REQUEST FOR APPLICATION (RFA) Rental Housing Improvement Program (RHIP) 2014 APPLICATION SUBMISSION 1. Submission Deadline: No later than 4:30 pm (CDT) on June 12 th, 2014 2. Address to which submissions must be mailed or delivered: Rental Housing Improvement Program (RHIP) RFA 2014 Housing Delivery Branch 200-352 Donald St. Winnipeg, MB R3B 2H8 Attention: Harnet Weldihiwet 3. The Applicant s name and return address should appear on the face of the envelope. 4. Failure to submit a complete application in the requested format may result in disqualification from this application call. Enquiries: If an applicant finds errors, discrepancies or omissions in the RFA documents he/she must notify the Administrator of the error, discrepancy or omission as soon as possible. Enquiries or questions regarding this RFA shall be directed to the above mailing address or call 204-945-0778 in Winnipeg or toll free 1-866-689-5566 or email at Harnet.Weldihiwet@gov.mb.ca
Table of Contents Glossary of Terms... 3 Applying for RHIP How-to... 4 Program Information and Guidelines... 5 What is the Rental Housing Improvement Program?... 5 How much assistance is available under the RHIP Program?... 5 What types of repairs and costs are eligible for rental Units or Rooming House projects?... 5 Who is eligible?... 6 What properties are eligible for program funds?... 6 What properties are not eligible for program funds?... 6 Other Information to Know... 7 Tenant Information Needed... 7 How Applications Are Evaluated... 8 Appendixes... 9 Appendix A - Revenue and Expense Statement (Part of RHIP Application form)... 9 Appendix B - Summary of Rents and Tenant Income Information (Part of RHIP Application form)... 9 Appendix C - Questionnaire... 10 Appendix D - Tips on Filing the RHIP Application Form and Appendixes A and B... 12 Appendix E - Sample Summary of Rents and Tenant Income information... 15 Appendix F - RHIP Program Income Limits (PILs) & Renovation Rental Limits (RRLs)... 16 Appendix G - Tenant Declaration Sample... 17 Rental Housing Improvement Program (RHIP) RFA 2014 Page 2 of 17
Glossary of Terms Affordable: Rooming House Bed-Units and self-contained rental Units that are occupied by Low- Income Tenants and are rented for no more than Renovation Rental Limits (RRL) for the appropriate rental Unit type or, for Rooming House Bed-Units, 60% of the RRL for one-bedroom Units. Bed-Unit: A bed within a Rooming House rented to an occupant unrelated to the owner and located in an area which meets the minimum space standards for Bed-Units as outlined in the RHIP Standards. Low-Income Tenant: A tenant whose annual gross household income is no more than the Program Income Limits (PIL). Major Repair: Repairs required to correct deficiencies which represent a threat to the health and safety of the occupants, as defined in the RHIP Standards, the repair of which represents a substantial burden on the property owner. Mandatory Repairs: Repairs required to bring residential properties up to minimum levels of health and safety and extend the useful life of the building, as defined in the RHIP Program Standards. National Occupancy Standard (NOS): is the prescription used when determining the appropriate unit size in terms of bedroom count for a household of a given size and composition. Northern Region: The geographic area of Manitoba located north of the 53rd Parallel. Program: The Rental Housing Improvement Program (RHIP). Program Income Limit (PIL): The maximum total gross income from all persons 18 years of age and older residing in a dwelling, combined with the application of the NOS. Renovation Rental Limit (RRL): The maximum monthly rent a landlord can charge a tenant household. RRLs differ based on whether they include services (heat, hydro and water) or not. Rooming House: Means a permanent form of housing consisting of a building, or part of a building, where living accommodation is provided in at least four, separate, habitable rooms, each of which may contain limited food preparation facilities and sanitary facilities. Tenant Declaration: A form voluntarily completed by the tenant which provides the households income for the purposes of verifying eligibility of the Unit they occupy for Program funding. Southern Region: The geographic area of Manitoba located south of the 53rd Parallel. Unit: Means a self contained dwelling providing therein living, sleeping, eating, food preparation and sanitary facilities for a household that is leased weekly, monthly or annually. Rental Housing Improvement Program (RHIP) RFA 2014 Page 3 of 17
