Attainable Housing Community Improvement Plan

To be eligible for any of the Financial Incentive Programs that may be offered by the Municipality, the following General Eligibility Criteria must be met:

1. The lands and buildings subject to an application must be located within the CIPA designated by by-law for this CIP.
2. Only existing or proposed housing that is designated for residential use and marketed to be rental affordable or attainable housing, in accordance with the Perth County Official Plan and the definition section of this plan, will be eligible for Financial Incentives.
3. All projects must contribute to achieving one or more community improvement objectives (as identified in Section 3).
4. All projects must contribute to achieving more attainable and/or affordable housing within the Municipality of North Perth and the value of the grant associated with each of the financial incentive programs offered within this CIP will be proportional to the number of purpose-built affordable/attainable dwelling units on a given property.
5. All proposed projects must result in some level of improvement or rehabilitation over the existing conditions and will not simply represent a life cycle replacement.
6. Unless otherwise specified, registered owners, assessed owners, and tenants (with written consent of the owner) of private land or buildings may be eligible for Financial Incentives.
7. The total value of all grants provided to an owner/tenant shall in no case exceed the total value of Eligible costs associated with the community improvement project.
8. Unless otherwise specified in the Program Specific Eligibility Criteria, an applicant may be eligible for multiple grants during the term of this CIP; however, the total combined value of grants provided by the Municipality in any 24-month period shall not exceed $20,000 per project and/or property (or the total value of eligible costs, whichever is less). This excludes programs that defer or waive monies, including the TIEG and DC Rebate Program.
9. Financial incentives will not be applied retroactively to works started prior to approval of applications and any application for costs incurred prior to the adoption of this CIP will not be considered eligible.
10. The property owner must have no outstanding property tax arrears or any other outstanding Municipal obligation on the subject property at the time of application or during the term of the grant.
11. Applicants will be required to disclose all other funding sources, including governmental, private, or not-for-profit funding to support the project. These shall be taken into consideration in the review of applications and the value of incentives provided by the Municipality may be reduced, at the sole discretion of Council.
12. The proposed works will conform with all applicable policies, standards, and procedures, including (but not limited to) the Official Plan and Zoning By-law, in addition to being subject to a review and the issuance of necessary planning and development approvals and building permits pursuant to the Ontario Building Code.
13. Residential units developed under this Plan must be maintained as affordable or attainable for a minimum period of 20 years. An agreement between the Municipality and the owner will be required and the agreement will be registered on title. The minimum period of time can be extended by the Municipality or at Council’s discretion and will be confirmed through the application and approval process.
14. If a property or building containing purpose-built attainable rental dwelling units that were developed through the financial incentive programs of this Plan is sold, in whole or in part, the new owner of the property or building must enter into the same agreement with the Municipality ensuring the dwelling unit(s) remain attainable for the duration in accordance with the original agreement. For clarity, the registered owner will remain entitled to the program incentives. In addition, any outstanding payments owed to the Municipality (e.g. taxes, permit fees, etc.) will be the responsibility of the current owner(s) regardless of the original applicant. Failure to do so may result in cancellation of the financial incentive program benefits and any outstanding or deferred fees in favour of the land owner will be collected by the Municipality.
15. An attainable dwelling unit developed under this Plan shall not be permitted to be used for a short-term accommodation. For full clarity, financial incentive program administered through this Plan shall not be used for the development or redevelopment of a residential dwelling unit for the purpose of short-term accommodation. This policy shall be given affect through an agreement that is registered on title.

In addition to these General Eligibility Criteria, a set of Program Specific Eligibility Criteria must also be met, which are outlined in the description of Financial Incentives.

Purpose and Anticipated Benefits

The Planning and Building Permit Fee Grant may be available to eligible applicants to offset the Planning Act application(s) and building permit fees required by the Municipality.

Value of Grant

Where all eligibility requirements are fulfilled, a Planning and Building Permit Fee Grant may be provided to cover 50% of the eligible fees required by the Municipality in relation to a proposed project and/or property.

The Municipality will provide a maximum of $5,000 per project and/or property as part of a Planning Application and Building Permit Fee Grant.

