Investment in Affordable Housing IAH Rental Housing Component

1. Investment in Affordable Housing (IAH) – Rental Housing Component RFP 12-06

2. IAH Components Rental Housing Homeownership Rent Supplement Housing Allowance Ontario Renovates

3. IAH 2011 – 2015Rental Housing ComponentLondon - Middlesex The City would like to create a minimum of 84 units in 2012. Year 1 (2011-12) Transitional year Year 2 (2012-13) Minimum 84 units total Year 3 (2013-14) TBD Year 4 (2014-15) TBD

4. Eligibility Criteria - Projects To be eligible, a project must be one of the following: New construction, including additions and extensions Acquisition and substantial rehabilitation of rental buildings that are vacant and uninhabitable Conversion of non-residential buildings

5. Eligibility Criteria - Units Units must be modest in size and amenities Units must be self-contained to receive full funding per unit

6. Financial Assistance2012-2013 Federal/provincial up to $60,000 per unit for City and County projects City of London up to $55,000 per unit for projects located within the city boundaries City of London up to $5,000 for accessible units located within the city boundaries Property taxes set at the single-family residential property tax rate

7. Funding Schedule Start of construction 25% During construction 50% Occupancy 25% Less 10% holdback paid 45 days after lien publication

8. Who Should Apply? Non-profit organizations Private sector companies Partnerships between private sector proponent and support agency

9. IAH Requirements ? Start construction within 120 days of MCA ? Evidence of land ownership ? Evidence of site plan, zoning and servicing approvals ? Financial viability ? Permit only purpose-built rental housing (including new construction, conversion or vacant buildings)

10. City Priorities 1. One bedroom apartments 2. Small to mid-size projects 3. Singles, couples, working poor, recent immigrants, supportive housing, Aboriginal people 4. Energy efficient, energy star rated and energy audit   5. LEED certification 6. Units below 70% of the CMHC AMR   

11. City Priorities 7. Supportive units 8. Partnerships 9. Accessible and barrier-free design is encouraged; 10.Proponents with a proven track record  11.Proponents with financial capability to undertake proposed development 12.Proponents that have long term intent

12. Projects in Middlesex County City of London designated Service Manager County projects apply under this RFP Proponents must approach local council to request additional support for project Letter of support from local council Affordable rent

13. IAH Rental Rates Affordable rent – 2/3 of units must not exceed 80% CMHC AMR Low rent – 1/3 of units must not exceed 70% CMHC AMR Supportive unit rent – ODSP shelter component

14. Income Targeting IAH units are made available to low and moderate income households only. Gross tenant household incomes can be no greater than 5x monthly rent Income verification at time of application

15. Rent and Household Income Chart

16. Tenant Selection Market units – proponents select Affordable units – based on income Low rent units – HAC Waiting List Supportive units – support agency

17. Affordability Duration & Rent Increases Affordability period is 25 years which includes a 5 year phase-out period Occupied and vacant units are allowed rental increases once every 12 months Annual % rent increase set by the RTA

18. Design Guidelines & Energy Efficiency LEED design and certification process (Certified, Silver, Gold and Platinum) Projects not eligible for LEED certification Energy star rated products

19. Private Sector & Partnership Equity Minimum 10% equity of affordable housing component Partnerships with service agency and private sector minimum 4% equity of affordable housing component 100% equity of commercial component

20. Charitable & Non-Profit Groups Contributions of land, equity or cash Commercial component requires 100% cash or equivalent

21. Financing First mortgage requires City approval CMHC insurance for the first mortgage is recommended Construction financing requires City approval

22. Contribution Agreement Once all program conditions have been met, the project has received municipal approval and a Conditional letter of Commitment from the Province received, the Proponent will sign a 25 year agreement.

23. Proposal Submission Detailed business plan required which includes capital budget, operating budget and project details as specified in RFP Form of Proposal Submission deadline

24. Evaluation Criteria & Scoring Business Plan & Cost Effective – 30 Proponent Qualifications & Partnerships – 25 Development Plan – 25 Energy Efficiency – 20 Speed of Delivery – 20 In order to qualify, a minimum score of 60 must be achieved.

25. Capital Budget General Information Type of Units Land/Property Acquisition Soft Costs Construction Costs Additional Costs

26. Capital Budget Anticipated Equity and Funding Equity City of London County of Middlesex Federal/Provincial Private first mortgage Construction financing

27. Operating Budget Anticipated Annual Revenues Estimated Annual Expenditures Annual Surplus

28. RFP 12-06 Closing Date & Time Monday, April 16, 2012 on or before 2pm local time

29. Tips Register on website; Check for issued addendums; Form of Proposal original signature, blue ink, four copies; Provide information requested in section 8.4 and appendix 1-5; Submit proposal early.

30. Questions/Inquiries Terri Sue Wyatt, Procurement Officer Fax 519-661-5030 Email: purch@london.ca