HOUSING AND URBAN AFFAIRS

HOUSING CAPITAL INITIATIVES

2010/2011 REQUEST FOR PROPOSALS
GUIDELINES

Affordable housing continues to be a top priority for the Government of Alberta. The
government has committed to contributing to the development of over 11,000 affordable
housing units by 2012.

PURPOSE

To increase the overall number of affordable housing units in the province by providing
eligible organizations with one-time grant funding through a Request for Proposals
(RFP) process.

Housing and Urban Affairs (HUA) is seeking submissions for the Housing Capital
Initiatives 2010/2011 RFP from eligible organizations to increase accessibility to
affordable housing options for low- to moderate-income families, individuals, seniors
who are functionally independent, persons with special needs, and homeless people in
need of housing. Total funding available under the 2010/2011 RFP is $188.31 million,
$38 million of which is federal funding.

HUA will monitor projects and ensure compliance over the term of the conditional grant
funding agreement, including verification that each approved project has been
completed and remains affordable as specified in the agreement.

ELIGIBLE ORGANIZATIONS

• Any municipality
• Any duly incorporated not-for-profit organization registered under the Alberta
Societies Act or any corporation established under the Business Corporations Act
(Part 9)
• Management bodies established under the Alberta Housing Act
• Private sector organizations, developers, or contractors.

An application submission checklist, application forms, Modesty Assurance Guidelines,

and a draft conditional grant funding agreement are available on the HUA website at
http://www.housing.alberta.ca.

GENERAL REQUIREMENTS

Applicants are required to demonstrate the need for affordable housing in the proposed
community to substantiate their proposal. The following information must be provided:
• Target clients (i.e., families, individuals, persons with special needs, seniors who are
functionally independent, or homeless people in need of housing)
• Total community population

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• Statistical data showing the lack of housing for the client type
• Vacancy rates for each applicable unit type
• Average market rental rates by unit type.

Applications that provide written support from the municipality; neighbourhood or

community association; and other relevant stakeholders will be given preference.

Households with a combined total annual income that falls within Core Need Income
Thresholds (CNITs), or such other limits as may be identified as more appropriate to
meet the intent of the program will be given priority for affordable housing units. The
CNITs for all Alberta communities will be provided annually by the Ministry. (Link to
CNITs)

Monthly rental rates or payments must be a minimum of:

• for affordable housing units, 10 per cent or more below average market rent
• for housing for the homeless units, 20 per cent or more below average market rent.

Applicants requesting the maximum amount of funding assistance under the program
will be required to maintain rental rates lower than the above noted limits for the first
three years of operation.

Average market rents in communities surveyed by Housing and Urban Affairs (HUA) are
reflected in the Ministry’s 2009 market survey. Average market rents in communities
surveyed by Canada Mortgage and Housing Corporation (CMHC) are reflected in
CMHC’s spring 2010 market survey. If no rental data exists in the community where the
project will be located, please contact HUA. (For Edmonton and Calgary, please use
the average market rent for the city, not the average rent by zone.)
(Links to the Provincial and CMHC market rental survey)

Funding can be used for new rental construction, purchase and/or renovation of existing
rental units, conversion of commercial space (non-residential use to residential rental
use), and home ownership (new construction only).

For projects involving purchase and renovations or repairs, priority will be given to units
that require major renovations/repairs due to safety and health concerns and that may
otherwise be lost to the overall rental portfolio within the province.

Projects that include housing units specifically for the homeless population can only be
located in communities that have a municipally approved multi-year plan to end
homelessness or that draw their clientele from such communities.

Preference will be given to applicants proposing developments that integrate

affordable housing units, housing for the homeless units, and market housing
through mixed use, mixed tenure, mixed income, or any combination of the three.

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Procurement (for new construction only): If an organization is approved for funding and
is subject to the Trade, Investment and Labour Mobility Agreement (TILMA), or if it
distributes grant funds to an entity that is subject to TILMA, the subsequent
procurement of goods and services must be in accordance with the requirements of
TILMA.

Proposals on new construction for rental or home-ownership units must include an

itemized breakdown of the projected total capital costs and all funding sources to pay
for these costs.

The capital cost summary must be supported with a quotation from a qualified
contractor or sub-trades. If the project includes affordable housing units and/or housing
for the homeless units, mixed with market units, a breakdown of the entire project costs
and a separate breakdown of the total capital costs associated specifically with the
affordable and/or housing for the homeless units are required. If the project uses green
technologies and/or incorporates revitalization elements, these additional costs must be
identified separately.