Eligible costs

Properties will be eligible for the Planning and Building Permit Fee Grant if the proposed or potential use is in accordance with the eligible uses identified in Section 6.2. Eligible costs include fees levied by the Municipality associated with the development or redevelopment of eligible properties. Applicable Municipal fees may include applications/permits associated with:

• Official Plan and Zoning Bylaw amendments;
• Minor variances;
• Site plan control;
• Building permits;
• Cash-in-lieu of parkland dedication;
• Cash-in-lieu of parking requirements;
• Other required development fees as identified through the Municipality’s fee schedule/bylaw, as amended.

Payment

Regular fees are paid at the time of the development application, and the grant in the amount of the fees paid is provided to the applicant following substantial completion of the project/development. This is done to ensure that projects are completed in accordance with the approved CIP application.

Purpose and Anticipated Benefits:

Provide financial incentives to homeowners to add legal second suites that are accessory to a single detached dwelling, semi-detached dwelling, duplex dwelling, or townhouse dwelling. These programs are designed to encourage homeowners to add well-constructed and safe second suites that contribute to the limited current supply of affordable or attainable rental housing.

Value of Grant:

The maximum value of a grant shall be 50% of eligible costs to a maximum of $10,000 per property as long as applicable Provincial policy allows for the additional dwelling unit.

Where a proposed project satisfies the eligibility requirements, meets the general intent of the design guidelines of this CIP and meets the definition of a sustainable building or green building to the satisfaction of the Municipality’s Chief Building Official, the maximum value of the grant shall be 50% of eligible costs to a maximum of $15,000 per property.

Program Specific Eligibility:

• Properties used for a single detached dwelling, semi-detached dwelling, duplex, or townhouse dwelling and that are located within the designated Community Improvement Project Area shall be eligible for this program. 
• The project must be to create one (1) secondary suite or garden suite. The proposed secondary suite must be a self-contained unit with a private kitchen, bathroom facilities, and sleeping areas, within an existing family home, or on the property lot of a single-family home.
• A minimum of one written quote from a certified, insured, arm’s length contractor must be provided. If the homeowner performs the work themselves, the cost of materials for the project will be considered, but not labour.
• Units must be modest relative to the community norms in terms of floor space and amenities.
• Units, upon completion, must be rented as attainable units, under this CIP.

Eligible Projects and Costs:

• The potential value of a grant or loan shall be based on the value of any of the following eligible costs as they directly apply to a proposed additional dwelling unit: 
• Works related to Ontario Building Code or Fire Code compliance, such as structural, electrical, safe egress, ventilation, fire protection including associated insulation, and similar improvements;
• Accessibility improvements including accessibility improvements to the building lobby or vestibule providing access to the residential units; accessible washroom, interior doorway, or kitchen facilities;
• Permanent finishing materials and permanent decorative elements, including painting, drywall, trim, permanent light fixtures, flooring, countertops, and cabinetry, shall be an eligible cost to a maximum of 25% of the total eligible costs; and, 
• Costs for the services of a professional engineer or architect as may be required in association with the improvements noted above, to a maximum of 15% of the total eligible costs.

Payment:

The grant will be provided upon successful construction and completion of the secondary suite, indicated by occupancy permit. The grant will be paid in a lump sum as a reimbursement of up to 50% of eligible costs incurred, or the maximum value of the grant, whichever is less.

Purpose and Anticipated Benefits:

The Tax Increment Equivalency Grant (TIEG) program will provide a grant to eligible applicants, which is equivalent to a percentage of the Municipal portion of a property Tax Increment that is incurred because of an attainable housing project.

The purpose of the TIEG is to stimulate investment by effectively deferring part of the increase in property taxation because of an attainable housing project.

