Canadian Funding Corp Reviews CMHC Affordable Housing Reports

A new affordable housing project in Hampton, NB, will provide 32 units of housing for seniors. The housing has been designed to be energy efficient, with low environmental impact.

March 28, 2009 — According to Moishe Alexander, CEO of the Canadian Funding Corporation, the construction of 32 new apartments for low-income seniors was announced today by the provincial and federal governments. The new Hampton-based units will be funded under Phase III of the Canada – New Brunswick Affordable Housing Agreement.

Social Development Minister Mary Schryer, who is also minister responsible for housing, and Fundy Royal MP Rob Moore made the announcement.

“We are pleased to join our partners in these projects to help increase the availability of high-quality and affordable homes for low-income seniors in the Hampton area,” said Schryer. “The creation of more affordable housing is part of this government’s efforts to help seniors be active and healthy members of local communities.”

The $3.5 million project at 24 Robb Ct. is expected to be completed by July 2009.

The housing units are being developed by Ossekeag Place of Hampton United Church Inc, a non-profit corporation. The project will receive funding of $480,000 under the Federal Affordable Housing Trust to offset construction costs, as well as close to $700,000 in rent supplements from the Province of New Brunswick for 16 of the 32 units.

“The Government of Canada is committed to making affordable housing available in New Brunswick and across Canada for those who need it most,” said MP Moore. “Seniors in Hampton will now have access to quality, affordable housing, while remaining involved in their community and close to family and friends.”

MP Rob Moore was speaking on behalf of the Honourable Diane Finley, Minister of Human Resources and Skills Development Canada and Minister Responsible for Canada Mortgage and Housing Corporation.

Funding is available to private non-profit organizations, co-operatives, and community or private developers interested in developing projects for low- to moderate-income families, seniors, non-elderly singles, disabled persons and persons with special needs.

Moishe Alexander added that this project will be built to high energy-efficiency standards, and it will involve consultation with Efficiency NB. Builders of affordable housing projects for low-income individuals may receive an incentive of $2,000 per apartment unit if the building is heated by low greenhouse gas emission technologies as approved by Efficiency NB.

For more information, please see:

http://www.cmhc-schl.gc.ca/en/corp/nero/nere/2009/2009-03-28-1300.cfm

The City of Alberta is looking for innovative ways to provide assisted and affordable housing for the homeless. The Canadian Funding Corporation reviews a report from the CMHC about the Alice Bissett Residence.

The success of an earlier project led the Horizon Housing Society and its two joint venture partners, the Calgary Homeless Foundation and the Calgary Home Builders’ Foundation to approach the City for assistance securing another site. The Bob Ward Residence, a 61-unit residence that opened in 2003, has met all partners’ expectations and has encouraged them to repeat that success.

The people served by Horizon and its partners are vulnerable to homelessness or being relegated to substandard and unsafe housing. The City agreed to the Horizon partnership’s request and provided a site that was appropriate for medium-density residential development at 17th Street and 30th Avenue S.E. in the Inglewood community. Inglewood is an inner-city community close to the downtown and the Bow River and is served by an elementary school, public transit, a park and bird sanctuary.

The Affordable Housing Solution

Alice Bissett Residence is a 114-unit complex that will provide affordable housing and support services for a diverse group of residents. Construction on the project started in 2007 and will be completed in 2009. It has been named in honour of the mother of a very generous donor to the project. While the project faced initial opposition from the immediate neighbourhood,  the partnership’s proven track record eventually overcame concerns.

Several buildings will occupy the site once the project is completed: a three-storey 103-unit apartment building with a five-bedroom apartment “pod” and 10 two and three-bedroom semi-detached townhouses. The apartment building’s pod is for five brain-injured tenants who will receive round-the-clock support from the Universal Rehabilitation Service Agency.

The seniors units will be allocated through the Kerby Centre, another Horizon partner, which has been in existence since 1973, and provides a wide variety of services and programs for seniors including housing referrals.

