To:
Committee of the Whole
Agenda Section:
Division:
Department:
Human Services
Social and Community Services
Social Housing
Item Number:
CCW - 16-274
Meeting Date:
August 9, 2016
Subject:
2016 Social Infrastructure Fund Program
Recommendation
That Item CCW 16-274, dated August 9, 2016 regarding the 2016 Social Infrastructure Fund
Program, be received; and
That the County participate in the 2016 Social Infrastructure Fund Program, including
submission of a Program Delivery and Fiscal Plan to the Province, as generally outlined in
Item CCW 16-274; and
That staff amend the Program Delivery and Fiscal Plan in the future if required to avoid any
loss of funds, as generally outlined in Item CCW 16-274; and
That development charges rebates be provided to the two projects to which County
development charges apply, as outlined in Item CCW 16-274; and
That property tax grants be provided to the three projects to which County property taxes
apply, for the twenty year affordability period, as outlined in Item CCW 16-274; and
That the necessary by-law be presented to County Council to authorize the Warden and
Clerk to enter into an Administration Agreement with the Province to participate in the 2016
Social Infrastructure Fund Program, substantively in the form attached as Schedule 1 to
Item CCW 16-274, and to execute all associated agreements and documents necessary to
carry out the 2016 Social Infrastructure Fund Program, as generally outlined in Item CCW
16-274.
Executive Summary
The County of Simcoe received a notional allocation of $13,275,800 in Federal/Provincial funds
under the 2016 Social Infrastructure Fund Program (SIF). The funds are for repairs and/or
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Committee of the Whole - CCW 16-274
Page 2
regeneration of social housing and the creation of affordable housing, targeted to one or more
provincially identified priorities. The funds must be committed in each of the next two years.
Item CCW 16-274 sets out the Social Infrastructure Fund Program (SIF) in more detail, and
recommends participation in SIF by entering into an Administration Agreement with the Province
and by submitting a Program Delivery and Fiscal Plan to the Province by September 1, 2016. Item
CCW 16-274 recommends specific projects to receive funding under SIF, including rental projects
that are also recommended for County development charges rebates and property tax grants. As
the County had already conducted preliminary projections of capital repair, rental development,
and regeneration projects, the announcement of SIF was timely to be able to make progress in
alignment with Our Community 10-Year Affordable Housing and Homelessness Prevention
Strategy.
Background/Analysis/Options
The 2016 Federal budget allocated funds for social infrastructure, including social and affordable
housing. Ontario is cost matching part of the funds, for a total investment of over $640 million in
new Federal/Provincial housing funds through the 2016 SIF for Ontario. The County has been
given a notional allocation of $13,275,800 over two years under the 2016 SIF. The program is
divided into two parts, one for the creation of affordable housing, known as the 2016 Social
Infrastructure Fund Investment in Affordable Housing (2016 SIF IAH), and the other for the repair
or regeneration of social housing, known as the Social Housing Improvement Program (SHIP). The
County’s allocation by program component and fiscal year is set out in Table 1 below:
Table 1 – Allocation by Program
Program Component Fiscal Year (April-March)
2016-17
2017-18
2016 SIF IAH
$5,702,800
$4,122,100
SHIP
$3,450,900
$0
There will be an additional allocation of program funds in 2018-19 based on Provincial cost
matching obligations. Decisions regarding the allocation of these funds are expected to be
communicated in early 2017-18.
The 2016 SIF IAH contains four program components: Rental Housing, Homeownership, Ontario
Renovates, and Operating (rent supplements/housing allowances). Five per cent of the funding
under both 2016 SIF IAH and SHIP can be used for program administration costs. It is estimated
that $425,500 will be required for administration costs, which is approximately 3.2% of the total
funds. Administration costs include legal and staff administration costs, ground breaking and grand
opening events, and the construction project manager for the Simcoe County Housing Corporation
(SCHC) redevelopment project in Collingwood.
All program funding under all program components must be committed by December 31 of each
fiscal year, e.g. 2016-17 funds must be committed by December 31, 2016. Uncommitted funds
may be reallocated by the Province to other Municipal Service Managers. There is a focus on
economic stimulus, therefore it is expected that capital projects commence within three months of
commitment and are completed within two years of commitment. The timelines are challenging,
however, careful consideration has been applied to the analysis of projects that present optimal
capability of meeting deadlines.
