Tag: SPRE Project

Click here to learn more about VCIB’s Affordable Housing HISA. Ready to invest in change? Let’s talk.

What is the Affordable Housing HISA?

The Affordable Housing HISA is a high-interest savings account designed to help non-profit affordable housing providers manage savings and reserve funds securely. It offers a prime-linked interest rate, which means you earn more if rates rise. Plus, your principal is not exposed to market volatility and all funds remain liquid, so you can access your money whenever needed, without penalty. As with any investments made with VCIB, your deposits help finance community impact projects, such as purpose-driven real estate and clean energy initiatives.

The Affordable Housing HISA also offers:

• A variable interest rate: Prime less 1.85%
• No management fees
• Interest paid monthly
• 5 free outgoing transactions a month
• CDIC insurance up to $100,000

Who is eligible for the Affordable Housing HISA?

All non-profit affordable housing providers in Canada are eligible to invest in the Affordable Housing HISA. This secure, principal-protected, high-return product was designed specifically to help affordable housing providers continue their important work. If you manage finances for an organization that falls into this category, the Affordable Housing HISA may be a good fit for you.

Why choose the Affordable Housing HISA?

As the country continues to grapple with inflation and the possibility of a recession, many affordable housing providers are looking for investment options outside the bond market. The Affordable Housing HISA was designed with affordable housing providers in mind. We understand the impact that inflation can have on your bottom line, and the need for liquidity when it comes to financing affordable housing projects. With competitive rates, and the ability to access your funds when you need them, the Affordable Housing HISA offers a flexible and secure investment solution for affordable housing providers. Plus, just like VCIB’s Impact GICs, the Affordable Housing HISA supports the development of affordable and sustainable communities in Canada. Your deposits are used to finance projects that help create or preserve affordable housing, and the interest you earn is reinvested into more affordable housing initiatives.

Protect your savings, invest in your community

The new Affordable Housing HISA is designed to help affordable housing providers protect their investments and ensure the long-term viability of their projects. Impact investment HISA’s are a great way to invest in your community and make a difference while you save. The Affordable Housing HISA is just one way we’re working to support affordable housing providers. As the only bank in Canada exclusively financing businesses and enterprises that drive positive change, we have the experience and knowledge to help you reach your impact goals.  

Click here to learn more about VCIB’s Affordable Housing HISA. Ready to invest in change? Let’s talk.

In November 2020, Vancity Community Investment Bank (VCIB) and Canada Mortgage and Housing Corporation (CMHC) announced a first-of-its-kind agreement to accelerate the delivery of affordable housing across Canada and would see VCIB commit up to $100 million to finance affordable housing initiatives by September 2021.

The agreement represents VCIB’s most ambitious target for affordability financing to-date, and supports CMHC’s goal that by 2030, everyone in Canada has a home that they can afford and that meets their needs.

A full year has passed since the ground-breaking arrangement, during which VCIB and CMHC have worked together to advance this important objective. We’re proud to say that not only have we hit our target, we’ve soared past it, providing $183 million in financing for 1,100+ units of affordable homes over the past year.

“Nothing is more important than a home. This collaboration between VCIB and CMHC demonstrates our government’s commitment to the creation of a whole new generation of affordable housing for Canadian families.” – The Honourable Ahmed Hussen, Minister of Families, Children and Social Development and Minister responsible for Canada Mortgage and Housing Corporation (CMHC)

This partnership is a testament to what can be achieved when the public and private sectors join forces to provide solutions to Canada’s affordable housing shortage.

“Tailored financing is essential to tackle the affordability crisis,” said Trish Nixon, Managing Director of Commercial Impact Banking at VCIB. “As a purpose-driven lender, VCIB is committed to partnering with sector players to find the right solutions to move the needle forward.”

VCIB and CMHC’s joint initiative addressed a financial gap in the housing market by supporting innovative organizations that are making homeownership more affordable for Canadians.

One of these organizations is Trillium Housing, a nonprofit social enterprise that invests in the development of entry level housing. VCIB’s funding supported the development of Trillium Housing’s Maxx Urban Towns in Pickering, Ontario.

With this financing, Trillium will offer its unique shared appreciation second mortgage, known as the Trillium Mortgage, to make 41 of the townhouse units affordable for modest-income families. To assist new homeowners, the Trillium Mortgage helps buyers with down payments, reduces leverage and carrying costs, and doesn’t require monthly payments while the home is owner-occupied.

Another organization that benefited from VCIB and CMHC’s partnership is Jasper Place Wellness Centre, a nonprofit organization that focuses on building strong communities by addressing social and health-based inequities facing low-income and/or vulnerable neighborhoods.

VCIB provided a loan to refinance Jasper Place’s office building in Edmonton, Alberta, to provide equity for another transaction: The purchase of a market rent apartment building located at 11212 – 85th Street NW Edmonton, AB. This purchase will ensure that 30 units are permanently preserved as affordable-rent apartments over the next fifteen years.

