A useful tool for housing providers that can
assist throughout each phase of
development and can help advance
affordable housing projects.
The guidebook
to affordable housing
January 2010
www
.
saskatoon
housing
partner
s
.com
As the voice of the residential construction industry, the Saskatoon &
Region Home Builders’ Association works to promote the trades as
viable career options through partnerships with various educational
institutions and industry employers.
J
OINTT
RAININGC
OORDINATORThe Joint Training Coordinator promotes and manages the Joint Training Committee‘s communication efforts with employers in the carpentry and framing subtrade. The Coordinator acts on the behalf of the employer to indenture and recruit trades people.
I
NDUSTRYD
EVELOPMENTC
OORDINATORThe Industry Development Coordinator works to address the growing demand for trades people in the residential construction industry by promoting career paths in the industry to youth, women and First Nations persons. The Coordinator also actively encourages partnerships among industry, educational institutions and government.
E
SSENTIALS
KILLSC
OORDINATORThe Essential Skills Coordinator develops and implements essential skills programming within the residential construction industry by fostering partnerships with training institutions and community organizations. The Coordinator helps employees that may benefit from training in areas that include math literacy, workplace practices, English proficiency, and other skills essential to career development.
For more information contact the Saskatoon & Region Home Builders’ Association
by phone at 306-955-5188, or by email at info@saskatoonhomebuilders.com
Building Confidence & Communities
CAREER TRAINING SERVICES
FOR THE RESIDENTIAL
CONSTRUCTION INDUSTRY
GUIDEBOOK TO AFFORDABLE HOUSING TABLE OF CONTENTS
Message from the Mayor i
Message from SHIP ii
Message from Our President iii
Board of Directors iv
Introduction v
Affordable Housing in Saskatoon 1
The Need for Affordable Housing 1
Housing Market Information 4
Increasing the Supply of Affordable Housing in Saskatoon 6
Guidebook to Affordable Housing 8
How to use the Guidebook to Affordable Housing 8
Hiring Professional Contract Services 9
Funding Proposals & Business Plans 10
Affordable Housing: Getting Started 11
Getting Started: An Overview 11
Executive Summary 12
Introduction 13
Housing Market & Forecasts 14
Housing Support & Services Currently Available 15
Housing Proponent Background 16
Housing Proponent Project Information 17
Principle Goals & Objectives 19
Management, Operations, & Financing 21
Appendices & Attached Information 23
Step-by-Step Process to Affordable Housing 24
Funding Sources & Programs for Affordable Housing 26
Information for Renters & Property Owners in Saskatoon 30
Affordable Housing Success Stories in Saskatoon 34
Housing Providers in Saskatoon 40
Guidebook Sources & Useful Resources 48
Key Terms and Definitions 49
The Guidebook to Affordable Housing has be produced with financial
support from the City of Saskatoon.
T
A Message from
THE MAYOR
he City of Saskatoon congratulates the Saskatoon Housing Initiatives Partnership (SHIP) on the introduction of Saskatoon‘s first ever Guidebook to Affordable Housing. The City of Saskatoon is
proud to be a major contributor to the guidebook and to the development services for affordable housing provided by SHIP. SHIP
is playing a key role in Saskatoon by providing much needed assistance and direction to organizations who want to create affordable housing. In fact, the type of service SHIP is providing is a key recommendation contained in the Community Plan for Homelessness and Housing.
This guidebook will serve to orient new housing providers to the opportunities which exist to develop affordable housing in our community. SHIP is establishing itself in the community as the place to go when embarking on new affordable housing projects. Through this guidebook and the services offered at SHIP, the City is hopeful that our goal of 500 new affordable housing units can be reached on an annual basis.
On behalf of the City of Saskatoon, congratulations and keep up the good work
Donald J. Atchison
S
askatoon is experiencing a growing demand for all housing types, especially appropriate housing for low income singles and families, first time buyers, new entrants to the workforce, students and seniors on fixed incomes. While each of these groups require access to quality affordable housing in our communities, there are many challenges associated with the development of affordable housing.
It is the hope of the Saskatoon Housing Initiatives Partnership (SHIP) that the Guidebook to Affordable Housing will provide a useful resource that will help to develop viable business plans for affordable housing and help groups overcome obstacles throughout the process of
developing affordable housing in Saskatoon. SHIP is available to assist groups and organizations throughout this process and offers its guidance, experience and supports to those
housing providers pursuing the development of affordable housing in our community.
Affordable housing is the necessary foundation for building healthy, and economically viable neighbourhoods and communities in Saskatoon and the surrounding area. We commend those groups and organizations considering the development of affordable housing in our community as well as those housing providers that have undertaken this process in the past. It is through the efforts and dedication of community-minded individuals, groups and organizations that the provision of affordable housing becomes a reality. We also commend the City of Saskatoon for its foresight and efforts to support affordable housing initiatives in our City and look forward to continued collaboration in order to foster real solutions that provide quality affordable housing options for everyone in all communities in Saskatoon.
A Message from
THE SASKATOON HOUSING INITIATIVES PARTNERSHIP
ii
T
A Message from
THE PRESIDENT
Alan H. J. Thomarat, President
Stakeholders on every level must ensure that all parties use the tools available and work to implement policies that encourage progress and achieve results. Efforts to address the challenges of affordable housing will require that we continue building bridges and foundations that offer sustainable approaches and innovative housing options that will increase access to quality affordable housing for all communities and all people that wish to call Saskatoon home. Together we are: Building
Homes in Our Community.
he Saskatoon Housing Initiatives Partnership has been involved with affordable housing issues and projects since 1999. SHIP has worked with the private sector, builders and developers, along with affordable housing groups to assist with delivering affordable units in Saskatoon. Many of these groups require assistance throughout the process of developing affordable housing. The Development Services team and SHIP‘s Board of Directors continue to provide guidance and direction on a variety of affordable housing projects that come forward.