Proposals for rental units must include a five-year projection of the annual revenues and
the operating costs. All budget lines must be filled out. Projects that generate
surpluses of more than 10 per cent are expected to further reduce rents to benefit target
clients.

Home-ownership proposals must include the name of the partnering non-profit

organization, details of how the non-profit organization will administer the project, a
sales/marketing plan, client eligibility guidelines, a client selection process, and client
payment details.

Proposals must include background information on the contractors or builders that will
be involved in the development of the project and the individuals or companies that will
administer the project.

Applications proposing units targeted to seniors who are functionally independent or

persons with special needs will be required to commence the earlier of 90 days from the
effective date stated in the grant funding agreement, or June 29, 2011.

If the acquisition and/or construction of the proposed project began prior to the closing
of the Request for Proposals, it must have started after April 1, 2010, or the proposal
will not be considered for funding.

Units must provide modest, self-contained accommodation of suitable space and size to
meet household needs.

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Funding to develop housing for seniors will only support projects targeted to seniors
who are functionally independent. Lodge or assisted-living accommodation is not
eligible for funding through this Request for Proposals.

Applicants, by virtue of their participation in the Request for Proposals process,

acknowledge their capacity and expertise, or that they have consulted with an entity or
entities that have the capacity and expertise to proceed and complete the proposed
development in accordance with the information provided in the application.

The applicant must provide a copy of the 2010 property tax assessment or current
appraisal of the property where the project will be built.

Proposed housing projects can be a mixture of housing units that offer a combination of
affordable housing, market housing, and housing for the homeless.

Grant funding can only be used towards the capital costs associated with the affordable
housing and housing for the homeless units and amenity space that provides services
or supports to the housing residents.

If a residential project is funded in whole or part by the Government of Alberta,

adaptable dwelling units, which could be made to meet barrier-free design principles as
defined in 3.8 of the Alberta Building Code, shall be provided as follows:

• 2 or more in a project of 10 to 25 dwelling units

• 5 or more in a project of 26 to 50 dwelling units
• 10 or more in a project of 51 to 100 dwelling units
• 15 or more in a project of 101 to 200 dwelling units
• 20 or more in a project exceeding 200 dwelling units.

Where possible and practical, projects should use green technologies that promote the
conservation of non-renewable resources and minimize environmental impact, or
include building components that contribute to the economic efficiency of the facility
over the long term. Some examples are:

• Site Development: minimize storm water run-off, encourage car pooling and
bicycling, and increase urban density and green space
• Water Efficiency: eliminate site irrigation, reduce water consumption, and minimize
or treat wastewater
• Energy Efficiency: reduce building energy consumption, use renewable energy,
eliminate ozone-depleting chemicals, and commission building systems
• Material Selection: minimize construction waste, re-use existing building façade, use
recycled and salvaged materials, use renewable construction materials, and design
and build more durable buildings
• Indoor Environmental Quality: incorporate day lighting, use low off-emitting
materials, and provide operable windows and occupant control of work space

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• Innovation in Design: incorporate innovative environmental features not covered in
other areas.

Where possible and practical, proponents are encouraged to incorporate

neighbourhood revitalization elements that enhance existing neighbourhood resources,
support economic development, provide public services, and improve the quality of life
for residents. Some examples are:

• Amenities: outdoor play spaces, multi-purpose resident/public meeting rooms,

daycare facilities, dedicated space for after-school programs or training, fitness
rooms, community/residence gardens, and common areas
• Housing for Life/Flex Housing: features that allow changes to be made to the unit to
meet evolving needs of its residents as they age or become disabled, such as: wide
hallways, slip-resistant flooring, and no-step/slip entrance ways. For ideas visit:
http://www.cmhc.ca/en/co/buho/flho/index.cfm.
• Smart Growth: designs enhance the physical/mental health, reduce crime or fear of
crime, protect the environment, increase neighbourhood desirability, etc. Example:
green spaces, gardens, pathways, enhanced vegetation. For ideas visit:
http://www.smartgrowth.org; and http://www.rcmp-grc.gc.ca/ccaps-spcca/safecomm-
seccollect-eng.htm.
• Mixed-use: blending of housing and commercial spaces
• Mixed-income Developments: development serves residents at varying income
levels
• Community Involvement: the community’s ideas and goals as demonstrated through
meeting minutes, and letters of support from community associations, local support
agencies, planning departments, and business development associations, are
incorporated into the project.

ADDITIONAL INFORMATION/REQUIREMENTS FOR HOME OWNERSHIP

1. 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:
- Statistical data showing the need for affordable home ownership housing
- Number of new and existing homes for sale in the community
- Age and condition of existing homes in the community
- Housing type (i.e., single-family dwelling, condominiums, duplexes, etc.)
- Current housing prices.

