CITY WIDE

IMPLICATIONS

CITY OF HAMILTON

PLANNING AND DEVELOPMENT DEPARTMENT Downtown Renewal Division

Report to: Mayor and Members

Committee of the Whole Submitted by:

Lee Ann Coveyduck General Manager

Date: File:

September 12, 2003 PD02001(c)

Prepared by: Keith Extance 905.546.3745 Erin Mifflin 905. 523.8496 x7839

SUBJECT: Housing Hamilton Innovations Fund /Proposed City Partnership with

Hamilton-Halton Homebuilders’ Association, Hamilton-Burlington and District Real Estate Board and Threshold School of Building: Affordable Housing Community Pilot Project (PD02001(c)) (City Wide)

RECOMMENDATIONS: (a) That the Terms of Reference for the “Housing Hamilton Innovations Fund” (HHIF),

attached as Appendix “A” to Report PD02001(c), be approved; (b) That HHIF grants or interest-free loans not exceed $15,000 per successful

proposal; (c) That the Memorandum of Understanding (MOU) for a partnership among the City of

Hamilton, the Hamilton-Burlington and District Real Estate Board, the Hamilton-Halton Homebuilders’ Association, and the Threshold School of Building for the development and implementation of the “Affordable Housing Community Pilot Program”, attached as Appendix “B” to Report PD02001(c), be approved; and,

(d) That $15,000 be allocated from HHIF for the “Affordable Housing Community Pilot

Program” that will enable two current social housing tenant families to purchase, renovate and occupy two single-family dwellings in Hamilton’s downtown neighbourhoods.

Lee Ann Coveyduck General Manager Planning and Development Department

SUBJECT: Housing Hamilton Innovations Fund / Proposed Partnership: Affordable Housing Community Pilot Project (PD02001(c)) (City Wide) - Page 2 of 6

EXECUTIVE SUMMARY:

On March 6, 2003, City Council approved Report PD02001(a) that recommended “staff report back with a detailed Terms of Reference for the Housing Hamilton Innovations Fund including eligibility, criteria for funding, approval process, and accountabilities and reporting.” Attached as Appendix “A” to Report PD02001(c) are the proposed Terms of Reference for the Housing Hamilton Innovations Fund (HHIF). HHIF will promote and facilitate community-based initiatives that will increase and/or enhance the supply of housing affordable to lower income households in our community. To support the growing number of community-based housing groups in Hamilton that are researching and promoting ideas for affordable rental and ownership housing for lower income households, City Council has set aside $100,000 for HHIF. Proposals to access HHIF funding assistance in the form of a grant or interest-free loan will be evaluated and assessed on a number of criteria: • Proposals must increase housing supply and/or lower the cost of housing

construction; • Proposals must be locally-based initiatives that will enhance housing affordability for

Hamilton residents; • Proposals must offer innovative or unique housing ideas where no existing program

initiative provides financial support; • There is a focus on lower income households and/or housing affordability through

design and building technology enhancement; • The proponents should provide and/or attract financial assistance from other funding

sources, e.g., donations, charitable contributions, sole-sourced revenue; • The proponent should have the ability to re-pay an interest-free loan. As a general rule, the preferred method of City HHIF assistance will be an interest-free loan. However, it is recognized that some organizations may not have the capacity to repay and/or the scope and characteristics of the proposal does not enable repayment. In these situations a grant would be appropriate. Attached as Appendix “B” to Report PD02001(c) is a Memorandum of Understanding (MOU) for a proposed partnership among the City of Hamilton, the Hamilton-Burlington and District Real Estate Board (HBDREB), the Hamilton-Halton Homebuilders’ Association (HHHBA), and the Threshold School of Building. The objective of the partnership is to facilitate the purchase and renovation of two single-family dwellings in downtown Hamilton by existing social housing tenant families.