All Saskatchewan cities remain challenged to supply adequate affordable housing options, including the City of Saskatoon. Saskatoon‘s growth has resulted in an urgent need to respond to changing demographics and increasing housing prices with initiatives that will help increase the supply of appropriate and affordable housing.
E
XECUTIVE
C
OMMITTEE
D
IRECTORS
& E
X
-O
FFICIO
M
EMBERS
Vice-President Don Sylvester Saskatoon Real Estate Services Secretary Terry Gibson Saskatoon Health Region Past President Martin Chicilo Western Economic Diversification Treasurer Ted Rusick Kypak Rusick Architects President Alan Thomarat
Saskatoon & Region Home Builders‘ Association iv Director Ray Neale Saskatoon Housing Authority Ex-Officio Jacquie Bevill
Canada Mortgage and Housing Corporation Ex-Officio Doug Schweitzer Saskatoon Housing Corporation Director David Hnatyshyn Hnatyshyn Gough City of Saskatoon Representative Bev Dubois City Councillor Director Greg Jensen
Royal Bank of Canada
Director Barry Downs Saskatoon Tribal Council Director Bob Jeanneau Knights of Columbus Charities Incorporated Director Jo-Ann Coleman-Pidskalny
Saskatoon Housing Coalition
Director
Tyler Mathies
Innovative Assets, Inc.
Director Bob McLeod Metis Nation — Saskatchewan Ex-Officio Alan Wallace City of Saskatoon
Saskatoon Housing Initiatives Partnership
2010 Board of Directors
This guidebook was developed to assist affordable
housing providers throughout the process of
developing affordable housing in Saskatoon.
Information has been included about the need for
affordable housing, population and demographics,
as well as housing market statistics and the current
supply of affordable housing in Saskatoon.
For housing providers including community-based
and faith-based groups, non-profit organizations
and the private sector, information about funding
proposals and business plans required when
applying to receive funding for proposed
affordable housing projects. The guidebook offers
a step-by-step process for drafting these required
documents in a format that is user-friendly and
encourages groups to provide the information
necessary for potential funders and lenders. In
addition, affordable housing funding sources and
programs have been included.
For buyers, renters, landlords and shelter providers
the Guidebook offers a list of available funding
sources and programs that may be accessed to help
offset the costs of renovating or completing energy
-efficient upgrades.
The guidebook also includes a list of current
housing providers in Saskatoon, including those
groups and organizations that provide assisted
home-ownership
options,
affordable
rental
housing, rent-geared-to-income social housing,
transitional
and
emergency
housing,
and
supportive housing. Lastly, contact information is
included for groups or organizations that maintain
housing market and population data as well as
affordable
other
useful
information
about
affordable housing initiatives throughout Canada.
ABOUT THE GUIDEBOOK
v
Like all major centers, particularly those undergoing economic and population growth, Saskatoon has experienced numerous challenges related to affordable housing in recent years. The supply of housing has not been able to keep pace with the growing demand for housing of all types and prices ranges in Saskatoon and the surrounding areas.
This has resulted in increasing prices for both new and resale homes as well as rental accommodations in Saskatoon. Unfortunately, wage-growth has not increased at a pace that is
consistent with that of the growing economy. Therefore, many people living in our City have to spend a larger portion of their income on housing.
Concerns regarding the escalating costs of housing in Saskatoon are further complicated by the shortage of affordable housing. According to the City of Saskatoon‘s Housing Report (2006),
an additional 3,500 dwelling units were needed to meet current demand in 2006.1 In 2008, the
Saskatoon Health Region‘s Health Disparity Report estimated the shortage of affordable housing had grown to 5,700 dwelling units.
Saskatchewan‘s continued economic growth has also resulted in an urgent need to respond to changing demographics and rising housing costs with community-based initiatives that provide appropriate and affordable housing. Finding appropriate and affordable housing has become increasingly difficult for many groups, including low income singles and families, first-time buyers, new entrants to the workforce, students and seniors on fixed incomes.
First-Time Buyers, New Entrants to the Workforce, Low Income Singles and Families
First-time buyers, new entrants to the workforce, and low income families and singles generally require either housing that is considered to be ‗affordable‘ housing or ‗entry-level‘ housing. Generally speaking, a home is considered affordable if the monthly rent of payments amount to no more than 30 percent of the gross household income (as determined by CMHC to be the limit of housing affordability). More specifically, ―Affordable housing‖ refers to housing that is
_____________________________________________________________________________________________________
1 Katherine McGovern, ―The State of Saskatoon Housing,‖ Presented to the Planning Research and Information Resource Centre, Community Services Department,
City of Saskatoon, August 2006.
THE NEED FOR AFFORDABLE HOUSING
available at below-market prices. The maximum income limits (MILS), as set by the Saskatchewan Housing Corporation, are used to determine whether families or housing providers are eligible to apply for the Government of Saskatchewan‘s and the City of Saskatoon‘s housing programs. Currently, the maximum income limit for families with dependents is $52,000 and for couples and singles without dependents the limit is $44,500. Therefore, if a family with dependents were to spend 30 percent of their income on housing they would be able to afford a home that costs approximately $175,000. Unfortunately, current housing options available within this price range are limited in Saskatoon.
Entry-level housing is considered to be housing that is modest in size and includes the basic features typical of what first-time buyers would purchase. Entry-level homes are usually purchased by young families and new entrants to the workforce. These homes often consist of modest resale units, apartment-style condominiums and townhouses, and homes that are generally lower in cost when compared to new or large homes. Nevertheless, many looking to purchase entry-level housing in Saskatoon are spending closer to 40 percent of their average household income in order to access the housing market.