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

3. Project requirements:
• Private sector applicants must partner with a non-profit organization.

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 • 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, and
- 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
• 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
• If home owners sell their units before the 20-year term ends, will they be required to
pay back some or all of the grant funding they received
- Describe 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.

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ADDITIONAL INFORMATION/REQUIREMENTS FOR HOUSING FOR THE HOMELESS UNITS

• Priority will be given to projects incorporating small self-contained units for individuals
(bachelor and/or studio units).
• Two-, three-, and four-bedroom family units will also be eligible in the Request for
Proposals process.
• Proposals of 20 units or less may contain all housing for the homeless units (the 20
units may be made up of, or include, individual units in multiple locations).
• Proposals of 20 to 50 units will contain no more than 30 per cent of the units as
housing for the homeless.
• Proposals of 51 or more units will contain no more than 20 per cent of the units as
housing for the homeless, to a maximum of 40 units.
• Proposals can also include a multiple-site model.
• Housing and Urban Affairs recognizes that projects larger than 20 units in size
targeted exclusively to housing for the homeless may be needed for clients requiring
specialized services. Proposals of this nature may be considered using the following
additional criteria:
- The proposal must demonstrate the need for a project greater than 20 units in size
that facilitates economy of scale in the provision of specialized support services
- The proposal must fit with the overall direction of the municipal plan to end
homelessness
- The proposal should include letters of support from stakeholders that work with the
targeted client group for the proposed project attesting to the appropriateness of
larger-scale special needs housing versus smaller-scale sites.

Applicants proposing units to house the homeless must include evidence of initial
discussions regarding the facilitation of support services with a community-based
organization in one of the following seven major municipalities:

Calgary:
Mr. Tim Richter, President and CEO, Calgary Homeless Foundation (403-237-6456)
Edmonton:
Ms. Susan McGee, Executive Director, Homeward Trust Edmonton (780-496-2630)
Fort McMurray:
Ms. Kimberly Snow, Homeless Coordinator, Regional Municipality of Wood Buffalo
(780-743-7910)
Grande Prairie:
Ms. Donelda Laing, Manager, City of Grande Prairie (780-513-5263)
Lethbridge:
Ms. Diane Randell, Manager, City of Lethbridge (403-320-3917)
Medicine Hat:
Ms. Tracy Flaherty-Willmott, Coordinator, Medicine Hat Community Housing Society
(403-528-5183)
Red Deer:
Ms. Roxana Nielsen Stewart, Program Coordinator, City of Red Deer
(403-309-8592)

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FUNDING

Preference will be given to proposals for developments that exhibit mixed use and that
do not contribute to the overconcentration of publicly funded or supported housing in
any one neighbourhood.

Grant funding for affordable housing is 65 per cent of the total capital costs to a
maximum of $150,000 per unit. The total funding from all provincial government
sources or government-funded agencies cannot exceed 65 per cent.

Grant funding for housing for the homeless is 70 per cent of the total capital costs. The
total funding from all provincial government sources or government-funded agencies
cannot exceed 70 per cent.

Land included by applicants as an eligible capital cost of the proposed development will
be valued at the cost of acquisition.

Projects should demonstrate effective partnerships to reduce debt service, thereby

increasing unit affordability to lower-income households in the form of reduced rents.
Partnerships should also promote the use of community-based resources, including
work-force training programs, into the development of affordable housing.

Costs associated with providing support services are ineligible for funding under the
Request for Proposals (RFP) process.

The applicant of each approved project will be required to enter into a conditional grant
funding agreement with the Queen in Right of the Province of Alberta as represented by
the Minister of Housing and Urban Affairs. A draft copy of a grant funding agreement is
included in the RFP package. (Link)

Prior to receiving the first and subsequent funding instalments, certain conditions must
be met. These conditions may vary depending on the kind of project. Some examples
are:

• A certified copy of title indicating the recipient’s fee simple ownership of the land,
where the approved project is to be located
• A letter of credit confirming the organization’s ability to finance its contribution
towards the project (the cost involved to obtain a letter of credit is an eligible
capital cost and can be factored into the estimated capital cost summary on
the application)
• A copy of the approved development permit
• A copy of the executed construction contract
• An environmental assessment (if applicable)
• A building condition analysis (if applicable)
• A recent property appraisal or 2010 property tax assessment

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• Confirmation of community consultation
• Construction progress reports prepared by a qualified independent third party
• An audited project financial statement showing the estimated capital costs, actual
capital costs, any variances, and all funding sources to cover all capital costs.

