1. Policy Statement
The purpose of the Reserve Fund is to provide capital grants on a per unit basis to
eligible not-for-profit organization or partnerships of not-for-profit organizations and the private section to assist in the development of affordable rental housing targeted to low income individuals or families determined to be in core housing need. A household in core housing need is one whose dwelling is considered unsuitable, inadequate or unaffordable and whose income levels are such that they could not afford alternative suitable and adequate housing in their community.
The intent of the funding is to encourage both the private sector and community providers to create affordable rental housing. It is not the intent of monies from the Reserve Fund to be the only source of funding for an affordable rental housing project. Any monies from the Reserve Fund are to supplement funding from other levels of government, businesses, private donors, community groups, etc. The Reserve Fund is structured in such a way to receive funds through conditions of plans of subdivisions/site plans; and/or donations from the private sector and individuals.
The objectives of the Reserve Fund are to:
• Increase the inventory of affordable rental housing in the City of Cambridge for
those individuals/families most in need.
• Encourage partnerships to support the development of affordable rental housing.
• Incents projects which will remain affordable.
2. Application process:
The Reserve Fund will be used for proposals that include: the construction of new
affordable rental housing and the conversion of a non-residential building to affordable rental units. The applicant can anticipate receiving City of Cambridge Council funding confirmation within 6 – 9 months of submitting a complete application.
i) The projects must be located in the City of Cambridge and within the areas
identified for funding through the Affordable Housing Community
Improvement Plan (Appendix “A” - maps);
ii) The application form must be completed along with any other information the
applicant deems necessary for a fulsome understanding of the project
(Appendix “B”);
iii) The completed application is submitted to the Senior Policy Planner –
Reurbanization who will ensure completeness of the application;
iv) The application will be circulated to members of the Review Committee. The
Review Committee consists of: City staff from the Planning Services and
Finance divisions; a representative from Regional of Waterloo Housing
Division along with a member nominated by the Affordable Housing
Roundtable;
v) The Review Committee may request additional information from the applicant;
vi) Planning Services staff will prepare a report recommending to Council the
approval of funding subject to the preparation of the funding agreement;
vii) The applicant will be advised of Council’s decision; and
viii) City staff will prepare a funding agreement to be registered on the property
title.
The application will be accessed on the following basis:
a) The applicant has the experience and qualifications to develop, manage
and maintain affordable rental housing;
b) The applicant has a mandate that relates to the provision of affordable
rental housing;
c) The applicant must commit to maintaining the units as affordable rental
housing for a period of 20 years based on affordable rents adjusted year
to year as provided by the Canada Mortgage and Housing Corporation
(CMHC);
d) Financing for the project is in place and outlined in the application with
proof provided through commitment letters from financial institutions
and/or other funders;
e) The cost per unit is realistic and reasonable;
f) A realistic and reasonable timeline from planning approvals to construction
as provided by the project manager (for example, 2 years);
g) The neighbourhood context and the proximity/access to services including
transit; and
h) A management plan is provided which includes staffing and operating
costs.
3. Eligible Costs
Grants from the Reserve Fund are a “one-time” grant, that is, one project will only
receive funding once. Grants from the Reserve Fund are to be applied to capital
costs only which can include the cost of acquiring land.
4. Ineligible Costs
Funding from the Reserve Fund will not be used for any costs associated with
the operation, maintenance or repairs of existing or new proposed affordable
rental units. Funding will not be used to finance any studies or consultant fees. In
no circumstances will the total grants, including funding from other sources,
exceed the cost of the project.
5. Assistance Levels
Contributions from the Reserve Fund for approved projects will be based on the
total cost of the project and will vary from project to project. The grant will be in
addition to any financial incentives received through the Affordable Housing
Community Improvement Plan. These incentives include: the exempting of
planning application fees; building and sign permit fees; deferral of development
charges for up to 20 years and/or a Tax Increment Grant.
6. Affordability Criteria
The maximum rent levels for affordable rental units will be based on the Canada
Mortgage and Housing Corporation (CMHC) average market rent for rental
housing within the City of Cambridge. The applicant will confirm the maximum
affordable rents based on unit type. The City of Cambridge will confirm the
proposed rents are acceptable.
7. Monitoring/Reporting
The applicant will commit, through the funding agreement, to submit a report
identifying how the monies from this program were used. The applicant will also
commit, through the funding agreement, to submit an annual report to the City of
Cambridge confirming the rental rates conform to the affordable rental rates as
established by the Canada Mortgage and Housing Corporation.
8. Communication Strategy
Information regarding the funding available from the Affordable Housing Reserve
Fund will be posted to the City’s website. The City of Cambridge will meet on a
one-to-one basis with applicants wishing to submit a funding proposal. As
funding will be limited, applications will be considered on a first come first served
basis.
