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HomeMy WebLinkAboutCBRM Affordable Housing Grant Policy CBRM AFFORDABLE HOUSING GRANT POLICY CBRM �ea�si�su��itcy a&ea�si�sicu2itied Cape Breton Regional Municipality CBRM AFFORDABLE HOUSING GRANT POLICY 1. LEGISLATIVE AUTHORITY (1) This Policy derives its authority from Section 57(4) of the Municipal Government Act. 2. PURPOSE (1) The purpose of this Policy is to: (a) provide a framework for increasing the number of Affordable Housing Dwelling Units within Municipality, and (b) state the objectives of a one-time grant program which will provide support for the creation of affordable housing opportunities in the Municipality through the construction of new dwelling units; 3. STATEMENT OF POLICY (1) This Policy applies to property owners who create new Affordable Housing Dwelling Units and agree to keep the units affordable for a period of 10 years. 4. DEFINITIONS "Accessory Dwelling Unit" means one dwelling unit accessory to a one unit dwelling, two unit dwelling, semi-detached dwelling and intended as an independent and separate living unit which contains its own sleeping, living, cooking and sanitary facilities, and its own entrance. An accessory dwelling unit is detached from main dwelling, unlike a secondary suite. "Affordable Housing Dwelling Unit" means a dwelling unit for which the rent: • does not exceed 30 precent of the gross annual household income; or • is at 80%or less than the average market rent as defined by the Canada Mortgage and Housing Corporation (CMHC) for the CBRM. "Affordable Housing Reserve" means the Cape Breton Regional Municipality reserve fund for the specific purpose of promoting affordable housing. "CAO" means the Chief Administrative Officer of the Municipality; "Canada Mortgage and Housing Corporation (CMHC)" is a Canadian crown corporation that serves as the national housing agency of Canada. "Contribution Agreement" means an agreement signed between the Municipality and the property owner under this Policy.The Contribution Agreement defines the terms and CBRM AFFORDABLE HOUSING GRANT POLICY conditions under which the Affordable Housing Grant will be made and cannot be altered without prior approval. "Dwelling Unit" means one or more habitable rooms designed or intended for use by one or more individuals as an independent and separate housekeeping establishment in which separate kitchen and sanitary facilities are provided for the exclusive use of such individual or individuals, with a private entrance from outside the building or from a common hallway or stairway inside the building. For example, a dwelling unit can be a one-unit dwelling, one of two dwellings units in a two-unit dwelling, or one dwelling unit in an apartment building. "Dwelling, Converted" means a building originally constructed as a one-unit dwelling or two-unit dwelling that has been lawfully converted into a two-unit dwelling or multiple dwelling. "Dwelling, Apartment" means a building containing three or more dwelling units and includes a converted dwelling. "Dwelling, One-Unit" means a detached dwelling containing one dwelling unit and may include a secondary suite. This does not include a recreational vehicle. "Dwelling, Townhouse" means a building containing three or more dwelling units arranged side-by-side each with a separate exterior entrance and separated vertically by a common wall extending from the foundation to the roof located on a lot abutting a public street. "Dwelling,Two-unit" means a building containing two-dwelling units, and may included a duplex, semi-detached dwelling, or a converted one-unit dwelling as defined by the Land Use By-law. "Municipality" means the Cape Breton Regional Municipality (CBRM); "Secondary Suite" means a suite is located within a one ortwo unit dwelling in compliance with the provisions of CBRM's Land Use By-law. 5. ROLES AND RESPONSIBILITIES (1) The CAO, or their delegate, shall expend the funds contained in the Affordable Housing Reserve for affordable housing in accordance with the provisions contained in this Policy. (2) The CAO may further delegate any or all the authorities under this Policy to one or more employees of the Municipality. CBRM AFFORDABLE HOUSING GRANT POLICY 6. ELIGIBILITY FOR CONSIDERATION FOR AFFORDABLE HOUSING GRANT (1) To be eligible for consideration for an Affordable Housing Grant under this Policy, the Applicant must have a valid Building and Development Permit issued between 2024 and 2026. (2) The Building and Development Permit referenced in Subsection (1), shall be for (a) the installation of a new secondary suite, (b) a converted dwelling, or (c) the construction of accessory dwelling unit, two unit dwelling, apartment dwelling, or townhouse. (3) Where an Applicant is found to be in violation or contravention to any Municipal By-law or is subject to any outstanding work orders or any other enforcement procedures of the Municipality or any other governmental authority, the application may be refused, or pending grant disbursements may be cancelled. (3) Properties must be located within the Service Area Boundary as defined by the Municipality's Municipal Planning Strategy. 