Affordable Housing Incentive

Affordable Housing Incentive

March 23, 2021

The following represents an outline of the Affordable Housing Incentive Program referred to in Economic Development Incentive Policy #113

Goal
To stimulate below market, affordable and accessible housing options in the City of Miramichi. To encourage housing development that makes efficient use of established City infrastructure. To help build vibrant, sustainable and inclusive neighbourhoods.
Definitions
  • Affordable Housing: As defined by Canada Mortgage and Housing Corporation and/or the Government of New Brunswick Department of Social Development (SD)
  • GMRSC: Greater Miramichi Regional Services Commission.
  • Market Rental Units: Units constructed without requirements for Maximum Rental Rates or Maximum Income Thresholds and are offered in the open market to any tenant.
  • Maximum Rental Rates: The rental cost per unit that can be charged under the respective government programs.
  • Non-Profit Housing Provider: A charitable/non-profit corporation as defined in the NB Housing RSNB 1973 Act, whose primary mission is to deliver Affordable Housing OR a membership non-profit corporation that provides housing primarily for the benefit of the public at large instead of its members.
  • Private Sector Developer: any developer or person that provides housing that does not fit within the definition of Non-Profit Housing Provider.
  • Purpose Built Rental Unit: a rental unit that is designed and built for rental purposes and is not intended as an Ownership unit. This can include semi-detached, duplex, triplex, four-plex and multi-unit apartment buildings.
  • Rental Unit: a dwelling unit for rent or lease to a tenant as a principal place of residence.
Amount
  1. Successful applicants will be eligible to receive $10,000.00 per qualified Rental Unit
  2. Applications will be processed on a “first-come, first-served” basis
  3. The amount awarded cannot be combined with any other grant programs of the City of Miramichi
  4. Successful applicants that appear to meet the program criteria will be issued a Letter of Offer demonstrating the City of Miramichi’s commitment to the project and outlining any conditions that need to be satisfied prior to advancement of funds.
Eligibility

Eligible Projects:

  1. Projects must be approved for funding by CMHC and/or SD under their respective Affordable Housing Programs. The intent of the City of Miramichi Affordable Housing Incentive is to be top-up funding to one or both programs.
  2. Projects that are fully funded (100%) by the CMHC and/or SD Programs are deemed to be ineligible for this funding program.
  3. Projects must be located the boundaries of the City of Miramichi
  4. Projects must be located where existing municipal water & sewerage services are available unless approved by GMRSC-Planning & Building Services
  5. Projects are limited to the creation of new Rental Units exclusively. Renovations of existing Rental Units will not be eligible.
  6. Projects must receive executing agreement prior to the commencement of construction.
  7. Non-profit Housing Providers and Private Sector Developers, as defined above, are both eligible for funding under this program subject to the guidelines listed below.
  8. Projects must meet or exceed all requirements of the City of Miramichi Zoning Bylaw #110 and building code requirements as determined by the GMRSC – Planning & Building Services
  9. If the project includes a commercial property within the BIA, then the BIA Levy for the subject property (PAN) must be up to date and paid in full for the previous taxation year.

Ineligible Projects:

  1. Secondary Suites including a laneway Dwelling Unit or alternative secondary accessory Dwelling Unit (Granny suite)
  2. Any Project that does not conform to the Affordable Housing Funding Programs of CMHC and/or SD
  3. Projects that are fully funded (100%) by the CMHC and/or SD Programs.
  4. Hostel & Rooming Houses
  5. Transitional housing of all types
Application

Eligible Applicant:

  1. All applicants must have a registered ownership interest in the property named in the application based on the Service NB Property Account Number (PAN)
  2. One owner may submit one application per PROPERTY ACCOUNT NUMBER (PAN)

Application Procedure:

  1. All projects under this initiative must submit a completed application with all support documentation and obtain final approval prior to the commencement of any work related to the application.
  2. Contact the City of Miramichi, Department of Economic Development & Tourism as directed below to discuss the program and determine pre-eligibility.
  3. Complete a signed application form provided by the department including all necessary supporting documentation as required on the application.
  4. Provide written proof of a signed affordable housing funding agreement with either CMHC and/or SD.
  5. All applicants will be informed of the final status of their application within 60 business days of the receipt of all necessary documentation.
  6. If any development or building safety code permit lapses, project eligibility for funding can cease resulting in the projects loss of place in the projects queue. This will occur at the sole discretion of the Department of Economic Development & Tourism.
  7. The successful proponent will be required to enter into a legal agreement with the City of Miramichi outlining the terms of the grant and acceptable to both parties, prior to the disbursement of any payment under this program.
  8. The disbursement of funds can be assigned to a new legal owner of the project subject to the conditions of the original agreement and further, the signing of a new agreement with the new project property owner.
Procedure

Payment Procedure:

  1. Successful applicants are required to provide a progress report when the project is 80% complete. (If indicated in the Letter of Offer)
  2. The successful applicant must allow the Department of Economic Development & Tourism Department access to the site upon completion of the project to conduct a final inspection prior to the disbursement of funds.
  3. Incentive grants under this program will be payable upon 100% completion of the project, including any applicable deficiencies, as determined by the City of Miramichi Department of Economic Development & Tourism in consultation with the GMRSC – Planning & Building Services.
  4. Payments will be disbursed in one payment upon completion of the project and the submission of final documentation as determined by the City of Miramichi Economic Development & Tourism Department.
  5. Successful applicants must present the following documentation to the City of Miramichi, Department of Economic Development & Tourism prior to receiving reimbursement:
    1. A signed certificate of completion of the project
    2. Copies of all applicable permits obtained for this project
    3. Any other documentation indicated in the Letter of Offer

Audit Procedures

  1. The requirements for Affordable Housing Units, Maximum rental Rates and Maximum Income Thresholds will be confirmed on an annual basis for five (5) years through an affidavit stating that all units in the development are at or below the Maximum Rental Rates and rented to households that meet the Maximum Income Threshold as established by the applicable CMHC or SD and updated annually.
  2. After its completion, should the project cease to include Affordable Housing Units as described above, the project shall be subject to repayment of the amount funded at the rate of 20% per remaining year of the term indicated above.
  3. The successful Applicant for this program must provide any other audit information as indicated by the City of Miramichi Agreement.

For additional information concerning this program contact: Paul R. McGraw

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