SUBJECT: Housing Hamilton Innovations Fund / Proposed Partnership: Affordable Housing Community Pilot Project (PD02001(c)) (City Wide) - Page 3 of 6

This initiative offers many benefits to the City including: • Neighbourhood revitalization and investment; • Promotion of affordable home ownership for existing tenant households; • Freeing up existing social housing units for other needy households; and, • Training youth to have marketable job skills in the construction and renovation

industry. It is recommended that the City of Hamilton contribute $15,000 to the partnership through HHIF. This contribution would be made in tandem with a $36,000 in-kind contribution by the HHHBA, $10,000 cash and $1,800 in-kind contribution made by the HBDREB, a $15,000 in-kind contribution made by the Threshold School of Building and a $25,000 cash contribution provided by Canada Mortgage and Housing Corporation. BACKGROUND:

The Housing Hamilton Innovations Fund (HHIF) Attached as Appendix “A” to Report PD02001(c) is the Terms of Reference. HHIF will promote and facilitate community-based initiatives to increase and/or enhance the supply and affordability of ownership and rental housing suitable for lower income households in our community. To support the growing number of community-based housing groups in Hamilton that are researching and promoting innovative ideas and concepts for affordable rental and ownership housing for lower income households, City Council has made a commitment of $100,000 for take-up through HHIF. The financial assistance to successful proponents will be no greater than $15,000, in the form of a grant or interest-free loan depending on the scope and objective of the respective proposal and the proponent organization. All eligible projects/initiatives must be based in the City of Hamilton. As well, proposals will only be considered if they are innovative or employ methods that have been successfully implemented in other jurisdictions. A proposal can be considered “innovative” if it uses an original or unconventional approach to address a housing need, or if it promotes a housing concept that is new to Hamilton. Examples of approaches include innovative housing designs, financial instruments, housing tenure, building/ residential construction components, or partnerships with multiple housing-based organizations. Only proposals that ensure the use of innovative techniques and/or unique approaches that will create or facilitate housing for lower income households will be considered as potential recipients of HHIF funding. Proposals must demonstrate that housing supply for lower income households will be increased and/or the construction costs for new/renovated housing will be lowered thus maximizing the City’s financial contribution.

SUBJECT: Housing Hamilton Innovations Fund / Proposed Partnership: Affordable Housing Community Pilot Project (PD02001(c)) (City Wide) - Page 4 of 6

Projects must be locally-based with a clear objective of enhancing housing affordability for lower income Hamilton residents and/or improved housing affordability through design and building technology. Finally, each proposal must provide or attract additional funding sources, e.g., donations, charitable contributions, or sole-sourced revenue. When seeking HHIF financial assistance, proposals must fully outline the nature, description and scope of the proposed project, as well as the timeframe for completion, background information, and all other funding sources. If staff believes there is strong merit to a particular proposal, a draft Memorandum of Understanding (MOU) will be created outlining the parameters of the project. A report would be submitted to the Committee of the Whole that would seek approval of the MOU and authorization to disburse the HHIF funds. Applicants would be required to attend and answer any questions at the Committee of the Whole. Pending Council approval, funds would then be disbursed, with the understanding that if the project is not completed as per the requirements of the MOU, the funds would be immediately repaid to the City of Hamilton. Proposed Partnership: “Affordable Housing Community Pilot Project” Increasing opportunities for homeownership has been a long-recognized component of housing policy in Canada. In the local context where the supply of low cost rental accommodation is tight, any initiatives that will have the effect of “freeing up” rental units is clearly desirable. Through the Mayor’s Office, City staff have had several discussions with representatives of the Hamilton-Burlington and District Real Estate Board (HBDREB), the Hamilton-Halton Homebuilders’ Association (HHHBA) and the Threshold School of Building. The purpose of these discussions was to develop a model of co-operation among the organizations that would promote affordable homeownership, enhance the quality and condition of our housing stock, provide an opportunity for an existing social housing tenant to become a homeowner, and promote building technology skills. Working with two social housing tenants, two single-family houses in Hamilton’s downtown neighbourhoods would be purchased and renovated. The City’s contribution to the partnership would be a $15,000 grant through HHIF. The HBDREB would contribute $10,000 in cash and $1,800 in-kind to the partnership. The HHHBA and the Threshold School of Building would provide in-kind contributions of $36,000 and $15,000, respectively. Canada Mortgage and Housing Corporation is also contributing $25,000 in cash. Attached as Appendix “B” to Report PD02001(c) is the proposed Memorandum of Understanding among the partnership participants for the “Affordable Housing Community Pilot Program.” All administrative aspects of the partnership will be co-ordinated by the Hamilton-Burlington and District Real Estate Board.

