Ministry of Community and Social Services Service Delivery and Supports Branch
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1 Ministry of Community and Social Services Service Delivery and Supports Branch MCSS DEDICATED SUPPORTIVE HOUSING SOCIAL HOUSING IMPROVEMENT PROGRAM (SHIP) PROGRAM GUIDELINES December 16, 2016
2 Table of Contents A SOCIAL INFRASTRUCTURE FUND... 4 B SCOPE OF THE GUIDELINES... 4 C ROLES AND RESPONSIBILITIES... 5 Dedicated Supportive Housing Transfer Payment Agencies... 5 Ministry of Community and Social Services... 5 D DSH SHIP PROGRAM OBJECTIVES AND FUNDING DISTRIBUTION... 6 E SIF SHIP PROGRAM TIMING REQUIREMENTS... 7 F DSH SHIP FUNDING PRIORITIES... 8 DSH SHIP Funding Categories... 8 Soft Costs... 9 Priorities for MCSS SIF SHIP Capital Funding... 9 Examples of Eligible DSH SHIP Minor Capital Projects... 8 Examples of Ineligible DSH SHIP Capital Expenditures...11 Project Request and Approval Process...11 Minor Capital Project Management...11 Procurement Processes...11 Minor Capital Project Cost Overruns...12 Claims for Capital Funding...12 Project Changes...12 G APPENDICES...12 Appendix 1 - Project Eligibility...12 Appendix 2 Project Procurement...15 Appendix 3 Key Terms and Definitions...18 Appendix 4 DSH SHIP Attestation Form...20 QUESTIONS AND ANSWERS
3 About this Guide Purpose The purpose of this guide is to provide MCSS funded Dedicated Supportive Housing (DSH) Transfer Payment (TP) Agencies with information on the application and requirements for the Social Housing Improvement Program (SHIP) under the federal Social Infrastructure Fund (SIF). Please note that this guide does not replace the ministry s existing policies on capital funding and requirements. This guide provides information on the unique features related to the ministry s Dedicated Supportive Housing- Social Housing Improvement Program (DSH SHIP). Audience This guide is for staff at DSH TP agencies seeking funding for projects under DSH SHIP. For a list of MCSS regional offices, please visit MCSS Regional Offices. Inquiries DSH TP agencies can direct their inquiries to their local regional office or to tashia.edwards@ontario.ca. 3
4 A SOCIAL INFRASTRUCTURE FUND INTRODUCTION What is the Social Infrastructure Fund? As announced in the 2016 federal budget, the Social Infrastructure Fund (SIF) allocates $ million in funding to the province of Ontario to increase the supply of affordable housing and to support economic growth in Ontario. One key component of this fund is the Social Housing Improvement Program (SHIP) a capital grant program that is focused on improving and preserving the quality of social housing in the province, in an effort to ensure its long term physical sustainability. For , $4.39M has been allocated to the Ministry of Community and Social Services (MCSS) for the regeneration, renovation, retrofit and repair of MCSS funded dedicated supportive housing (DSH) units. DSH SHIP funding is not intended to replace activities supported by Federal funding received under the Housing Services Act (HSA) DSH SHIP funding cannot be reallocated to Seniors New Construction and Renovation and Victims of Family Violence New Construction and Renovation programs. This funding is not subject to any cost matching requirements by the Service Managers or the dedicated supportive housing providers. The ministry will approve and commit funding to eligible projects in the fiscal year by March 1, All approved projects must be completed within two years of the commitment date. Construction on all approved projects must start no later than three months from the date of the funding commitment. Section E of these guidelines provides more information on the program s timing requirements. B SCOPE OF THE GUIDELINES This document does not replace the ministry s existing policies related to capital projects. Moreover, it does not govern any projects approved through other sources of funding. These guidelines describe the processes through which projects will be submitted by DSH TP agencies, reviewed and selected by the ministry, implemented by DSH TP agencies and monitored by the ministry for DSH SHIP. 4