Similarly, VCIB launched the Preserve and Protect Guarantee Program last year to fill a gap in existing funding for the preservation of Parkdale’s affordable housing. This program was created to support the Parkdale Neighbourhood Land Trust (PNLT) to rapidly acquire at-risk affordable rental buildings as they are put up for sale.

“While all levels of government have mandates to tackle the affordable housing crisis, currently there are no municipal, provincial or federal programs that specifically support the acquisition and conversion of existing rental housing into permanently affordable housing,” said Joshua Barndt, Executive Director of the Parkdale Neighbourhood Land Trust.

The first loan was made out of the program in April 2021, with the successful acquisition of a 36-unit low rent, at-risk apartment building located on Maynard Avenue.

Another organization that VCIB and CMHC are proud to champion is Habitat for Humanity Canada. To support Habitat’s innovative home ownership model, VCIB delivered a $30 million credit facility to finance the construction of up to 414 units of affordable housing over the next three years.

Habitat Canada will extend loans from the credit facility to local Habitat organizations across the country, streamlining and expediting their access to capital, and allowing the organization to aggressively scale its delivery of affordable housing across Canada. Habitat Peterborough & Kawartha Region is now using the credit facility to push forward the development of 41 new and affordable homes at its Leahy’s Lane condo build.

VCIB and CMHC’s financing also provided support for housing co-operatives that keep housing costs low while providing a safe place for their members. For Innisfree Housing Co-op, VCIB provided a term loan to finance much needed repairs for the organization’s 70-unit housing complex.

Looking towards the future

Even though this partnership has made a significant investment towards increasing Canada’s affordable housing stock, solving the affordability crisis will require more partnerships from public and private institutions, ones that continue to support all types of affordable housing initiatives.

“Every Canadian deserves a safe and affordable place to call home,” said Randeep Sarai, Member of Parliament for Surrey Centre. “In that spirit, our government is taking action to increase the supply of rental housing through partnerships such as this. New affordable rental housing will provide families with better access to jobs, services and the amenities they need. Working together to meet our housing needs is a sure pathway to success.”

Marci Ien, Member of Parliament for Toronto Centre, continued; “Our Government is taking steps, right now, to ensure that every Canadian has a safe and affordable place to call home. Investments in partnerships such as this go a long way to support the creation of more affordable housing and improve the lives of Canadians. It’s through collaboration that we all win.”

Going forward, VCIB will keep addressing Canada’s affordability crisis by offering innovative financial solutions that cover a wide range of affordable housing projects.

If you have a project looking for financing, get in touch.

Monday, April 26, 2021: VCIB is located on the traditional territory of multiple Indigenous nations, including the Haudenosaunee and the treaty territory of the Mississaugas of the Credit/Toronto, ON –  The Parkdale Neighbourhood Land Trust (PNLT) and the Vancity Community Investment Bank (VCIB) today announced the acquisition of an at-risk low-rent residential building containing 36 apartments in Parkdale, Toronto in an effort to help protect the area’s affordable rental stock. Over the past decade, Parkdale has lost 28 rooming houses to gentrification and renoviction, displacing nearly 350 renters, and this move signals growing momentum from the PNLT in implementing community-driven solutions to the housing crisis. With this acquisition the land trust has grown its community ownership in the area from 15 to 51 units of affordable rental housing – equivalent to a 240% increase.

“Community land ownership models empower communities to make important decisions about their neighbourhoods that result in tangible impacts. Keeping Parkdale open and accessible to everyone is a priority and that’s why we are protecting and preserving our existing affordable housing stock,“ said Joshua Barndt, Executive Director of the Parkdale Neighbourhood Land Trust.

The acquisition of the at-risk three-storey building was made possible through VCIB’s Preserve and Protect Guarantee Program, which was launched by the bank in October 2020. Through the program, VCIB accepts and holds funds from values-aligned investing organizations in an Impact GIC, which are then used to guarantee loans to the PNLT for the purpose of rapidly acquiring at-risk affordable rental properties in Parkdale. In this case, VCIB was able to provide an $8.5 million acquisition facility to the PNLT, supported by over $2.6M in guarantees put forward by investors, including local foundations.

“While all levels of government have mandates to tackle the affordable housing crisis, currently there are no municipal, provincial or federal programs that specifically support the acquisition and conversion of existing rental housing into permanently affordable housing. As a result, the Parkdale Neighbourhood Land Trust has turned to impact investors to support our community to preserve and protect affordable housing before it is gone,” shared Joshua Barndt.

VCIB’s Managing Director of Commercial Impact Banking, Trish Nixon, said: “Community is in our name, and supporting organizations, like the PNLT, who are working on the ground to implement community-led solutions is core to VCIB’s values. We are committed to helping the PNLT meet its goal to preserve and protect 100 affordable units in at-risk rooming houses and apartment buildings by 2025. We are delighted to see our Preserve and Protect Guarantee Program in action as it supports the PNLT to safeguard Parkdale’s affordable rental housing.”