Value of Grant:

Where a proposed project satisfies the eligibility requirements, a TIEG may be provided on approved applications as follows:

Grants will be provided for a period of 10 years;

• In year one, a grant that is equivalent to 100% of the Municipal portion of the Tax Increment will be provided to a property owner;
• In year two, a grant that is equivalent to 90% of the Municipal portion of the Tax Increment will be provided to a property owner;
• In year three, a grant that is equivalent to 80% of the Municipal portion of the Tax Increment will be provided to a property owner;
• In year four, a grant that is equivalent to 70% of the Municipal portion of the Tax Increment will be provided to a property owner; and
• In year five, a grant that is equivalent to 60% of the Municipal portion of the Tax Increment will be provided to a property owner.
• In year six, a grant that is equivalent to 50% of the Municipal portion of the Tax Increment will be provided to a property owner;
• In year seven, a grant that is equivalent to 40% of the Municipal portion of the Tax Increment will be provided to a property owner;
• In year eight, a grant that is equivalent to 30% of the Municipal portion of the Tax Increment will be provided to a property owner;
• In year nine, a grant that is equivalent to 20% of the Municipal portion of the Tax Increment will be provided to a property owner; and
• In year ten, a grant that is equivalent to 10% of the Municipal portion of the Tax Increment will be provided to a property owner.

Where a proposed project satisfies the eligibility requirements, meets the general intent of the design guidelines of this CIP and meets the definition of a sustainable building or green building to the satisfaction of the Municipality’s Chief Building Official, a TIEG may be provided on approved applications as following:

• Grants will be provided for a period of 15 years;
• In years one - five, a grant that is equivalent to 100% of the Municipal portion of the Tax Increment will be provided to a property owner;
• Following the first five years of the TIEG for sustainable buildings, for years six to fifteen, a grant will be provided that is equal to the percentage of the Municipal portion of the Tax Increment that is provided in the ten-year TIEG for non-sustainable buildings.

To determine the suitability of the TIEG, the Municipality will attempt to estimate the total potential value of the grant prior to submitting an application for the program.

The estimate will consider current assessment value, total anticipated investment, and the potential reassessment based on completing the approved community improvement works. Applicants should refer to the definition for Tax Increment provided in the Glossary of this CIP to further understand how grant values will be calculated.

Eligibility Criteria:

• Eligible applicants will only include the registered owner/assessed owner of the subject property. Tenants will not be eligible for the TIEG.
• Only those projects that are anticipated to generate an increase in assessment will be eligible.
• Properties will be eligible for the TIEG if the proposed use is in accordance with the list of eligible uses in Section 6.2.
• Projects must contribute to achieving five (5) or more attainable and/or affordable rental dwelling units to be eligible for the TIEG, subject to annual monitoring by the CIP Implementation Committee.

Eligible Projects and Costs:

Eligible projects and costs for the TIEG include the following: 

• Costs associated with the redevelopment of a property for the purpose of a new eligible uses;
• Costs associated with the restoration or improvement of an existing building to accommodate an additional eligible use;
• The conversion or adaptive reuse of an existing building to accommodate an eligible use; 
• The expansion of a building that results in an increase to the gross floor area of an eligible use;
• Infrastructure work including the improvement or reconstruction of existing on-site public infrastructure (water services, sanitary and storm sewer); and
• The services of a professional engineer, architect, or planner to design the project, if implementation is completed;
• Other types of projects may also be considered eligible, at the discretion of the CIP Implementation Committee and/or Council.

Payment:

All completed projects must comply with the description as provided in the grant application form.

Grants may be provided in accordance with a Financial Assistance Agreement made between the Municipality and the owner(s) upon successful completion of the approved project, to the satisfaction of the Municipality, and payment of the full reassessed value of Municipal taxes.

If a property is sold, in whole or in part, before the grant period lapses, the original owner is not entitled to receive the remaining grant payments and the grant program is cancelled.

The Development Charge Rebate Program shall not be put into effect for affordable units unless the DC waiver policies of Bill 23 are rescinded or removed by the Provincial Government. It will be the responsibility of the CIP Implementation Committee to recommend implementation of the DC Rebate Program to Council for attainable units. It will be the responsibility of the CIP Administrator to continually review provincial policy changes over the lifespan of this CIP and bring this program into full effect if and/or when required based on said policy changes.