5 Please note that these Program Guidelines may be updated on an as needed basis and changes will be communicated to DSH TP agencies. C ROLES AND RESPONSIBILITIES The ministry and DSH TP agencies have important roles in the planning, development and implementation of DSH SHIP funded capital projects. Presented below are the detailed roles and responsibilities for DSH TP agencies and the ministry. Please note that requirements for DSH SHIP may differ from projects funded by the ministry through the Partner Facility Renewal (PFR) program or the ministry s regular major capital process. Dedicated Supportive Housing Transfer Payment Agencies DSH TP agencies are responsible for developing an application for capital projects and submitting them to the ministry for consideration in accordance with Sections F and G of this guideline. To submit an application for a project, DSH TP agencies must complete a Project Information Form (PIF). Agencies must contact their respective MCSS Regional office for a copy of the PIF. DSH TP agencies are also accountable for the quality, accuracy and timeliness of proposals and ensuring that all aspects of the project have been considered. DSH TP agencies are fully responsible and accountable for the implementation of approved capital projects in accordance with these guidelines and within approved funding parameters and timelines. Agencies will be expected to report quarterly to the ministry on the status of each project during its repair, retrofit or regeneration activities. Reporting requirements for the final project reconciliation will be communicated to agencies at a later date through a separate communication. Agencies are also responsible for determining if existing operating funding is sufficient for ongoing operations after the capital project is completed. DSH SHIP funding may only be used for eligible expenses as outlined in Appendix 1 and cannot be used for operational or ongoing maintenance costs. Agencies should consider ongoing expenses related to utilities (heat, water, hydro), security, taxes and ongoing maintenance when determining the long-term feasibility of a new or renovated facility. Ministry of Community and Social Services The ministry is responsible for reviewing and evaluating proposals from DSH TP agencies through submitted PIFs. Staff from the Service Delivery and Supports Branch (MCSS-SDSB) staff have primary responsibility on behalf of the ministry for the oversight of the program. SDSB staff will review, evaluate and approve projects, in accordance with established eligibility criteria. Oversight also includes monitoring the 5
6 progress of the project to ensure that implementation is in compliance with program guidelines, funding agreements and overall ministry policies and requirements for capital projects. Regional office staff will distribute ministry communications to agencies including information on approvals and changes to the program. Staff at the regional office are also responsible for collecting quarterly reporting and project updates. Questions related to DSH SHIP can be directed to the regional office staff. SDSB staff are available to support DSH TP Agencies in the identification and resolution of issues. For projects where the ministry has identified a higher level of risk with respect to cost, implementation or other factors, ministry staff will provide enhanced oversight for project implementation. SDSB staff will be internally administering the applications for this funding in the Grants Ontario System (GOS). GOS is an OPS wide system that is used to administer project based/time-limited transfer payment agreements. For agencies that have applied for funding through GOS in the past, when you log in to GOS you will see the status of this funding application. Agencies will not be required to use/update GOS with respect to DSH SHIP. For those agencies that have not yet registered in GOS, there will be no impact to your application. There is no action required for any agencies at this time with respect to GOS. D DSH SHIP PROGRAM OBJECTIVES AND FUNDING DISTRIBUTION Objectives of the DSH SHIP include: Assist in the repair, and energy and water retrofit of existing social housing to address capital needs, improve energy efficiency and reduce greenhouse gas emissions, and; Extend useful life and long term physical sustainability of the DSH stock To meet these objectives, the ministry will monitor and track the efficiency of the energy and water-related retrofits to ensure the targets set out under the federal funding rules are met. Through DSH SHIP, the ministry will support the upgrading of building mechanical heating and cooling systems, replacement of obsolete major buildings or site components, improvements to building envelopes, and the installation of more efficient water fixtures and equipment, while also permitting expenditures on broader high priority renovations. All requests for funding must demonstrate support from the dedicated supportive housing provider and the agency providing support services, if applicable. 6
