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1. ACTION OTTAWA 2006 – ORLEANS TOWN CENTRE AFFORDABLE
HOUSING PROJECT 41 UNITS BEING DEVELOPED BY WIGWAMEN INCOPORATED ACTION OTTAWA 2006 – PROJET DE LOGEMENTS À PRIX ABORDABLE DU
CENTRE-VILLE D’ORLÉANS – 41 LOGEMENTS CONSTRUITS PAR WIGWAMEN INCORPORATED |
Committee RecommendationS
That Council, in accordance with the provisions
of the Action Ottawa program, approve:
1. An allocation of $2,870,000.00 (being
$70,000.00 per unit) to Wigwamen Incorporated for the development of 41
Affordable Housing units as further set out in this Report from the
$34,600,000.00 total funding allocation that the City was previously awarded by
the Minister of Municipal Affairs and Housing under the Canada-Ontario New
Affordable Housing Program (2003), Rental and Supportive Component program.
2. That Staff be directed to negotiate a
Municipal Housing Project Facilities Agreement with Wigwamen Incorporated to
provide for a grant of $1,230,000.00 from City capital funds, a grant of
$65,000.00 in lieu of building permit fees, and an estimated $360,000.00 in relief from development
charges, parkland levies and planning fees, subject to: (i) any conditions
imposed by the Action Ottawa Selection Committee, (ii) the Municipal Housing Facilities
By-law (2006-1), and, (iii) 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 Facilities
by-law 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.
4. That the General Manager of Community
and Social Services Department be authorized to advance to Wigwamen
Incorporated, prior to the registration on title of a mortgage to secure City
contributions, up to $250,000.00 of the $1,230,000.00 City capital funds for
permissible predevelopment expenses subject to execution of a Municipal Housing
Project Facilities Agreement between the City and Wigwamen Incorporated.
RECOMMANDATIONS
DU COMITÉ
Que le Conseil, conformément au programme Action
Ottawa, approuve ce qui suit :
1. que soit octroyée une somme de 2 870
000 $ (soit 70 000 $ par logement) à Wigwamen Incorporated pour financer la
construction de 41 logements abordables, comme il est prévu dans le présent
rapport, cette somme devant être prélevée sur les crédits totaux de 34 600 000
$ qui ont été consentis à la Ville par le ministre des Affaires municipales et
du Logement dans le cadre du volet Logements locatifs et de support du nouveau
Programme Canada-Ontario de logement abordable (2003);
2. que le personnel reçoive instruction de
négocier une entente sur les projets de logement municipaux avec Wigwamen
Incorporated, cette entente devant prévoir une subvention de 1 230 000 $
provenant des fonds d’immobilisation de la Ville, une subvention de 65 000 $
devant tenir lieu de frais de permis de construire et des fonds d’allégement
estimatifs de 360 000 $ pour les redevances d’aménagement, les redevances pour
l’aménagement de parcs et les droits relatifs aux demandes d’aménagement, sous
réserve (i) des conditions imposées par le Comité de sélection d’Action Ottawa;
(ii) des dispositions du Règlement sur les installations de logement
municipales (2006-1); et (iii) de l’adoption par le Conseil d’un règlement sur
les installations de logement municipales propre à ce projet;
3. que le greffier de la Ville et chef du
contentieux soit autorisé à soumettre le règlement sur les installations de
logement municipales propre à ce projet directement au Conseil, pour adoption
conformément au Règlement 2006-1 sur les installations de logement municipales,
sous réserve de la négociation et de la signature de l’entente sur les
installations de logement municipales;
4. que le directeur général du Services
sociaux et communautaires, soit autorisé à avancer à Wigwamen Incorporated,
avant l’enregistrement d’une hypothèque visant à sécuriser les contributions de
la Ville, un montant maximal de 250 000 $ sur les crédits d’immobilisation
municipaux de 1 230 000 $ pour les dépenses préalables à la construction
admissibles, sous réserve de la signature d’une entente sur les installations
de logement municipales par la Ville et Wigwamen Incorporated.