7. GENERAL REQUIREMENTS (1) Applications will be accepted until December 31, 2026 or until of the funds in the Affordable Housing Reserve have been awarded. (2) All applications must be received by the Municipality by mail, in person, or by e-mail. (3) The Affordable Housing Grant consists of two tiers based on the rent being charged: (a) Tier 1: Rent does not exceed 30 precent of the gross annual household income for the duration of time specified in the Contribution Agreement: A Tier 1 grant base amount of $20,000 per Affordable Housing Dwelling Unit to a maximum of $200,000 per project is available to the Applicant that meets the Policy requirements. An additional $2,000 per Affordable Housing Dwelling Unit is available in bonus funds for projects that have additional funding is being provided by the Province of Nova Scotia and/or the Government of Canada. A letter from the Province of Nova Scotia and/or the Government of Canada confirming approval of funding shall be submitted to be eligible for bonus funds. (b) Tier 2: Rent is 80% or less than the average market rent, as defined by this Policy, for the duration of time specified in the Contribution Agreement: A Tier 2 grant base amount of $18,000 per Affordable Housing Dwelling Unit to a maximum of $160,000 per project is available to the Applicant that meets the Policy requirements. An additional $2,000 per Affordable Housing Dwelling Unit is available in bonus funds for projects that have additional funding is being provided by the Province of Nova CBRM AFFORDABLE HOUSING GRANT POLICY Scotia and/or the Government of Canada. A letter from the Province of Nova Scotia and/or the Government of Canada confirming approval of funding shall be submitted to be eligible for bonus funds. Applications will not be considered if construction has already commenced on the project. (4) All costs associated with the preparation and submission of an application under this Policy are the responsibility of the Applicant. The Municipality 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. 8. REQUIRED INFORMATION FOR APPLICATIONS (1) All applications must include: (a) 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; (b) a copy of an approved Building and Development Permit; (c) a summary describing the project, including: i. the total number of Affordable Housing Dwelling Units,and the approximate size and number of bedrooms ii. the address and location of the proposed development (d) all sources of other approved funding, whether confirmed or unconfirmed, that will be used to construct the Affordable Housing Dwelling Units; (e) if funding is being provided by the Province of Nova Scotia and/or the Government of Canada,then a letter from them confirming approval or eligibility of such funding shall be submitted; (f) a valid email address for communication by the Municipality (g) any other information that may be required by the CAO, or delegate. 9. ELIGIBLE EXPENDITURES (1) The total Affordable Housing Grant cannot comprise more than 50% of the overall construction costs as determined at the time of Building and Development Permit application. 10.ALLOCATION OF FUNDS (1) Final approval of all applications for an Affordable Housing Grant, and the amount thereof, is at the sole discretion of the CAO or delegate. (2) Notification of the decision of the CAO will be emailed to Applicants after it is made. (3) The Affordable Housing Grant is disbursed upon completion of the project and issuance of an Occupancy Permit. (4) Substantial revisions to the Building and Development Permit submission attached to an application, including but not limited to the reduction in number of Affordable Housing Dwelling Units, may void the application or require the application be resubmitted. (5) Due to limited funds, not all eligible applications may receive funding. CBRM AFFORDABLE HOUSING GRANT POLICY (6) Affordable Housing Grants will be disbursed in order of successfully completed applications and approval by the CAO or their delegates. (7) Should an Affordable Housing Grant expire, the funds allocated to that project will revert to the Affordable Housing Reserve and the next eligible project will be evaluated. (8) Prior to payment of any Affordable Housing Grant under this Policy, the Municipality may withhold payment should any of the following be determined: (a) the property taxes and/or water fees for the property have not been paid in full, or, (b) the property is in violation of Municipal By-laws including but not limited to the Building By-law, Land Use By-law, or Municipal Planning Strategy. (9) This Policy shall expire upon the disbursement of all budgeted Affordable Housing Reserve funds. (10) Staff of the Municipality will provide an information report annually to the Council on the Affordable Housing Grants approved under this Policy. 