7 There must be no reduction of Service Level Standards in accordance with the HSA (2011), as a result of a regeneration project. The number of existing rent-geared-toincome units under administration may not be reduced. Regeneration projects will be permitted if it makes the project financially viable, does not create operating deficits and can be completed within program guidelines. Project prioritization and optimal use of DSH SHIP funding has been designed based on overall federal government requirements for the program and ministry established priorities. The ministry will distribute available funding across three categories: Resource Efficiency- Water and Energy; Safety, Security and Accessibility; and Service Delivery Optimization The amount of funding applied to each category will be determined by the ministry, based on the number of requests received and approved for each respective category and project prioritization. E SIF SHIP PROGRAM TIMING REQUIREMENTS In addition to the established program objectives, the ministry must implement the program in accordance with the requirements of the federal-provincial SIF agreement. With respect to timing, projects must start construction within three months from the date of commitment and be completed within two years. This requirement supports the federal program objective of economic stimulus; the province cannot alter these timelines. Projects which fail to commence construction within three months from the commitment date will have their funding approval rescinded. Project proposals that do not meet the timing constraints set out for the program but demonstrate that meet the remaining program criteria will be retained by the ministry. The most current information should be provided to the ministry to ensure that timely decisions can be made if and when other sources of funding becomes available in the future. Program Implementation Timelines MILESTONE ACTIVITIES Ministry signs Funding Agreements with DSH TP Agencies (deadline for projects to be committed) TIMELINES March 1,
8 Deadline for project construction to begin Project completion date Quarterly Status Report on Project Progress and Expenditures No later than 3 months from the date of funding commitment (no later than May 31, 2017) No later than 2 years from the date of funding commitment ( no later than May 31, 2019) June, September, December, March until project completion F DSH SHIP FUNDING PRIORITIES Due to the limited funding and timing constraints under the DSH SHIP, the ministry will allocate most of its funding allotment to minor capital projects. Minor Capital Minor capital investments are provided to help DSH TP agencies maintain buildings and property (real estate) in a better state of repair to support the delivery of ministry programs and services. Examples of minor capital projects include adding new features to a site and or enhancing/replacing existing features. For a list of eligible minor capital projects, please refer to Appendix 1. Regeneration Projects In accordance with these guidelines, non-minor capital projects will be considered under the regeneration category. Regeneration projects may include the conversion of units; demolition and reconstruction of all or a part of a social housing property. Regeneration projects will be evaluated on a case-by-case basis. DSH SHIP Funding Categories Eligible projects under DSH SHIP should focus on renovating, regenerating, retrofitting and upgrading dedicated supportive housing structures with an emphasis on: increasing the energy efficiency of buildings; improving the health and safety of the tenants and ensuring physical accessibility to housing units, and; promoting service delivery optimization and program continuity at social housing sites. Examples of Eligible DSH SHIP Minor Capital Projects Examples of eligible regeneration, renovation/retrofit DSH SHIP projects may include: 8
9 Energy efficiency and water conservation retrofits and renovations HVAC upgrade to ensure proper heating and cooling Energy efficient water fixtures and equipment Repair/replace hot water heater Please note that energy efficient appliances are not eligible for funding under DSH SHIP Safety, Security and Accessibility Site lighting (interior and exterior) Entrance Ramps Visual surveillance systems/security systems Accessible housing units and rooms Service Delivery Optimization Renovation of an underused basement to create additional support service delivery space Capital projects that aim to replace or reconstruct worn out or obsolete major buildings or site components, major building system or services, basic facilities and equipment, kitchen and bathroom facilities, parking facilities and walkways. Soft Costs Soft costs are permitted under the program and may include project related expenses such as professional services (e.g. architects, engineers), charges and fees required for municipal approvals (e.g. building permit fees), building condition assessments, and energy efficiency audits. Priorities for MCSS SIF SHIP Capital Funding The establishment of priorities for capital funding is separate from determining funding eligibility. A DSH TP agency may be eligible to receive capital funding for a specific project, but that project may not be prioritized to receive funding. Prioritization for this program is based on service delivery priorities, ministry strategic direction, federal funding objectives, timing requirements and available funding. Capital needs that extend the long term physical sustainability of the social housing projects will be prioritized. All projects, in either category, must meet the following criteria: 1. The ministry s existing minor capital eligibility policy (Appendix 1). 9
