
EXECUTIVE SUMMARY
Assumptions and Analysis:
On July 1, 2005, new legislation, the Building Code Statute Law Amendment Act, 2002 and Ontario Regulation 305/03 took effect, which necessitated changes to how the municipality administered and enforced the Ontario Building Code Act and Building Code.
One
of the changes related to the collection of building permit fees, in that these
fees could cover only those costs associated with servicing building permits
and enforcing the Act and Code. In
essence, the new legislation required the building regulatory activities be
revenue neutral. Thus, surplus revenues
no longer could be generated, nor relied upon for offsetting the waiver of fees
in support of construction of charitable and non-profit housing.
To ensure current City policy (in accordance with the Building By-law 2005-303) to relieve building permit fees for non-profit and charitable housing continues to be implemented, an on-going funding program will need to be established. This matter will be dealt with as part of the 2007 budget. In the meantime, this report provides for the reimbursement of permit fees for those non-profit or charitable housing construction projects for which a building permit application was submitted during the period of time between the implementation of the new legislation that discontinued the waiver (July 1, 2005) and the end of 2006.
Financial Implications:
Funding
for building permit fee relief for Action Ottawa affordable housing projects
approved in 2005 (Strong Start) was approved by Council in October 2005. This report addresses other non-profit and
charitable housing projects that, prior to Ontario Regulation 305/03, would
have qualified for exemption from building permit fees. Subject to Council approval, a one-time
contribution of up to $100,000 is available from the Social Housing Reserve
Fund to reimburse or otherwise provide a grant in lieu of building permit
fees. As of February 28, 2006 the
current balance of the Social Housing Reserve is $5.9 million, although pending
requests for funding, including funding for full participation in the expected
Provincial Affordale Housing Program, leaves an effective balance of
$350,000. Staff will bring forward a
report identifying 2007 budget pressures to continue to fund building permit
fee relief for affordable housing projects.
Public Consultation/Input:
The report has been circulated to Planning and Growth Management, Legal and Finance. No public consultation has been conducted with respect to this request for assistance. The request and recommended response are consistent with current program practices and Council direction.
RÉSUMÉ
Hypothèses et analyse :
Le 1er juillet 2005 prenaient effet une
nouvelle législation, la Loi de 2002 modifiant des lois en ce qui concerne le Code du bâtiment, et le règlement de l’Ontario no
305/303, qui entraînaient la nécessité pour la municipalité de modifier sa
façon d’administrer et d’appliquer la Loi et le Code du bâtiment de l’Ontario.
L’une des modifications touchait la collecte
des droits de permis de construire, en ce sens que ces droits ne pouvaient
couvrir que les coûts associés à la délivrance des permis et à l’application de
la Loi et du Code. En essence, selon la nouvelle législation, les activités
réglementaires liées à la construction ne doivent pas avoir d’incidence sur les
recettes. Il n’est par conséquent plus possible de générer des revenus excédentaires,
ni de compter sur eux pour compenser l’exonération des droits dans l’optique de
soutenir les projets de construction à des fins de charité ou sans but
lucratif.
Dans le but de s’assurer (conformément au
règlement 2005-303 sur la construction) que l’on continue à exonérer de tout
droit les projets de construction à des fins de charité ou sans but lucratif,
il faudra mettre sur pied un programme de financement permanent. Cette question
sera étudiée dans le cadre du processus budgétaire de 2007. Entre-temps, le
rapport propose de rembourser les droits de permis de construire des projets de
construction à des fins de charité ou sans but lucratif pour lesquels une
demande de permis a été déposée pendant la période allant de la mise en
application de la nouvelle législation qui supprimait l’exonération (1er
juillet 2005) à la fin de 2006.
Répercussions financières :
Le financement de l’exonération des droits de
permis de construire dans le cas des projets de logement abordable approuvés en
2005 (Bâtir pour l’avenir) a été adopté par le Conseil en octobre 2005. Dans ce
rapport, on vise d’autres projets de logement sans but lucratif ou à des fins
charitables qui, avant la mise en œuvre du règlement de l’Ontario 305/03,
auraient pu être exonérés des droits de permis de construire. Sous réserve de
l’approbation du Conseil, on prévoit une contribution d’un montant maximal de
100 000 $ dans le fonds de réserve du logement social afin de
rembourser les droits ou tout au moins d’accorder une subvention en lieu de
droits de permis de construire. Le 28 février 2006, le solde courant de la
réserve pour le logement social était de 5,9 millions de dollars, mais les
demandes en cours de financement, y compris celui de la participation pleine et
entière au programme provincial de logements à prix abordable, ne laissent
qu’un solde de 350 000 $. Le personnel présentera un rapport
soulignant les pressions budgétaires de 2007 pour continuer à financer
l’exonération des droits de permis de construire des projets de logement à prix
abordable.
Consultation publique/commentaires :
Le rapport a été envoyé au Comité des services organisationnels et du développement économique, ainsi qu’aux services juridiques et aux finances. Aucune consultation publique n’a eu lieu à propos de cette demande d’aide. La demande et la réponse recommandée sont conformes aux pratiques du programme actuel et à l’orientation du Conseil.