11. CONDITIONS OF APPROVAL AND PAYMENT OF GRANTS (1) A successful Applicant must sign a Contribution Agreement with the Municipality prior to any funds being issued. (2) Affordable Housing Grant provided through this Policy will be detailed in the Contribution Agreement. 12. CONTRIBUTION AGREEMENT (1) The term of the Contribution Agreement shall not be less than 10 years. (2) The Contribution Agreement must be registered on title. (3) The Contribution Agreement signed by the parties will be substantially the same as the form agreement attached as Appendix A"to this By-Law and forming part of the By-Law. 13. MONITORING AND REPORTING (1) The Applicant must annually provide a statement to the Municipality confirming that each unit remains an Affordable Housing Dwelling Unit as defined by this Policy and subsequent Contribution Agreement. (2) Records of all Affordable Housing Grants issued under this Policy shall be maintained by Municipal Staff and the following shall be documented: (a) number and location of Affordable Housing Dwelling Units; (b) construction value of all projects; (c) increased assessment value of participating properties; and (d) confirmation of annual reporting period by successful Applicants. Approved by Council: April 23rd, 2024 CBRM AFFORDABLE HOUSING GRANT POLICY APPENDIX A AFFORDABLE HOUSING GRANT CONTRIBUTION AGREEMENT This AGREEMENT made this day of ,A.D. 20_ Between CAPE BRETON REGIONAL MUNICIPALITY, a body corporate and politic in and for the Province of Nova Scotia hereinafter called the"MUNICIPALITY" -and- [Property Owner Name], a property owner duly registered on the assessment roll of the Municipality, hereinafter referred to as the "Property Owner" WHEREAS, the Municipality has established the Affordable Housing Grant Policy, herein referred to as the "Policy", to increase the number of Affordable Housing Dwelling Units within the Municipality; AND WHEREAS, the Property Owner has applied for an Affordable Housing Grant under the provisions of the Policy for the purpose of[Describe Purpose]; NOW,THEREFORE, in consideration of the mutual covenants and agreements contained herein, the parties agree as follows: 1. Property Information Name of registered Property Owner: Address of Property: Property Identification Number(s): Mailing Address of Owner: Name of Agreement Recipient: Mailing Address of Recipient: 2. Term of Agreement The term of this Agreement shall commence on the date of execution and shall continue for a period 10 years. 3. Registration on Title The Property Owner agrees that the portion of the building or property identified in Section 6 shall only be used for the purposes of providing Affordable Housing Dwelling Units for the term of this Agreement, and that the Agreement shall constitute a charge upon the land. 4. Transfer of Property Ownership (1) The Property Owner covenants to the CBRM that if the Property Owner intends to sell, transfer or assign the Property or if for any reason the Property ceases to be registered in CBRM AFFORDABLE HOUSING GRANT POLICY the Property Owner's name prior to the advance of all of the adjustment,the Property Owner will immediately notify the CAO in writing of such change or proposed change of ownership. (2) Repayment as outlined in section 11 shall be required upon the sale, transfer or assignment of the Property, unless, prior to the completion of such sale, transfer or assignment, the Property Owner and the new Property Owner enter into an Agreement with the CBRM, in a form and content satisfactory to the CAO and the CBRM Solicitor, in which it is agreed that the new Property Owner shall have the right to participate in the Affordable Housing Property Tax Adjustment. 5. Definition of Affordable Rent: For the purposes of this Agreement, the Property Owner shall agree that "Affordable Housing Dwelling Unit" shall mean a dwelling unit for which the rent: • does not exceed 30 percent of the gross annual household income; or • is at 80% or less than the average market rent as defined by the Canada Mortgage and Housing Corporation (CMHC)for the Municipality. 6. Grant Amount: The Municipality agrees to provide an Affordable Housing Grant to the Property Owner in the amount of $[Amount] for [Number] Affordable Housing Dwelling Units for the duration of this Agreement. 7. Use of Funds The Property Owner agrees to use the funds received from the Municipality solely for the purpose of[Describe Purpose], in accordance with the Policy. 8. Eligible Expenditures (1) The Property Owner agrees the Affordable Housing Grant shall only be used for the following expenditures: (a) construction costs, materials; (b) construction costs, labour; (c) construction costs, other; at the discretion of the CAO or their delegate; and (d) consultant fees for professional services (e.g. drawings and design) (2) The Property Owner agrees the Affordable Housing Grant shall not be use for the cost of individual dwelling unit furnishings, including furniture and appliances, are not eligible. 