SUBJECT: Housing Hamilton Innovations Fund / Proposed Partnership: Affordable Housing Community Pilot Project (PD02001(c)) (City Wide) - Page 5 of 6

There are many benefits to the City of Hamilton of this proposed partnership: • The City of Hamilton will demonstrate its capacity to provide leadership and

recognition that partnership is key to addressing our local housing needs; • The renovated dwellings will improve the quality of Hamilton’s housing stock; • Homeownership promotes neighbourhood revitalization and stabilization; • The project would free up two existing rental units for other households on the social

housing waiting list; and, • The project would provide an opportunity for two lower income households to move

into the homeownership marketplace and into a more secure financial future. ANALYSIS OF ALTERNATIVES: The HHIF program and $100,000 funding was approved by Council on March 6, 2003. Non-acceptance of the recommendations contained in this report would result in the inability of the municipality to provide financial assistance to community stakeholders in the City of Hamilton who otherwise would have the capacity to create and promote housing opportunities for lower income households. FINANCIAL/STAFFING/LEGAL IMPLICATIONS:

Financial – Funding for HHIF has been secured previously through Report PD02001(a); this report was approved by Council on March 6, 2003. The fund amounts to $100,000. The $15,000 funding request for the partnership can be accommodated within the budget envelope of HHIF.

Staffing – Delivery of HHIF will be accommodated within the existing staff complement of the Downtown Renewal Division. Legal – There are no legal implications. POLICIES AFFECTING PROPOSAL:

None at this time. CONSULTATION WITH RELEVANT DEPARTMENTS/AGENCIES: Downtown Renewal staff have consulted with Corporate Services staff and Legal Services staff. Also, staff have consulted with a number of community-based housing stakeholders interested in developing lower cost housing.

SUBJECT: Housing Hamilton Innovations Fund / Proposed Partnership: Affordable Housing Community Pilot Project (PD02001(c)) (City Wide) - Page 6 of 6

In the context of the “Affordable Housing Community Pilot Program” Memorandum of Understanding, staff have had discussions with the Hamilton-Burlington and District Real Estate Board, the Hamilton-Halton Homebuilders’ Association, and the Threshold School of Building. CITY STRATEGIC COMMITMENT:

Implementation of the Housing Hamilton Innovations Fund and the implementation of the “Affordable Housing Community Pilot Program” support the following goals of the City’s Strategic Plan: 1. A City of Growth and Opportunity d) Attracting and Retaining Business

“Council will explore the best methods and quantity of resources necessary to attract and retain business.”

2. A Great City in Which to Live

b) Supporting People in Need, with Care “Council will seek work with other levels of Government and the community to ensure that people in need are supported and cared for.”

3. A Healthy, Safe and Green City i) Municipal Housing Program “Develop and implement a municipal affordable housing program.”

KE/EM/ke Attach. (2)

Appendix “A” to Report PD02001(c) Page 1 of 4

TERMS OF REFERENCE

Housing Hamilton Innovations Fund

Introduction: The City of Hamilton has become the lead player in responding to affordable housing needs in our community. On April 10, 2002, City Council approved HAHPI – The Hamilton Affordable Housing Partnership Initiative – as the City’s pro-active strategy and response to affordable housing supply needs. HAHPI has three key components: • To co-ordinate and promote in a comprehensive manner the housing supply

initiatives that are already in place from all levels of government; • To develop new housing supply initiatives and partnerships in response to

new programming and legislative actions by the senior levels of government; and,

• To facilitate the development of affordable housing in Hamilton through the HAHPI Housing Partnership Fund.