August 9, 2016
Committee of the Whole - CCW 16-274
Page 3
2016 Social Infrastructure Fund – Investment in Affordable Housing (2016 SIF IAH):
Under Provincial Program Guidelines, 2016 SIF IAH must be used to target one or more of the
following priority groups:





Tenants of social housing experiencing housing instability in projects where federal
subsidies/operating agreements have expired
Seniors
People with disabilities, including adults with developmental disabilities
The four provincial priorities for ending homelessness (Indigenous Peoples, Youth, Chronic
Homeless, Homelessness following transitions from provincially funded institutions and
service systems)
Projects that support the provincial priorities of transit corridor intensification and/or
community hubs.
Part of the 2016 SIF IAH is made up of funding designated for seniors, although the Province has
not imposed a target number for seniors on each Service Manager, including the County of
Simcoe. If the provincial target for seniors is not met through the planning that naturally emerges
by Service Managers, the Province reserves the right to reallocate funds to ensure that its seniors’
housing target is met.
One of the program objectives is to promote and support the use of apprentices and the training of
skilled labour. There are reporting requirements associated with this objective, to which proponents
will be required to adhere.
Item CCW 16-234 (June 14, 2016) dealt with the results of a Request for Proposal (RFP) process
to fund development of affordable rental housing under the other current six-year round of
Federal/Provincial funding (Investment in Affordable Housing 2014 Extension (IAHE)); it was
reported that the five-unit affordable rental housing project in Barrie, proposed by DeafBlind
Ontario Services, be recommended to the Province to receive additional funding should that
opportunity arise. That Item also provided that should additional funding opportunities arise, staff
engage other proponents of RFP 2016-2018 in accordance with funding availability and
requirements; the 2016 SIF IAH provides the additional funding opportunity. Accordingly, staff has
had discussions with proponents of the next three highest scoring proponents under Item CCW 16234, to gauge interest in participating in the new program. All three proponents continue to be
interested in participating; their projects would use a total of $3,580,000 of funds from 2016 SIF
IAH.
Council also approved Item CCW 16-224 (June 14, 2016) to proceed with the redevelopment and
funding of a 147-unit social/affordable rental housing project by Simcoe County Housing
Corporation (SCHC) in Collingwood. After funding the next three highest scoring proponents under
the RFP as described above, the balance of 2016 SIF IAH funds in the amount of $5,833,400,
could be used to reduce the financing requirements of this project, which will also result in reduced
contributions to the project from the separated Cities. It is anticipated that the target groups for all
of these projects will be predominantly seniors and persons with disabilities, such as persons who
live with physical disabilities and/or mental health and addictions, thereby meeting the Provincial
requirements for target populations.
Two of the projects recommended for funding are subject to County development charges: a
twenty (20) unit project in Alliston, and a four (4) unit project in Wyevale. Council approval of Item
August 9, 2016
Committee of the Whole - CCW 16-274
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AHA 16-003 (January 22, 2016) included that a rebate of County development charges would be
made available to the successful proponent(s) under the Request for Proposal (RFP), structured
as a forgivable loan in the same way as the federal/provincial funds, to be advanced after the
building permit has been issued. Although Item CCW 16-274 deals with a subsequent funding
program it is recommended that the same benefit be made available since the proposals were
submitted in response to the RFP that stated these benefits would be available. It is estimated that
the County development charges for the two projects will amount to approximately $142,884 in
total. It is recommended that the rebates to the projects be included in the budget for 2017 from
the Social Housing Reserve. The rebates would be provided after the building permits have been
issued, which will likely be in the spring of 2017.
As with previous federal/provincial affordable housing programs, there is a requirement in the 2016
Social Infrastructure Fund – Investment in Affordable Housing (2016 SIF IAH) Provincial
Guidelines for a property tax benefit to be provided to funded rental housing projects. In Simcoe
County, that property tax benefit is reliant on both levels of municipal government to provide.
Therefore, as under previous programs, it is recommended that the County provide a property tax
grant to the three projects that are subject to County property taxes. These properties are located
in Alliston, Collingwood and Wyevale, and it is recommended that the grant be equal to the
difference between the County taxes that the projects would pay at the multi-residential rate and
the taxes that the projects would pay if taxed at the single residential rate. The grants would be
provided each year of the twenty year affordability period. It is estimated that the grants would
amount to approximately $160 per unit, for an estimated total of $11,900 per year. As at the time of
writing this Item, the member municipalities in which the projects are located are being asked to
confirm provision of similar grants in respect of their tax differentials, in order to fulfill Provincial
Social Infrastructure Fund Program (SIF) requirements as outlined in the Provincial Guidelines.
