GDS-010 - Affordable Housing Grant Program Policy_2023
Title: Affordable Housing Grant Program Policy
Subject: Affordable Housing Grant Program Category: Growth and Community Services
Policy No.: GDS-010 M&C Report No.: 2023-002
Effective Date: 2023-01-10 Next Review Date: 2024-01-01
Area(s) this policy applies to: Growth and Community Office Responsible for review of this Policy:
Services Growth and Community Services
Related Instruments: Policy Sponsors:
M&C 2022-304 Affordable Housing Action Plan Commissioner of Growth and Community Services
M&C No 2022-195 Finance Committee: Regional
Development Corporation (RDC)/Federal Government
Public Transit and Housing Fund
Document Pages:
This document consists of 7 pages.
Revision History:
Common Clerk's Annotation for Official Record
Date of Passage of Current Framework:__January 9, 2023_____
I certify that this Policy was adopted by Common Council as indicated
above.
_ ______January 10, 2023___
Common Clerk Date
Date Created: Common Council Approval Date: Contact:
2023-01-09 2023-01-09 Growth and Community Services
Contents
1. Program Background ........................................................................................................................... 1
2. Policy Statement.................................................................................................................................. 1
2.1 Policy and Program Evaluation ....................................................................................................... 1
3. Definitions ........................................................................................................................................... 1
4. Goals ................................................................................................................................................... 2
5. Affordable Housing Grant Overview..................................................................................................... 2
5.1 Grant Description........................................................................................................................... 3
5.2 Grant Cycles ................................................................................................................................... 3
5.3 Eligible Expenditures ...................................................................................................................... 3
5.4 Disbursement of Grant Funds ........................................................................................................ 4
6. Project Eligibility Requirements ........................................................................................................... 4
6.1 Project Readiness........................................................................................................................... 4
6.2 Project Eligibility ............................................................................................................................ 4
7. Grant Evaluation Criteria ..................................................................................................................... 5
7.1 Grant Committee ........................................................................................................................... 5
7.2 Evaluation Criteria ......................................................................................................................... 5
7.3 Bonus Evaluation ........................................................................................................................... 6
8. Administration ..................................................................................................................................... 6
9. Budgeting and Payment of Grants ....................................................................................................... 7
City of Saint John Affordable Housing Grant Program Policy
1. Program Background
The following program provides a framework for increasing the number of affordable housing units in
Saint John’s residential inventory. The program is aligned with Federal and Provincial Programs and
implements the objectives of the City’s Affordable Housing Action Plan.
2. Policy Statement
The City of Saint John supports the development of affordable housing throughout the City’s Primary
Development Area, as defined by the Municipal Development Plan. The purpose of the Affordable
Housing Grant Program (AHGP) is to increase the number of affordable rental units on the City’s
housing market and ensure those units remain affordable, long term.
2.1 Policy and Program Evaluation
The AHGP will be monitored throughout each grant cycle for number of affordable housing units
committed. At the end of the first grant cycle, Staff will provide an update to Growth Committee that
provides the total number of affordable units, the breakdown of unit structure, and the estimated
timeline for construction and occupancy.
3. Definitions
“Affordable Housing Rental Program” means the Program administered by the Province of New
Brunswick’s Department of Social Development to provide capital grant funding towards the creation of
new housing units for low- and moderate-income households in New Brunswick.
“Affordable housing unit” is defined by the Province of New Brunswick’s Social Development
Department (SD) through its Affordable Housing Rental Program and/or Canada Mortgage and Housing
Corporation (CMHC). CMHC programs range in depth of affordability. In the case of CMHC’s Rapid
Housing Initiative, affordable housing unit means a unit that provides a minimum depth of affordability
where tenants pay no more than 30% of their before-tax income on housing costs and the unit remains
affordable for a minimum of 20 years. Affordable unit must meet, at minimum, the definition of CMHC’s
Co-Investment Fund, where affordable housing unit means a unit that must be less than 80% of the
Median Market Rent and be maintained for a minimum of 20 years.
“CMHC/Federal Funding Programs” means the suite of funding offered by Canada Mortgage and
Housing Corporation which includes but is not limited to the National Housing Co-Investment Fund and
Rapid Housing Initiative.
“Construction costs, material or labour” means the total cost of construction of the building including
site preparation, mechanical and electrical components.
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“Non-profit developer” means a corporation no part of the income of which is payable to or otherwise
available for the personal benefit of any proprietor, member, or shareholder thereof.
“For-profit developer” means a registered corporation that develops and provides housing.
“Townhouse” means a building containing two or more dwelling units arranged side by side each with
an independent exterior entrance and separated vertically by a common wall extending from the
foundation to the roof.
“Vacant building” means the building has been vacant for at least one year and was either (1) previously
used as an institutional building, or (2) has a minimum of 20% floor space that lacks basic facilities or is
substantially damaged to the extent that the new facilities must be installed or the new components
must be replaced or reconstructed to meet the By-law Respecting Standards for Maintenance and
Occupancy of Buildings and Premises.