Documentation
1.
Deputy
City Manager's report, City Operations dated 10 June 2009
(ACS2009-COS-SOC-0010).
Report
to/Rapport au:
Community
and Protective Services Committee
Comité des services communautaires
et de protection
and Council / et au Conseil
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
That Community and Protective Services Committee recommend that
Council, in accordance with the provisions of the Action Ottawa program,
approve:
1. An allocation of $2,870,000.00 (being $70,000.00 per unit) to Wigwamen Incorporated for the development
of 41 Affordable Housing units as further set out in this Report from
the $34,600,000.00 total funding allocation that the City was previously
awarded by the Minister of Municipal Affairs and Housing under the Canada-Ontario New Affordable Housing Program
(2003), Rental and Supportive Component program.
2. That Staff be directed to
negotiate a Municipal Housing Project Facilities Agreement with Wigwamen
Incorporated to provide for a grant of $1,230,000.00 from City capital funds, a
grant of $65,000.00 in lieu of building permit fees, and an estimated $360,000.00 in relief from development
charges, parkland
levies and planning fees, subject to: (i) any conditions imposed by the
Action Ottawa Selection Committee, (ii) the Municipal Housing Facilities By-law
(2006-1), and, (iii) 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 Facilities by-law 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.
4. That the General Manager of Community and Social Services Department be authorized to advance to Wigwamen Incorporated, prior to the registration on title of a mortgage to secure City contributions, up to $250,000.00 of the $1,230,000.00 City capital funds for permissible predevelopment expenses subject to execution of a Municipal Housing Project Facilities Agreement between the City and Wigwamen Incorporated.
Que le Comité des services communautaires et de
protection recommande que le Conseil, conformément au programme Action Ottawa,
approuve ce qui suit :
1. que
soit octroyée une somme de 2 870 000 $ (soit 70 000 $ par
logement) à Wigwamen Incorporated pour financer la construction de
41 logements abordables, comme il est prévu dans le présent rapport, cette
somme devant être prélevée sur les crédits totaux de
34 600 000 $ qui ont été consentis à la Ville par le ministre
des Affaires municipales et du Logement dans le cadre du volet Logements
locatifs et de support du nouveau Programme Canada-Ontario de logement
abordable (2003);
2. que
le personnel reçoive instruction de négocier une entente sur les projets de
logement municipaux avec Wigwamen Incorporated, cette entente devant prévoir
une subvention de 1 230 000 $ provenant des fonds
d’immobilisation de la Ville, une subvention de 65 000 $ devant tenir lieu
de frais de permis de construire et des fonds d’allégement estimatifs de
360 000 $ pour les redevances d’aménagement, les redevances pour
l’aménagement de parcs et les droits relatifs aux demandes d’aménagement, sous
réserve (i) des conditions imposées par le Comité de sélection d’Action Ottawa;
(ii) des dispositions du Règlement sur les installations de logement
municipales (2006-1); et (iii) de l’adoption par le Conseil d’un règlement sur
les installations de logement municipales propre à ce projet;
3. que
le greffier de la Ville et chef du contentieux soit autorisé à soumettre le
règlement sur les installations de logement municipales propre à ce projet
directement au Conseil, pour adoption conformément au Règlement 2006-1 sur les
installations de logement municipales, sous réserve de la négociation et de la
signature de l’entente sur les installations de logement municipales;
4. que
le directeur général du Services sociaux et communautaires, soit autorisé à avancer à Wigwamen
Incorporated, avant l’enregistrement d’une hypothèque visant à sécuriser les
contributions de la Ville, un montant maximal de 250 000 $ sur les crédits
d’immobilisation municipaux de 1 230 000 $ pour les dépenses
préalables à la construction admissibles, sous réserve de la signature d’une
entente sur les installations de logement municipales par la Ville et Wigwamen
Incorporated.
The Affordable Housing Proposal by Wigwamen Incorporated is for a 3-½-storey apartment building containing 41 affordable rental units under the Action Ottawa and AHP2003 program guidelines.