One important component of the HAHPI Strategy is the Housing Hamilton Innovations Fund that was approved by Council on March 6, 2003 with an allocation of $100,000. Housing Hamilton Innovations Fund: The Housing Hamilton Innovations Fund (HHIF) will promote and facilitate community-based initiatives to increase and/or enhance the supply and affordability of ownership and rental housing suitable for lower income households. To support the growing number of community-based housing organizations in Hamilton that are researching and exploring ideas of promoting and facilitating innovative rental and ownership housing for lower income households, City Council has made available $100,000. The establishment of HHIF will generate interest among community-based housing organizations and act as the catalyst for securing funding opportunities from other sources. HHIF monies will be limited to a one-time grant or interest-free loan of a maximum of $15,000 per proposal, with no on-going or subsequent funding. The emphasis of HHIF financial assistance will be to promote and implement innovative and unique approaches for creating or enhancing the supply of affordable housing in Hamilton as “pilot projects” that can be replicated on a sustaining basis.

Appendix “A” to Report PD02001(c) Page 2 of 4

Eligibility: All proposed projects/initiatives must be based in the City of Hamilton. As well, proposals will only be considered if they are innovative or employ methods previously untried in the Hamilton area. The key objective of any proposed initiative will be to provide and/or enhance the supply and affordability of ownership and rental housing suitable for lower income households. A housing project proposal can be considered “innovative” provided: • It involves an original or non-conventional approach to addressing an

affordable housing need or demand; and/or • It will promote the feasibility of a housing concept that has been successfully

implemented in other jurisdictions. The following are examples of what an innovative approach could involve: • A method of housing design, e.g., Grow Homes; • A new or unconventional financing instrument or arrangement, e.g., equity co-

ops; • A different approach to housing tenure other than conventional rental,

ownership or co-operative, e.g., life lease; • Building methods or other residential construction components, e.g., modular

homes; and/or, • Initiatives or models that promote or facilitate homeownership opportunities. Criteria for Funding: The $100,000 committed by City Council represents a unique opportunity for the Hamilton community. However, only proposals that guarantee the use of innovative techniques or unique approaches that will create or facilitate housing for lower income households will be considered as potential recipients of HHIF funding. Proposals for HHIF funding will be evaluated in accordance with the following criteria: • Proposals must increase housing supply and/or lower the cost of housing

construction; • Proposals must be locally-based initiatives that will enhance housing

affordability for Hamilton residents; • Proposals must offer innovative or unique housing ideas where no existing

program initiative provides financial support; • There is a focus on lower income households and/or housing affordability

through design and building technology enhancement; • The proponent should provide and/or attract financial assistance from other

funding sources, e.g., donations, charitable contributions, sole-sourced revenue; and,

Appendix “A” to Report PD02001(c) Page 3 of 4

• The proponent should have the ability to re-pay an interest-free loan. As a general rule, the preferred method of City HHIF assistance will be an interest free loan. However, it is recognized that some organizations may not have the capacity to repay and/or the scope and characteristics of the proposal does not enable repayment. In these situations a grant would be appropriate Proposals must demonstrate their relevancy in advancing new housing solutions suitable to lower income households. Proposals must be innovative or incorporate methods that have been successful in areas outside of Hamilton. One objective of HHIF is to recognize approaches or initiatives that in a conventional market setting would not be considered as viable. The greatest need for affordable housing solutions is for lower income households in our community. Therefore, any units produced from HHIF financial assistance must be focused to households with lower incomes. In particular, proposals involving rental units should be cognizant of existing market rent levels in the City of Hamilton. For applicants proposing homeownership projects, the prices of the proposed homes will be below the average value of similar-sized homes in Hamilton. Approval Process: Proponents will enter into a Memorandum of Understanding (MOU) with the City of Hamilton that will set out the terms and conditions of funding, including the activities for which funding is provided and the specified time period in which the activities must be carried out. The City will require all funded activities to be completed within 18 months of Council approval of the MOU. The MOU will also specify the type and amount of HHIF funding assistance, i.e., grant or interest-free loan. City financial assistance to the proponent will be repaid to the City if any matters within the MOU are not satisfied by the end of the 18-month time period. It is vital that applicants possess relevant experience and qualifications/skills related to housing and that they indicate how their skills and experience will ensure their project will be successful. The extent of financial assistance awarded to a project will directly correspond to the number of units proposed. A successful applicant or organization will receive a HHIF grant or interest-free loan once only. The process for seeking HHIF financial assistance is as follows: 1) A written proposal is submitted to the City of Hamilton outlining: • The nature and description of the proposed activity/initiative, what will be

achieved, and the benefits to the City of Hamilton;

