Additional Information and Requirements for Home Ownership Units

Need:
Each applicant is required to demonstrate the need for affordable housing in the proposed community to substantiate their proposal. The following information must be provided:
  • Housing type (i.e., single-family dwelling, condominiums, duplexes, etc.)
  • Current housing prices.

Client Payments:
Monthly mortgage payments should not exceed 32 per cent of a household’s monthly gross income.

Project requirements:

  • Private sector applicants must partner with a non-profit organization
  • The non-profit organization will provide the ongoing administration of the project
  • The non-profit organization must ensure the units remain affordable for a minimum of 20 years
  • Develop and monitor a grant repayment process if the units are sold before the 20-year term ends
  • The applicant must provide a detailed overview of the allocation of home-ownership units, including:
    • The projected selling price for each unit type and the total projected sales amount for the project
    • The projected total capital costs for the project, broken down per the unit cost for each unit type, and
    • The projected gain realized from the sale of each unit type and the total projected gain on sales for the entire project.

Preference will be given to proposals in which the private sector is providing financial or in-kind contributions towards the capital cost of the project.

The applicant must provide a detailed overview of how the grant will be used to assist prospective home owners to purchase their homes.

The applicant must also provide details of all funding sources that make up the organization’s minimum 35 per cent contribution towards total capital costs.

The applicant must provide the following program administration details, including:

  • A summary detailing how eligible home owners will pay for their units
  • Down payment requirements from home owners
  • Whether home owners will pay monthly payments or have to arrange for financing and pay monthly mortgage payments to a conventional financial institution
  • How all payments made to the organization will be used towards the provision of additional home-ownership units for the intended purpose
  • Whether home owners, who sell their units before the 20-year term ends, will be required to pay back some or all of the grant funding they received
  • A description of how the organization plans to administer this (i.e., based on a prorated formula).

The proposed affordable home-ownership units can be part of a larger housing project that offers market units or other types of housing accommodation; however, grant funding can only be used towards the capital costs associated with the affordable housing units. The estimated capital costs must include both the entire project and a separate costing for the affordable housing units.