Cahdco recently facilitated a virtual webinar featuring an introduction to pre-development and development funding by Paige Waldock, Toolbox+ Director. She gave an overview of the real estate development stages. We interviewed Irene Gannitsos, Strategic Investment Director from Vancity, who shared details on grants and loans from their Affordable Community Housing program.
- In the Pre-Feasibility stage, an organization can apply to CHTC’s Sector Transformation Fund (STF) via the Local Projects Grant.
- The Design Analysis and Feasibility stage may span from 2 months to over 2 years. FCM’s Planning Grant can have grants for eligible initial project planning costs, and CHMC’s Seed Fund offers financial support through interest-free loans.
- The Design Development stage typically ranges from 4 months to over 12 months. FCM’s Study Grant provides funding for expected costs like feasibility studies, surveys and reports, designs, building drawings and permits, engagement, and the purchase of land.
- The Construction stage usually spans 12 to 18 months. FCM’s Capital Financial Grant has grants, and CHMC’s Affordable Housing Fund provides capital for new affordable housing as well as the renovation and repair of existing affordable and community housing.
The second half of the webinar was an interview with Irene Gannitsos, Strategic Investment Director of Vancity Community Foundation. She started speaking on Vancity’s mission for their Affordable Community Housing Program: to preserve and grow the supply of community-owned, affordable, and climate-ready homes by providing essential early-stage funding to help get projects off the ground faster and by helping to address barriers that hinder community-owned affordable housing development.
Gannitsos outlined Vancity’s Affordable Community Housing Program. It offers early-stage grants and flexible, low-cost loans to not-for-profit, cooperative, and Indigenous organizations. The first area of work is Housing Project Funding through grants and loans to help organizations advance their projects and unlock other sources of funding, such as government grants and construction financing. The second area of work is Capacity Building which involves providing grants to help community housing providers; assessing their real estate assets and growth opportunities; developing real estate strategies; and building internal teams, expertise, and systems for effective management. The last area of work is Sector Support which involves funding initiatives that remove sectoral barriers hindering community-owned affordable housing, whether it is research, policy advocacy, or support for sector events.
Additionally, the Vancity Affordable Community Housing program offers loans during intensive project phases. The first type is the pre-development loan, which covers soft costs during the rezoning and permit processes. The pre-construction equity loan provides greater financial stability for a project by allowing organizations to carry capital into the construction and occupancy phases. The acquisition loan allows organizations to compete with investors and market developers by providing capital for down payments and short-term holding costs during real estate acquisitions.
Vancity Community Foundation has been selected as a semi-finalist in the CMHC Housing Supply Challenge. This initiative aims to remove barriers hindering housing supply by supporting innovative solutions. As part of the Level-Up Round, Vancity Community Foundation has received $1 million and moved into Stage 2. Their goal is to take their successful British Columbia program nation-wide by partnering with credit unions across Canada. By doing so, they hope to make community housing projects more cost-effective and increase the amount of housing they can build or acquire.
Cahdco would like to thank Irene Gannitsos of the Vancity Community Foundation for this online webinar. If you would like to attend future discussion panels, sign up for our newsletter to stay up-to-date!