On October 11, 2006 City Council approved the following Recommendation 8 in Corporate Services Economic Development Committee Report 55, Item 4 entitled Public-Private Partnership - Orleans Town Centre:
Recommendation 8: Support the allocation of 41
affordable housing units under the Action Ottawa grant program, at a subsidy
totalling $90,000 per unit, $30,000 of which is derived from City Capital
funding, in addition to relief from development charges in the amount of
approximately $360,000 for 41 apartment units.
Of the allocation of “a subsidy totalling $90,000.00 per unit”, $60,000.00 was to be funded under the current Canada-Ontario New Affordable Housing Program (2003), Rental and Supportive Component (the “AHP2003”).
The Orleans Town Centre development was divided into three phases that provided specific commercial, office and community uses and a variety of housing forms including apartments, stacked town homes, and specifically approved 41 units of affordable housing to be developed under the Action Ottawa program. The development of the Orleans Town Centre residential lands is described in the Infrastructure Agreement (East) dated April 30, 2007 entered into between OTCP Residential Lands G.P. Inc. (the “Developer”) and the City. The 41 affordable housing units are referred to in paragraph 1 of Schedule “B” of the said Agreement and are shown on the Concept Plan that is attached to the Agreement.
The lands to be developed by OTCP Residential Lands G.P. Inc. in accordance with the said
Agreement are hereinafter referred to as the “Orleans Town Centre East Lands”.
The development is in compliance with the Housing First affordable housing
policies which state that a minimum of 25 percent of all new housing must meet
affordability targets as defined by the Official Plan, of which 10 percent must
be affordable to the 20th income percentile.
DISCUSSION
Details of Federal-Provincial Funding Allocation to Wigwamen Incorporated
Wigwamen Incorporated is the-not-for-profit urban native housing provider that has been approved under the Action Ottawa program to provide 41 units of affordable housing to native and non-native persons on the Orleans Town Centre East Lands. Wigwamen Incorporated entered into a Provincial Contribution Agreement dated December 22, 2008 with Her Majesty the Queen in Right of Ontario as represented by The Minister of Municipal Affairs and Housing (the “Provincial Contribution Agreement”) that provides for Federal–Provincial funding, subject to the terms and conditions of the AHP 2003, in the amount of $70,000.00 per unit for a total Federal-Provincial Contribution of $2,870,000.00 to this project. The Federal-Provincial contribution was increased from $60,000.00 per unit to $70,000.00 per unit to address that fact that the land for the 41 unit project must be purchased by Wigwamen Incorporated from the current owner of the Orleans Town Centre East Lands, OTCP Residential Lands G.P. Inc., for $408,000.
Timelines for Federal-Provincial AHP2003 Funding
Staff have been working with Wigwamen Incorporated
to ensure that the project is developed within the 2003 AHP timelines and in
accordance with the terms of the Provincial Contribution Agreement. Pursuant to
the terms of the Provincial Contribution Agreement, no funds may be advanced
until security, in the form of a second mortgage with a principal amount of $2,870,000.00, is registered on title to the project. The
Provincial Contribution Agreement requires that the Federal and Provincial
Contributions, as well as any contribution from the City, be secured by way of
a joint Provincial-Municipal mortgage that is registered on title to the
project after the “primary financing” (i.e. a first mortgage loan from a
financial institution) and further requires that the City administer this joint
mortgage on behalf of the Province.
To date, predevelopment work on this portion of the project has been successful as Site Plan Control Application has been submitted and is pending approval and a building permit has also been submitted for review. Pending the OTCP Residential Lands G.P. Inc. subdivision approval deadlines, the negotiation and execution of an agreement of Purchase and Sale between OTCP Residential Lands G.P. Inc. and Wigwamen Incorporated, and authorization being granted to OTCP Residential Lands G.P. Inc.under the Planning Act to sever the affordable housing lands to be sold to Wigwamen Incorporated, the 41 units of affordable housing will be ready for construction by October 2009.