The 2016 SIF IAH requires that initial income limits be set for tenants and that rents be set at no
more than 80% of Average Market Rent (AMR). Under the previous round of federal/provincial
funds, as included in RFP 2016-018 that the County issued at the end of February 2016, income
limits were set at varying levels on the basis that household incomes, at the point of initial tenancy,
are not to exceed the amount beyond which a household would spend less than thirty per cent of
gross household income based on the Canada Mortgage and Housing Corporation average
market rent. Additionally, under the previous round of federal/provincial funds, as included in RFP
2016-018 that the County issued at the end of February 2016, the maximum rent was set at 70%
of AMR. The initial income limits and the maximum rents remain the same under 2016 SIF IAH as
they were under the previous round, as that was the scope under which proponents submitted as
part of the recent RFP process. Additionally, this approach is aligned with other affordable housing
projects and supports households living with a range of incomes which in turn supports a healthy
community.
Social Housing Improvement Program (SHIP):
SHIP funds are to be used for critical repair and renovation work in social housing projects,
including substantial modifications to provide or improve accessibility for persons with disabilities,
as well as regeneration within the portfolio of existing social housing including conversion and
demolition/reconstruction.
Existing tracking of capital repair needs by County staff identified priority projects among the nonprofit social housing providers, which amount to approximately $2 million. These critical repairs are
related to life safety, structural integrity or code compliance issues. By funding these capital
repairs there would be a balance of $1,432,297 that could be used to fund the portion of the
Committee of the Whole - CCW 16-274
August 9, 2016
Page 5
Simcoe County Housing Corporation (SCHC) redevelopment project in Collingwood that relates to
the replacement of the existing thirty social housing units. Also by funding these not for profit
social housing provider repairs now, there will be a reduction in the financial obligation through the
County’s capital repair loan process. As the cost of repairs is estimated to be around $2 million,
any savings in the Social Housing Improvement Program (SHIP) funding allocated for these
projects would be applied back to the SCHC Collingwood project to further reduce the County’s
and Cities’ portions.
Program Delivery and Fiscal Plan (PDFP):
The County must submit a Program Delivery and Fiscal Plan (PDFP) to the Province by
September 1, 2016, describing how it intends to utilize Social Infrastructure Fund Program (SIF)
funds. As described in Item CCW 16-274, it is recommended that the PDFP sets out the following:
Program
Component
2016
SIF IAH
SHIP
Project
Fiscal Year (April –
March)
2016-17
2017-18
Deaf Blind Ontario, 5 units, Barrie
$600,000
759198 Ontario Limited, 20 units,
Alliston,
$2,200,000
1820834 Ontario Inc., 5 units,
Barrie
$300,000
Westridge Development Corporation, 4 units, Wyevale
$480,000
SCHC, 50 units,
Collingwood
$1,918,300 $3,915,100
Administration
$204,500
2016 Social Infrastructure Fund Investment in Affordable
Housing (2016 SIF IAH) Total
Non Profit Provider capital repairs
$5,702,800 $4,122,100
SCHC, 30 units, Collingwood
$1,432,297
Administration
$14,000
Social Housing Improvement Program (SHIP) Total
$3,450,900
Grand Total
$207,000
$2,004,603
$13,275,800
A draft PDFP that mirrors the chart above is attached as Schedule 1 to Item CCW 16-274. Further,
since the funding is provided on a use it or lose it basis it is recommended that approval be given
for staff to amend the PDFP in the future if required to maximize use and avoid loss of funds. Staff
would report back to Council on any subsequent changes made to the PDFP. The County’s plan
for the SIF, as outlined in this Item and in the chart above, will assist the County to achieve more of
its affordable housing targets. It is anticipated that 84 new affordable housing units and 30
August 9, 2016
Committee of the Whole - CCW 16-274
Page 6
replacement social housing units will be constructed under Social Infrastructure Fund Program
(SIF), and that approximately 589 units of social housing will benefit from repairs to their
infrastructure.