Students
Saskatoon has a relatively large amount of post-secondary students and a lower-than-average campus housing-to-student ratio. For example, while the University of Saskatchewan boasts an enrollment of nearly 20,000 students, housing on campus is limited and provides only 6 percent of these students with accommodations. This percentage is well below the national university average of 15 percent. In addition, the Saskatchewan Institute of Applied Science and Technology (SIAST) does not have any student housing available for those enrolled. The low
amount of student housing in Saskatoon means that more students have to seek accommodations through the traditional housing market. In general, many full-time students
have a limited amount of income at their disposal as many work part-time jobs and finance their studies with the assistance of student loans. For the student population, even marginal increases in rental prices can place a significant strain on their budgets.
2
Seniors with Limited or Fixed-Incomes
Research indicates that while seniors currently comprise 13 percent of Saskatoon‘s population, this demographic is forecasted to increase nearly 23 percent by the year 2026. For example, the Canada Mortgage and Housing Corporation (CMHC) have stated that the population of senior citizens living in Canada will continue to grow at a pace quicker than other demographic
sectors. In Housing for Older Canadians: The Definitive
Guide to the Over-55 Market, CMHC stated that
between 1991 and 2031, the proportion of people over the age of 65 is expected to increase from 1 in 9 persons to 1 in 4 persons. This growing number of senior citizens will continue to, bring about a corresponding demand for seniors housing in our communities.
Seniors on a fixed income are at a unique disadvantage in quickly escalating housing markets. Simply stated, when the price of rents increase their fixed-income remains the same, making it incredibly difficult for them to adjust to the increased costs. Furthermore, the Government of Saskatchewan‘s Task Force on Housing Affordability indicates that while seniors would often
like to move to more suitable locations, there is a lack of appropriate accommodations available to meet their needs.
Immigrants and Newcomers to Saskatoon
Saskatoon has become a popular and desirable destination for interprovincial migration as well as for new immigrants and refugees seeking a new community to call home. Immigration to Saskatchewan has increased approximately 67 percent
since 2005, with 44 percent of newcomers choosing to make Saskatoon their home. The Government of Saskatchewan believes that our province will attract an additional 7,000 to 10,00 immigrants and refugees over the next two-years through the Saskatchewan Immigrant Nominee Program (SNIP). Based on immigration statistics to date, Saskatoon is predicted to attract approximately 3,100 to 4,400 of these individuals.
Unfortunately, the need for adequate housing for this population has been largely unfilled. For example, the 2001 Census of Canada demonstrated that 14 percent of the 16,900 immigrants in Saskatoon were living in crowded conditions, with more recent data reporting that this number had increased to 30 percent. The Census also reported that 14 percent of recent immigrants were paying 50 percent or more of their annual household income on housing. This is significant as housing affordability is generally considered to cost 30 percent of a family‘s annual household income.
Housing Prices
Saskatoon‘s changing housing affordability can be seen in both the resale and new home markets. For example, in a two-year period the average price of a resale home nearly doubled in Saskatoon. Peaking in June of 2008, the average price of a resale home increased 91.3 percent from $162,279 in May of 2006 to $310,000 in June of 2008. The price of a resale home has stabilized with the average resale home selling for approximately $279,477 in May of 2009. The price of a new home in Saskatoon has also increased significantly in recent years. After peaking at over $400,000 in August of 2008, the average price of a new home in Saskatoon was $372,145 in April of 2009. This represents an increase of 47 percent over the $253,875 average price of a new home recorded in April of 2007.
Between the summer of 2008 and the spring of 2009, housing prices fell from peak price points in the context of a global economic slowdown. While many provinces and communities in Canada were significantly affected by the global economic slowdown, Saskatchewan and Saskatoon maintained strong economic growth. Saskatchewan is one of the few provinces that is forecast to post continued economic growth in 2009. Therefore, the potential for continued increases in the housing market remains.
In a recently released International Housing Affordability Survey, Saskatoon‘s housing market was reported to be ―seriously unaffordable.‖ The survey indicated that it would take 4.6 years of a median income to purchase the average home in Saskatoon. This is a significant increase over the 2.6 years required in 2006, and the 3.5 years needed in 2007. It is also higher than the Canadian average of 3.5 years and is almost on par with Calgary and Toronto‘s housing
affordability rating of 4.8 years.3
Rental Prices
The rental housing market in Saskatoon has also experienced significant increases over the past few years. The Canada Mortgage and Housing Corporation‘s (CMHC) Rental Market Report released in April 2009, demonstrates that the average price for a two-bedroom rental unit in Saskatoon increased 30 percent, or $242, between April 2007 and April 2009. Furthermore, the average rent for a one-bedroom unit increased from $516 to $702 and the average rent for a
bachelor suite increased from $407 to $534 during this same period.4
_____________________________________________________________________________________________________
2 Frontier Centre for Public Policy, ―5th Annual Demographia International Housing Affordability Survey,‖ January 2009, 38. 3 Canada Mortgage and Housing Corporation, ―Rental Market Reports,‖ April 2009.
HOUSING MARKET INFORMATION
While these increases are not necessarily on par with the increases experienced in the ownership side of the housing market, demographic groups that traditionally access the rental market have a comparably lower income than those who purchase units for the purpose of home ownership. Those families and individuals that reside in rental accommodations are less able to withstand recent increases in housing costs.
Forecasts currently indicate that the average rent for a two-bedroom suite will increase to $860
in Saskatoon during 2009.4 Unfortunately, Saskatchewan‘s average wage growth has not kept
pace with increasing rents in Saskatoon. For example, while the rent for a two-bedroom suite has increased 21 percent (from $346.50 to $420.50 per person, based on 2 persons per unit), wage growth within the five lowest paid industry sectors in Saskatchewan only increased 3.5
percent.5
Vacancy Rates
Increasing rental prices are not the only challenge that residents of Saskatoon are faced with. As the demand for housing increased over the past few years, prices rose and the number of vacant rental units fell drastically. After hovering around 3 percent for some time, Saskatoon‘s vacancy rate abruptly fell to 0.6 percent in 2007. This meant that for every 1000 rental units in Saskatoon, only 6 were available for rent. People seeking rental housing found it exceedingly difficult to find available and affordable rental accommodations.