4. Goals
Success of the AHGP will be determined by the number of affordable housing units to which the
Program contributes and depth of their affordability. The Affordable Housing Grant Program is designed
to achieve the following outcomes:
Address the following gaps in the local housing continuum identified in the Affordable Housing
Action Plan: Supportive/special needs housing, housing to the most vulnerable households, and
affordable rental housing;
Fulfilling the Affordable Housing Action Plan’s principle of promoting public investment for
public benefit;
Effective and meaningful distribution of funds to shovel-ready projects;
Supporting non-profit housing projects in providing long-term affordable housing options;
Incentivizing the use of the Province’s Affordable Rental Housing Program; and,
Incentivizing deeply affordable housing units
5. Affordable Housing Grant Overview
The Affordable Housing Grant provides additional funding to projects approved under the Province of
New Brunswick’s Affordable Rental Housing Program and CMHC funding Programs. It is designed to
provide additional funds to non- and for-profit developers via a “top up” grant to be used to directly
impact the success and sustainability of the affordable dwelling unit. The Affordable Housing Grant will
prioritize projects that meet the project readiness definition described in section 6.1 and are
experiencing fiscal constraints.
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5.1 Grant Description
The Affordable Housing Grant consists of two tiers of grants based on non- and for- profit developers.
Each tier provides a baseline grant and opportunity to access additional funding for innovative solutions
to identified market gaps or issues.
a) Tier 1: Non-Profit Development
A Tier 1 grant base amount of $10,000 per affordable unit to a maximum of $200,000 per project is
available to any non-profit developer that meets the program’s eligibility requirements.
An additional $50,000 is available in bonus funds for market gap solutions. Market gap solutions are
determined by the City’s Grant Committee.
b) Tier 2: For-Profit Development
A Tier 2 grant base amount of $8,000 per affordable unit to a maximum of $160,000 per project is
available to any for-profit developer that meets the program’s eligibility requirements.
An additional $50,000 is available in bonus funds for market gap solutions. Market gap solutions are
determined by the City’s Grant Committee.
5.2 Grant Cycles
a) Grant Cycle 1 opens after Council’s adoption of the AHGP and closes after 30 days.
b) Grant Cycle 1 prioritizes projects according to the highest point value awarded in Section 7.1 and 7.2.
If there are remaining funds that have not been committed after 30 days, a second cycle will open and
run for 90 days before closing and so on until all funds are committed.
c) Funds may be committed during the second and subsequent grant cycles, previous to the 90 day cycle
closing to ensure an expedited process for shovel-ready projects.
5.3 Eligible Expenditures
a) The following expenditures are eligible under the Affordable Housing Grant:
Construction costs, materials;
Construction costs, labour;
Construction costs, other; at the discretion of the City’s Staff Committee;
Consultant fees for professional services (e.g. drawings and design); and
Shared amenity costs such as appliances for shared laundry facilities, appliances or equipment
for shared spaces like community rooms, storage or bicycle lockers, or other expenditures at the
discretion of the City’s Staff Committee.
The cost of individual unit furnishings including furniture and appliances are not eligible.
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5.4 Disbursement of Grant Funds
a) The Affordable Housing Grant is disbursed upon completion of the project and issuance of an
occupancy permit.
b) Substantial revisions to the building permit submission attached to the application form, including
but not limited to the reduction in number of affordable units, may void the application or require
the application be resubmitted.
6. Project Eligibility Requirements
6.1 Project Readiness
Projects are prioritized by their “shovel readiness.” Prior to application, a project must meet the
following:
a) For a project to be considered for the Affordable Housing Grant, all planning approvals must be in
place. Planning approvals include confirmation that the project is in compliance with the Municipal
Plan and Zoning By-law.
b) The project must be aligned with the overall vision and objectives of the City’s Affordable Housing
Action Plan.
c) Projects are encouraged to attach their building permit application to the grant application. The
project will be considered ineligible should an applicant not obtain a building permit for the project
within 12 months of applying for a grant, provided the applicant has participated in a pre-application
meeting.
d) Projects which have undertaken site preparation work or obtained a building permit but have not
advanced past the pouring of foundations are eligible to apply for an Affordable Housing Grant.
e) Confirmation of project readiness will be determined by City Staff at the time of the grant
application.
6.2 Project Eligibility
Each project shall meet the following criteria prior to entering into a grant agreement for an Affordable
Housing Grant with the City of Saint John:
a) The project shall be located within the Primary Development Area as defined by the City’s Municipal
Plan;
b) The project shall be located within an Intensification Area as defined by the City’s Municipal Plan or
within a 1 kilometre radius of a transit stop;
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c) The project shall be appropriate to the area as determined by compliance with the Municipal Plan
and Zoning By-law;
d) Proof of funding sources including confirmation of Federal or Provincial funding and/or confirmation
of funds from a Canadian Financial Institution shall be provided. The project must have received a
letter of support through the Province’s Affordable Rental Housing Program or a letter of intent
through a CMHC Funding Program.
e) The Grant Committee reserves the right to determine whether the application is complete or
incomplete.