10 2. Established program timing requirements (must be able to start construction within three months of commitment and completed within two years of commitment). 3. Remain financially viable without creating operational pressure requiring increased operational funding. 4. Remain affordable for a ten-year period (known as the 10-Year Affordability Requirement ) after the completion of the funded repair/retrofit or regeneration activities, including a minimum of five (5) years during which it must operate as a Dedicated Supportive Housing project, regardless of the expiry of any operating agreement or mortgage. The prioritization criteria for Water and Energy retrofits projects are as follows and will be applied in the order presented: 1. Projects which create new site enhancements with respect to water and energy efficiency 2. Sites with fewer features related to water and energy efficiency will be prioritized over those sites which have many of these features already present. Note: Work carried out for energy efficiency, as determined by a qualified professional, must achieve a minimum standard of energy efficiency appropriate to the type of structure: Low rise building: 5 point increase on the EnerGuide for Homes scale High-rise building: 15% improvement over the current baseline energy efficiency of the building/unit. All work should be supported by an energy audit. The prioritization criteria for Safety, Security and Accessibility projects are as follows and will be applied in the order presented: 1. Projects which create new site enhancements with respect to safety, security and accessibility that did not previously exist at the site. For example, with all other factors being equal, a site without an accessible entrance will be prioritized for approval over a site that is requesting an enhancement to an existing accessible entrance. 2. Sites with fewer features related to safety, security and accessibility will be prioritized over those sites which have many of these features already present. Modifications to provide or improve accessibility may include investment in building amenities, such as elevators or lifts. The prioritization criteria for Service Delivery Optimization projects are as follows and will be applied in the order presented: 10
11 1. Projects which modify an existing space to enhance program delivery and improve support services. 2. Projects which modify an existing site to increase client privacy. Examples of Ineligible DSH SHIP Capital Expenditures The following costs are not eligible capital expenditures under DSH SHIP: costs for ongoing or routine maintenance and repairs; costs related to repair projects already included in annual capital plans; and construction of new social housing units outside the social housing portfolio Project Request and Approval Process The ministry will provide DSH TP agencies with a customized PIF to submit requests for DSH SHIP funding. One form must be completed for each project. If you require additional PIFs, please contact Tashia Edwards at tashia.edwards@ontario.ca. Complete and accurate information is critical to ensure timely decision making. Incomplete PIFs will not be reviewed and considered for funding. Funding Approval Process DSH TP agencies will have until January 13, 2017 to submit the PIF and any required supporting documentation. Please ensure that all requested documents are submitted with the PIF. Agencies will also need to confirm, at the time of submission of the PIF, that projects approved by March 1, 2017 can commence construction by June 1, The ministry will prioritize projects based on the aforementioned criteria and the available amount of funding for the three categories. The social housing provider and the dedicated supportive housing service provider (if applicable) must sign an Attestation Form, which outlines the details of the projects approved for DSH SHIP funding. Procurement Processes Minor Capital Project Management DSH TP agencies are responsible to deliver provincially funded services and are accountable to the ministry for the funds they receive and the results achieved as per the Transfer Payment Accountability Directive. 11