Appendix “A” to Report PD02001(c) Page 4 of 4

• A clear description of how the proposed activity/initiative will enhance housing affordability and/or the supply of affordable housing in Hamilton;

• Background information on the organization and/or individuals making the proposal and their relevant skills, experience and qualifications;

• The scope and total range of activities proposed in the project initiative; • Other funding sources that have been secured to facilitate the implementation

of the proposal; • The type and amount of funding assistance required from the City through

HHIF; and, • The time frame for project completion. 2) City of Hamilton staff would assess and review the proposal. Where

appropriate, staff will develop a MOU for a proposed partnership between the City and respective organization.

3) A report will be forwarded to the appropriate Committee of Council recommending approval of the MOU and authorization to disburse the funds. Proponents will be required to attend the respective Committee of the Whole to answer any questions in regard to their proposal.

4) With Council approval of the MOU and the authorization of HHIF financial

assistance, the funds would be disbursed. If the project is not completed within the date specified and the context of the MOU, the funding assistance provided will be immediately repaid to the City of Hamilton.

Appendix “B” to Report PD02001(c) Page 1 of 8

MEMORANDUM OF UNDERSTANDING

Between The Threshold School of Building

and The Hamilton-Burlington and District Real Estate Board

and The Hamilton-Halton Homebuilders’ Association

and The City of Hamilton

for the Development and Implementation of an

Affordable Housing Community Pilot Program

Purpose: The purpose of this Memorandum of Understanding (MOU) is to outline and establish the parameters and responsibilities of a partnership between the Hamilton-Burlington and District Real Estate Board (HBDREB), the Hamilton-Halton Homebuilders’ Association (HHHBA), the Threshold School of Building (TSB) and the City of Hamilton. The goal of this partnership is to provide homeownership opportunities for tenant families currently residing in social housing through the acquisition and renovation of single-family dwellings in Hamilton’s Downtown neighbourhoods. Through the Affordable Housing Community Pilot Program (“Pilot Program”), the partnership will demonstrate the viability of implementing a more long-term program initiative that will achieve the following results: • Promoting homeownership opportunities to tenants currently residing in City of

Hamilton social housing units; • Freeing up existing social housing rental housing units for more needy households; • Extending the useful life of the existing residential dwelling stock in the City through

renovation and rehabilitation; • Providing the opportunity to teach building and renovations skills to the community; • Providing long term building and maintenance advice and resources for the new

homeowners; and, • Revitalizing residential neighbourhoods and Downtown Hamilton through direct

investment and through family and organizational commitment to improving the quality-of-life in these communities.

The partnership members share the commitment and belief that through working together and utilizing the respective skills, experience and expertise, tangible gains can be made in the promotion and realization of homeownership opportunities for lower income households in Hamilton.

Appendix “B” to Report PD02001(c) Page 2 of 8

The Affordable Housing Community Pilot Program: The Pilot Program brings together the expertise and skills of the respective partners in Hamilton with a clear and tangible goal – providing affordable homeownership for lower income households. The Pilot Program will entail the following actions/events: • The selection of two families who currently reside in CityHousing Hamilton social

housing units and who have a desire and the financial means for securing affordable homeownership.

• Working with a Realtor and the Multiple Listing Service, the two families will identify single-family properties within a price range that meets their needs and requirements. The dwelling units will require renovation and rehabilitation work.

• The selected families will submit an “Offer to Purchase” for their respective dwellings with Realtor’s advice and guidance.

• The selected families will apply for Residential Rehabilitation Assistance Program (RRAP) funding, which is a program financed by Canada Mortgage and Housing Corporation (CMHC) and delivered by the City of Hamilton.

• The Threshold School of Building will co-ordinate the renovation and rehabilitation of the dwellings (while teaching students and volunteers some building skills), including the monitoring of “sweat equity” participation by the families.

