Vacant Building Redevelopment

Program

Program OverviewThe Vacant Building Redevelopment Program is intended as a tool to encourage reinvestment in projects that address instances of urban blight and encourage increased residential density. The program provides strategically designed grants that target buildings within the Central Peninsula plagued by vacancy and disrepair. Through this Program, the City of Saint John hopes to reinvest in its historic building stock, the stabilization of residential neighbourhoods and the vibrancy of the Uptown area.

Residential Density GrantThe Residential Density Grant pays eligible projects a grant of 5.25% of construction costs over five years to a maximum grant of $122,500. Eligible construction costs include the total cost of constructing the development project, including site preparation, mechanical and electrical work. Construction costs do not include:• Engineering or design work• Land purchase & assembly• Demolition of buildings • Legal, financing, & marketing fees• Fees for government

approvals• Taxes paid during planning, construction or sale• Construction of accessory buildings

Construction Challenges GrantThe Construction Challenges Grant pays a grant of 25% of the cost of construction challenges to a maximum of $50,000 or 5% of project costs, whichever is lower. The grant is available on a first-come, first-serve basis until budget resources are exhausted. Eligible construction challenges include:• A new sprinkler system• Secondary egress upgrades• Installing a new elevator• Asbestos removal

• Lead paint removal• Structural or foundation repairs• Knob & tube wiring replacement• Cutting windows through brick or stone

Building Permit GrantThe Building Permit Grant provides a grant equal to 80% of the cost of the building permit fee for the project to a maximum of $10,000. The grant is available on a first-come, first-serve basis until budget resources are exhausted.

Eligibility Criteria• The project must create a minimum of 1 new residential unit;• The building must be vacant for more than 1 year;• The value of construction must be greater thn $50,000;• The building must meet one of the following 3 criteria:

1) It is assessed below $35,000 per unit;2) A minimum of 50% of the building is currently uninhabitable; or3) The buildings prior use was institutional.

• The building must be located within the Central Peninsula, which encompasses the Uptown, South End and Waterloo Village neighbourhoods.

Residential Density Grant Payment ScheduleGrant Year Market Housing Not-For-Profit Housing

12345

1.5%1.5%

1.125%0.75%0.375%

1%1%1%

0.75%0.5%

How to ApplyApplications are made to the Growth & Community Development Service at City Hall. To make an application you will need to provide the following information:

Successful applications will be required to begin construction within two months of approval or by May 15th, whichever is the later date.Successful applicants will enter into a grant agreement with the City of Saint John ensuring that obligations of both parties are fulfilled.

• A completed application form• A description of the project• A site plan• Floor plans• Bulding elevation drawings• Two different sets ofcontractor quotes or a cost to construct budget prepared by a professional

• Interior photographs• A project scheduleidentifying the start date, permit submission date and completion date of the project• An inspection of thebuilding may need to be shceduled at the time of application

Construction Confirming CostsFor the redevelopment of vacant buildings, construction is considered to have started once interior demolition is complete and work associated with a building permit has begun. Larger projects (over $1,000,000) have the opportunity to identify phases for the purpose of confirming work has started.

Projects must be completed within a timely manner to receive grants. Projects under $2,000,000 will have until November of the year following approval. Projects over $2,000,000 will have until November two years following the approval of their application. Applications submitted later than July 1st, will be provided an extra year to complete the project.

Construction Period

Starting Construction

Projects will be considered completed following receipt of an occupancy permit and a site inspection to confirm all requirements of the grant agreement have been met.

Project Completion

Following completion of the project, successful applicants will be required to confirm the final cost of the project through one of the following two methods:

1) Final receipts and payrolldocumentation; or 2) Audited financial statements

Final costs will be used to determine the final grant amount. The final grant may not exceed the initial cost estimates submitted.

Grant PaymentThe Buiding Permit Grant and Construction Challenges Grant will be paid following the completion of the project and receipt of an Occupancy Permit.

Building Permit & Construction Challenges Grant

The first payment of the 5 year Residential Density Grant will be paid in July following the completion of the project. A project must be completed by November 1st of the previous year to begin the payment cycle the following July. Each subsequent payment of the 5 year grant will be paid in July. Grants may be transferred upon the sale of a property at the applicants request.

Residential Density Grant

For More Informationwww.saintjohn.caVisit Our Website

Contact UsCity of Saint John | Growth & Community Development ServicesCity Hall 10th Floor, P.O. Box 1971Saint John, NB E2L 4L1506-658-2911

This document is intended to be used for informative purposes only and is not intended to be legal advice nor to be used in place of the Urban Development Incentives Policy.

Partially Vacant BuildingsIf your building has not been completely vacant for more than 1 year but maintains high levels of vacancy resulting in financial loss and the deterioration of the building, you may still be eligible for an incentive. Please contact our office to find out more about eligibility for partially vacant buildings.