Description

The goal of the Rental Housing Capital Contribution Fund is to address the significant shortfall in affordable rental housing stock within the Cowichan Region. This fund is to be used for equity contributions to leverage additional capital funds related to construction, demolition, renovation, and repair projects in the Cowichan Region.

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The purposes of the CHA Rental Housing Capital Contribution Fund (RHCCF) are:

• To support the development of new affordable rental housing stock as well as emergency shelters and second stage housing.

• To enhance community contributions and partnerships to leverage funding resources and in-kind services from other funders and service providers.

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Criteria for Affordable Rental Housing

Proponents can use any one of the following definitions of “affordable” in accordance with the type of housing proposed:

• Rents charged will be on average 20% lower than the median or average rent based on municipal or electoral boundaries within which the project is located.
  OR

• Rents will be based on 30% of gross household income or Income Assistance shelter allowance for 70% or more of the planned units.

 

Available Project Funding

The amount funded may be up to 10% of the overall capital budget of the project.

 

Ineligible Projects

Priority will be given to projects that address construction of new affordable rental housing. Eligible activities for CHA Project Development Funding will not be eligible for funding under the RHCCF in the same calendar year.

 

Eligibility

RHCCF is available to not-for-profit (including charities and/or housing cooperatives) and for-profit organizations that have secured commitment for involvement from provincial and/or federal agencies for the development of affordable housing. An application to the fund must demonstrate:

• The organization is in good standing and/or has a strong track record in addressing community needs

• The organization must have the demonstrated functional capacity to deliver the project for which funding is sought

• The proposed project fits with the overall Cowichan Attainable Housing Strategy and RHCCF criteria

• There is community support for the type and nature of affordable housing under consideration

• There are firm commitments from other funders for most of the outstanding capital costs

• The proposed project is more than three units

• The development aligns with local government plans and applicable bylaws

 

Application and Allocation Process:

• The proponent provides a Letter of Intent (LOI) to the CHA Executive Director.

• The CHA Executive Director reviews the LOI and determines if the applicant will be offered the opportunity to proceed with a full proposal.

• Successful proponents provide a completed RHCCF application/proposal to the CHA Executive Director.

• The CHA Executive Director presents the RHCCF application/proposal package to the Executive Committee who will; (a) grant funds to the proponent, (b) request further information from the proponent or (c) deny the application.
   

Application Assessment

The Executive Committee will evaluate eligible applications and assess them according to the application criteria and weighting. This includes urgency of the need, number and size of units created or preserved, contributions from other sources, and potential impact of the project to address regional and local housing needs.

 

Distribution

For approved projects, payment terms will be determined and described in an agreement that is signed by CHA and the organization. Funding will be disbursed based on agreed upon intervals and upon submission of invoices.

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