Approved grant recipients will be required to provide banking information to enable the
electronic funds transfer of payments.

Housing and Urban Affairs (HUA) will monitor projects and ensure compliance over the
term of the conditional grant funding agreement, including verification that each
approved project has been completed and remains affordable as specified in the
agreement.

SUBMISSION REQUIREMENTS

HUA reserves the right to reject any proposals that do not meet the criteria. All costs
incurred by the organizations in developing and preparing their proposals are at the sole
cost of the organizations.

To be considered for grant funding, proposal requirements include:

• All the items summarized in the checklist provided on the HUA website must be
checked off, signed, and included with the application
• Applications must be completely filled out, dated, and signed, and all required
supporting documentation must be provided
• Proposals must include the name and address of the organization that is submitting
the proposal and the names, addresses, and telephone numbers of the contact
individuals
• Target clients must be identified as one or more of the following:
- Low- to moderate-income families
- Low- to moderate-income individuals
- Persons with special needs
- Low- to moderate-income seniors (who are functionally independent and do not
require support services)
- Homeless persons in need for housing (this is only applicable for rental units)
• Financing requirements must be supported by a letter from a recognized financial
institution expressing an interest in providing the required financing.

Note: Proposals selected for funding will be required to provide a letter of

commitment from a recognized financial institution in an amount that is sufficient to
cover the difference between the total estimated capital costs of the project and the
approved grant funding.

• Organizations, other than management bodies established under the Alberta

Housing Act and municipalities, are required to provide the following information:
- Certificate and Articles of Incorporation
- History of the organization including a current list of board members/directors

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 - A description of the organization’s involvement with the project and similar
initiatives undertaken in the past three years
- Three current years of Audited or Review Engagement Financial Statements for
the organization making the application.

Information missing from a proposal will impact the evaluation rating and may result in
the proposal not being considered for funding.

EVALUATION PROCESS

An evaluation team of Housing and Urban Affairs’ representatives, together with such
other representation that the Minister deems appropriate, will undertake the review and
assessment of project proposals using the evaluation criteria.

EVALUATION CRITERIA

Proposals will be rated by using the following key factors:

1. Financial:
• The amount of total provincial grant funding that is requested towards the
development of the project
• Confirmation of all funding sources making up the difference between the total
capital cost of the project and the grant requested
• The financial strength of the organization.

2. Need:
• Demonstrated need and priority for the proposed project in the community.

Rental Units:
- Target client(s) identified (i.e., families, individuals, persons with special
needs, seniors who are functionally independent, or homeless people in need
of housing)
- Total community population
- Statistical data showing the lack of housing for the client type
- Vacancy rates for each applicable unit type (i.e., bachelor, one-bedroom, etc.)
- Average market rental rates by unit type
- Preference will be given to applicants who provide written support from the
municipality, neighbourhood/community associations, and other relevant
neighbourhood stakeholders.

Home Ownership:
- Target client(s) identified (i.e., families, individuals, persons with special
needs, or seniors who are functionally independent)
- Total community population

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 - Statistical data showing the need for affordable home-ownership housing,
including:
 Number of new and existing homes for sale in the community
 Age and condition of existing homes in the community
 Housing type (i.e., single-family dwelling, condos, duplexes, etc.)
 Current housing prices for the proposed housing type
- Preference will be given to applicants who provide written support from the
municipality, neighbourhood/community associations, and other relevant
neighbourhood stakeholders.

3. Project:
• Demonstrated mixed use through the inclusion of affordable, market, and
housing for the homeless units
• Demonstrated support from elected municipal officials, neighbourhood or
community associations, residents, and other relevant stakeholders
• Proposal conforms to Modesty Assurance Guidelines
• Per unit cost of construction, purchase, and renovation or conversion
• Adaptable units provided in accordance with the Alberta Building Code
• Use of green technology
• Inclusion of neighbourhood revitalization elements
• Pre-construction requirements (e.g., title, zoning, development permits, and
drawings)
• Previous development experience.

4. Sustainability:

Rental Projects
• Projects must generate sufficient rental revenues to offset all operating expense
items identified in the five-year project budget and operate at a surplus. Projects
generating surpluses of more than 10 per cent of the rental revenues should
further reduce rents to benefit the target clients.
- Operating expenses must include a replacement reserve fund.
- If financing is involved, debt servicing costs must be disclosed in the
operating expenses.
• Property administration should be done by a qualified property management
organization that has expertise and experience.
• The organization must provide evidence showing they have the financial strength
to cover extraordinary or unforeseen expenses.

