Conditional Letter of Commitment NEMI Seniors Complex

Ministry of Municipal Affairs
and Housing

Housing Programs Branch
777 Bay Street, 14th Floor
Toronto ON M7A 2J3

January 20, 2022

Bruce Killah
Board Chair, Manitoulin-Sudbury DSB
210 Mead Boulevard
Espanola ON P5E 1R9

Dear Bruce Killah

Re:NEMI Seniors Complex, 2 OPHI units
Manitoulin-Sudbury District Services Board
Conditional Letter of Commitment
Ontario Priorities Housing Initiative (OPHI) – Rental Housing Component –Year 3

Based upon the recommendation of the Manitoulin-Sudbury District Services Board, the Town of Northeastern Manitoulin and the Islands (NEMI) Seniors Complex project has been conditionally approved for funding in the amount of $623,865 for 2 affordable units under the Rental Housing Component of the Ontario Priorities Housing Initiative (OPHI).

This funding is conditional upon Manitoulin-Sudbury District Services Board obtaining all required approvals for the project.

As per the OPHI Program Guidelines, funding for projects approved under the Rental Housing component must be committed no later than December 31, 2021. However, considering the project approval being communicated to you so close to this deadline, the funding commitment date has been extended to January 28,  2022 to provide sufficient time.

It is expected that a Contribution Agreement will be signed as well as confirmation of registration of security will be provided to the ministry as soon as possible, but no later than January 28, 2022

Please note that any funding that remains to be committed by January 28, 2022 may be reallocated to other Service Managers that are able to utilize and commit the funds by the end of this fiscal year.

In addition, the project is required to start construction within 120 days of signing the Contribution Agreement. Projects that do not meet the construction start timelines may also have their funding re-allocated.

Funding for the project is also conditional on the fulfillment of the ministry’s terms and conditions for the OPHI and the achievement of specific construction milestones.

Conditions for OPHI – Rental Housing Component funding include, but are not limited to:

  • The province and the Service Manager (SM) for the jurisdiction in which the project will be built signing a Transfer Payment Agreement;
  • Obtaining any required project-specific Municipal Housing Facilities Bylaws or Agreement or any other required Agreement by the Service Manager and/or other party and the proponent;
  • Providing proof of ownership or long-term lease to permit the development of the proposed project over the minimum 20 year period;
  • Obtaining the first permit that permits the demolition of an existing structure or the construction of the foundation of the project and/or permits a subsequent phase in the construction process;
  • Providing written confirmation of construction start within 120 days of the date of the signing of the Contribution Agreement, as per Sub-Appendix D-1D of the Transfer Payment Agreement. Any project that does not meet this requirement may have their funding re-allocated;
  • Obtaining a Certificate of Insurance (COI) and any required insurance as part of the Contribution Agreement;
  • Providing confirmation of required owner equity;
  • Obtaining approval of mortgage financing in the form of a mortgage commitment satisfactory to the ministry;
  • Service Manager or Ministerial Consent (as applicable) under the Housing Services Act, 2011;
  • Confirmation in writing of existing support services, if required;
  • Confirmation of compliance under the Canadian Environmental Assessment Act (CEAA) and current Ontario Building Code requirements; and,
  • Fulfillment of all other conditions precedent to the implementation of the project as set out in the proponent’s submission to the procurement process and as outlined in the Program Guidelines.

Please ensure that the project progresses in meeting these conditions.

SMs are required to report to the province when a Contribution Agreement is signed and comply with the program’s guidelines as specified in the Transfer Payment Agreement.

Once the Contribution Agreement has been signed, security has been provided, and the required conditions have been fulfilled, the ministry will advance OPHI funding to the SM as per the project’s funding schedule. The SM, in turn, will advance the funding to the proponent based on the completion of construction milestones.

Please see the attached preliminary funding schedule for a description and breakdown of the funding for your project.

The project must abide by the communication protocol set out in the Ontario Transfer Payment Agreement for COCHI/OPHI signed between the province and Manitoulin-Sudbury District Services Board. Based on this, all public announcements must be made in consultation with the province, Canada Mortgage and Housing Corporation and Manitoulin-Sudbury District Services Board.

The province will co-ordinate the official announcement of this funding and will notify the Manitoulin-Sudbury District Services Board in advance.

As the Service Manager, you are required to keep the contents and details of this letter as well as the approval of the project which is the subject of this letter confidential. This may include but is not limited to the use of in-camera council meetings and protection of this information and the approvals resulting from this letter. This practice is consistent with our usual communications protocol for housing programs.

Thank you once again for your interest and participation in the OPHI.

Yours truly,

Sebastian Franks
Director, Housing Programs Branch
Housing Division

Attachment: NEMI Seniors Complex Funding Schedule

c.Fern Dominelli, CAO, Manitoulin-Sudbury District Services Board
Cindy Couillard, Team Lead, Regional Housing Services, MSO-Northeast