At the March 9 meeting of the Region of Durham Committee of the Whole, the committee received report 2022-COW-7, which details the Regional Incentive Program for Affordable Housing.

Proposed Framework for the At Home Incentive Program:

5.1 The proposed At Home Incentive Program is intended to support the development of new affordable rental housing projects. The program will provide the opportunity to increase the supply of affordable rental housing for low-income households, including households on the DASH wait list, and to grow the supply of safe, adequate and affordable rental housing.

5.2 Eligible affordable housing rental projects under the At Home Incentive Program will provide a minimum of 5 affordable housing units and will include:

a) New construction;

b) Conversion of non-residential buildings to purpose-built rental housing;

c) Addition of new affordable buildings/units to existing sites/buildings;

d) Community housing redevelopment that increases the supply of affordable housing units.

5.3 To expedite project delivery and to enable competition for Regional incentives, staff recommend that the Region publicly announce invitations for eligible affordable housing proposals through an annual call for applications. This approach can be facilitated through a registry of non-profit and private developers of affordable rental housing, which will be regularly updated by staff.

5.4 A minimum of 5 per cent of total units in eligible projects must be affordable at no more than 100 per cent of CMHC average market rent for a minimum 25-year period of affordability. However, a higher proportion of affordable units, deeper affordability and a longer affordability period will be preferred.

5.5 Eligible projects will be evaluated based on real-time community need and Regional preferences. Consideration of project eligibility will include an evaluation of the following, but not limited to:

a) financial and operational ability to carry the project and ability to meet debt coverage ratio requirements;

b) number of units and percentage of units in the project that will be affordable;

c) period of affordability;

d) depth of affordability;e)community need, including but not limited to, targeted groups, unit size and geographic location;

f) cost per unit;

g) extent to which the project meets accessibility standards with respect to barrier-free designs, elevators and other accessibility features;

h) extent to which the project aligns with the Region’s climate emergency declaration and supports implementation of the Durham Community Energy Plan, including consideration of the project’s energy efficiency measures to reduce utility operating costs and its operational GHG emissions footprint; and

i) proximity to transit, community amenities and services.

5.6 To be successful in providing adequate funding for the At Home Incentive Program, base funding is necessary to ensure that a critical mass of units can be funded. To initiate the At Home Incentive Program, it is recommended that the Region establish an At Home Incentive Program Reserve Fund (AHIPRF). To activate the Program, it is recommended that $5 million from the Regional Revitalization Program Reserve be transferred to the recommended new AHIPRF.

5.7 To optimize project outcomes, the At Home Incentive Program will be stackable with other programs offered by the Region and other levels of government including but not limited to:

a) the Regional Revitalization Plan (RRP) which allows the Region to providecapital grants for private redevelopment projects, sponsored by the areamunicipalities within their respective Community Improvement Plan (CIP)areas. The RRP has been successful in providing capital grants to eligiblerevitalization projects within downtown areas;

b) the Housing Services Development Charges Reserve Fund for eligibleprojects; and

c) incentive programs or funding opportunities offered by federal or provinciallevels of government.

5.8 To activate the At Home Incentive Program, staff will develop a set of program guidelines and administrative framework, that will include but not be limited to:

a) project eligibility requirements;

b) details of program administration, including the process for inviting and reviewing candidate affordable housing projects, processes for ensuring that affordability targets are achieved;

c) monitoring and resourcing requirements to ensure that awarded projects continue to be compliant with program requirements;

d)legal remedies in the event of a default, either during construction or once an awarded project is in operation, including repayment of Regional financial assistance or disposition of projects; and

e) a communications plan to maximize uptake of the program.

You can view the presentation and discussion here.

If you have any questions, comments and concerns, contact Stacey.