“Protecting the current supply of affordable rental housing is a key part of the HousingTO 2020-2030 Action Plan, and one of most immediate and efficient ways to help address the significant affordability challenge we face in this city. The acquisition of this at-risk three-storey building is not only preserving affordable rental housing but also demonstrates the value of investors and community land trusts working together,” said Abi Bond, Executive Director of the City of Toronto’s Housing Secretariat.

Joshua Barndt continued: “The COVID-19 pandemic has particularly highlighted the importance of secure housing. We are sharing this victory in the hope that more foundations and institutional investors, like VCIB, will support the important work of community land trusts, like the PNLT.”

As Canada’s first and only values-driven bank, VCIB is committed to creating innovative financing solutions that support the delivery and preservation of affordable housing across Canada. In November 2020, VCIB announced with the Canada Mortgage and Housing Corporation that it would finance up to $100 million towards affordable housing initiatives across Canada – VCIB’s work with the PNLT is one way the bank is realizing this commitment.

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About the Parkdale Neighbourhood Land Trust

The Parkdale Neighbourhood Land Trust (PNLT) is a community land trust in Parkdale led by a group of residents and organizations trying to protect the social, cultural and economic diversity of Parkdale by redefining how land is used and developed. The Neighbourhood Land Trust is the charitable arm of the PNLT. Through the community land trust model, PNLT and NLT will acquire land and use it to meet the needs of Parkdale by leasing it to non-profit charitable partners who can provide affordable housing, supportive housing and community economic development.

About Vancity Community Investment Bank (VCIB)

VCIB is an Ontario-based schedule 1 federally chartered bank and a subsidiary of Vancouver City Savings Credit Union. As Canada’s first values-driven bank, VCIB provides banking, investing, and financing solutions designed to help our partners — purpose-driven businesses and organizations — thrive, grow, and foster change. Additionally, VCIB offers specialized financing solutions for social purpose real estate and clean energy projects. VCIB is a certified B Corporation and a member of the Global Alliance for Banking on Values. To learn more about our partnership-based approach to banking, visit vcib.ca, tweet us at @BankVancity and connect with us on LinkedIn.

Media Contact
vcib@yulupr.com

The information provided herein is intended for informational purposes only and is not intended to constitute investment, financial, legal, accounting, tax, or other advice and should not be relied upon for such purpose. Always consult a professional regarding your specific needs and circumstances. Customer results may vary. The customer endorsements that appear on this page were solicited by VCIB.

This piece originally appeared in The Hamilton Spectator.

Canada’s affordability crisis isn’t a breaking news story. Housing shortages have plagued all of our country’s major cities over the past decade and, even in the grip of the pandemic in November of last year, the housing market continued to record double-digit price increases.

But what the pandemic has done is focus wider attention on the escalating severity of unaffordability. As COVID-19 impacts the labour market and people’s incomes, more and more families are experiencing job insecurity and — in turn — housing insecurity. Finding tangible solutions to finally address the housing crisis has never been more urgent.

To put our housing crisis into context, recent research shows that one in 10 Canadian households are in core housing need, meaning that their cost of housing accounts for more than 30 per cent of the household’s total income before tax. This is occurring at a time when housing demand is outpacing supply, household incomes are remaining relatively flat and housing prices are soaring.

The importance of safe and stable housing options cannot be overstated. Adequate housing provides families with the stability needed to establish roots in their communities, to maintain steady work, or to pursue education and business opportunities. It also puts them on stronger financial footing and, in the case of affordable home ownership, allows them to build equity over the long term. For some, this means that affordable housing is key to helping break the intergenerational poverty cycle.

The case for why we should tackle the housing crisis is clear, but what’s not so obvious is the solution.

To date, the spotlight has been focused firmly on federal and provincial governments to come up with the answer, but this crisis cannot — and should not — be tackled by government alone. While governments must continue to step up and keep affordable housing at the top of the agenda, we must increase collaboration between the public and private sectors to kick-start the change that is needed.

Historically, financial institutions have shied away from investing in affordable housing options because of perceived risk or unfavourable policies. However, through partnerships between the public, private and non-profit sectors, we will not only increase investment in affordable housing, but develop innovative models that expedite the delivery of new affordable housing units.

An example of this type of collaboration in action is the new partnership between Vancity Community Investment Bank (VCIB) and national housing non-profit Habitat for Humanity. For VCIB, collaboration runs in the family. Vancity Group has a long track record of financing and supporting affordable housing and creating access to affordable homes, and supporting local communities is a priority. Since 2009, Vancity Group has funded investments of more than $1.48 billion to support the development of affordable housing stock across Canada, and has also long supported Habitat for Humanity through mortgage financing and operating loans. Now, VCIB has taken this partnership one step further.

Learn more about VCIB’s impact financing in our Real Estate Financing page. If interested in chatting with VCIB about your financing needs, get in touch.

Disclaimer: The information provided herein is intended for informational purposes only and is not intended to constitute investment, financial, legal, accounting, tax, or other advice and should not be relied upon for such purpose. Always consult a professional regarding your specific needs and circumstances. Customer results may vary. The customer endorsements that appear on this page were solicited by VCIB.