Trinity Housing of Cobourg Corporation (THCC) Budget Request for - - PowerPoint PPT Presentation

Trinity Housing of Cobourg Corporation (THCC) Budget Request for Phase 2 Rental Housing Project

To the Public Budget Submission Council Meeting, Town of Cobourg January 14, 2019 6:00 p.m.

Trinity Housing Phase I – Existing Building

• Existing 20 unit rental apartment building
• Funded under the Federal/Provincial Non-

Profit Housing – 1980s Program

• Predominantly 2 bedroom units
• Government provides ‘rent-geared-to-income’

(RGI) assistance through the County as the Service Manager

• 35 year mortgage fully paid in 2025

Phase 2

• To be built on same parcel of land as existing

20 unit affordable housing project

• Three story residential apartment building
• 27 apartment units:

– 4 studio – 20 one-bedroom – 3 three-bedroom

CMHC Low-Interest Loan Program

• Phase 2: will seek funding under the CMHC

Co-Investment Fund (CI Fund)Program:

– A low interest loan program – up to 85% of total capital cost

• 10 year term; renewable for another 10 year term, then

commercial financing

• amortization period up to 50 years
• no rent-geared-to-income subsidy as in former

affordable housing programs

– A ‘contribution’ of up to 5% of total capital cost if project meets ‘high priority’ ranking

CI Fund Loan Amount Based On...

• Higher ranking for things such as:

– affordability: number of units, and low rents – energy efficiency, accessibility, proximity to transit, community supports, amenities – partnerships: other levels of gov’t; agencies to support vulnerable populations

• Debt Coverage Ratio (DRC) of 1 or better (cash

flow determines amount of loan)

• Approval process takes 3 to 5 months

Phase 2, 2018 Rents

• 13 - affordable – CI Fund Program Definition
• 14 - at market rents for area- as determined

by an appraisal

Apt Type

• Est. Market Rents Affordable Rents

Studio (4) $936 $553 1 Bdrm (20) $1,274 $672 3 Bdrm (3) $1,554 $1,039

*Four units to be offered to support agency at ODSP rate

CMHC SEED Funding Program

• To fund start up costs Trinity Housing has

applied to CMHC’s SEED Funding Program

• Start up costs include architectural and

engineering drawings and specifications, soil and environmental study, appraisal, quantity surveyor, etc.)

• Grant of up to $150,000
• Interest Free loan of up to $350,000
• Security is required for SEED loan

CI Fund Requires ‘Other Gov’t’ Contribution

• Co-Investment Fund requires that another

level of government makes a financial contribution

• Can be a donation of land, waiving of property

taxes and/or development charges, grant, etc.

• Competitive process based on Co-Investment

Fund program guidelines which include amount of contribution from funding partners.

Request of the Town

• Trinity’s request of the Town:

–Provide a grant equivalent to development charges, estimated to be $233,826 –Provide a ‘cash flow loan’ up to $400,000 –If required by CMHC, provide a loan guarantee for CMHC SEED loan of up to $350,000

Estimated Sources of Capital Funds

• CMHC CI Fund Loan

$4,462,270

• CMHC CI Fund 5% Contribution

322,847

• CMHC SEED Funding Grant

150,000

• Trinity Fundraising

100,000

• Trinity Land Donation

475,000

• Donation from Support Agency

325,000

• Grant = Development Fee

233,826

• Town “Cash Flow Loan”

388,002

• TOTAL:

$6,456,945

Reduced property taxes as Alternative to Cash Flow Loan

• As an alternative to Trinity’s proposed “Cash

Flow Loan”, the Town could provide an annual grant of 100% of the Town’s portion of the increase in municipal property taxes for up to 10 years

• Increased project cash flow from lower property

taxes would allow a higher CI Fund Loan.

Status of Phase 2

• Submitted SEED Funding Application.
• Once SEED Application is approved, conduct

initial due diligence work with SEED grant and apply to CI Fund

• Once we receive CI Fund approval, proceed to

construction drawings and specs, and tender construction

• Seek final loan approval from CMHC (final

interest rate not set until take-out mortgage)

• Commence construction

Schedule

• January 2019: apply for rezoning and OPA Amendment
• January 2019: receive SEED Funding approval
• March 2019: approval of Trinity’s funding request by

Town of Cobourg

• March/April 2019: initial due diligence work
• April 2019: apply to CI Fund (requires Town funding

approval)

• July/Aug 2019: approval of CI Fund application
• Aug/Sept 2019: working dwgs & specs; tender

construction

• Nov 2019: receive building permit approval
• Nov 2019: receive CI Fund loan
• Dec/Jan 2019: begin construction
• Dec/Jan 2020: occupancy