June 23, 2003
Topics Covered in this AHP Program Bulletin:
Municipally Sponsored Projects and Requirements for a Fair, Open and Competitive Process
A primary aim of the Affordable Housing Program – Community Rental Housing funding is the development of new affordable rental supply in the short-term, while governments continue to examine ways to improve the business climate for rental investment in the long-term. As part of this short-term supply initiative, it is recognized that municipally sponsored projects, such as projects lead by a municipality or a municipal non-profit company, have an important part to play in developing new affordable housing.
A key Program requirement is that a fair, open and competitive procurement process forms the basis for the selection of projects to receive program funding. However, in the case of municipal non-profit and municipally sponsored projects, the service manager has a direct relationship with the project proponent, whether as the sole shareholder or as the principal partner. Consequently, municipally sponsored projects will satisfy program requirements through alternative competitive selection processes.
Therefore, in the case of municipal non-profit and municipally sponsored projects, the requirement for a fair, open and competitive selection process will be addressed through competition on construction or design-build contracts, that will normally be underway or completed prior to submission of the project for Ministry approval.
What Housing Projects are Considered as Municipally Sponsored, Non-Profit?
There are two ways that a project is deemed as a municipally sponsored, non-profit project. The first way is where the proposed housing project will be built and owned by a municipally controlled, non-profit housing company or corporation.
However, some municipal service managers may not have established their own non-profit housing company or corporation. Therefore, a housing project may also be deemed as a municipally sponsored, non-profit project where the service manager has had a significant involvement and investment in a project, and the project otherwise meets all of the relevant program requirements.
Ministry staff will evaluate whether a significant degree of municipal sponsorship has been established for a project, in consultation with the pertinent service manager prior to the project being submitted to the Ministry. Significant sponsorship might include a combination of: municipal council and staff leading the proposal development and feasibility studies; the provision of property management services by the service manager, or by a municipally-controlled social housing corporation; the provision of capital grants; the provision of development incentives; and/or the provision of municipal land at less than market value.
If you require additional information on the topics covered in this AHP Program Bulletin, please contact your local Municipal Services Office representative:
Central Municipal Services Office
Ian Russell, Senior Housing Advisor
Tel: (416) 585-6965
Fax: (416) 585-6882
Email: ian.russell@mah.gov.on.ca
Eastern Municipal Services Office
Donna Simmonds, Senior Housing Advisor
Tel: (613) 548-4304 ext. 25
Fax: (613) 548-6822
Email: donna.simmonds@mah.gov.on.ca
Northeastern Municipal Services Office
Cindy Couillard, Senior Housing Advisor
Tel: (705) 564-6808
Fax: (705) 564-6863
Email: cindy.couillard@mah.gov.on.ca
Northwestern Municipal Services Office
David Forester, Senior Housing Advisor
Tel: (807) 473-3017
Fax: (807) 475-1196
Email: david.forester@mah.gov.on.ca
Southwestern Municipal Services Office
Tony Brutto, Senior Housing Advisor
Tel: (519) 873-4032
Fax: (519) 873-4018
Email: tony.brutto@mah.gov.on.ca