Home-ownership Projects
• The organization must provide evidence showing they have the financial strength
to cover extraordinary and unforeseen expenses during construction

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 • A non-profit organization must provide the ongoing project administration:
- Grant repayments will be made by recipients who sell their units before the
term expires, or
- If the non-profit organization is providing the mortgage financing, then it would
be responsible for administering the client mortgage payments
• The applicant has a solid marketing plan to ensure the units are sold in a
reasonable time frame, including:
- Established client eligibility and selection criteria
- Established financing options for the eligible purchasers.

5. Affordability:
• Monthly rental rates or payments must be a minimum of:
- for affordable housing units, 10 per cent or more below average market rent
- for housing for the homeless units, 20 per cent or more below average market
rent
• Monthly home-ownership payments must not exceed 32 per cent of a
household’s monthly income and priority should be given to households whose
combined total annual income falls within Core Need Income Thresholds.

REQUEST FOR PROPOSALS DETAILS

The following detailed application template, Modesty Assurance Guidelines, and related
information materials have been developed for organizations to use in submitting their
proposals:

• Checklist
• Detailed Project Proposal Application Forms
 Rental Units
 Home Ownership
• Modesty Assurance Guidelines
• Sample Grant Funding Agreement

To be considered for funding, the proposal must:

• Be submitted on or before the “Closing Date”

• Meet project and funding requirements of the Request for Proposals
• Be completed on the appropriate application form, with the form duly signed by the
applicant’s signing authorities
• Ensure information requested on the application is complete
• Include a signed checklist that is attached to the proposal.

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SUBMISSION OF REQUEST FOR PROPOSALS

• Eligible organizations must submit one original and one copy of their proposal not
later than 4:30 p.m. Mountain Daylight Time on September 24, 2010 (“Closing Date”)
to:

Delivery Address: Mailing Address:

Housing and Urban Affairs Housing and Urban Affairs
Housing Development and Operations Housing Development and Operations
44 Capital Boulevard PO Box 927
3rd Floor, 10044-108 Street Edmonton, Alberta T5J 2L8
Edmonton, Alberta T5J 5E6

All envelopes are to be clearly marked “Housing Capital Initiatives 2010/2011 Request
for Proposals.”

All proposals will be stamped with the date and time received. Proposals received after
the “Closing Date” will not be accepted and will be returned unopened to the applicant.

Responses to the Request for Proposals (RFP) must be completed on the 2010/2011
RFP application form provided. The application form must include all required
information and must be signed by authorized officers of the organization.

The Ministry reserves the right, in its sole and unfettered discretion, to reject any or all
proposals or to cancel this RFP.

The Ministry makes no representation or warranties, expressed or implied, as to the

accuracy and/or completeness of the information provided in this RFP.

INQUIRIES

Any inquiries regarding the RFP may be directed to one of the following contacts. To
call toll-free, first dial 310-0000, then the number of the contact you wish to reach.
North:
Mr. Walter Tauber Phone: 780-422-8137 walter.tauber@gov.ab.ca
Ms. Dora Fitz Phone: 780-427-0093 dora.fitz@gov.ab.ca
Mr. Paul Kuzel Phone: 780-422-8229 paul.kuzel@gov.ab.ca
South:
Ms. Diane Cox Phone: 403-297-5734 diane.cox@gov.ab.ca
Any inquiries related to A Plan for Alberta: Ending Homelessness in 10 Years may be
directed to one of the following contacts. Again, to call toll-free, first dial 310-0000, then
the number of the contact you wish to reach.
Mr. Stephen Manley Phone: 403-297-7461 stephen.manley@gov.ab.ca
Mrs. Norma Chitrena Phone: 780-422-8285 norma.chitrena@gov.ab.ca
Ms. Laurie Michalchuk Phone: 403-297-7382 laurie.michalchuk@gov.ab.ca

No inquiries will be responded to after Friday, September 17, 2010.

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SUBMISSION TIMELINE

• Issuance of the Request for Proposals - July 8, 2010

• “Closing Date” - 4:30 p.m. Mountain Daylight Time, September 24, 2010
• Proposal evaluation - Completed on or about November 19, 2010
• Approval notification to successful organizations - December 15, 2010
• Announcement of successful applicants - project announcements will follow approval
notification
• Conditional grant funding agreements in place - on or before March 31, 2011.

INFORMATION SESSIONS

Information sessions will be held at the following locations:

Edmonton: Date, time, and location to be determined.

Calgary: Date, time, and location to be determined.

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