Request to offset Regional Development Changes (RDC's) to new non-profit housing

Presented to HRM Budget Committee, February 19, 2025

This request is to allocate $500,000 within the Affordable Housing Grant Program budget, once that budget is approved, to offset Regional Development Charges (RDC's) for new non-profit housing.

• At this level, the offsets will help secure CMHC financing for 92 non-profit multiple dwelling units in fully serviced areas; or up to 262 non-profit townhouse units located in water-only service areas.
• The offsets would be used to meet Halifax Water needs once the non-profit housing provider has confirmed that CMHC financing has been secured.

Examples of How This Approach Can Help Support The Development of More Non-Profit Housing

• Akoma Holdings (NPO in District 4) is planning an 80-unit townhouse development adjacent to the Akoma Family Centre. The offset would yield a cost saving of $153,745 together with an equivalent equity contribution.
• Had offsets been available for the 45-unit Affirmative Ventures project on Main Street (NPO in District 6) then costs would have been reduced by $246,432; equity would have been increased; and rents could have been reduced by $100 per month for 20 units.

Cost / Benefit Analysis

• The cost of administering the offsets should be less than the cost of processing $500,000 worth of grants under the AHGP 
• HRM’s housing grant program could be broadened - deep affordability and support for non-profit housing in rural areas could become higher priorities
• Instead of waiving regional development charges, offsets will not compromise Halifax Water’s capital budget
• Halifax Water’s practice of imposing liens on non-profit housing plus interest charges to defer RDCs for 10 years would be eliminated, and
• Timing issues associated with the grant program and CMHC’s underwriting process would be reduced.

For a pro forma example, please contact David Harrison at 902-404-2844.