Partially attributed to the increase in the amount of apartment to condominium conversions, Saskatoon‘s City Council passed a policy on Condominium Approvals to place limits on the amount of condo-conversions in order to ensure that the vacancy rate crisis would not be further compounded by increased conversions. Therefore, when the vacancy rate is below 1.5 percent, an application for condo-conversions project will not be approved. Moreover, City Council reserves the right to disallow a condo-conversion if the vacancy rate is between 1.5 percent and 3 percent. However, it should be noted that condo-conversions may still be allowed if the building in question has been vacant for 12 months or if 75 percent of the voting tenants in the building vote in favour of the conversion.
The vacancy rate has since risen from the all time low of 0.6 percent. As of April 2009, the average vacancy rate in Saskatoon was 1.9 percent. This varies throughout each region in the city with the lowest vacancy rate being 0.9 percent in the city‘s southeast region.
_________________________________________________________________________________________________________
4 Canada Mortgage and Housing Corporation, ―Rental Market Reports,‖ October 2008.
5 The five lowest paid industry sectors include, starting with the lowest paid sectors include: a) accommodation and food services; b) administrative support waste
management; c) trade, d) service producing industries; e) healthcare and social assistance. It should also be noted that these statistics do not incorporate increases in
5
Community-Based Organizations, Associations, and Partnerships
In response to the increasing need for affordable housing, many community-based organizations have undertaken the task of developing their own affordable housing projects in
Saskatoon. These organizations are helping to alleviate housing needs by providing various forms of affordable housing, including rent-geared-to-income social housing, supportive housing, transitional and emergency housing, affordable rental housing and assisted home-ownership.
Another organization that works in partnership with many groups and the various levels of government to encourage the supply of affordable housing in our community is the Saskatoon & Region Home Builders‘ Association. The Association promotes affordability and choice for all people in Saskatoon and Central Saskatchewan. For more information, call 955-5188, email admin@saskatoonhomebuilders.com, or visit the Saskatoon & Region Home Builders‘ Association website at www.saskatoonhomebuilders.com.
City of Saskatoon’s Role in Encouraging the Supply of Affordable Housing
The City of Saskatoon plays an important role in encouraging and facilitating the development of housing in Saskatoon. The City administers a number of programs that are designed to assist housing providers, encourage affordability, and increase the supply of housing in our community. The City of Saskatoon‘s Housing Business Plan 2009 outlines the various initiatives and incentive programs offered to encourage housing affordability in our city.
Current incentives include: Capital Funding for 10 percent of affordable housing projects; the New Rental Construction Land-Cost Rebate Program offers $5,000 per door of new affordable rental housing; the First Home Ownership Program; Permit Rebates for Secondary Suites; Property Tax Abatements for affordable housing projects; the Direct Sale of City-Owned Land for Affordable Housing Projects; the Mortgage Flexibility Support Program; a New Zoning District for Entry-level and Affordable Housing; and a Priority Review of Approved Affordable Housing Projects.
The City of Saskatoon has also proposed further incentives for affordable housing providers that includes: an Equity Building Program, Bonuses for Inclusionary Housing, and a Policy Review of Garden and Garage Suites.
INCREASING THE SUPPLY OF AFFORDABLE HOUSING IN SASKATOON
6
Canada Mortgage and Housing Corporation (CMHC)
CMHC is dedicated to advancing affordable housing solutions across Canada. CMHC works with the private, public and non-profit sectors to help develop affordable housing. The services they offer include data information, financial assistance and mortgage loan insurance.
Financial assistance for affordable housing projects and assistance for homeowners are available in numerous forms, including: Seed Funding, Proposal Development Funding, Affordable Housing Initiatives and Renovation Programs, and Flexibilities for Affordable Housing, to name a few.
Saskatchewan Housing Corporation (SHC)
The Government of Canada and the Government of Saskatchewan have committed resources to affordable housing in Saskatchewan. The Saskatchewan Housing Corporation allocates these resources and administers a variety of programs for renters, homeowners, and property owners. SHC promotes self-sufficiency and independence by providing housing and housing services for families, seniors, persons with disabilities and others who cannot otherwise afford safe, secure shelter. The Saskatchewan Housing Corporation also provides funding for a number of ongoing and new housing programs and services for low to moderate-income households, and property owners (ie., landlords and shelter providers) with an identified need. Assistance may be in the form of forgivable or repayable loans or grants. Programs include social and affordable rental housing, home renovations, repairs and energy retrofit programs, home adaptations programs, supports to independent living for seniors, and homeownership options.
The Saskatoon Housing Initiatives Partnership (SHIP)
In addition to the programs and incentives listed above, the City of Saskatoon has provided its generous support to the Saskatoon Housing Initiatives Partnership (SHIP) so that SHIP can provide business planning services to affordable housing providers.
The City‘s support enables SHIP to play an important role in the City‘s overall affordable housing strategy. SHIP provides useful resources to community-based and non-profit organizations that seek to take part in increasing the supply of affordable housing in Saskatoon but lack some of the skills and resources available to others in the residential housing industry. Not only does SHIP provide business planning services to affordable housing providers, SHIP is in constant contact with those organizations that offer funding for affordable housing initiatives and can help groups with their funding applications and proposals.
The Affordable Housing: Getting Started section of this Guidebook is intended to challenge your group or organization to identify the necessary details of the proposed affordable housing project. It is essential that you communicate the group or organizations‘ experience to date, and the required project details in a manner that demonstrates to potential lenders and funders your groups abilities and intentions. For this reason, it is recommended that you work through the sections and questions on the following pages, providing information and answering as many questions as possible.
