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1. HABITAT FOR HUMANITY CONDITIONAL GRANT FOR 1499
appleton drive DEVELOPMENT CHARGES Demande d’Habitat pour
l’humanité visant à reporter les droits d’aménagement liés à la propriété
située au 1499, promenade Appleton |
Committee RecommendationS
The Council
approve, pursuant to Section 107 of the Municipal
Act, 2001, a grant in the amount of $11,218.00 for the 1499
Appleton Drive development charges, subject to Habitat for Humanity National
Capital Region entering into an agreement with the City that provides as follows:
(i)
Habitat for Humanity National Capital Region to
develop one affordable housing unit at 1499 Appleton Drive that shall be sold
to a member of a family unit that is at or below the Low Income Cut-Off (before
tax) 2008 as established by Statistics Canada and set out in Document 1 to this
report;
(ii)
Repayment of the sum of $11,218.00 in the
event that the unit does not remain affordable for a term of 20 years and
forgiveness of the $11,218.00 if the unit remains affordable for the entire 20
year term; and
(iii)
The sum of $11,218.00 to be secured by
way of an interest free Charge/Mortgage from Habitat for Humanity National
Capital Region to the City that is registered on title to the property
municipally known as 1499 Appleton Drive.
RecommandationS DU Comité
Que le Conseil accorde, en vertu de
l'article 107 de la Loi de 2001 sur les municipalités, une subvention de
11 218,00 $
pour couvrir les redevances d’aménagement du 1499 de la promenade Appleton,
sous réserve d'un accord conclu entre Habitat pour l'humanité – Région de la
capitale nationale et la Ville prévoyant ce qui suit:
(i)
L'aménagement par Habitat pour l'humanité – Région de la capitale
nationale d'un logement abordable au 1499 de la promenade Appleton qui sera
vendu à un membre d'une unité familiale dont le revenu est égal ou inférieur au
seuil de faible revenu (avant taxes) de 2008 établi par Statistique Canada et
indiqué dans le document 1 joint au présent rapport;
(ii)
Le remboursement de la somme de 11 218,00 $ dans le cas où le
logement ne demeure pas abordable pendant une période de 20 ans et la dispense
de rembourser cette somme dans le cas où il demeure abordable pendant toute la
période de 20 ans;
(iii)
Une garantie de 11 218,00 $ sous forme de charge ou
d'hypothèque sans intérêt donnée par Habitat pour l'humanité – Région de la capitale nationale à la Ville et inscrite au titre de
propriété du bien-fonds ayant pour adresse de voirie le 1499 de la promenade Appleton.
Documentation
1. Deputy City Manager's report, City
Operations dated 6 May 2010 (ACS2010-COS-CSS-0007).
Report
to/Rapport au:
Community
and Protective Services Committee
Comité des services communautaires et de protection
and Council / et au Conseil
May 6, 2010 / le 2 2010
Submitted by/Soumis par:
Steve Kanellakos, Deputy City
Manager/Directeur municipal adjoint,
City Operations/Opérations municipales
Contact
Person/Personne ressource: Janice Burelle, Manager of Housing, Social Housing
and Shelter Management, Community and Social Services Department/
Gest. Logement, Services sociaux et
communautaires
(613) 580-2424 x44239, Janice.Burelle@ottawa.ca
REPORT RECOMMENDATIONS
The Community and Protective
Services Committee recommends that Council approve, pursuant to Section 107 of
the Municipal Act, 2001, a grant in
the amount of $11,218.00 for the 1499 Appleton Drive development charges,
subject to Habitat for Humanity National Capital Region entering into an
agreement with the City that
provides as follows:
(i)
Habitat for Humanity National Capital Region to
develop one affordable housing unit at 1499 Appleton Drive that shall be sold
to a member of a family unit that is at or below the Low Income Cut-Off (before
tax) 2008 as established by Statistics Canada and set out in Document 1 to this
report;
(ii)
Repayment of the sum of $11,218.00 in the
event that the unit does not remain affordable for a term of 20 years and
forgiveness of the $11,218.00 if the unit remains affordable for the entire 20
year term; and
(iii)
The sum of $11,218.00 to be secured by
way of an interest free Charge/Mortgage from Habitat for Humanity National
Capital Region to the City that is registered on title to the property
municipally known as 1499 Appleton Drive.
RECOMMANDATIONS DU RAPPORT
Que le Comité des services communautaires et de
protection recommande au Conseil d'accorder, en vertu de l'article 107 de la Loi
de 2001 sur les municipalités, une subvention de 11 218,00 $ pour couvrir les
redevances d’aménagement du 1499 de la promenade Appleton, sous réserve d'un
accord conclu entre Habitat pour l'humanité – Région de la capitale nationale
et la Ville prévoyant ce qui suit:
(i)
L'aménagement par Habitat pour l'humanité – Région de la capitale
nationale d'un logement abordable au 1499 de la promenade Appleton qui sera
vendu à un membre d'une unité familiale dont le revenu est égal ou inférieur au
seuil de faible revenu (avant taxes) de 2008 établi par Statistique Canada et
indiqué dans le document 1 joint au présent rapport;
(ii)
Le remboursement de la somme de 11 218,00 $ dans le cas où le
logement ne demeure pas abordable pendant une période de 20 ans et la dispense
de rembourser cette somme dans le cas où il demeure abordable pendant toute la
période de 20 ans;
(iii)
Une garantie de 11 218,00 $ sous forme de charge ou
d'hypothèque sans intérêt donnée par Habitat pour l'humanité – Région de la capitale nationale à la Ville et inscrite au titre de
propriété du bien-fonds ayant pour adresse de voirie le 1499 de la promenade Appleton.
