The Affordable Housing Partnerships Initiative (AHPI) can provide up to a maximum of $50,000 per unit for new affordable housing. Council has set a goal of seeing 200 units per year built in Calgary with AHPI funding. In March 2003, the City received $9.15 million from AHPI for the 202 unit Manchester affordable housing project, now under construction. It was hoped that in 2004, private and non profit developers would avail themselves of the opportunity to use AHPI funding. To date, only two other applications have been approved: a 16 unit application from the City of Calgary and a 36 unit application from a non profit developer. While there are some private and non profit developers working on proposals, there is a high likelihood that without further direct City action, Council’s 200 unit goal will not be met in 2004.
This report recommends that Council authorize the Administration to initiate a Request for Proposals (RFP) process immediately. The process would be designed to solicit proposals from private developers to build non-market, affordable housing for the City of Calgary. When completed, this housing would be managed by the Calgary Housing Company.
The RFP would be released in early September and would close in early October. By November, the selected projects would be brought forward for Council approval. As part of that report, recommendations would be presented concerning additional capital/financing requirements. Application for AHPI funding would be made in December, following Council’s approval. Upon notice that AHPI funding has been secured, the Administration would take the necessary steps to conclude the agreements with the chosen developers.
The strategy also reports on such issues as the target population to be accommodated; the types of dwelling units needed; maximum unit prices to be considered in the RFP; additional sources of capital available; risk management issues; etc.
Contents
Preface
Background
1. Affordable Housing Objectives
2. Cost Parameters
3. Proposed 2004 Acquisition Program
4. Proposed Acquisition Method
5. Proposal Call Process
6. Risk Management
References
