[homeles_ot-l] FW: CMHC SEED and PDF

Fri Jun 8 15:49:01 EDT 2012

FYI . . . two very useful opportunities for start-up funding for those involved in affordable housing or supportive housing. 

Lynne Browne

Executive Director, Alliance to End Homelessness 

613-241-7913 ext. 205, lbrowne at ysb.on.ca <mailto:lbrowne at ysb.on.ca> 

From: vchih at cmhc-schl.gc.ca [mailto:vchih at cmhc-schl.gc.ca] 
Sent: June-08-12 3:39 PM
To: Lynne Browne
Subject: Fw: CMHC SEED and PDF

HI Lynne

Can you kindly share this through the listserv?  Please see attached information for SEED and PDF funding. The application is available on the website via the links. Please do not hesitate to share this note with interested proponents.

I welcome your questions and remain available by phone or email

Vivian 

++++++++++++

Link to SEED funding
http://www.cmhc.ca/en/inpr/afhoce/fias/fias_001.cfm

Seed Funding Program
The successful development of housing requires appropriate skills, expertise and commitment. Proponents need to be organized, and must know how to evaluate housing need and demand in their community, and how to obtain the money and other resources to make their proposed housing project a reality. CMHC Seed Funding provides proponents with financial assistance to carry out these initial activities.

What is Seed Funding?
Seed Funding offers financial assistance to housing proponents who are in the early stages of developing an affordable housing project.
What types of housing projects are eligible?
The proposal must be for a housing project that will be affordable.
The housing project must be located in Canada.
There are no restrictions on: 

*	Building form 
*	Tenure type 
*	Future residents of the housing 
*	The type of housing proponent organization

To be eligible for Seed Funding, your proposed housing project must be affordable
You intend to produce a rental housing project in which most of the units will have rents within CMHC’s Affordability Criteria. (CMHC can provide you with the Affordability Criteria in the community where you intend to produce housing that meet this guideline.)
OR
You intend to produce a homeowner project in which the units will be modest and the purchase prices will be below the market for units of a similar type, size and number of bedrooms in the subject housing market.
Who is eligible?
Seed Funding may be made available to any proponent of a housing project that will be affordable. For example, the proponent may be: 

*	A not-for-profit organization 
*	A housing cooperative 
*	A First Nation 
*	A private entrepreneur 
*	A group of individuals who may or may not intend to become incorporated

What activities are eligible?
Seed Funding may be used to pay for a variety of activities in the early stages of developing a housing project proposal. These activities must be directly related to the development of the housing project proposal. Eligible items include: 

*	Housing market studies to evaluate need and demand for the proposed project 
*	Development of a business plan 
*	Exploration of funding sources or options 
*	Evaluation of procurement options 
*	Preliminary financial viability analysis 
*	Environmental site assessment 
*	Preliminary design of the housing project (new construction, renovation or conversion) 
*	Incorporation of a not-for-profit organization

What expenses are not eligible? 

*	Expenses not related to the development of the housing project proposal 
*	Expenses for housing project development activities carried out prior to CMHC's written approval of Seed Funding 
*	Expenses related to “hard” project development activities, such as site preparation, lot servicing, construction, renovation, and so on 
*	Ongoing operating expenses of the organization, for example, staff salaries and benefits, travel expenses, rental of office space, premiums for liability insurance or other insurance coverage, office supplies or equipment, or other similar expenses 
*	Retainer fees paid to consultants or any other professionals for work to be completed in the future

What is the maximum funding amount?
The maximum amount of Seed Funding is $20,000 per housing project proposal to carry out eligible activities. 

*	Up to $10,000 for a given housing project proposal is in the form of a grant, with no repayment required. 
*	An additional amount — up to $10,000 —  may be made available in the form of an interest-free loan, which is repayable if the housing project proceeds. 
*	If the proposal does not result in the production of housing, the repayable portion of the Seed Funding may be forgiven by CMHC.