Applying for RHIP How-to Before You Apply Carefully read through the Request for Application (RFA). The RFA will provide you with the Rental Housing Improvement Program guidelines, eligibility criteria, application requirements and how the applications are evaluated. Call if you need clarification before you submit your application. How to Apply Step 1: Complete the application form and questionnaire provided. Answer every question. If an answer or the whole application is considered incomplete by, the application may not be considered further. Step 2: A complete submission includes the following required documents: Rental Housing Improvement Program Application Form - includes Appendix A Revenue and Expense Statement Appendix B - Summary of Rents and Tenant Income Information Appendix C - Questionnaire Most recent Property Tax Statement Step 3: Send completed application and supporting documents before the submission deadline. After you Apply Only applications that meet the submission guidelines will be considered. Applications that are incomplete or do not meet criteria as detailed in this guide will be returned to the applicant and will not be considered further. Applications that meet the criteria outlined in the guide will be prioritized to the degree to which they meet the program criteria and principles. The number of applications selected will depend on available program funds. RHIP delivery staff will contact the applicants that qualify to proceed to discuss program details and review program operations including the RHIP Operating Agreement and will be instructed to assemble additional information as required including Tenant Declaration forms. Rental Housing Improvement Program (RHIP) RFA 2014 Page 4 of 17
Program Information and Guidelines What is the Rental Housing Improvement Program? The Rental Housing Improvement Program (RHIP) provides financial assistance to landlords, who rent to tenants of low income, to repair or rehabilitate their property and bring it up to a minimum level of health and life safety. Limited funds are available from with the financial support of the Government of Canada. RHIP funding assistance is provided in the form of a forgivable loan, that is, a loan that does not have to be repaid provided recipients comply with the terms and conditions of the loan in the RHIP Operating Agreement. Forgiveness is earned as the outstanding loan amount reduces on a pro-rated, monthly basis over the 15-year term of the RHIP Operating Agreement. Funding must be used for mandatory repairs to bring the Rooming House Bed-Units or self-contained rental Units up to a minimum health and safety as prescribed by the RHIP program standards. Rental property owners who receive assistance must enter into a RHIP Operating Agreement and operate the property in accordance with the terms and conditions of that agreement, maintaining the property as affordable rental housing for the 15-year term of the agreement. If any of the terms or conditions are breached, the unearned portion of the loan is due and payable. RHIP loans are secured with a mortgage registered on Title for the 15-year term. Repayable loans are not available under this program. How much assistance is available under the RHIP Program? The amount of funding assistance is based on the pro-rated costs of all mandatory repairs for eligible rental Units up to the applicable Unit-maximum funding amount. Successful residential rental property owners may receive up to a maximum of: Southern Region: $18,000 for each Rooming House Bed-Unit, and $24,000 for each self-contained rental Unit. Northern Region: $21,000 for each Rooming House Bed-Unit, and $28,000 for each self-contained rental Unit. What types of repairs and costs are eligible for rental Units or Rooming House projects? Eligible repairs include those mandatory repairs required to bring the project up to a minimum level of health and safety as defined by the program or be lacking in at least one of the following categories to be considered an eligible repair Structural Electrical Plumbing Heating Fire and life safety Rental Housing Improvement Program (RHIP) RFA 2014 Page 5 of 17