BACKGROUND
Habitat for Humanity National Capital Region is a non-profit organization incorporated on December 21, 1992 under the Canada Corporations Act, Part II (i.e. not-for-profit corporations) that builds affordable housing and promotes homeownership as a means to breaking the cycle of poverty. Habitat for Humanity National Capital Region (hereinafter referred to as “Habitat for Humanity”) has built and is in the process of selling the house at 1499 Appleton Drive to a family which is at or below the Low Income Cut-Off (LICO), as established by Statistics Canada (Document 1).
The housing on the Appleton property meets the Official Plan definition of "affordable", in that the household will not pay more than 30% of income on the mortgage payment, and the household income is at or below the 40th income percentile.
The twenty year affordability period is maintained because Habitat for Humanity holds a first mortgage on the home and arranges an affordable payment schedule with the buyer to ensure that the mortgage payment is no more than 30% of household income. The mortgage loan is interest free so the payment schedule is for repayment of the principal amount only. Habitat for Humanity also retains the right of first refusal, in case the home is sold before the mortgage is paid off, to ensure that it will remain affordable and available to another qualifying household.
Staff recommends a grant in the amount of $11,218.00 for the 1499
Appleton Drive development charges, subject to Habitat for Humanity National
Capital Region entering into an agreement with the City that provides as follows:
(i)
Development
of one affordable housing unit at 1499 Appleton Drive to be sold to a family
unit that is at or below the Low Income Cut-Off (before tax) 2008 as
established by Statistics Canada and set out in Document 1 to this report,
(ii)
Repayment
of the sum of $11,218.00 in the event that the unit does not remain affordable
for a term of 20 years and forgiveness of the $11,218.00 if the unit remains
affordable for the entire 20 year term, and
(iii)
The sum
of $11,218.00 to be secured by way of an interest free Charge/Mortgage from
Habitat for Humanity National Capital Region to the City that is registered on
title to the property municipally known as 1499 Appleton Drive.
If the home is sold before the 20-year period
and not kept affordable as defined in the Official Plan, the development
charges of $11,218.00 would be repaid by the vendor to the City as part of the
sale process. The Charge/Mortgage from Habitat to Humanity to the City remains
on title to 1499 Appleton when Habitat sells the unit to a “Qualifying
Purchaser”, defined in the agreement between the City and Habitat for Humanity
Agreement as a member of family
unit that is at or below the Low Income Cut-Off (before tax) 2008 as
established by Statistics Canada and set out in Document 1 to this report. Staff
proposes that the City/Habitat mortgage be interest free to match the terms of
Habitat/Qualifying Purchaser mortgage that is interest free.
The term of the term of the agreement between the City and Habitat for
Humanity is 20 years and the amount of the first, second and third mortgages
will be as follows:
1st mortgage (held by Habitat): Fair market
value of the property plus net GST and the cost of a washer and dryer, and less
the value of down payment assistance (less $50,000).
2nd mortgage (held by City): Value of down payment assistance ($50,000)
provided from the Canada-Ontario Affordable Housing Program (AHP).
3rd mortgage (held by the City): Amount of development charges;
$11,218.00
The third mortgage will be paid in full, in the event that the owner
sells or transfers the property to another property owner, prior to the end of
the 20 year period, unless Habitat for Humanity purchases the property back
from the owner, in accordance with its buy-back policy, in which case the third
mortgage will remain on title.
If the purchaser participates in the Canada-Ontario Affordable Housing Program (AHP) Homeownership Down Payment Assistance Program and sells or defaults on the property within twenty years of the date of the transfer of the property, they will be required to repay all of the second mortgage which would include the amount of down payment assistance provided. In addition, under the AHP guidelines, if the property is sold, it is required that 10% of the net gain in addition to the down payment assistance, be paid to the City of Ottawa’s Revolving Loan Fund for the AHP Homeownership Down Payment Assistance Program. However, if the property is occupied as a principal residence for twenty years, the amount of the second mortgage will be deemed to have been paid in full and will be forgiven as required by the program regulations established by the Ministry of Municipal Affairs and Housing.
RURAL IMPLICATIONS
There are no rural
implications with this report.
CONSULTATION
This report was not subject to consultation.
COMMENTS BY THE WARD COUNCILLOR(S)
The Ward Councillor has received a copy of this report.
LEGAL/RISK MANAGEMENT IMPLICATIONS:
There are no legal/risk management impediments to implementing the recommendation in this report.
CITY STRATEGIC PLAN
N/A
TECHNICAL IMPLICATIONS
N/A
FINANCIAL IMPLICATIONS
The agreement between
the City and Habitat for Humanity provides for a conditional grant of $11,
218.00 and ultimately forgives the development charges unless the housing unit
is sold to a person or organization, other than Habitat for Humanity, prior to
the 20 year expiry of the agreement.
SUPPORTING DOCUMENTATION
Document 1 - Low
Income Cut-Offs (before tax) 2008 (immediately
follows the report)
DISPOSITION
Housing Services Branch will coordinate with the Planning and Growth Management Branch the approved conditional grant for the amount of the development charges.
Corporate Development and Environmental Law Division will review and approve the form and content of the agreement to provide for the conditional grant in the amount of $11,218.00.
Document 1
Low Income Cut-Offs (before tax) 2008
|
Size of Family Unit |
Community of 500,000 or more. |
|
1 person |
$18,373 |
|
2 person |
$22,361 |
|
3 person |
$27,844 |
|
4 person |
$34,738 |
|
5 person |
$39,556 |
|
6 person |
$43,869 |
|
7 or more persons |
$48,181 |
Source:
Statistics Canada, Released June 2009
City of Ottawa Housing
Continuum