12 Please refer to Appendix 2 Project Procurement for further advice and details with respect to the ministry s expectations as it relates to project procurement. Minor Capital Project Cost Overruns The Attestation Form specifies a maximum approved amount for the project. DSH TP agencies are required to complete the project within the approved budget. Anticipated cost overruns should be discussed with the ministry well in advance of the occurrence. Any costs incurred by the DSH TP agency in excess of the approved cost will be the responsibility of the agency unless the ministry has given prior approval and agreed in writing to provide additional funding. Claims for Capital Funding Agencies will be required to report quarterly on the amount of money spent and any unused, approved funding will be returned to the ministry in accordance with ministry capital funding guidelines. Quarterly report back forms will be provided to all DSH TP agencies before June 1, Project Changes Any changes to projects must be approved by the ministry in writing prior to commencing any related work. This includes changes to the project scope or costs. Approved funding is only for those projects indicated in the DSH SHIP Attestation Form, which should be signed by both the social housing provider and the dedicated supportive housing service provider. DSH SHIP funding can not be used for other projects not approved by the ministry for this program. G APPENDICES Appendix 1 - Project Eligibility Tables 1 and 2 below provide samples of eligible and ineligible projects under the ministry s normal minor capital program. The ministry s focus for DSH SHIP funding is related to safety, security and accessibility, but these sample lists are intended to be used as a guide for TP agency staff to determine eligibility under SIF. For example, 12
13 installing an elevator or lift in an existing site may require related work to other building systems (lighting, electrical, plumbing, etc.). This related work would be eligible under DSH SHIP. Questions regarding specific projects and eligibility should be discussed with ministry staff prior to submission for funding consideration. Table 1 Life Systems/Code Compliance Repair/replace annunciator panels. Repair/replace detection devices and emergency fixtures. Repair/replace signal devices. Implement changes to the building as required by legislation: o Ontario Fire Code orders o Ontario Building Code orders o Public Health orders Structural Repair foundation (substructure) Repair/replace floors/walls (superstructure) Repair/replace stairs Repair/replace roof Electrical/Plumbing/Mechanical Repair/replace electrical panels, boards and subsystems. Repair/replace wiring and power distribution systems. Repair/replace hot water heater. Sump pump repair/replacement Repair/replace boilers, HVAC, ventilation and cooling systems. Building Envelope Repair/replacement of exterior cladding (brick repointing, siding, etc). Repair/replace exterior doors, windows, sealants, etc. Site Works Repair/replace parking areas, driveways. Repair/replace walkways. Projects Eligible for Minor Capital Funding Program Delivery Program-specific security features: o Shatter proof glass o Security fencing/gates o Building entrance modifications o Security cameras and security systems where these have been identified as critical program requirements and sanctioned by the ministry (i.e., Dedicated Supportive Housing Group Homes) Accessibility features: o Add railings and ramps. o Add/repair/replace speciality items to make the building more accessible for program clients, (e.g., grab bars in washrooms). o Implementation of the Accessibility for Ontarians with Disabilities Act o Widen doorways o Vertical Access (e.g., ramp, elevator, platform lift, etc.) o Ceiling track lift systems o Signage Interior finishes including: replacing or repairing flooring, tiles, etc. Minor conversion of space to achieve program enhancements (e.g., converting basement storage into program office or bedroom). Outdoor Enhancements The ministry s minor capital funding helps to address minimum standards of repair across the portfolio. Since needs for minimum standards exceed available funding, outdoor space is not currently a priority. Decks and patios, except where necessary for fire exits Aesthetic landscaping or ornamental 13