A program inspector is assigned to successful applications to identify mandatory repairs. Eligible costs include labor and applicable taxes, legal fees, building permits, certificates, drawings and specifications and consultant fees and tenant displacement allowance. Who is eligible? Landlords of rental properties or Rooming Houses may be eligible for RHIP if they; Are a private landlord, private non-profit landlord or housing co-operative. Rent or intend to rent the Units as permanent rental accommodation to occupants with income at or below established PILs. Charge rents at or below the RRLs for their area. Have a legitimate landlord-tenant relationship exists as defined by the Residential Tenancies Act and the owner can confirm the rents being charged. Charge rents for Rooming House Bed-Units that do not exceed 60 percent of RRL for the region. Do not, and do not intend to, rent the Unit(s) to a relative. Not receiving ongoing operating subsidy or assistance under, provincial, federal/provincial program (does not include rent supplement). What properties are eligible for program funds? Residential rental properties or Rooming Houses may be eligible for RHIP if they have / are; Located in Manitoba outside of First Nations communities. A minimum of five (5) years old. At least four (4) Rooming House Bed-Units or one or more self-contained rental Units. Rents registered with the Manitoba Residential Tenancies Branch. Substandard or deficient and requires repair or is lacking in basic facilities in at least one of the following categories: structural, electrical, plumbing, heating or fire and life safety. Legally recognized and licensed by the appropriate municipal authority. No outstanding forgivable loans under federal, provincial, or federal/provincial programs for the Unit or property. Property Taxes that are up to date or expected to be before final approval is granted. What properties are not eligible for program funds? a hotel, motel, or bed & breakfast; a hospital, nursing home, or special-purpose housing; a residential care facility; an emergency shelter; student housing that is not permanent rental housing; a commune; company housing provided to employees; a rectory or convent; a recreational/seasonal property; or Located on a recognized or designated First Nations community. Rental Housing Improvement Program (RHIP) RFA 2014 Page 6 of 17
Other Information to Know Landlords are responsible for the following costs; o work carried out prior to loan approval o All mandatory and selected eligible repair costs that exceed the maximum funding assistance available o Cost associated with ineligible Rooming House Bed-Units or self-contained rental Units o Repairs to any commercial or non-residential component of property o Cost associated with the creation of additional rooms or Bed-Units and conversion of properties o Non-mandatory repairs RHIP funds are not available to do partial repairs of selected areas or selected building systems. All mandatory repairs identified by the RHIP delivery staff must be completed. All mandatory repairs must be completed in order to receive assistance and be completed within Six (6) months of approval. The owner s share of costs (if any) must be contributed to the project before RHIP funding. Health and life safety repairs must be carried out in the common areas and in any ineligible Units within the subject property to bring these areas to the same standard of repair as in the Units eligible for funding assistance. Repair work must comply with applicable building codes and standards. reserves the right to request portfolio-wide financial information from applicants. Costs covered by RHIP funding assistance may not be passed on to tenants of eligible Units. However, a request for future rent increases may include eligible increases in operating expenses and the owner s share of repair costs that exceed RHIP assistance provided. Initial rents cannot exceed the RRLs for the year the RHIP application is made. Although RRLs are calculated annually, rents on eligible Units may not be increased each year to match the new RRL. However, rents on eligible Units may be increased once a year by the annual provincial rent guideline increase. Where the property owner defaults on the RHIP conditions, sells the property, or repays the forgivable loan within one year of the completion of work, the full amount of the loan is due and payable. Rental Assistance may be available to qualified tenants. Tenant Information Needed Successful proponents must obtain a Tenant Declaration from all tenants occupying self-contained rental Units and verify their incomes in order to determine the eligibility for Program funding. Owners may only use the personal information on these forms to determine eligibility under the RHIP program. reserves the right to verify the accuracy of a tenant s Tenant Declaration. Tenants provide information required for the Tenant Declaration on a voluntary basis. However, if a tenant elects not to sign a Tenant Declaration, the Unit they occupy will be deemed ineligible for RHIP funding. Rental Housing Improvement Program (RHIP) RFA 2014 Page 7 of 17