• The selected families will be required to provide 500 hours of sweat equity on their houses or other project houses within three years of taking ownership of their houses.

• Upon completion of the renovation and rehabilitation work, the families will move into their respective dwellings.

As the property values will increase as a result of the renovations and rehabilitation, there will be a second mortgage registered on title that will represent the difference in value between the amount paid for the house by the selected families and the market value of the renovated houses that will be reduced to zero over a five-to-ten year period. Also, if the families sell the homes within a five-to-ten year period, the first right of refusal for purchasing the dwelling must be provided to the partnership. The terms and conditions are to be fully developed and documented by the Steering Committee. Goals and Benefits of the Participants in the Partnership: The Hamilton-Burlington and District Real Estate Board Goals • To facilitate lower income families in achieving homeownership by providing all

relevant and necessary real estate services.

Appendix “B” to Report PD02001(c) Page 3 of 8

Benefits • Playing a lead role in the community, as the HBDREB is well-positioned to provide

affordable homeownership opportunities. The Threshold School of Building Goals • To provide affordable housing stock for the City of Hamilton. • To rehabilitate downtown housing stock. • To increase building education opportunities for residents of Hamilton. • To build strong partnerships between organizations with complementary aims and

interests. Benefits • Securing an on-going supply of project houses by utilizing the houses as the on-site

classrooms for our building construction courses. • Acquiring knowledgeable resources for analyzing the housing needs of downtown

Hamilton neighbourhoods. • Bettering the connection to building material suppliers and builders in Hamilton. • Connecting to families that need affordable housing. The Hamilton-Halton Homebuilders’ Association Goals • To fulfil the dreams of two lower income families by assisting them to purchase their

own homes. • To demonstrate the positive contributions that the private sector can play in assisting

the building of affordable housing. • To demonstrate that homeownership can play a meaningful role in the affordable

housing issue. • To build strong partnerships between community organizations and the City of

Hamilton, who have complementary aims and interests. Benefits • Increasing the supply of affordable housing in Hamilton. • Training allowed for individuals considering a career in the construction trades. • Gaining a better understanding of the affordable housing issue from a grass-roots

perspective. • Contributing to the revitalization of older neighbourhoods in Hamilton. • Strengthening the connection to building material suppliers and builders in Hamilton. • Connecting to families that need affordable housing.

Appendix “B” to Report PD02001(c) Page 4 of 8

The City of Hamilton Goals • To increase public recognition that responses to affordable housing issues rest not

only with the City of Hamilton but with other community organizations and with senior levels of government.

• To demonstrate the efficacy of partnership when responding to affordable housing needs in our community.

Benefits • Developing and facilitating partnerships among a wide range of organizations in the

city to develop and promote affordable housing options for lower income households.

• Enhancing neighbourhood stability through cost-effective and targeted private sector investment.

• Upgrading and renewing the City’s housing stock. • Freeing up CityHousing Hamilton rental units for households who require assistance

on a rent-geared-to-income basis. • Promoting City leadership on the issue of affordable housing. Role and Responsibilities of the Partnership Participants: All activities and decisions within the context of the Affordable Housing Community Pilot Program will be spearheaded and co-ordinated by a Steering Committee comprised of two representatives from each of the partnership members. All decisions made by the Steering Committee must be unanimous. The respective roles, requirements and obligations of each partner are as follows: The Hamilton-Burlington and District Real Estate Board • Provide all administration for the Pilot Program; • Provide all realty services to find appropriate project houses; • Co-ordinate mortgage and legal services for projects; • Maintain independent financial accounting; and, • Co-ordinate all community and public relations activities. The Threshold School of Building • Assist in the family selection process; • Assist in the selection of the project houses; • Work with the selected families to design renovations for the project houses that are

within the agreed budgets; • Provide required drawings and arrange for building permits;

Appendix “B” to Report PD02001(c) Page 5 of 8

• Prepare budgets and lists of work required (including Threshold’s labour, subcontractors required, and a list of materials needed);

