This Request for Proposals (the “RFP”) is an invitation by The Regional Municipality of Niagara(“Niagara Region”) to prospective proponents to submit proposals for Social Housing Alternative Service Delivery, as further described in Section A of the RFP Particulars (Appendix D) (the “Deliverables”).

Niagara Region developed a pilot Partnership Housing Program (PHP), to encourage the not-for-profit and private sector to develop new purpose-built rental buildings as there has not been significant purpose built rental construction in Niagara. This new approach was designed to both (i) encourage the development of rental stock, (ii) provide rental units for Niagara Region to utilize in its housing waitlist reduction initiative and (iii) to address concerns identified by stakeholders and the Niagara Region. 

Under this program the Niagara Region would provide the developers with the following key financial supports:

1) Equity Support – Niagara Region would co-invest in the proposed development by providing equity and becoming a partner or shareholder in the development.  The provision of equity by the Niagara Region is anticipated to assist developers with financing the project. 

For purposes ofthis pilot program the Niagara Region has equity funding of $1.7 million available for accepted proposal(s) under this RFP. 

2) Commitment to a long term rental agreement - Niagara Region will enter into a long term rental agreement for a portion of the units developed.  The long-term agreement will be based on market rates.  The commitment to rent a block of units will provide additional support for the development of the project and reduce long term operating risks. 

The nature of the long term rental agreement will be funded by the property taxes generated by the property.  The Niagara Region will dedicate the Regional portion of the taxes to fund the required subsidy to support the rental amounts.  The exact number of units will be dependent upon the agreed to rents as well as the estimated Regional property taxes.

The potential benefit of this pilot approach is that new rental units that will be used to reduce Niagara’s housing wait list can be created with little to no impact on the existing taxpayer.  This is due to the partnership structure and the use of Development Charge funds and new incremental property taxes generated by the building to fund these developments.

As this is a pilot program, Niagara Region intends to thoroughly review and assess the outcome of this program prior to determining next steps which could include a continuation of this program and the issuance of subsequent RFP’s.