BACKGROUND
On July 1, 2005, new legislation, the Building Code Statute Law Amendment Act, 2002 and Ontario Regulation 305/03 took effect, which necessitated changes on how the municipality administered and enforced the Ontario Building Code Act and Building Code.
One
of the changes related to the collection of building permit fees, in that these
fees could cover only those costs associated with servicing building permits
and enforcing the Act and Code. In
essence, the new legislation required the building regulatory activities be
revenue neutral. Thus, surplus revenues
no longer could be generated, nor relied upon for offsetting the waiver of fees
in support of construction of charitable and non-profit housing. This impact was discussed in the report
presented to Council on June 22, 2005 entitled “Building Regulatory Changes –
Impact of Building Code Statute Law Amendment Act and Ontario Regulation
305/05” (ACS2005-PGM-BLD-0010).
Prior
to July 1, 2005, building permit fees for charitable and non-profit housing
construction were waived in accordance with By-law 2001-444, which amended the
former Building By-law. The policy, as
reflected in the amendment to the former Building By-law, was further
strengthened by City Council on its approval on June 23, 2004 of the
recommendations in a report entitled “Affordable Housing Policies – Official
Plan Amendment and Implementation”.
Also, in October 2005 Council approved funding to provide grant-in-lieu
of building permit fees for 2005 Action Ottawa projects. (ACS2005-CPS-HOU-0009)
DISCUSSION
Funding of approximately $204,000 was allocated from the Social Housing Reserve for building permit fee relief for the four Action Ottawa (Strong Start) affordable housing projects approved in November 2005 (ACS2005-CPS-HOU-0009).
This
report recommends one-time funding up to $47,284 for reimbursement of permit
fees for those non-profit and charitable housing projects for which a building
permit application was submitted since the implementation of the new
legislation that discontinued the waiver (July 1, 2005).
Schedule
A sets out the permit applications submitted during this lapse of time and the
fees paid for the construction of charitable and non-profit housing. This recommendation also provides for
additional grants in lieu of fees of up to $52,716 for any projects outside of
Action Ottawa that apply for building permit prior to December 31, 2006.
To
ensure the continued implementation of the City policy to relieve building
permit fees for these types of projects, an on-going mechanism will need to be
established whereby funding is made available at the time of the submission of
an application for a building permit to offset the fees owing in accordance
with the Building By-law 2005-303.
In
order to not delay the processing of the building permit applications for
constructing charitable and non-profit housing, the Building Services Branch
would implement the following process to validate the fee relief:
·
Review the application at the time of submission and
confirm with the Housing Branch that the project will result in the
construction of charitable and non-profit housing as defined by the Housing
program; and
·
Arrange for the fee relief amount to be offset with
funds from the grant established for this purpose.
Future
requirements for 2007 and subsequent years will be identified as part of the
annual budget process. New funding will
be required on an annual basis to replenish the Fund in 2007 and beyond in
order to continue to implement City policy to waive building permit fees for
affordable housing passed in 2001 (ACS-PEO-HOU-0006).
CONSULTATION
The report has been circulated to Planning and Growth Management, Legal and Finance. No public consultation has been conducted with respect to this request for assistance. The request and recommended response are consistent with current program practices and Council direction.
FINANCIAL IMPLICATIONS
Funding for building permit fee relief for Action
Ottawa affordable housing projects approved in 2005 (Strong Start) was approved
by Council in October 2005.
For 2006, there is no current budget identified to
fund this initiative. Subject to
Council approval, one time funding from the Social Housing Reserve Fund is
recommended to address this requirement in 2006. 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%. All additional requirements approved by
Council that have a 2007 budget implication will be summarized and presented in
the City’s Quarterly Status Reports.
SUPPORTING DOCUMENTATION
DISPOSITION
The
Community and Protective Services Department, Housing Branch confirm to the
Planning and Growth Management Department the charitable and non-profit housing
projects qualified to receive funding assistance and will process the
reimbursement of fees as set out in Schedule A.
Corporate Services Department, Financial Services to prepare the payments and adjust the accounts accordingly.
SCHEDULE A
|
Application Number |
Application Date |
Project Name/Address |
Building Permit Fees Paid |
|
A04-008006 |
Aug 4 2004 |
Habitat for Humanity – 859-861 Pinecrest |
$ 3190.00 |
|
A05-008181 |
Sep 14 2005 |
Innovative Community Support Services/2975 Sarsfield |
$ 2025.00 |
|
A05-009291 |
Oct 25 2005 |
Ottawa Salus/309 Athlone |
$ 1091.00 |
|
A05-009558 |
Nov 4 2005 |
Ottawa Salus/309 Athlone |
$ 127.00 |
|
A05-009598 |
Nov 7 2005 |
Ottawa Salus/309 Athlone |
$35,748.00 |
|
A05-009840 |
Nov 18 2005 |
Habitat for Humanity/855-857 Pinecrest |
$ 1593.00 |
|
A06-000950 |
Mar 7 2006 |
Ottawa Salus/309 Athlone |
$ 3510.00 |
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Total |
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$47,284.00 |