Working through the following pages and answering the relevant questions will help your group or organization draft and format a funding proposal or business plan that will provide potential funders and lenders with much needed information. Compiling this information and presenting it in a professional manner will increase the likelihood that the proposed affordable housing development receives the support it needs to succeed.
The following pages have been organized to provide a workable document format for funding proposals and business plans. Each section is formatted to provide you with a step-by-step process for compiling relevant information. The sections include:
A brief description of the type of information that should be included and an
explanation why this information is necessary.
A list of questions and/or examples that should be answered as it pertains to the
proposed affordable housing project.
Useful tips that offer advice and hints intended to assist you throughout the process
collecting information and drafting the required documents.
The following includes a list of sections that should be included in your funding proposal or business plan:
The Executive Summary The Introduction
The Housing Market and Forecasts
The Housing, Supports, and Services Currently Available Housing Proponent Background
Housing Proponent Project Information The Principle Goals and Objectives Management, Operations and Financing The Appendices and Attached Information
HOW TO USE THE GUIDEBOOK TO AFFORDABLE HOUSING
8
If contracting services to develop a funding proposal or business plan it is likely that those firms providing services will require information from you. The Guidebook can be extremely useful when preparing information for consultants and accountants that have been hired to draft documents for you. Working through the following sections can also help you to be proactive in gathering the required information. Answering these questions prior to meeting with the contract professional services will prepare your for the process of drafting funding proposals or business plans.
Alternatively, the following sections and questions can be used as a guideline to ensure that contracted professional service providers have developed a solid funding proposal or business plan. A professional service provider will provide background research that supports your group or organization‘s efforts and will present your project clearly and professionally, demonstrating the ability and value of your project to the community. The questions contained in the following sections are ones that potential lenders and funders will expect to have answered so that they can make a decision about whether to fund the proposed project or lend monies to your group or organization.
If you do not have sufficient information to answer required questions it will be necessary to compile more information. This may include completing housing market or demographic research or working with your group or organization to decide upon a direction for the proposed housing project or answer questions about specific project details. The Saskatoon Housing Initiatives Partnership is also available to help your group or organization address information deficiencies in funding proposals and business plans.
The Saskatoon Housing Initiatives Partnership can call upon its network of professional consultant firms and services to develop a service-package at a fixed-rate for various resources such as:
Housing market research
Business plan development
Incorporation of a not-for-profit organization
Preliminary financial viability analysis
Development of capital cost budgets
Development of operating cost budgets
Investigation of potential sites
Environmental site assessments
Preliminary project design or concept plans
Schematic project plans
Preliminary low cost marketing materials
Initial marketing of project
Development of financing, development, marketing and operation plans
HIRING PROFESSIONAL CONTRACT SERVICES
Innovative, Affordable Housing Solutions
Government & Industry Support Working Together
Providing Opportunities
Juniper Housing
EGADZ Youth Centre
Abbeyfield Development
Affordable Housing Projects Include:
3037 Faithfull Avenue — Saskatoon, SK S7K 8B3
www.northridge.sk.ca
2 4 2 - 2 4 3 4
STRENGTHENING SASKATOON COMMUNITIES
THROUGH HOME OWNERSHIP
The success of affordable housing groups and organizations often depends on their ability to clearly outline the details of their proposed affordable housing project within funding proposals and business plans. In order to demonstrate to potential lenders and funders the value of the proposed development to the community as well as your ability to carry out the proposed project you will need to develop a strong and effective funding proposal or business plan.
Funding Proposals: Requests for Proposals (RFPs) are typically issued by the various levels
of government, inviting applicants to submit a housing or development proposal that meet the requirements outlined in the RFP. A housing or development proposal must demonstrate to the reader why your group or organization should receive funding and explain how the proposed project meets the requirements of the RFP. This is done by providing a clear and sound analysis of the current housing market and the need for the services or housing development among the targeted clientele group. It is also necessary to demonstrate that your group or organization is best suited to provide these services or develop the affordable housing project.
Business Plans: A business plan is a formal document that provides background housing market and demographic analysis, outlines the need and demand for the proposed project, includes the goals of the proponent in developing affordable housing, supports the proponent‘s ability to pursue these goals, and outlines a plan for reaching these goals through the proposed project. An effective business plan will provide information about the proposed affordable housing development to potential funders, lenders, and various levels of government to demonstrate how resources received will be used. A business plan also establishes the credibility of your group or organization and the proposed affordable housing project as well as includes information about how the operation of the proposed development will be sustainable in the long-term. While business plans are usually prepared by those implementing it, outside assistance from consultants, accountants, bookkeepers, and those with relevant business experience may be necessary.
FUNDING PROPOSALS & BUSINESS PLANS
The Saskatoon Housing Initiative Partnership (SHIP) has included information in this section is useful for groups or organizations that are considering pursuing the development of affordable housing in Saskatoon and the surrounding communities. The Affordable Housing: Getting
Started section guides groups and organizations through the process of compiling necessary
information required to draft funding proposals and business plans. This information helps groups and organizations to secure funding and support needed to move the proposed affordable housing projects and support services forward.
The last pages within this section, Funding for Affordable Housing, contain a list of programs and assistance offered through the City of Saskatoon, the Saskatchewan Housing Corporation and the Canada Mortgage and Housing Corporation. Depending on the program your group or organization will be applying to, a funding proposals or business plan will be necessary.
The information contained in this section of the Guide to Affordable Housing will help your group or organization throughout the process of drafting funding proposals and/or business plans. Work through ―Getting Started‖ so that your group or organization will have all the information necessary to draft a funding proposal or business plan. The questions you answer and information you collect will also be useful if your group or organization has hired a consultant to develop documents for you; they will require that you answer many of the questions below so that they can draft a document that best reflects the goals of the proposed project.
