Local non-profit groups may soon receive new city help getting affordable housing projects off the ground.
Council is poised to consider putting $100,000 annually into a reserve fund that non-profit and charitable organizations could apply to for assistance with the upfront cost of developments, conversions and renovations.
“The proposed seed funding program was designed for maximum flexibility to help potential projects come to fruition by allowing registered or charitable non-profit affordable housing developers to apply for up to $25,000 to offset eligible pre-construction activities,” explains a staff report heading to council for consideration on Tuesday. “Seed funding will be available on a first-come, first-served basis with applications being received on an ongoing basis.
“When the program reaches capacity, and the reserve allocation is exhausted, eligible projects and organizations will be notified and put on a waiting list.”
That seed money could be used to cover the cost of feasibility studies, site surveys and planning fees, staff note.
Rent within approved projects must remain affordable for at least 25 years.
If approved, staff would begin accepting and reviewing applications as early as this spring.
The report and recommendations will be presented to city council on Tuesday, during a session held at city hall and streamed live at guelph.ca/live. The meeting is set to begin at 9:30 a.m.
In addition to funding the seed money program, using federally provided Housing Accelerator Fund dollars, staff is calling for the development of a program that allows non-profit housing developers to defer property taxes for affordable home ownership programs through incremental tax financing.
If ultimately approved, that program would see unpaid taxes recovered when the homes are sold or rented out.
The staff recommendations are in response to a council motion approved in November directing staff to consider the feasibility of a program for non-profit affordable housing developers that allow for the no-interest deferral of municipal application and permit fees prior to building.
As determined by the provincial government, the affordable home ownership price in Guelph is $398,800 or less, with affordable monthly rental prices determined by the type of unit – $1,160 or less for a bachelor unit, $1,508 or less for one bedroom, $1,646 for two bedrooms and $1,695 or less for three bedrooms.
