MEMORANDUM OF UNDERSTANDING

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MEMORANDUM OF UNDERSTANDING Powered By Docstoc
					                     MEMORANDUM OF UNDERSTANDING
                                     Between
                         The Threshold School of Building
                                        and
               The Hamilton-Burlington and District Real Estate Board
                                        and
                  The Hamilton-Halton Homebuilders’ Association
                                        and
                               The City of Hamilton
                                        and
                                    Scotiabank

                     for the Development and Implementation of an

                    Affordable Housing Community Pilot Program

Purpose:

The purpose of this Memorandum of Understanding (MOU) is to outline and establish
the parameters and responsibilities of a partnership between the Hamilton-Burlington
and District Real Estate Board (HBDREB), the Hamilton-Halton Homebuilders’
Association (HHHBA), the Threshold School of Building (TSB) and the City of Hamilton.

The goal of this partnership is to provide homeownership opportunities for tenant
families currently residing in social housing through the acquisition and renovation of
single-family dwellings in Hamilton’s Downtown neighbourhoods.            Through the
Affordable Housing Community Pilot Program (“Pilot Program”), the partnership will
demonstrate the viability of implementing a more long-term program initiative that will
achieve the following results:

   Promoting homeownership opportunities to tenants currently residing in City of
    Hamilton social housing units;
   Freeing up existing social housing rental housing units for more needy households;
   Extending the useful life of the existing residential dwelling stock in the City through
    renovation and rehabilitation;
   Providing the opportunity to teach building and renovations skills to the community;
   Providing long term building and maintenance advice and resources for the new
    homeowners; and,
   Revitalizing residential neighbourhoods and Downtown Hamilton through direct
    investment and through family and organizational commitment to improving the
    quality-of-life in these communities.

The partnership members share the commitment and belief that through working
together and utilizing the respective skills, experience and expertise, tangible gains can
be made in the promotion and realization of homeownership opportunities for lower
income households in Hamilton.
The Affordable Housing Community Pilot Program:

The Pilot Program brings together the expertise and skills of the respective partners in
Hamilton with a clear and tangible goal – providing affordable homeownership for lower
income households.

The Pilot Program will entail the following actions/events:

   The selection of two families who currently reside in CityHousing Hamilton social
    housing units and who have a desire and the financial means for securing affordable
    homeownership.
   Working with a Realtor and the Multiple Listing Service, the two families will identify
    single-family properties within a price range that meets their needs and
    requirements. The dwelling units will require renovation and rehabilitation work.
   The selected families will submit an “Offer to Purchase” for their respective dwellings
    with Realtor’s advice and guidance.
   The selected families will apply for Residential Rehabilitation Assistance Program
    (RRAP) funding, which is a program financed by Canada Mortgage and Housing
    Corporation (CMHC) and delivered by the City of Hamilton.
   The Threshold School of Building will co-ordinate the renovation and rehabilitation of
    the dwellings (while teaching students and volunteers some building skills), including
    the monitoring of “sweat equity” participation by the families.
   The selected families will be required to provide 500 hours of sweat equity on their
    houses or other project houses within three years of taking ownership of their
    houses.
   Upon completion of the renovation and rehabilitation work, the families will move into
    their respective dwellings.

As the property values will increase as a result of the renovations and rehabilitation,
there will be a second mortgage registered on title that will represent the difference in
value between the amount paid for the house by the selected families and the market
value of the renovated houses that will be reduced to zero over a five-to-ten year period.
Also, if the families sell the homes within a five-to-ten year period, the first right of
refusal for purchasing the dwelling must be provided to the partnership. The terms and
conditions are to be fully developed and documented by the Steering Committee.

Goals and Benefits of the Participants in the Partnership:

The Hamilton-Burlington and District Real Estate Board

Goals

   To facilitate lower income families in achieving homeownership by providing all
    relevant and necessary real estate services.
Benefits

   Playing a lead role in the community, as the HBDREB is well-positioned to provide
    affordable homeownership opportunities.

The Threshold School of Building

Goals

   To provide affordable housing stock for the City of Hamilton.
   To rehabilitate downtown housing stock.
   To increase building education opportunities for residents of Hamilton.
   To build strong partnerships between organizations with complementary aims and
    interests.

Benefits

   Securing an on-going supply of project houses by utilizing the houses as the on-site
    classrooms for our building construction courses.
   Acquiring knowledgeable resources for analyzing the housing needs of downtown
    Hamilton neighbourhoods.
   Bettering the connection to building material suppliers and builders in Hamilton.
   Connecting to families that need affordable housing.