The sub-headings have been organized according to the sections that are required in most business plans or funding proposals. The questions are intended to encourage your group or organization to provide clear and specific information regarding the proposed affordable housing project as well as the demographic group and target clientele that you intend to serve. While the actual written length of these sections will vary according to the project being proposed, it is important that your group work to provide concise information for potential fun-ders and lenfun-ders. Lending institutions and those individuals assessing funding proposals will also expect you to demonstrate any relevant experience that your group or organization has providing services or housing to your intended client group.
Throughout these sections ―useful tips‖ have been included that will help you throughout the process of drafting the required documents.
11 GETTING STARTED: AN OVERVIEW
The Executive Summary should briefly outline the components of your funding proposal or business plan and should not be more than one-page in length. It should identify who the intended clientele/population group is and why they are in need of housing or services, present information about your group or organization including how long they have been serving the target clientele/population, and outline the details of the proposed affordable housing project.
This section should answer the following questions:
1) What is the name of your organization or group?
2) Who is the target clientele/population group the proposed project will serve?
3) Is there an identifiable need and demand for affordable housing among this group in your community?
4) What experience does your organization or group have in developing housing? 5) What experience does your organization have in serving the targeted clientele? 6) What type of affordable housing is your group proposing to develop (ownership,
rental, transitional, emergency or crisis shelter, supportive, etc.,)?
7) How many units of affordable housing is your group proposing to develop? 8) Where do you intend to develop your affordable housing project? Why? 9) How will the housing project be sustained over the long-term?
Useful Tip
Write this section last by simply borrowing statements from the body of your funding proposal or business plan that answer these questions directly and highlight the intentions of the project.
THE EXECUTIVE SUMMARY
The Introduction provides basic background information about the community where your group or organization would like to develop affordable housing. It also identifies the need or business case for the affordable housing being proposed. This section typically contains quotes and statistics from reputable research sources that support the need for housing your targeted clientele/population group. The information contained in this section will help to set-up the rest of the funding proposal or business plan, which will expand on the information presented in the Introduction and explain how the proposed affordable housing project will meet the need for housing among your targeted clientele/population group. The Introduction is usually not more that one page in length.
This section should answer the following questions:
1) What specific population do you intend to provide affordable housing or services to (seniors, low-income singles, low-income families, disabled persons, new
immigrants, etc.)?
2) Is there currently a need for affordable housing among this population?
3) Will there be a need for affordable housing among this population group in the future?
4) Has the federal, provincial, or municipal government officially recognized the need for housing among this population in research articles, media releases, newspaper articles or speeches?
Useful Tips
When answering each of these questions be sure to provide research that supports your statements. This includes information about the population demographics of the targeted clientele group as well as quotes from articles, media releases and speeches from the various levels of government.
If quotes are available that demonstrating government recognition of the need for housing among your targeted clientele/population or supporting the need for
increas-ing the supply of affordable housincreas-ing to this group be sure to include citations and references for borrowing this information. References and citations can be included in the form of a footnoted and should include the title of the author or speaker, the title of the article or headline, the date of publication and the publication source. If the information has been found on a website, include the website address as well as the date the information was accessed. The same format should also be used throughout the remainder of the document where information has been borrowed from other sources.
THE INTRODUCTION
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The Housing Market and Forecasts section expands on the information presented in the introduction and includes a more comprehensive analysis of the population that you intend to serve. This information will help demonstrate the need for affordable housing among your clientele/population group. The Housing Market and Forecasts section is typically longer than the preceding sections and can range from two-to-four pages and depending on the clientele/ population group you intend to serve and the amount of information available it may even be longer.
This section should answer the following questions:
1) What are the current and forecasted demographic population statistics for the population group you intend to serve?
2) Is the population of this group expected to grow in the future? Why? 3) What is the income range of this population group?
4) Are there any specific reasons why their income may be limited?
5) Typically, what type of housing does this population group reside in (rental units, single unit dwellings, assisted living units, etc.)?
6) On average, what does this type of housing cost per month/annually? 7) What is the average new home price in the community, city and region? 8) What is the average resale price in the community, city and region?
9) What are the forecasted housing prices, rental prices and vacancy rates for these areas?
10) How have current homeownership and rental prices affected the population group?
11) What portion of the population group‘s income is being spent on shelter or
accommodations per month/annually?
12) Given the gross household income of this population, what would be considered affordable housing for them?
Useful Tips
Rather than relying on general statements that suggest there is a need or a demand for affordable housing among the population group, it is important to provide research and statistics that support your argument. Some useful research and statistical sources include the Canada Mortgage and Housing Corporation, Statistics Canada, and the Saskatchewan Bureau of Statistics.
Be sure to explain the relevance and source of all borrowed statistics. While you may think that the connection between statistics and the need and demand is clear, those reading your proposal or business plan may not understand why the statistics are relevant.
Always provide citations and references for any research, statistics and quotes that used from other sources. Again, citations and references can be included in the form of a footnote.
THE HOUSING MARKET & FORECASTS
The purpose of this section is to demonstrate how your affordable housing project will fill a void in the housing market. There may already be housing in the community that has been designed to serve your targeted clientele/population group, therefore, it is necessary to explain how the current supply of housing is not adequately meeting the population group‘s needs.
This section should answer the following questions:
1) Are there currently any housing providers that offer housing accommodations for the population group that you intend to serve?
2) Does current housing meet the population‘s needs or expected future needs (growing population, increasing demand, etc)?
3) Is the current housing appropriate and accessible (within the client groups‘ budget, in good condition, near amenities and services, conveniently located,)?
4) If there is currently a lack of housing for the population group, how long has this void existed and how significant is the void?
Useful Tip
If the community in general will benefit from the proposed affordable housing development include a paragraph that explains how and why. This will strengthen your
funding proposal or business plan.
THE HOUSING SUPPORT & SERVICES CURRENTLY AVAILABLE
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The purpose of this section is to provide a background and history of your group or organization. Use this section to highlight past housing experience and work with the intended
population group. This information will strengthen your funding proposal or business plan and is important for potential funders and lenders. Therefore, it is important to focus on the relevant experience to date, which may include managing housing units and providing support services to clients.