Due to delays in OTCP Residential Lands G.P. Inc.’s
application to the City for subdivision approval, Wigwamen Incorporated has not
been able to purchase the affordable housing lands from OTCP Residential Lands G.P. Inc. and
therefore cannot access the same level of funding as other proponents who are
developing their own properties or purchasing properties directly from the
City. Non-profit Housing
agencies, such as Wigwamen Incorporated, are not permitted to generate large
surpluses that would allow them to cover significant costs such predevelopment
expenses associated with Site Plan Control and Building Permit Applications.
In the past, the Affordable Housing Unit has either (1) advanced City funds, provided City funds were committed to a project, (2) has provided loans to non- profit housing providers to cover predevelopment and cash flow problems associated with development, and (3) provided guarantees to banks against interim financing for predevelopment or construction costs. Staff are therefore recommending that funds be advanced to Wigwamen Incorporated, prior to Wigwamen Incorporated’s purchase of the affordable housing lands from OTCP Residential Lands G.P. Inc. and the registration on title of the second mortgage in favour of the Province and the City that will secure the Federal-Provincial and City funding contributions to the project.
The
purpose of the funding advance is to cover expenses associated with the Site
Plan and Building Permit applications so that the applications may be completed
and submitted to the City for approval. In order to expedite the
development process and ensure that the project will meet the AHP2003
deadlines, staff are recommending that up to $250,000 of the City’s capital
contribution of $1,230,000.00 (i.e. $30,000.00 per unit x 41 units) be provided
upon submission of invoices in accordance with the terms of a Municipal Housing
Project Facilities agreement.
This report was not subject to consultation
There are no Legal/Risk Management impediments to implementing any of the recommendations in this report. However, as set out in the following paragraph, there is some limited legal risk that the City is being asked to assume in order to maintain the funding from the other levels of government for the project. Should the City decline to accept that limited legal risk the project would in all likelihood not proceed further.
In order to accommodate the AHP2003 timelines for disbursement of the AHP2003 funding that has been allocated to Wigwamen Incorporated, delegated authority is required to allow the advance of funds prior to the purchase of the affordable housing lands by Wigwamen Incorporated from OTCP Residential Lands G.P. Inc. and the registration of the mortgage to secure the Federal-Provincial funding and the City funding. If funds are not released to Wigwamen Incorporated at this time, staff have been advised that there is a risk of Wigwamen losing the AHP2003 funding that has been allocated to it pursuant to the terms of the Provincial Contribution Agreement. In the event that OTCP Residential Lands G.P. Inc. does not (i) obtain a legal severance of the affordable housing lands, (ii) enter into an Agreement of Purchase and Sale with Wigwamen Incorporated to sell the affordable housing lands to Wigwamen Incorporated, and (iii) sell the affordable housing lands to Wigwamen Incorporated, there is a risk that the City capital funds in the amount of $250,000.00 will not be repaid to the City by Wigwamen Incorporated.
Capital spending
authority to support the project in the amount of $1.23M, as identified in
Recommendation 2 was provided in October 2006 (ACS2006-PGM-ECO-0017) in
addition to $65,000 under Action Ottawa to cover estimated building permit fees
for a total of $1.295M that was transferred from the Affordable Housing Capital
Building Fund project (901001) to Orleans Town Centre Affordable Housing Fund
(904486).
The amount of $1.295M includes the proposed capital grant
funding and proposed grants in-lieu of (a) building permit fees and (b) school
board development charges, and (c) predevelopment funding and excludes the
estimated $360,000 in relief from development charges, parkland levies and
planning fees.
To date, $113,985 has been provided to directly cover
professional and legal services associated with the land acquisition, and
engineering and architectural services required for the Site Plan Control and
building permit applications. Orleans Town Centre Affordable Housing Fund (904486)
currently has a balance of $1.18M remaining.
Community and Social Services Department staff will work to ensure timely implementation of all necessary funding agreements.
The City Clerk and Solicitor will forward the project specific Municipal Housing Facility by-law directly to Council for approval.
The City Clerk and Solicitor Branch will prepare and attend to the execution of the Municipal Housing Facilities Agreements (MHFA) for the project.