How will the actual funding amount be determined?
For successful applications, CMHC will determine the amount of Seed Funding to be provided to a proponent for a specific housing project proposal by taking into consideration the nature of the proposal and the amount and cost of work that is required to carry out the eligible activities.
What are the conditions of funding? 

*	Housing proponents who are selected by CMHC to receive Seed Funding must enter into a Contribution Agreement with CMHC which will set out the terms and conditions of funding, including the activities for which funding is provided and the specified time period within which the activities must be carried out. 
*	CMHC will advance funds only for eligible expenses that can be confirmed with invoices or receipts. 
*	Need and demand studies must be confirmed to CMHC’s satisfaction for the proposed housing project, and an acceptable business plan must be received by CMHC before further funds will be advanced for additional approved activities. 
*	All funded housing project development activities will normally be expected to be completed within 12 months of the date of the Contribution Agreement. A longer period of the time may be negotiated where appropriate.

Will recipients of Seed Funding be eligible for other CMHC tools?
Affordable housing proponents who are selected to receive Seed Funding may also apply for other CMHC initiatives.
An approval by CMHC of Seed Funding is not a guarantee that the housing project proposal will be approved for other forms of CMHC assistance.
Some of CMHC's other tools, including interest-free proposal development funding loans and mortgage loan insurance flexibilities, are available only for housing projects with a minimum of five units. The project must also meet CMHC's affordability criteria <http://www.cmhc.ca/en/inpr/afhoce/fias/upload/Criteria.pdf> .
What is the application process?
Applications are accepted on an on-going basis; there is no deadline to apply. Applications should be sent to the appropriate CMHC office. A list of offices can be found in the application form. The number of applications that can be approved by CMHC in a given budget year will be limited by budget availability.

Link to PDF information
http://www.cmhc.ca/en/inpr/afhoce/fias/fias_004.cfm

Proposal Development Funding (PDF)
Proposal Development Funding (PDF) loans help with the up-front expenses incurred during the process of developing an affordable housing project proposal. A PDF loan enables housing proponents to carry out the activities required to bring their proposal to the point where they can apply for mortgage financing.

What is Proposal Development Funding (PDF)?
Proposal Development Funding (PDF) provides repayable interest-free loans to facilitate the development of affordable housing.
Loans of up to $100,000 are available for affordable housing project proposals by non-profit or private sector proponents who can demonstrate that their intended housing project is affordable.
PDF loans will be repayable if the proposed project succeeds. A portion of the PDF loan may be forgiven, if the proponent is successful in adding to the stock of affordable housing, based on CMHC's affordability criteria <javascript:HandleLink('cpe_1752_0','CPNEWWIN:NewWindow%5etop=10,left=10,width=500,height=400,toolbar=1,location=1,directories=0,status=1,menubar=1,scrollbars=1,resizable=1 at CP___PAGEID=142138,/en/inpr/afhoce/fias/upload/Criteria.pdf');> .
What is the maximum PDF loan available?
Up to $100,000 is available to develop an affordable housing project proposal. CMHC will determine the actual amount of each loan, depending on the size and complexity of the proposed housing project and how much development work needs to be done.
Who is eligible for funding?
PDF loans will be made available to any proponent who can demonstrate that their proposed housing project will be affordable, including: 

*	a not-for-profit organization 
*	a housing cooperative 
*	a First Nation 
*	a private entrepreneur 
*	any other housing proponents who can demonstrate their ability to produce a viable affordable housing project which meets CMHC's criteria.

PDF loans are NOT available for housing proposals whose viability or level of affordability depends upon approval for a Provincial or Territorial program funded under the Affordable Housing Agreement between the Province or Territory and Canada Mortgage and Housing Corporation.
What are the funding criteria?
There are no restrictions on tenure type or building form. The PDF funds must be used to develop proposals for housing units that will increase the stock of affordable housing, including new construction, conversion from a non-residential use, or conversion from non-affordable housing to affordable housing. Any type of housing is acceptable, as long as it meets the following criteria: 

*	the project must have at least five (5) housing units. 
*	the majority of units in a rental project must be below CMHC's Level 1 or Level 2 rent limits for units of a similar type, size, and number of bedrooms in the subject housing market. 
*	the sale price of homeowner units must be below the market value for similar housing. 
*	units - whether rental or homeowner - must be modest in size and design 
*	there must be a demonstrated need for the proposed housing project 
*	an initial viability analysis must demonstrate how the housing will be produced to meet CMHC's definition of affordability.