Purpose and Anticipated Benefits

Section 5 of the Development Charges Act identifies the method for determining a Development Charge, but any resulting shortfall cannot be made up through higher Development Charges for other types of development. This allows municipalities to offer partial or total exemption from municipal Development Charges (also known as a reduction of Development Charges) in order to promote community improvement.

The Development Charges Rebate Program is intended to waive the cost of Municipal Development charges that are incurred by property owners through the development application and approval process. This program is intended to promote significant investment in the development of attainable housing within North Perth.

Value of Grant

The grant will be in the form of DC fee waiver. The value of the fees to be waived is based on the value of development charges applicable to the number of attainable dwelling units in a development. The maximum value of the grant shall be 100% of the value of the applicable development charges.

Eligibility Criteria

• The subject property shall not be in a position of property tax arrears.
• Outstanding Work Orders from the Municipality and request to comply shall be addressed prior to grant approval. 
• This program does not apply to any required performance securities (i.e. Letter of Credit) posted by the proponent, required professional studies, or to expenses incurred by the applicant because of a Local Planning Appeal Tribunal, Ontario Municipal Board Hearing or Court proceedings.
•  Improvements made to the buildings or lands shall be made pursuant to a Building Permit and constructed in accordance with the Ontario Building Code and all application Zoning requirements, Council approved design guidelines and any other necessary approvals.
•  Projects must contribute to achieving three (3) or more attainable and/or affordable rental dwelling units to be eligible for the Development Charges Rebate Program, subject to annual monitoring by the CIP Implementation Committee.

Eligible Projects & Costs

• Development of a mixed-use or multi-residential building that results in new attainable dwelling units; 
• Development of a vacant property that results in at least three new attainable dwelling units; 
• Redevelopment of a non-residential building for a mixed-use or multi-residential building; 
• Adaptive reuse of a property to suit a new mixed-use or multi-residential building, where the redevelopment or rehabilitation results in an increase in the assessed value and taxes on the property;
• Major additions to an existing mixed-use or multi-residential building involving an increase of at least three additional attainable dwelling units.

Payment

Assistance will be in the form of forgiving up to 100% of the applicable Municipality Development Charges.

Purpose and Anticipated Benefits

The Commercial and Rental Housing Conversion and Expansion Grant may be available to eligible applicants to assist in the small-scale conversion of existing vacant space (or underused space) into new commercial, rental housing, Mixed-use and other eligible uses. The purpose of this program is to support growing businesses and increase the number of affordable housing units in North Perth.

Value of Grant

• Where general eligibility requirements (Section 6.2) are fulfilled, a Commercial and Rental Housing Conversion and Expansion Grant may be provided for up to $20 per square foot of converted or expanded floor space.
• The Municipality will provide 50% of eligible costs up to a maximum of $10,000 per project and/or property as part of a Commercial and Rental Housing Conversion and Expansion Grant. 
• Where a proposed project satisfies the eligibility requirements, meets the general intent of the design guidelines of this CIP and meets the definition of a sustainable building or green building to the satisfaction of the Municipality’s Chief Building Official, the maximum value of the grant shall be 50% of eligible costs to a maximum of $20,000 per property.

Eligibility Criteria

• All general eligibility criteria set out in Section 6.2 of this CIP must be met.

Eligible costs

• The Commercial and Rental Housing Conversion and Expansion Grant may be provided for the construction and renovation costs related to the following types of projects:
  • Conversion of non-commercial or vacant building space into new commercial, rental housing, mixed-use, secondary uses, and other eligible uses; 
  • Conversion of upper storey space (whether vacant, office, commercial or other non-residential use) into new affordable residential units; 
  • Expansion of existing eligible uses to increase the gross floor area.
• The Grant will also apply to the adaptive reuse of derelict structures. 
• The services of a professional engineer, architect, or planner to design and implement the project will also be considered eligible costs; however, the maximum amount for such services shall not exceed 15% of the grant. 

Payment

All completed projects must comply with the description as provided in the grant application form. The grant will be provided upon successful completion of the approved project. The grant will be paid in a lump sum as a reimbursement of costs incurred.