The Hamilton-Halton Homebuilders’ Association

Goals

   To fulfil the dreams of two lower income families by assisting them to purchase their
    own homes.
   To demonstrate the positive contributions that the private sector can play in assisting
    the building of affordable housing.
   To demonstrate that homeownership can play a meaningful role in the affordable
    housing issue.
   To build strong partnerships between community organizations and the City of
    Hamilton, who have complementary aims and interests.

Benefits

   Increasing the supply of affordable housing in Hamilton.
   Training allowed for individuals considering a career in the construction trades.
   Gaining a better understanding of the affordable housing issue from a grass-roots
    perspective.
   Contributing to the revitalization of older neighbourhoods in Hamilton.
   Strengthening the connection to building material suppliers and builders in Hamilton.
   Connecting to families that need affordable housing.
The City of Hamilton

Goals

   To increase public recognition that responses to affordable housing issues rest not
    only with the City of Hamilton but with other community organizations and with
    senior levels of government.
   To demonstrate the efficacy of partnership when responding to affordable housing
    needs in our community.

Benefits

   Developing and facilitating partnerships among a wide range of organizations in the
    city to develop and promote affordable housing options for lower income
    households.
   Enhancing neighbourhood stability through cost-effective and targeted private sector
    investment.
   Upgrading and renewing the City’s housing stock.
   Freeing up CityHousing Hamilton rental units for households who require assistance
    on a rent-geared-to-income basis.
   Promoting City leadership on the issue of affordable housing.

Role and Responsibilities of the Partnership Participants:

All activities and decisions within the context of the Affordable Housing Community Pilot
Program will be spearheaded and co-ordinated by a Steering Committee comprised of
two representatives from each of the partnership members. All decisions made by the
Steering Committee must be unanimous. The respective roles, requirements and
obligations of each partner are as follows:

The Hamilton-Burlington and District Real Estate Board

   Provide all administration for the Pilot Program;
   Provide all realty services to find appropriate project houses;
   Co-ordinate mortgage and legal services for projects;
   Maintain independent financial accounting; and,
   Co-ordinate all community and public relations activities.

The Threshold School of Building

   Assist in the family selection process;
   Assist in the selection of the project houses;
   Work with the selected families to design renovations for the project houses that are
    within the agreed budgets;
   Provide required drawings and arrange for building permits;
   Prepare budgets and lists of work required (including Threshold’s labour,
    subcontractors required, and a list of materials needed);
   Co-ordinate renovation of the project houses;
   Provide labour (instructors, volunteers, and students) to renovate project houses;
    and,
   Participate in donor and subcontractor consultant group.

The Hamilton-Halton Homebuilders’ Association

   Find donors of materials and subcontractors required; and
   Form a consultant group of participating donors and subcontractors.

The City of Hamilton

   Identify two candidate families who have the desire and financial means for
    homeownership currently residing in CityHousing Hamilton social housing units;
   Expedite the Residential Rehabilitation Assistance Program (RRAP) applications;
   Facilitate and expedite other approvals, if required, from the City of Hamilton; and
   Provide a financial contribution in the form of a one-time grant through the Housing
    Hamilton Innovations Fund (HHIF).

Funding and Other Financial Commitments:

Attached to this MOU is a budget for the Affordable Housing Community Pilot Program
including the respective financial and in-kind contributions. All partners commit to
minimizing the costs to the families acquiring and renovating the dwellings to the best of
their ability to ensure the effective implementation of the Affordable Housing Community
Pilot Program and demonstrate the long-term program sustainability.

If within a period of 18 months from the execution of this MOU the two selected families
have not made an “Offer to Purchase” on their dwellings, or at any such time the
partnership and MOU is terminated prior to the two families securing legal title to their
dwellings, the partnership will return the entire amount of the City’s HHIF financial
contribution.


Effective Date:

This MOU will become effective upon execution by the respective authorities of the
partnership members and shall remain in effect until termination by any partner. Any
partner may terminate this MOU upon 60 days written notice to the other partners.

This MOU will be reviewed quarterly and amended or supplemented as may be agreed
upon mutually.
Signed on behalf of the Hamilton-Burlington and District Real Estate Board:

Name and Title:

Signature:

Date:




Signed on behalf of the Threshold School of Building:

Name and Title:

Signature:

Date:




Signed on behalf of the Hamilton-Halton Homebuilders’ Association:

Name and Title:

Signature:

Date:




Signed on behalf of the City of Hamilton:

Name and Title:

Signature:

Date:

				
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