Download Total Project $78.9 million Elm Project Financing Table

Presentation to CHRA Panel
May 1, 2013
Presented by: Lois Fine
YWCA Toronto
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Long-standing community institution: Toronto’s only
multi-service agency by, for and about women and
girls founded in 1873
$28 million annual budget derived from government
grants and contributions, philanthropy and earned
revenues
Programs: Offer service in four program areas
◦ Housing & Support
◦ Employment & Skills Development
◦ Girls and Family Programs
◦ Advocacy
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Large scale housing project with strong partners
◦ Largest social housing development in Canada in the past 10 yrs.
◦ 300 units of subsidized and affordable housing
◦ Strategic Partnerships with the Jean Tweed Centre, St Michael’s
Hospital and Wigwamen Inc.
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Sustainable development
◦ Designed to meet LEED silver standard
◦ One of the largest geothermal heating and cooling systems in
North America
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An integrated building community with supports tailored
to community needs
◦ 300 individual households
◦ Three separate criteria for eligibility
◦ Culturally responsive support to meet the needs of the whole
community
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150 units of ‘affordable’ housing for women
◦ Rents set based on Canada Mortgage and Housing market
rent
◦ Eligibility criteria: Income testing upon move in
100 rent supplement units of housing for women with
mental health issues
◦ Women pay 1/3 of their income – rent supplement tops up
to market level
◦ Support through St. Michael’s Hospital Psychiatry
50 rent supplement units of housing for families of
aboriginal ancestry
◦ 10 allocated to aboriginal women fleeing violence
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Grants and contributions as well as institutional and
government lenders for capital financing
◦ $29.1M from federal, provincial and municipal government
◦ Government and institutional lenders providing $34.8M
Earned revenue via rental income and philanthropy to
cover financing and debt repayment costs
◦ Earned revenues derived from rents subsidized by
government cover long-term costs
◦ $15M in grant capital raised (9% admin costs to raise,
$255K in GIC interest earned on donations)
High energy efficiency results in decreased operational
costs
◦ innovative geothermal/in-slab radiant heating and cooling
system
Table: Elm Centre Project Budget
Waived costs and rebates
Construction
Soft costs
Financing
Land
Total Project
$7.3 million
$56.9 million
$5.5 million
$1.2 million
$8.0 million
$78.9 million
Table: Elm Centre Project Financing
Municipal Rebates
Provincial Mortgage Grant
Provincial Rebates
Federal Grants/Rebates
Total Government
$3.6 million
$12.6 million
$1.3 million
$11.6 million
$29.1 million
YW Mortgage IO
$26.3 million
YW Fundraising
$15.0 million
City Loans
Total Project
$8.5 million
$78.9 million
Current Situation with Infrastructure Ontario (IO)
 $38,860,000 – construction financing with rates
between 0.95% and 1.75%
 $20,000,000 for 40 years at 4.9% began December
2011
 $12,600,000 for 20 years at 4.56% (covered by
Province of Ontario) began December 2011
 $6,260,000 still to be determined ($1,000,000 already
raised through Elm Housing bond - sold)
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Organizational financial stability: YWCA has strong
balance sheet and ongoing annual revenues with diversified
base of funders
Financing capacity: From diverse revenue base including
earned revenues and government grants and contributions,
Elm Centre project has ability to afford long-term financing
Met major project financing milestones: Elm Centre
project has met major financing objectives with key investors;
additional debt financing support will be a small component of
larger capital need
Objective: decrease cost of capital to place more funding into
core programs and activities of YWCA and Elm Centre project
and build replicable financing model for other housing
providers
Investment Terms
 Capital Raise: $1,000,000
 Instrument/Security: Housing Bond via a promissory note
 Term and Maturity: 10 years [maturing January 31, 2022]
 Interest: 4% per annum
 Minimum Investment: $50,000
 Use of Proceeds: The proceeds would be used to support
YWCA Toronto’s Elm Centre project until pledged donations
come in by 2014.
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Strong community institution with stable finances
Large-scale, high impact real estate project providing
affordable housing
Impact-first investment opportunity with
demonstrable ability to reduce poverty in the City of
Toronto while generating modest financial returns for
institutional investors