The Calgary Housing Company will select and refer families for the townhouses. In addition, the Accessible Housing Society will refer tenants with physical disabilities and the Canadian Mental Health Association will refer people with mental illness. The funding for the Alice Bissett Residence reflects the base of support in Calgary for eliminating homelessness.

The Canadian Funding Corporation says that the project will not need a mortgage loan. The equity donations equal the gross capital budget of just under $20 million. CMHC and the government of Alberta provided $12.3 million through the Affordable Housing Initiative. The City of Calgary leased the land, valued at $2 million, for nominal rent to Horizon. The Calgary Homeless Foundation raised $4 million from private sector donors. The Calgary Home Builders’ Foundation contributed another $1 million and provided project management expertise during the planning stages and construction. Alberta Gaming contributed $250,000. Horizon was able to add $200,000.

The rents for the project will be in the range of $330 for the one-bedroom units.

The rents for three-bedroom townhouse units have not been set yet. Planning for the project began in 2004; completion and occupancy of the apartment building is projected for early summer 2009. The row houses will be finished soon after.

Canadian Funding Corporation reviews a report from the CMHC on a community South of Ottawa that is looking for innovative ways to provide affordable and energy efficient housing.

Parkbridge Communities Inc. offers manufactured homes as an affordable, practical alternative to site built housing. With a focus on Adult Lifestyle communities, Parkbridge offers a wide range of community and housing choices in its many developments across Canada.

The Affordable Housing Solution At Albion Sun Vista, in Greely, a community at the south end of Ottawa, homes range from 83 to 140 m2 (888 to 1,511 sq. ft.). They are manufactured by Guildcrest Homes, of Morewood, Ont., and Quality Engineered Homes Ltd., of Kennilworth, Ont., and then trucked to the site for finishing.

According to the Canadian Funding Corporation, purchasers buy the houses and lease the land (usually 15×30 m [50×100 ft.] lots) from Parkbridge. Land lease rates range from $380 to $500 per month and include water and sewer. The 21 year leases are renewable at the end of their term and are protected under the Tenant Protection Act of Ontario. A percentage of the monthly lease payments are used to build and maintain a community centre, as well as to preserve green spaces, ponds and wetlands. The payments also cover snow removal, and—at an added cost—households can arrange for additional services that include lawn mowing and other basic lot maintenance.

Parkbridge took ownership of the site in 1999 and is planning a multi-phase development. As at the end of 2008, 150 units in the first phase and part of the second phase have been built.

In August 2002, when much of the first phase was marketed, the 271 m2 houses sold for $119,900, affordable for households with an annual income of $45,000 or more. The 461 m2 houses were priced at $169,900, affordable for households with an income of $60,000.

The prices, which were $8,500 to $15,000 below the local market prices, were accessible to households making between 79 per cent and 105 per cent of the National Capital Region median income. As at the beginning of 2009, prices range from $179,000 to $229,000.

The homes are typically one or two-bedroom designs, and other models and floor plans are available.

Once constructed, the houses arrive in two or more modules with the option of adding a garage or sunroom, or both, at an extra cost. Each house is placed on a poured concrete foundation and has a crawl space of about six feet in height. The entire process of ordering, building, shipping and assembling the house takes 12 to 14 weeks regardless of season.

Manufactured houses have the potential to offer savings compared to the site building process. Very few materials are wasted during construction because of the use of extremely precise measurements and tools in a factory environment. Also, theft of construction materials, a major concern (and cost) for on-site construction, is virtually eliminated.

Moishe Alexander, CEO of Canadian Funding Corp mentioned that the factory-built process offers superior air sealing, which means less air leakage and more economic heating and cooling costs. This keeps energy consumption and operating costs down. In addition, factory building can reduce the risk of some long-term repairs being needed, since it eliminates the chance of the house or its materials being exposed to the elements before it is completed. This reduces some of the warping, rotting and cracking that many buildings experience over time, meaning lower maintenance costs in the long run.