How Applications Are Evaluated 1. Only applications that meet the submission guidelines will be considered. 2. Applications that meet the submission guidelines will be assessed to confirm that they meet the program criteria as detailed in this guide and principles, such as those listed below, will be evaluated competitively to the degree that the application: provides affordable rental accommodation within a licensed Rooming House, demonstrates financial viability including favourable cash flow, low debt/equity and favourable income to cover debt service, demonstrates a need for RHIP funding to continue to offer affordable accommodation to low-income Manitobans; Provides access for persons with disabilities after the completion of RHIP repair work. 3. RHIP delivery staff will contact the applicants that qualify to proceed to discuss program details and review program operations including the RHIP Operating Agreement. The number of applications selected to proceed will depend on available program funds. The applicant will be instructed to assemble additional information as required, such as: Verification of ownership or title; additional information to confirm legal use and occupancy of the property; appropriate evidence that residential zoning is suitable for the current use; Tenant Declarations from each tenant confirming their annual gross income; A Rent Status Report from the Manitoba Residential Tenancies Branch. 4. RHIP delivery staff will contact the owner to schedule an appointment for an on-site visit. At the site, staff will complete an inspection of the rental property, note the owner s concerns and record the defects in building systems that meet RHIP criteria for repair funding. After the inspection, the applicant will be instructed to assemble additional information as required, such as: evidence that the total encumbrances including RHIP loans do not exceed 100% of the market value of the property when completed; any reports from consultants that may assist in your application; 5. The owner will receive a formal letter along with a RHIP Work Description that sets out the repairs and/or replacements required to proceed with RHIP funding. The owner may be required to provide at least three competitive quotes from registered/licensed contractors with GST numbers, and to submit final copies of building permits and other necessary approvals, to. 6. Once the required quotes are submitted, RHIP delivery staff will review the quotes and supporting documents to ensure that: the information is accurate and complete, there are no legal, financial or other impediments to completing the project, the quotes reflect the RHIP Work Description, are competitive and are consistent with local cost benchmarks, owner equity, financing and funding is in place to complete the project, and the project meets financial viability tests including but not limited to, affordable rents, positive cash flow, and positive equity. 7. If the final application package satisfies these criteria the owner will receive a final approval letter authorizing the work to start. The successful applicants should only start the work if they are in agreement with the terms and conditions outlined in the letter. Funds will only be released after all program criteria are satisfactorily met, the RHIP Operating Agreement is signed by the Landlord and and the Mortgage is registered on title. Rental Housing Improvement Program (RHIP) RFA 2014 Page 8 of 17
Appendixes Appendix A - Revenue and Expense Statement (Part of RHIP Application form) Appendix B - Summary of Rents and Tenant Income Information (Part of RHIP Application form) Appendix C - Questionnaire Appendix D - Tips on Filing the RHIP Application Form and Appendixes A and B Appendix E - Sample Summary of Rents and Tenant Income information Appendix F - RHIP Program Income Limits (PILs) & Renovation Rental Limits (RRLs) Appendix G - Tenant Declaration Sample Rental Housing Improvement Program (RHIP) RFA 2014 Page 9 of 17
Appendix C - Questionnaire 1. List the major repairs that would be required in your opinion in order to bring the property up to a minimum level of health and safety Describe the major repairs required Work Description Estimated Costs Total Estimated Costs 2. Have you previously received or are you currently receiving federal, provincial or municipal repair program funding assistance for this property? Yes No If yes, funding amount year received 3. Have you previously received or are you currently receiving federal, provincial or municipal repair program funding assistance for any other property you own or have owned in the past? Yes No If yes, funding amount year received Address of property funded Rental Housing Improvement Program (RHIP) RFA 2014 Page 10 of 17