What activities can the funds be used for?
Eligible expenses include such items as soil load-bearing tests, environmental site assessments, project drawings and specifications, professional fees, cost estimates, management plan, option to purchase, development permits, contract documents and application fees.
What expenses are not eligible to be paid out of the PDF loan? 

*	expenditures incurred for activities carried out prior to CMHC's approval of proposal development funding 
*	expenses not related to the development of the housing project proposal 
*	ongoing operating expenses of the organization, for example staff salaries and benefits, travel expenses, rental of office space, premiums for liability insurance or other insurance coverage, office supplies or equipment, or other similar expenses 
*	retainer fees paid to consultants

What are the loan repayment requirements?
A PDF loan is in effect an advance of the capital costs of the project. If the project proceeds, the PDF loan is repaid out of the project's capital financing, normally from the first advance of the mortgage loan. Only the principal amount is to be repaid. CMHC does not charge interest on PDF loans.
While the loan is repayable if the project proceeds, you may not have to pay it all back, if your project meets one of the affordability criteria below: 

*	If you are successful in producing an affordable housing project with rents below the level 1 limits in the majority of the rental units, or sale prices below market for home ownership units, then 80 per cent of the advanced loan amount will be repayable and 20 per cent will be forgiven. 
*	If you are successful in producing an affordable housing project with rents below the level 2 limits in the majority of the units, then 65 per cent of the advanced loan amount will be repayable and 35 per cent will be forgiven.

If the proponents are successful in producing housing, but are unable to achieve rent levels or sale prices low enough to meet CMHC's affordability criteria <javascript:HandleLink('cpe_1752_0','CPNEWWIN:NewWindow%5etop=10,left=10,width=500,height=400,toolbar=1,location=1,directories=0,status=1,menubar=1,scrollbars=1,resizable=1 at CP___PAGEID=142138,/en/inpr/afhoce/fias/upload/Criteria.pdf');> , then the full amount of the PDF loan is repayable, without interest.
How does the application process work?
You will be asked to provide a comprehensive description of your affordable housing project proposal, along with confirmation of need and demand for the planned housing. You will also be expected to provide a preliminary viability analysis to demonstrate how the housing produced will meet CMHC's affordability criteria. A CMHC Affordable Housing Centre Representative can help you with the application. An application package can be downloaded or to obtain a printed copy, contact <http://www.cmhc.ca/en/corp/cous/cous_023.cfm>  your local CMHC Affordable Housing Centre Representative or call 1 800 668-2642.

Thank you

________________________________

Vivian Chih

Vivian Chih

Corporate Representative

Représentante de la schl

Ontario Corporate Representatives

Représentant de la Société de l'Ontario

vchih at cmhc-schl.gc.ca <mailto:%20vchih at cmhc-schl.gc.ca> 

vchih at cmhc-schl.gc.ca <mailto:%20vchih at cmhc-schl.gc.ca> 

Telephone: 613 748-4632

Téléphone : 613 748-4632

Facsimile: 613 748-5130

Télécopieur : 613 748-5130

700 Montreal Rd, Suite B0-100, B0-190, Ottawa, ON, K1A 0P7

700 Ch De Montréal, Porte B0-100, B0-190, Ottawa, ON, K1A 0P7

Canada Mortgage and Housing Corporation (CMHC) <http://www.cmhc-schl.gc.ca/> 
www.cmhc.ca <http://www.cmhc-schl.gc.ca/> 

Société canadienne d'hypothèques et de logement (SCHL) <http://www.cmhc-schl.gc.ca/> 
www.schl.ca <http://www.cmhc-schl.gc.ca/> 

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