14 Repair/replace wells and septic systems. Site re-grading. structures/ construction such as fountains, pergolas, bird baths, etc. Structures/ construction purely for outdoor enjoyment, such as gazebos, decks, awnings, and swimming pools Table 2 Projects Ineligible for Minor Capital Funding Operational costs Mortgage or rent Utility or phone bills Regular cleaning e.g., duct cleaning, carpet cleaning. Staffing Hiring, training, salaries, benefits Vehicles Purchase or retrofits of cars, vans, buses Minor repairs and ongoing maintenance General cleaning supplies and labour Minor wall repairs and painting Minor repairs to flooring and flooring refinishing Repairs to leaking faucets Unclogging blocked toilets Air filter or furnace filter changes Furnace or air conditioner servicing/maintenance Activities planned and performed at regular intervals, based on testing or other evidence indicating the maintenance work is necessary to extend the life or prevent the premature failure of building components or equipment Appliances and IT Toasters, blenders Televisions, stereos Defibrillators, fire extinguishers Telephones, telephone systems Computers, tablets and computer systems Printers, fax machines Furniture, Fixtures and Equipment Office equipment: e.g., desks, tables, chairs, etc. Filing cabinets, medicine cabinets Beds, sofas, dressers, etc. Window coverings (blinds, shades) Snow blowers, lawnmowers 14
15 Appendix 2 Project Procurement The ministry requires that TP agencies use an open, fair, competitive process in the procurement of goods and services when they receive capital funding for approved capital projects. Broader Public Sector Procurement Directive The BPS Procurement Directive can be found on the Ministry of Finance website: #sec2 To ensure that publicly funded goods and services are acquired through a consistent process that is open, fair and transparent, a new Broader Public Sector (BPS) Procurement Directive was developed in The BPS Procurement Directive applies to all designated broader public sector organizations as provided for under section 12 of the Broader Public Sector Accountability Act, 2010 and includes the following: Children s Aid Societies - effective April 1, 2011 TP agencies that received $10M or more in public funds (from one or more ministries) in a fiscal year effective January 1, $10M applies to any type of funding provided to an agency regardless of what the funding is intended for (e.g. operational funding, capital funding or any funding provided to pay for the goods and/or services procured). Note: If the agency receives less than $10M in public funds in the next fiscal year, it would be exempt from complying with the BPS directive in the following fiscal year. For detailed procurement requirements for TP agencies that fall under the scope of the BPS Procurement Directive please request a copy of the Broader Public Service Procurement Directive from your ministry contact. For transfer payment agencies that must comply with the BPS Procurement Directive, where there are differences between the Guidelines and the BPS Procurement Directive, the requirements of the BPS Procurement Directive take precedence. Personal Integrity and Professionalism All individuals involved with procurement activities must act, and be seen to act, with integrity and professionalism. Honesty, care and due diligence must be integral to all procurement activities within and between TP agencies, suppliers and other stakeholders. TP agencies must not engage in any activity that may create, or appear to create, a conflict of interest, such as providing preferential treatment, or publicly endorsing suppliers or products. 15
16 Accountability and Transparency Procurement activities must be open and accountable. In particular, contracting and purchasing activities must be fair, transparent and conducted with a view to obtaining the best value for public money. All participants must ensure that public sector resources are used in a responsible, efficient and effective manner. Procurement Policies and Procedures Clear and specific policies and procedures enable the efficient and effective execution of procurement tasks, mitigate risk, and help organizations meet their operational, financial and accountability obligations. Agency procurement policies and procedures should balance the objectives of receiving value for money with a process that is open, fair and transparent to the TP agency and its suppliers. This includes: Accountability TP agencies must be accountable for the results of their procurement decisions and the appropriateness of the processes followed. Standardized Process A standardized process removes inefficiencies and saves time and money. Transparency Public trust is critical. TP agencies must be open to all stakeholders. TP agency suppliers must have fair access to information on procurement opportunities, processes and results. Value for Money TP agencies must maximize the value they receive from the use of public funds. A value-for-money approach aims to deliver products and services at the lowest total lifecycle cost. Transfer Payment Agency Requirements TP agencies are strongly encouraged to consider the principles outlined above to assist in the development of a fair, open, competitive procurement process. Every TP agency that receives government funding, whether operating or capital, should have in place procurement policies and procedures that govern how the organization conducts sourcing, contracting and purchasing activities. These policies should include details on competitive and non-competitive procurement, purchasing, contract awarding, conflict of interest and bid protest procedures in order to ensure ethical, efficient and accountable sourcing, contracting and purchasing activities within the organization. 16