9. Terms of Grant Contribution Agreement The Property Owner agrees to the following terms and conditions: (a) the work identified on the Property Owner's Building and Development Permit application is to be to be completed by [DATE]; (b) to notify the Municipality if; i. there is a change in scope of the project from that description in the Affordable Housing Grant Application, ii. the project does not proceed, or iii. the project is not completed; (c) to maintain [number of Affordable Housing Dwelling Units] as an Affordable Housing Dwelling Units for the duration of this Agreement; CBRM AFFORDABLE HOUSING GRANT POLICY (d) the rent charge for the duration of this Agreement shall be [select either does not exceed 30 percent of the gross annual household income or is 80% or less than the average market rent as defined by the Canada Mortgage and Housing Corporation (CMHC)for the Municipality]; (e) provide an annual report to the Municipality confirming the rent charge for each Affordable Housing Dwelling Unit as defined by the Policy and this Agreement by[DATE] each year; (f) to notify the Municipality if any Dwelling Units cease to meet the criteria of Affordable Housing Dwelling Units. 10. Termination: This Agreement may be terminated by mutual consent of the parties or by the Municipality if the Property Owner is found to be in breach of any provision herein. Termination of this Agreement shall not relieve the Property Owner of their obligations to repay any amounts owed to the Municipality as outlined in Section 11. 11. Repayment on a Pro-Rated Basis In the event of non-compliance with the terms of this Agreement, including but not limited to failure to complete the project,changes in project scope, non-compliance with affordable housing requirements, failure to report to the Municipality, the property is in a position of tax arrears, property is sold, or misuse of grant funds,the repayment of the grant shall be calculated on a pro- rated basis, together with any applicable costs and interest. The pro-rated amount shall be determined based on the number of years the units remained affordable compared to the agreed- upon duration in the Agreement. 12. Compliance The Property Owner shall comply with all requirements and conditions set forth in the Policy,this Agreement, and any applicable municipal by-laws or regulations. 13. Schedule The following Schedule is attached to and form part of this Agreement: • Schedule A-Affordable Housing Grant Policy 14. Notice Any notice required to be given by either party to the other shall be given in writing and delivered in person or by facsimile transmission to: (a) In the case of the CBRM to: Attn: Chief Administrative Officer, CBRM, 320 Esplanade Sydney, Nova Scotia BIP 7139 (b) In the case of the Applicant to: (c) In the case of the Owner to: CBRM AFFORDABLE HOUSING GRANT POLICY Notice shall be deemed to have been received on the day of personal delivery or facsimile transmission if such day is a business day and delivery is made prior to 4:00 p.m. and otherwise on the next business day. The parties agree to notify each other immediately, in writing, of any changes of address from those set out above. 15. Entire Agreement This Agreement and the Schedule attached to it constitute the entire Agreement between the parties and there are no Agreements collateral to it other than as referred to herein and no representations or warranties,express or implied,written or verbal,statutory or otherwise,other than as expressly set forth or referred to in this Agreement. 16. Municipal Government Act Nothing in this Agreement limits or fetters the CBRM in exercising its statutory jurisdiction under the Municipal Government Act, or under any other legislative authority or By-law and in the event that the CBRM decides to grant or deny any request or oppose or appeal any decision made pursuant to any such legislation, such action by the CBRM is not in any manner affected or limited by reason of the CBRM entering into this Agreement. 17. Governing Law This Agreement will be exclusively governed,construed,and enforced in accordance with the laws of the Province of Nova Scotia and the Owner agrees to attorn to the jurisdiction of the Province of Nova Scotia. 18. Waiver and Consent No consent or waiver, express or implied, by either party to or of any breach or Default by either party of any or all of its obligations under this Agreement or any amendment of this Agreement will: (a) be valid unless it is in writing and stated to be a consent or waiver pursuant to this Agreement; (b)be relied upon as a consent or waiver to or of any other breach or Default of the same or any other obligation; (c) constitute a general waiver under this Agreement, or (d)eliminate or modify the need for a specific consent or waiver pursuant to this section in any other instance. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written. Cape Breton Regional Municipality(CBRM): By: [Authorized Signatory] Name: [Name]Title: [Title] Date: [Date] Property Owner: By: [Authorized Signatory] Name: [Name]Title: [Title] Date: [Date]