Saint John is making changes to its affordable housing grant program in an effort to provide more benefits to developers.
Private sector developers are eligible for $8,000 per affordable unit while non-profit developers can receive $10,000.
Housing Director Pankaj Nalavde said the money will now be paid out at an earlier stage, such as when the foundation is poured or, in the case of conversion projects, when the drywall is completed.
“This change will benefit the developers by allowing the grant to be used as equity during the construction project as opposed to after the completion of the project,” Nalavde told councillors last week.
“Most of these projects would finish a milestone and then go for additional funding, whether it be bridge funding or other forms. Having that extra liquidity may help them get a favourable rate.”
Up until now, developers had to wait until the project was completed before they would receive the funding.
Private sector developers are eligible for up to $160,000 while non-profit developers can get up to $200,000. Each project can receive up to an additional $50,000 in bonus funds for projects that are innovative or address a market gap.
Nalavde said $800,000 in grants were committed last year toward 165 affordable units, or 250 units total. Another $800,000 has been earmarked this year.
“We exhausted all of that money across four projects. For this year, we already have one informal application and a couple that are working toward complete applications,” he added.
The program piggybacks off existing provincial and federal programs, in particular around creating new affordable rental units, according to city staff.
Other changes include improvements to the grant committee project evaluation to allow the scorecard to encompass other factors such as the developer’s experience, track record, construction timeline, and depth of affordability.
In addition, the grant intake period will now occur quarterly until the budget is used, with the first deadline in August.