17 The following chart provides an example of possible procedures for expenditure of government funding for operational or capital purposes by procurement value: Example of Procurement Procedure by Procurement Value Total Procurement Value Procedure <$100 Petty cash <$3,000 Purchasing card <$10,000 Purchase order <$100,000 - goods, services, construction Invitational competitive procurement (minimum of three suppliers invited to bid) >$100,000 - goods, services, Open, competitive process construction Note: TP agencies may use their discretion in defining Total Procurement Value limits and corresponding Procedures in accordance with the size and needs of the organization. They may choose to use an RFP, RFS, RFQ or RFI process similar to that used by ministries. A division of requirements into multiple procurements to reduce the estimated value of a single procurement and avoid the application of the identified value thresholds is not permitted. Ministry Requirements TP agencies are required to provide the ministry with details to demonstrate that an open, fair and transparent process is used to obtain goods and services for the implementation of capital projects. At a minimum, TP agencies must submit a chart or provide a summary indicating their procurement procedure by procurement value (see sample chart above) and confirmation of which procedures were used for specified procurements. 17
18 Appendix 3 Key Terms and Definitions Affordable means rented at the low end of market rent as determined by MCSS; Agency or DSH TP Agency refers to Dedicative Supportive Housing agency that has an existing Operating Agreement with the ministry and receives an operating subsidy; Business Day means each Monday, Tuesday, Wednesday, Thursday and Friday except when any such day occurs on a statutory holiday observed in Ontario; CMHC is the abbreviation for Canada Mortgage and Housing Corporation; Dedicated Supportive Housing Provider means a housing provider operating a Dedicated Supportive Housing Project; Dedicated Supportive Housing Project means a dedicated supportive social housing project (i) listed in the MCSS MOU at the time of commitment and use of the Funding and (ii) the administration of which is, as of April 1, 2016, within a program listed in Schedule C to the SHA and remains within such a program at the time of commitment and use of the Funding; but it does not include projects that were or are only within program no. 2: rent supplement program; Funding Agreement means an agreement (whether stand alone or an amendment to a current funding agreement with a Dedicated Supportive Housing Provider) between MCSS and an approved Dedicated Supportive Housing Provider for Funding under the Program; Funding means money provided by the MCSS to a Dedicated Supportive Housing Provider for a Project; PIF refers to the abbreviation for Project Information Form; Program means SHIP and the SHIP Implementation Requirements as amended from time to time by MHO; Project refers to eligible renovation, retrofit and/or regeneration work on a Dedicated Supportive Housing Project; Regeneration includes the conversion of units; demolition and reconstruction of all or a part of a project; 18
19 SIF is the abbreviation for the federal Social Investment Fund; a social infrastructure investment fund to improve the quality and increase the supply of affordable housing and to support economic growth in Ontario; SHIP is the abbreviation for the Social Housing Improvement Program ; SHA is the abbreviation for Social Housing Agreement; Ten Year Affordability Period means, with respect to a Project, the ten year period following completion of the Project. Minor Capital means Investments to TP agencies to help maintain buildings and property (real estate) in a better state of repair to support the delivery of ministry programs and services. 19
20 Appendix 4 DSH SHIP Attestation Form Ministry of Community and Social Services DSH Service Provider Name: Address: Contact Name: Telephone: Name of Dedicated Supportive Housing Project Project Address Total Funding Received ($) Date on which Eligible Work will be Completed Site Operating as Dedicated Supportive Housing Location (Y/N) I declare that the above information is true and complete. 20
21 DSH Service Provider: DSH Housing Provider: Title: Date: 21
