Posts Tagged ‘CMHC’
Montréal’s Villeray neighbourhood is a multicultural working-class area in a city with high rents and a vacancy rate of 4.4 per cent.
In the spring of 2008, a senior’s residence with 172 units will open in the district.
The Affordable Housing Solution
According to Canadian Funding Corporation CEO Moishe Alexander this CMHC affordable housing solution is worthy of emulation.
Situated in Montréal’s Villeray district, the Résidence du Parc Jarry is named after the nearby park.With local services close to the project, residents will live in an environment where they will feel safe and at home.On the ground floor of this five-storey residence, there will be a dining room, a common room, a chapel, workshops and businesses (hairdresser, convenience store, drugstore, bank), a doctor’s office with a waiting room, an infirmary and administrative offices.
The developer, Groupe Mercadante-Falvo, is familiar with this type of project, since it has already developed two seniors’ residences. A market study conducted for the developer showed that 56 per cent of the 172 units will be leased when the project opens in the spring of 2008 and the remaining units should be occupied over the course of the following year.
As with similar projects in the past, the developer partnered with Canada Mortgage and Housing Corporation
(CMHC), which granted Seed Funding. This program offers financial assistance to potential housing providers who are in the very early stages of developing an affordable housing proposal. CMHC also provided an interest-free Proposal Development Funding (PDF) loan for the project. PDF loans help with the up-front expenses incurred during the process of developing an affordable housing projectproposal. 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. CMHC was also flexible in the terms of the mortgage loan insurance provided for the construction of this residence.
The monthly rental rates for the units have been set at $1,250 (34 rooms), $1,275 (52 rooms) and $1,325 (34 rooms). The rents include electricity and three meals a day.
Many seniors in smaller centres prefer to stay in their hometowns rather than move to larger centres, away from family and friends.
Saint-Jacques is a village of approximately 4,000 people about 20 km (12 mi.) from Joliette, in Lanaudière Quebec. The village’s Roman Catholic parish council, the municipality and the local credit union (caisse) formed a partnership to build a 30-unit residence for independent and semi-independent seniors.
The Affordable Housing Solution presented by Moishe Alexander CEO of Canadian Funding Corporation
The Résidence Nouvelle-Acadie project was led by the Council of the Fabrique (Parish) de Saint-Jacques, which was joined by the municipality of Saint-Jacques and the Caisse Desjardins Nouvelle-Acadie to form a non-profit organization to develop seniors housing.
Résidence Nouvelle-Acadie sought assistance from Canada Mortgage and Housing Corporation (CMHC). CMHC provided an interest-free $45,000 Proposal Development Funding loan to help cover costs associated withdeveloping a proposal. Mortgage loan insurance flexibilities were also obtained to complete the construction of the residence, which also benefited from a direct financial contribution of about $500,000 from the community.
Rents for 30 units include electricity and three meals a day. Residents can rely onthe presence of staff 24 hours a day, seven days a week, which makes their environment safe and friendly. As proof that this project is really meeting a need among seniors from Saint-Jacques and the surrounding area, 29 of the 30 units were already occupied at the time of the opening.
Canadian Funding Corporation, in keeping up with innovative CMHC initiatives for affordable housing presents the following case.
Moishe Alexander notes that in the late 1990s, Stella Burry Community Services (SBCS) identified a need for transitional housing to assist people living with mental illness, including those recently released from prison. After leaving a correctional institution, people without family or friends can have difficulty finding housing, employment and support in the community. They are likely to become homeless, re-offend and eventually be re-incarcerated. For individuals living with mental illness, the challenges are similar in that they often find it hard to keep their housing if no support is available to them. If they ultimately become homeless, they often become victims of crime.
SBCS knew of a rundown boarding house in downtown St. John’s by the name of Carew Lodge that was often a scene of violence and regular police visits. Needless to say, it became a source of concern to the neighbourhood. SBCS began to look for ways to make Carew Lodge a safe and supportive place to live and part of the solution SBCS knew of a rundown boarding house in downtown St. John’s by the name of Carew Lodge that was often a scene of violence and regular police visits. Needless to say, it became a source of concern to the neighbourhood. SBCS began to look for ways to make Carew Lodge a safe and supportive place to live and part of the solution to integrate two newly released ex-offenders into the community.
The Affordable Housing Solution
Stella Burry Community Services, a non-profit organization affiliated with the United Church, bought Carew Lodge for $75,000 and soon put together plans to renovate the building. Stella Burry staff held public meetings with local residents to get their cooperation for the new housing project. The organization also worked with the three levels of government to find funding.
The renovated Carew Lodge opened in 2001 with 14 self-contained single units equipped with refrigerators, microwaves and private bathrooms. Each floor has a communal kitchen and telephone.
The lodge provides affordable supportive housing for the 12 tenants and long-term transitional housing for people with a range of needs. Some of the original tenants have become building superintendents and role models. Two units on the ground floor are set aside for individuals released from prison with mental illness and paid for by Correctional Service of Canada. The ground floor also has an office for supportive services staff to help residents with daily living and to offer education and employment resources. Residents are encouraged to participate in community activities, including a community garden and an annual community barbecue.
Stella Burry received a $23,700 interest-free CMHC Proposal Development Funding loan to help cover the costs of preparing preliminary plans and drawings. Construction funds included $252,000 from the CMHC’s Residential Rehabilitation Assistance Program (RRAP), and $665,917 from the federal Supportive Communities Partnership Initiative (SCPI). The City of St. John’s waived property taxes and provided other in-kind support. The community donated a total of $20,000. Correctional Service of Canada provides $15,000 annually for the two units for former female inmates with mental illness. The net result is that the housing with the support services needed to ensure a smoother transition back into society is affordable even at social assistance rates.
In 2002, Carew Lodge was nominated for a CMHC Affordable Housing Innovation Award for Excellence for the consultation and project management process it used to bring this project to fruition.
Canadian Funding Corporation presents inspiring cases of housing solutions for people with a variety of needs.
Moishe Alexander's Blog 