JULY/AUGUST 2018
A new and different “rental RRAP program” By John Dickie, CFAA President For–profit rental providers can apply NOW to two new programs to obtain financial assistance for repairs and retrofits, or for new construction. The affordability requirement is relatively modest. However, to receive funding, rental providers probably need to designate some units to address one or more social purposes, or to arrange for some social agency services to assist tenants with special needs.
Affordability For a minimum of 20 years, applicants must keep rents for a minimum of 30% of units below 80% of the Median Market Rental rate (as described in the most recent CMHC Rental Market Survey for the market and unit type in question). That means 70% of the units are not subject to a limit on their rents, other than any provincial rent control regime that applies.
In the ten year National Housing Strategy (NHS), CFAA achieved commitments for government spending of:
Partnerships A project must include a provincial or municipal funding contribution, which can presumably be a contribution for providing energy savings or accessibility. CFAA will investigate whether the subsidies from a provincial rent supplement program are sufficient to qualify. (In Ontario, that would be a City rent supplement program.) If not, we will likely suggest that the rules be changed so that those subsidies do qualify, at least in the right circumstances.
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$5.7B for major repairs or retrofits $7.4B for new rental construction.
Both pools of money are open to private market (for-profit) affordable housing, as well as community housing (i.e. social housing). Both are administered through the new National Housing CoInvestment Fund. Both seek to create or sustain mixed income, inclusive communities. Repair and Renewal Stream The Repair and Renewal Stream is making available $3.46 billion in loans and $2.26 billion in capital contributions over 10 years. To be eligible, the federal investment needs to be at least $250,000. Criteria To be eligible, properties must have a least 5 units, be primarily residential, and meet minimum requirements for partnerships, financial viability, affordability, energy efficiency, and accessibility.
Social purpose or social services To choose among possible projects, and determine the depth of assistance (and how much is a capital contribution as opposed to a loan), CMHC will use a scoring grid that takes into account: • • • • •
Greater depth or breadth of affordability Partnerships with other governments beyond funding contributions Proximity to community services, stores and work opportunities Presence of integrated supports and service for tenants on site Targeting priority populations.
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