22 QUESTIONS AND ANSWERS Q1. Are there any timing requirements under the DSH SHIP? If so, what are the timelines? A1. Yes, there are timing requirements for the DSH SHIP. In accordance with the federal guidelines, all approved projects must commence construction within three months of the commitment date the date that the DSH SHIP funding agreement has been signed between DSH TP agency and the ministry. The ministry has committed to reviewing and approving all eligible projects by March 1, 2017, therefore, all eligible projects must commence construction by May, 31, In addition to the timeline for starting construction, all approved projects must be completed within two years of the commitment date (no later than February 28, 2019). Q2. Are there specific project categories identified under the DSH SHIP? If so, what are the project categories? A2. The DSH SHIP focuses on renovating, regenerating, retrofitting and upgrading dedicated supportive housing structures with an emphasis on three specific categories: 1) Resource Efficiency- Water and Energy improving energy efficiency of buildings 2) Safety, Security and Accessibility improving the health and safety of the tenants and ensuring physical accessibility to housing units 3) Service Delivery Optimization promoting service optimization and program continuity at social housing sites Q3. What is the DSH SHIP funding distribution for each project category? A3. The ministry has not set funding distributions for each project category. The final distribution of funding in each category will be determined by the number of funding requests that are received and approved for each category. As a result, the proportion of funding for each category will vary. Q4. What energy efficient project expenditures are eligible for DSH SHIP? A4. Eligible energy efficient projects under the DSH SHIP include water fixtures and equipment and heating systems. For the purposes of the DSH SHIP, investments in energy efficient appliances are not eligible for funding. 22
23 Q5. Is there a maximum funding amount imposed on project requests? A5. No. There is no maximum amount imposed on eligible project costs. DSH SHIP funding will be allocated across the identified funding categories. The ministry expects that project funding requests will vary based on the size, geographical location and program capacity of DSH TP agencies. Q6. What are minor capital projects? Q6. For the purposes of DSH SHIP, minor capital projects are defined as projects that assist with the maintenance and repair of dedicated supportive housing buildings and property (real estate) to support the delivery of ministry programs and services. Examples of minor capital projects include adding new features to a site and or enhancing/replacing existing features. Q7. What are regeneration projects? Q7. Regeneration is a broad term that refers to renewal, renovation and redevelopment. For the purpose of the DSH SHIP, examples of regeneration projects include the conversion of units; demolition and reconstruction of all or a part of a social housing property. Q8. Are regeneration projects eligible for funding under the DSH SHIP? A8. Yes. Regeneration projects may be eligible for funding. Q9. How will the ministry review, evaluate and approve requests for regenerations projects under DSH SHIP? A9. Given the scale and scope of regeneration projects, the ministry will review and evaluate regeneration projects on a case-by-case basis. Q10. Are agencies required to submit a business case under the DSH SHIP? A10. No. Agencies seeking funding under DSH SHIP must complete and submit a Project Information Form (PIF). A business case is not required. 23
24 Q11. What are soft costs? Q11. The term soft costs refer to expenses that are not considered direct construction costs. Soft costs may include project related expenses such as professional services (e.g. architects, engineers), charges and fees required for municipal approvals (e.g. building permit fees), building condition assessments, and energy efficiency audits Q12. Are soft costs considered eligible expenditures under the DSH SHIP? Q12. Yes, soft costs are permitted under DSH SHIP. All soft costs as a proportion of total construction must be in accordance with industry norms. Q13. What are hard costs? A13. Hard costs are the actual capital repair/ construction expenses associated with the project. Q14. What does the Ten Year Affordability Requirement mean for SHIP? A14. The ministry s 10 year affordability requirement mandates that all projects receiving funding under the DSH SHIP remain within the Province s social housing portfolio for a minimum of 10 years after the completion of the funded repair/retrofit. Q15. What happens if construction on a project is not started within three months of the commitment date? A15. Projects that fail to commence construction within three months from the commitment date will have their funding approval rescinded. 24
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