Administration Agreement:
In order to participate in the SIF the County must sign an Administration Agreement with the
Province. The Province requires this agreement to be returned to it by September 1, 2016. County
legal counsel has reviewed the agreement, which is similar to the Administration Agreements
under previous Federal/Provincial programs. As is usual, the Administration Agreement provides a
broad indemnity from the County to the Minister of Housing (The Minister). The County must agree
to indemnify the Minister for all costs that the Minister may suffer as a result of claims of any sort
arising out of implementation of the Agreement. It is important to be aware that the Minister is
providing funding but will not be liable for any ill effects resulting from that funding. The County
also has an obligation to notify the Minister of any failures by parties who receive funding and to
work cooperatively with the Minister to ensure the affordability of the rents of the Projects. The
County is also obliged to take all reasonable action, including legal action, to seek recovery as a
result of failures and/or negligence of parties receiving funds. If a project ceases to operate as a
2016 SIF Project the proponent must repay all funding to the Minister, subject to the Minister’s
discretion. This obligation needs to be passed on to the Proponent(s) in the applicable Contribution
Agreement(s). The Minister, as is usual, has broad auditing and review rights. The County has
substantial reporting requirements with which it must comply. These legal and administration
requirements are aligned with similar requirements under previous rounds of federal/provincial
funding.
Financial and Resource Implications
The 2016 SIF Program allocation to the County is $13,275,800 over two fiscal years, from 20162018. It is recommended that $425,500 of these funds be used for administration costs, which is
approximately 3.2% of the total funds. Administration costs include legal and staff administration
costs, ground breaking/grand openings, and the construction project management for the Simcoe
County Housing Corporation (SCHC) redevelopment project in Collingwood.
It is estimated that the County development charges rebates for two of the projects will amount to
$142,884. It is recommended that the development charge rebates be funded from the Social
Housing Reserve and be included in the 2017 budget. The rebates would be provided after the
building permits have been issued, which will likely be in the spring of 2017.
If approved, a property tax grant will be paid to the three projects that are subject to County
property taxes equal to the difference between the County taxes that the projects will pay at the
multi-residential rate and the taxes that the projects would pay if taxed at the single residential rate.
The grants would be provided each year of the twenty year affordability period. It is estimated that
the grants would amount to approximately $160 per unit, for an estimated total of $11,900 per
year. Without the property tax grants the projects would not be eligible for program funds, as per
Provincial Guidelines. The member municipalities in which the projects are located will be asked to
provide similar grants in respect of their tax differentials, in order to fulfill program requirements. In
the event that a member municipality chose not to provide a grant, the project would not be able to
proceed.
August 9, 2016
Committee of the Whole - CCW 16-274
Page 7
Relationship to Corporate Strategic Plan
Item CCW 16-274 supports the County of Simcoe Strategic Plan, specifically:
Growth Related Service Delivery: Create and strengthen partnerships with key stakeholders to
support communities through the delivery of sustainable services:
•
Specifically, the Social Housing objective to develop and implement a 10-year affordable
housing and homelessness plan.
Strengthened Social, Health and Educational Opportunities: Establish partnerships to identify
opportunities for strengthening human services and education to support improved health and wellbeing for our residents.
•
Develop a strategy to use current housing stock and future funding opportunities to create
a more sustainable housing system.
Item CCW 16-274 also directly supports Our Community 10-Year Affordable Housing and
Homelessness Prevention Strategy.
Reference Documents
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Item AHA 16- 003 (January 22, 2016) Investment in Affordable Housing 2014 Extension –
Rental Development Component
Item CCW 16-224 (June 14, 2016) Simcoe County Housing Corporation Collingwood
Redevelopment
Item CCW 16-234 (June 14, 2016) Allocation of Rental Development Funds under the
Investment in Affordable Housing for Ontario Program (2014 Extension)
Attachments
Schedule 1 – Program Delivery and Fiscal Plan
Schedule 1.pdf
Schedule 2 – Administration Agreement
Schedule 2.pdf
Prepared By:
John Connell, Acting Implementation Manager, Social Housing
Michelle Simms, Divisional Controller, Social and Community Services
Brad Spiewak, P.Eng, Maintenance and Facilities Project Manager
Arfona Zwiers, Director, Social Housing
Approvals:
Greg Bishop, General Manager, Social and Community
Services
Trevor Wilcox, General Manager, Corporate Performance
Mark Aitken, Chief Administrative Officer
Date
July 26, 2016
July 31, 2016
August 2, 2016