4. Are you willing and able to provide an equity contribution to cover the cost of all mandatory repairs that cannot be completed with the maximum funding available through RHIP? Yes No If yes, Maximum equity you can provide Equity in the form of Cash or Financing 5. How long have you owned this property? 6. How long have you operated residential rental properties? 7. Do you provide rental accommodations to a target group of tenants in this property? Target Group Off-reserve Aboriginals Yes No Seniors Yes No Persons with disabilities Yes No New immigrants Yes No Other (specify) Yes No # of Units 8. Other comments that you feel are relevant to understand your property and review your submission: Rental Housing Improvement Program (RHIP) RFA 2014 Page 11 of 17
Appendix D - Tips on Filing the RHIP Application Form and Appendixes A and B Section - Applicant Information Provide the name of the Applicant(s) and the name for the project. The applicant is the owner or one of the owners and the person signing the application. Section Property Information Address for Property to be Rehabilitated - Only one property address can appear on an application. If the applicant is applying for more than one property, a complete application for each property must be submitted. Applicant Mailing Address - Provide full mailing address of the applicant. Legal Description of the Property - provide the legal description used to describe the land - usually found on your property tax assessments. Section Contact Information Provide the contact information for the applicant. If the applicant wants an alternate person to act on their behalf, the applicant is to include the contact information for both the applicant and the person who has the authority to act on behalf of the owner. Section - Dwelling Type Check the appropriate box that applies to the property to be rehabilitated. As well as its age and whether previous financial assistance has been provided or not. For number of eligible units / beds, only complete one of the boxes unless the property has both self contained rental Units and Rooming House Bed-Units. Section Estimated Project Costs for the Rental Housing Improvement Program (RHIP) For the Estimated Project Costs - Provide estimated costs for the repairs you are applying for including legal and other eligible costs for both the eligible units/beds and Ineligible units/beds. Note: Eligible Units/ Beds refers to the residential rental spaces that meet the program guidelines including rents that are at or below the Renovation Rental Limits, tenant income is at or below the Program Income Limits and units are not rented to relatives. For the Estimated Financing Details Provide anticipated loans assuming your application is successful. If you anticipate that you will be contributing your own funds towards the project include them here. Reasons for contributing funds may include; estimated costs of repairs are higher than the expected RHIP funds available; the units/ beds do not meet program guidelines; some repairs are not eligible for program funds etc. Section Details of Non- RHIP Financing Provide details of Non- RHIP financing declared in the previous section. If you have not declared any, indicate N/A or Not applicable in this section. Rental Housing Improvement Program (RHIP) RFA 2014 Page 12 of 17
Section Appendix A For self contained units specify Unit Type (example 2 bedroom), number of units, rent currently charged (Pre-RHIP) for the unit type and what you plan to charge after repairs are complete assuming your application is successful (Post-RHIP). For Rooming House Bed-Units, the Unit Type has been completed for you. Indicate the number of Bed-Units with or without kitchens, rent currently charged (Pre-RHIP) and what you plan to charge after repairs are complete assuming your application is successful (Post-RHIP). For both Units and Bed-units, provide the estimated annual revenue currently (Pre-RHIP) and what you expect to generate after repairs are completed assuming your application is successful (Post-RHIP). At the bottom of page three (3), complete the rest of the totals sections of the application. On page four (4), complete the requested information with special attention to the cost of services section. Clearly indicate current rents (Pre-RHIP) and future rents assuming you receive RHIP funding (Post-RHIP) and whether they include heat, hydro or water. Note: If you do not intend to change your rents Post-RHIP, fill in current rents. Costs covered by RHIP funding assistance may not be passed on to tenants of Units. However, a request for rent increases may include eligible increases in operating expenses and the owner s share of repair costs that exceed RHIP