This section should answer the following questions:
1) Is your group or organization non-profit, for-profit, community-based, faith-based, etc?
2) How long has your group or organization been in operation for? Is your group or organization incorporated?
3) How long have you been working with the population group you intend to serve? 4) How long have you been providing housing and/or support services to this population?
5) Has your group developed market housing or affordable housing in the past? a. If yes, how many units were constructed?
b. When were the units built?
c. Where were/are these units located?
d. How was the housing development financed (ie., cash, grants, fundraising, etc.)?
e. Were/are any additional services provided to residents?
f. What partnerships, if any, were formed to help move the housing project forward?
g. Why and in what ways were these partner-organizations involved in the housing development?
Useful Tips
All relevant experience is extremely important, whether it pertains to providing support services or developing housing. If your group has developed more than one housing project (market or affordable housing), be sure to answer all of the questions included under number five for each of the housing developments undertaken in the past. These developments demonstrate the abilities, experience, and success of your group or organization and will strengthen your funding proposal or business plan. Include references or testimonials if available.
If your group has experience managing housing units for the targeted population group it may be useful to develop a residents‘ survey to collect their thoughts and concerns about housing and what they would like to see in a future housing development. Waiting lists can also be a useful resource. Surveying the individuals on your waiting lists can help your group or organization to determine your client groups‘ specific needs and preferences for the proposed development (ie., two-bedrooms, kitchen, in-suite
kitchenette, support services, meeting room facilities, etc.,)
THE HOUSING PROPONENT’S BACKGROUND
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The Housing Proponent Project Information section should provide specific details about the proposed affordable housing development, including details about the physical building structure, the individual living units, the eligibility requirements for residency, and other details that will be important to potential lenders and funders. This information will also be necessary for consultants that may be drafting the funding proposal or business plan for your group or organization. This may require that individuals within your group or organization discuss the specific details of the proposed affordable housing development to provide consultants, lenders and funders with much needed information.
This section should answer the following questions:
1) What is the name of the proposed affordable housing development? 2) Where will the proposed affordable housing development be located?
a. If you have yet to secure a site or building for the proposed project, where and how will you be securing these assets (ie: purchase from a developer;
respond to a Request for Proposals for public land; purchase from a real estate agent; partner with faith-based groups, agencies or organizations that own land, etc.,)?
3) What size lot or building will be required for the proposed project (include lot front age or building square footage)?
a. What are the proposed building dimensions? b. What is the lot or building price?
c. Does your targeted clientele have any specific land, location or building requirements that will have a bearing on the building location or building type?
4) Does the site require re-zoning or discretionary use approval from the City of Saskatoon?
5) What type of building will be constructed (ie., three-story multi-unit residential building, four-plexs, townhouses, etc.)?
6) In total, how many units will be included in the affordable housing development? a. What is the expected unit density (units per acre)?
b. Will the units be rental, ownership, life-lease, transitional, etc.? c. What is the approximate price per unit?
d. Will the units be self-contained or non-self-contained units that share amenities?
e. Will the units be one-bedroom, two-bedrooms, three-bedrooms, etc.? f. What will be the approximate square footage of each unit?
7) Will there be on-site parking available for residents and visitors? a. How many parking stalls will be available?
b. Where will parking be located in relation to the building?
8) Will the proposed affordable housing development contain any energy-efficient features and reduce operating costs for the owner/tenant?
THE HOUSING PROPONENT PROJECT INFORMATION SECTION
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9) How many individuals will the proposed development have the capacity to house? 10) What are the proposed eligibility requirements for occupancy (ie., income levels, care needs, age limit, etc.,)?
11) How will the proposed affordable housing development and residential occupancies be managed?
12) What is the proposed development‘s proximity to available amenities and services (ie., city transit routes, grocery stores, financial institutions, clinics, places of worship, etc.)?
13) Will the proposed development require any public consultation?
Useful Tips
Talk to individuals within your targeted clientele/population group to determine their specific needs and requirements. This will help determine the specific details of the proposed project. Resident and waiting list surveys can be useful for gathering this information. This will help your group or organization to decide what features should be included, such as the size of the units, the number of bedrooms, etc.
Involving community partners can improve your group or organization‘s ability to achieve its goals. If your group or organization has established partnerships that will be participating throughout the development or operation of the proposed housing project, be sure to include information about this relationship. These partners may also bring valuable resources and expertise to the housing project that could be useful throughout various phases of the project. Use these partnerships to demonstrate your cooperation with other organizations and community support for your proposed project and goals.
There are numerous factors that need to be considered when developing affordable housing, many of which can have an impact on moving proposed projects forward. For this reason, it is important to consider these factors at the onset of project proposals so that your group or organization may allocate both time and resources appropriately. These considerations include: municipal residential zoning bylaws, land servicing, and the need for an environmental assessment, among others. For information about how these factors may have an impact on a specific lot or building, contact the City of Saskatoon.
If one of the goals of the proposed housing project is to contribute to community revitalization or development be sure to emphasize this within your business plan or proposal and explain how the project will do so.
This section is important because it demonstrates the goals and objectives that the group or organization intends to achieve by developing affordable housing. Outlining the principle goals and objectives communicate the intentions of the project to potential lenders and funders and explains how your particular housing project is unique, how it will serve the clientele/ population groups, and how it will contribute to the community. The list of goals and objectives should also reflect the needs of this population. While the list can contain both short and long-term goals and objectives, it is important to ensure that they are related to the proposed affordable housing development and the population your group or organization intends to serve. Keep this in mind as you develop the list as these goals and objectives. Focus on the strengths of your group or organization‘s project and how you plan to attain your goals and objectives through the development of affordable housing.