7. Grant Evaluation Criteria
7.1 Grant Committee
Each Affordable Housing Grant Application is evaluated by a committee of Staff. The role of the
Committee is to confirm eligibility of applications and evaluate each application in the context of the
Policy criteria contained within this policy.
a. The Committee shall be comprised of, at minimum, one Staff from the Department of Finance;
one Staff from the One Stop Development Shop; two Staff from Growth and Community
Development Services; and one Staff that represents the City’s Legal Counsel. Membership in
the Committee is not to exceed 7 Staff.
b. Members of the Committee shall be approved or removed by the Commissioner of Growth and
Community Services.
c. The Grant Committee will meet to review applications as needed at the closing of the first grant
cycle, and as needed during each subsequent grant cycle according to the evaluation criteria.
d. Funding will be committed in the order of the projects that score the highest number of points
according to the evaluation criteria. Eligible projects that are not selected during the first cycle
may be added to a waitlist and will be evaluated against projects in the subsequent grant cycle.
7.2 Evaluation Criteria
To determine priority of funding per each grant cycle, each application will be evaluated under the
following point structure.
a. Affordable Unit Count (1 point per unit)
b. Project is located within an Intensification Area as defined by Schedule A of the Municipal Plan
(5 points)
c. Application includes a building permit submission with full set of drawings, including site plan
and floor plans or letter of commitment from the Department of Social Development (5 points)
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7.3 Bonus Evaluation
An additional $50,000 is available per project to support innovation and market gap solutions.
a. Three Bedroom Units or Townhouses
A project proposing one or more affordable three-bedroom units or townhouse units are eligible for
an additional $2,500 per unit up to a maximum of $50,000. (1 point per three-bedroom or
townhouse unit)
b. Retrofitting Existing Buildings
A project which retrofits a vacant building into affordable units is eligible for an additional $5,000
per unit up to a maximum of $50,000. (0.5 point per retrofitted unit)
c. Accessibility Standards
A project which achieves better than minimum standards for accessibility towards new development
or retrofitting is eligible for an additional $2,500 per unit up to a maximum of $50,000. (1 point per
each additional accessible unit on top of provincial requirement)
d. Energy Efficiency
Project seeking to provide a high degree of energy efficiency to ensure long term affordability by
meeting 2017 National Energy Code requirements will receive up to $50,000. (3 points)
e. Other
Other gaps identified by the applicant may be considered by the Committee for a maximum of
$2,500 per unit up to a maximum of $25,000.
8. Administration
a. Applications for the Affordable Housing Grant shall be made by completing an application form
(Attachment 1 – Application Form).
b. Applications may be approved subject to the approval of a building permit.
c. The Committee’s decisions on applications are final.
d. Applications and grant disbursement are subject to fund availability.
e. Legal names of the property owner(s) are required and if an applicant is acting on behalf of the
owner, property authorization from the owner of the property.
f. Applications will not be considered if construction has already commenced on the project, as
defined by the date at which the pouring of the footings or foundation has begun.
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g. Once a building permit has been applied for, the developer shall enter into a grant agreement
with the City that outlines the terms of the grant disbursement. The agreement may consider
additional requirements the City determines to be necessary to secure the long-term
affordability of the eligible dwelling units (Attachment 2 – Grant Agreement Template).
h. All costs associated with the preparation and submission of an application under this Policy are
the responsibility of the applicant. The City shall not pay any costs incurred by an applicant in
the preparation and submission of an application under this policy, or any costs incurred in
relation to the execution and delivery of a Grant Agreement.
i. Fulfillment of bonus criteria which was applied for may be audited at the expense of the
applicant upon project completion.
9. Budgeting and Payment of Grants
a. The total grant cannot comprise more than 50% of the overall construction costs as determined
at the time of building permit application;
b. The City will only enter into a Grant Agreement the total value of which does not exceed
$250,000 per project.
c. Notwithstanding Section 5.4(a), disbursement of funds may occur earlier, prior to issuance of an
occupancy permit, should a special need arise. A business case must be provided to the Grant
Committee. The terms and conditions of disbursement will require Common Council approval
through a unique grant agreement.
d. Should a grant expire, the funds allocated to that project will revert to the Grant Reserve Fund
and the next eligible project will be evaluated.
e. Prior to payment of any grant under this Policy, the City may withhold payment should any of
the following be determined:
i. The property taxes and/or water and sewage fees for the property have not been paid
in full, or,
ii. The property is in violation of City By-laws including but not limited to the Building By-
law, Zoning By-law, or Municipal Plan.
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