assistance provided. Existing and /or encumbrances on the property, refers to any loans, debts, payables owed that are attached to the property. These include mortgages, liens, tax arrears etc. Section Applicant Declaration and Consent This section must be signed by the owner who is the applicant for the application to be considered. Read carefully before signing. Section - Appendix B Refer to Appendix E to see a sample of a completed appendix B and Appendix F for the Program Income Limits and Renovation Rental Limits to complete this section properly. As you complete this section at the time of application, this information is based on information you currently have at hand. Should your application be successful, you will be required to update this information by requesting your tenants to complete a Tenant Declaration form. Also note, the National Occupancy Standards (NOS) is the prescription used when determining the appropriate unit size in terms of bedroom count for a household of a given size and composition. Once the bedroom count is determined, the applicable Program Income Limit can be verified to determine eligibility. The NOS States: Not less than one (1) and not more than two (2) persons may occupy a single bedroom; Rental Housing Improvement Program (RHIP) RFA 2014 Page 13 of 17
Parents and children do not use the same bedroom; Single persons 18 and over have a separate bedroom; and Children five (5) and over do not share a bedroom with another of the opposite sex. Applicants are required to sign this declaration as a testament of the accuracy to the best of knowledge at the time. Rental Housing Improvement Program (RHIP) RFA 2014 Page 14 of 17
Appendix E - Sample Summary of Rents and Tenant Income information Self Contained Units Pre-RHIP Rent Information Post-RHIP Rent Information Unit # Unit Type Tenant Name Total Family Size Program Income Limit Total Gross Household Income Current Monthly Rent* (A) Adjustment for Services (B) Adjusted Monthly Rent (A - B) Renovation Rental Limit Proposed Monthly Rent* (C) Adjustment for Services (D) Adjusted Monthly Rent (C-D) 205 2 br Last Name First 3 47000 40000 850 0 850 983 850 0 850 114 2 br Last Name First 3 47,000 43,000 900 63 837 899 900 63 837 Note: Example one above assumes a family in Winnipeg whose annual gross household income is $40,000 and their rent includes heat, water and electricity. Example two assumes a family in Winnipeg whose annual gross household income is $43,000 and their rent does not include heat, water and electricity. Rental Housing Improvement Program (RHIP) RFA 2014 Page 15 of 17
Appendix F - RHIP Program Income Limits (PILs) & Renovation Rental Limits (RRLs) See a complete list of community and catchment areas (PDF) RHIP Program Income Limits - 2014 Community 1 Bed 2 Bed 3 Bed 4+ Bed Winnipeg $31,000 $39,500 $47,000 $55,500 Southern Other Urban/ Rural Brandon $26,000 $32,000 $42,500 $48,000 Portage La Prairie $26,000 $31,500 $42,500 $48,000 Selkirk $27,000 $31,500 $42,500 $48,000 Steinbach $26,000 $31,500 $42,500 $48,000 Winkler $27,000 $31,500 $42,500 $48,000 Northern Other Urban/Rural Thompson $27,000 $32,500 $42,500 $48,000 The Pas/Flin Flon $26,000 $32,000 $42,500 $48,000 Southern Non-Market South $23,500 $28,500 $36,000 $40,500 Northern Non-Market* North $53,500 $61,500 $67,000 $73,500 RHIP Renovation Rental Limits - All utilities included (Heat, water and electricity) Community Bachelor 1 Bed 2 Bed 3 Bed 4+ Bed Winnipeg $528 $772 $983 $1,179 $1,391 Southern Other Urban/ Rural Brandon $459 $653 $804 $1,066 $1,197 Portage La Prairie $458 $643 $788 $1,066 $1,197 Selkirk $481 $668 $788 $1,066 $1,197 Steinbach $481 $643 $788 $1,066 $1,197 Winkler $458 $668 $788 $1,066 $1,197 Northern Other Thompson $481 $675 $817 $1,066 $1,197 Urban/Rural The Pas/Flin Flon $458 $643 $803 $1,066 $1,197 Southern Non-Market South $414 $587 $707 $906 $1,017 Northern Non-Market* North NA $1,340 $1,540 $1,675 $1,840 RHIP Renovation Rental Limits - No utilities included Community Bachelor 1 Bed 2 Bed 3 Bed 4+ Bed Winnipeg $500 $689 $899 $1,039 $1,250 Southern Other Urban/ Rural Brandon $431 $570 $721 $954 $1,118 Portage La Prairie $430 $560 $705 $954 $1,065 Selkirk $452 $585 $705 $954 $1,065 Steinbach $452 $560 $705 $954 $1,065 Winkler $430 $585 $705 $954 $1,065 Thompson $452 $588 $740 $954 $1,065 The Pas/Flin Flon $430 $560 $720 $954 $1,065 Northern Other Urban/Rural Southern Non-Market $384 $500 $624 $842 $939 Northern Non-Market* NA $1,257 $1,457 $1,532 $1,665 *includes Churchill Rental Housing Improvement Program (RHIP) RFA 2014 Page 16 of 17
Appendix G - Tenant Declaration Sample Rental Housing Improvement Program (RHIP) RFA 2014 Page 17 of 17