The following includes examples of goals and objectives that may be relevant to a variety of affordable housing projects based on the clientele/population group being served. These examples may help your group or organization to come up with their own list of goals and objectives specific to the proposed affordable housing development. For demonstration purposes, ―residents‖ has been used in the following examples, however, when drafting funding proposals and business plans be sure to refer to the clientele/population group you intend to serve. As a guideline, try to draft between five and eight goals and objectives specific to the project.
Relevant goals and objectives may include:
1) Providing appropriate and affordable living accommodations for residents (ie., senior citizens, immigrants, low-income singles, low-income families, immigrants,
etc.,).
2) Providing temporary transitional accommodations for residents.
3) Offering residents housing options that will allow them to continue living in the community where they have established social and support networks.
4) Fostering environmental responsibility and developing sustainably affordable housing through the implementation of energy-efficient building projects and practices.
5) Developing housing options that provide safe and secure living accommodations. 6) Allowing residents to exercise independence while ensuring their safety and security. 7) Providing residents with required support services to assist them with the activities of daily living.
8) Offering residents stability in appropriate and affordable housing.
9) Providing financial training and education services for residents to teach them how to budget and monitor their finances while ensuring that they are able to meet
monthly mortgage or rental obligations.
10) Encouraging residents to become involved in the greater community in Saskatoon through networking opportunities and support services.
THE PRINCIPLE GOALS & OBJECTIVES
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Useful Tips
Brainstorm a list of goals and objectives. While you may come up with many goals and objectives, many of the points may be similar and fall within one larger goal. Therefore, it is useful to categorize/summarize the points that intersect to come up with a concise list of goals and objectives.
Goals and objectives are unique to each project and will differ based on what each housing development will offer to the targeted clientele/population group. Affordable housing projects for seniors will be different from those projects targeted to first-time buyers because the needs of these groups are different, therefore, the goals and objectives will be specific to the housing project and the needs of each population. For example, seniors may require access to support services and day-to-day living assistance, while first-time buyers or low-income singles and families may require training courses to help them learn to budget and live within their financial means.
11) Contributing to the overall re-development and revitalization of a core-neighbourhood.
12) Contributing to the development of the community/neighbourhood.
13) Encouraging interaction among residents by establishing a community-like atmosphere and offering common areas, activities and social programming.
14) Incorporating green space to encourage community interaction among residents and the surrounding neighbourhood.
15) Maintaining a community presence as a charitable organization dedicated to the preservation of community and the well-being of established neighbourhoods in Saskatoon.
It is extremely important that your group or organization demonstrate their expertise within a section that outlines the Management, Operations, and Financing details for the proposed affordable housing development. This section should include information about the expertise available among your group or organization‘s Board of Directors, Steering Committee, and participating partners. Explain how this expertise relates to the planning, development, construction, marketing and management of affordable housing. Potential lenders and funders often required a detailed description of the available human resources and expertise among those individuals and groups involved to ensure that the capacity exists to move the project forward to construction.
This section should provide a brief overview of the approximate costs to build the proposed project. Include information about available cash, planned fundraising activities, and any funding programs and sources that the group or organization will be applying to. These programs may offer cash grants, tax abatements, mortgage flexibilities for affordable housing and help offset the costs of building the affordable housing project. Detailed cost/revenue projections and progressions should be attached in the form of an appendix (see ―The Appendices & Attached Information Section‖).
Lastly, this section should also describe how the affordable housing units will be managed and operated and how the project will be financially self-sustaining in the long-term. For this rea-son, it is essential to include persons with experience in all phases of affordable housing devel-opment (planning, feasibility analysis, construction, and management). The areas of relevant experience and expertise include: housing development, construction management, financial management, property management, experience with intended clientele, and other areas of relevant experience.
This section should answer the following questions:
1) What experience and expertise in housing development does the Board of Directors bring to the proposed project?
c. Does the Board of Directors have experience in housing development,
construction management, financial management, property management, a
history serving the intended clientele, or other areas of relevant experience? Explain.
2) Has a Steering Committee or Project Management Committee been established? a. If so, what groups are represented on the Committee?
b. What experience and expertise in housing development does the Committee bring to the proposed project?
c. Does the Committee have experience in housing development, construction management, financial management, property management, a history serving the intended clientele, or other areas of relevant experience? Explain.
3) How will the units in the proposed development be marketed to the targeted population group?
THE MANAGEMENT, OPERATIONS, & FINANCING SECTION
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4) How will the units in the proposed development be marketed to the targeted population group?
5) If the proposed development is intended to be used for rental accommodations, how will the units be managed and operated financially post-development?
6) What are the projected operating costs for the proposed development?
7) How will the day-to-day operating costs be managed for the proposed project (Attach detailed information)?
8) What are the approximate costs to build the proposed affordable housing project and how will construction be financed? What is the approximate cost per unit?
9) What is the approximate land purchase or building price where the proposed affordable housing project will be developed?
10) Are there any additional funding sources that are being pursued (ie., government grants, property tax abatements, land cost rebate programs, etc.,)?
Useful Tips
It is important to include information about the projected operating income and revenues as well as the preliminary cost estimates for the proposed project. Refer the reader to detailed spreadsheets, which should be attached as appendices to your proposal or business plan.
While it is necessary to demonstrate the overall experience and expertise of the Board of Directors and Steering Committee, it is not necessary to provides specific detail about each individual member‘s experience. Be general and focus on demonstrating how the group as an entity has the knowledge and experience to carry the project from concept to completion. If you would like to include details about each individual‘s experience you can include this information as an appendix to the funding proposal or business plan.
Involving community partners and highlighting the experience and resources they bring to the project will also strengthen this section of funding proposal or business plan. Community partners can be a useful resource for finding persons with the required experience and expertise to help carry out affordable housing projects. As indicated above, potential lenders and funders will require that your group or organization has experience numerous areas related to the development of affordable housing. Groups or organizations may also consider engaging expertise and resources from outside of the established Board, Committee or Partnerships.