• Co-ordinate renovation of the project houses; • Provide labour (instructors, volunteers, and students) to renovate project houses;

and, • Participate in donor and subcontractor consultant group. The Hamilton-Halton Homebuilders’ Association • Find donors of materials and subcontractors required; and • Form a consultant group of participating donors and subcontractors. The City of Hamilton • Identify two candidate families who have the desire and financial means for

homeownership currently residing in CityHousing Hamilton social housing units; • Expedite the Residential Rehabilitation Assistance Program (RRAP) applications; • Facilitate and expedite other approvals, if required, from the City of Hamilton; and • Provide a financial contribution in the form of a one-time grant through the Housing

Hamilton Innovations Fund (HHIF). Funding and Other Financial Commitments: Attached to this MOU is a budget for the Affordable Housing Community Pilot Program including the respective financial and in-kind contributions. All partners commit to minimizing the costs to the families acquiring and renovating the dwellings to the best of their ability to ensure the effective implementation of the Affordable Housing Community Pilot Program and demonstrate the long-term program sustainability. If within a period of 18 months from the execution of this MOU the two selected families have not made an “Offer to Purchase” on their dwellings, or at any such time the partnership and MOU is terminated prior to the two families securing legal title to their dwellings, the partnership will return the entire amount of the City’s HHIF financial contribution. Effective Date: This MOU will become effective upon execution by the respective authorities of the partnership members and shall remain in effect until termination by any partner. Any partner may terminate this MOU upon 60 days written notice to the other partners. This MOU will be reviewed quarterly and amended or supplemented as may be agreed upon mutually.

Appendix “B” to Report PD02001(c) Page 6 of 8

Signed on behalf of the Hamilton-Burlington and District Real Estate Board: Name and Title: Signature: Date: Signed on behalf of the Threshold School of Building: Name and Title: Signature: Date: Signed on behalf of the Hamilton-Halton Homebuilders’ Association: Name and Title: Signature: Date: Signed on behalf of the City of Hamilton: Name and Title: Signature: Date:

Budget for 2003-2004 – Affordable Housing Community Pilot Program Between TSB, HBDREB, HHHBA, and the City of Hamilton

Contributions Expenses Totals Homeowner RRAP Real Estate Board Home Builders CMHC City Threshold Purchase Costs House Purchase $60,000 $60,000 Closing Costs 3,000 3,000 Real Estate Fees 900 900 In K Sub-total $63,900 Renovation Costs ($50,000 market value) Materials 43% $21,500 $16,500 In K Sub trades 5 2,500 1,500 In K $1,000 In K Labour 39 19,500 Volunteer Labour 13 6,500 6,500 In K Sub-total $50,000 $12,000 16,000 Other Costs Monthly Carrying Costs (see note below) $4,200 Insurance (liability& house) 1,700 Permits 700 Sub-total $6,600 Contingency $5,000 Total Costs One house $125,500 Two houses $251,000 Contributions One house $117,400 75,000 16,000 900 In K 18,000 In K 7,500 In K Two houses $234,800 $150,000 $32,000 $1,800 In K $36,000 In K $15,000 In K Capital Funding Received Seed Money $50,000 10,000 $25,000 $15,000 Total Contributions $284,800 $150,000 $32,000 $11,800 $36,000 $25,000 $15,000 $15,000 Surplus ($284,800 - $251,000) $33,800 (Carried forward)

Explanatory Notes for Draft Budget Tim Leslie, Threshold School of Building August 11, 2003 This Draft Budget is based on building two houses in the first year. Purchase Cost: There is a relationship between the purchase cost and the cost of renovations. It is assumed that if the purchase cost were lower the renovation cost would be higher as more work would have to be done. Renovation Cost: The proportions shown are based on Threshold’s first house. Carrying Costs: Include $450 Mortgage, $125 Taxes, $125 Utilities or $700 x 6 mos. = $4,200 Contribution from Homeowner: The total contribution could go up from what is shown here to $80,000 and still be under $500 in monthly mortgage payments. In-Kind Contributions: "In K" denotes "In Kind contributions" & amounts to $52,800 of $284,800 total Contributions: The City’s financial contribution through HHIF will ensure the long-term sustainability of the Affordable Housing Community Pilot Program for other lower income families over the coming years.