Cchc Business Plan 2013-15 Final

8/11/2019 Cchc Business Plan 2013-15 Final

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I. INTRODUCTION

THE ORGANIZATION

The Canmore Community Housing Corporation (CCHC) is committed to the social sustainability ofCanmore. CCHC was established as a non-profit municipal corporation with the objective ofproviding housing solutions to support a healthy and balanced community. Our vision is one whereCanmore is known for the quality of life of its citizens and where CCHC contributes to this byadvancing affordable housing options.

Canmore has some of the highest shelter costs and the highest cost of living in Alberta.1 There isa housing affordability gap between what Canmore residents and workers can afford and the priceof market rental and ownership housing. It is not just a problem for the lower income population. Itis also an issue for essential workers in higher paid occupations, such as teachers, nurses, andpolice officers. They all struggle with the high cost of housing and living in Canmore.

WHAT WE DO

The role of CCHC is to create affordable housing options that complement those provided byexisting public and private housing providers. These options are intended to be long-termaffordable options for permanent residents and to facilitate the transition of these households alongthe housing continuum.

At present, CCHC administers the sale and rental of 104 affordable housing units through ourPerpetually Affordable Housing (PAH) Program. CCHC also owns land for affordable housingpurposes, including 0.867 hectares leased to a housing cooperative that administers its own 44unit PAH program, and 7.72 hectares of land for future development. Finally, CCHC researchesand explores options to increase the availability of and accessibility to affordable housing to bestmeet current and future demand.

The opportunity exists for CCHC to continue in its efforts to increase availability of affordablehousing units through the creation of new units or by utilizing existing market housing given thehigh number of vacancies and surplus of visitor accommodation units. There are also newopportunities for CCHC to explore, such as innovative finance programs and other programs toaddress barriers in accessing housing.

To be successful, CCHC will need to improve its organizational capacity to deliver programs anddevelop properties to respond to changing needs and demands in an uncertain economic andhousing environment.

12010 Alberta Spatial Price Index published by Alberta Finance and Enterprise.


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THE BUSINESS PLAN

CCHC has prepared a three year strategic business plan, which is organized into three sections:

Need and Opportunity: This section identifies and contextualizes the social problem that

CCHC is attempting to address, including an analysis of the trends contributing to theproblem, and a description of the opportunity that CCHC has identified for putting itsunique approach to work.

Social Impact Model: This section articulates CCHCs approach to addressing theaffordability housing gap by connecting the social problem with the CCHC mission,approach, strategies, intended impact and vision of success.

Implementation Strategy: This section outlines the actions needed to put the socialimpact strategies into action. It includes a timeline, strategies and goals, a generalmarketing plan, strategy for financial sustainability including operating budgets and acapitalization plan, performance and impact indicators, and discussion of riskmanagement.

The business plan serves as a road map to address our targeted social problem: the Canmorehousing affordability gap.


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II. NEED AND OPPORTUNITY

This section identifies and contextualizes the social problem that CCHC is attempting to address,including an analysis of the trends contributing to the problem, and a description of the opportunitythat CCHC has identified for putting its unique approach to work.

A.

SOCIAL PROBLEM

Once a small mining town, Canmore has emerged as an upscale recreational based communitywith an expanded service sector, growth in construction, and considerable in-migration of part-timeand more permanent residents making Canmore one of the fastest-growing communities in Albertato 2008.

A downside to this growth is that for many residents and workers, Canmore has becomeunaffordable. Canmore has some of the highest shelter costs and the highest cost of living in

Alberta. A housing affordability gap exists between what Canmore residents and workers canafford and the price of market rental and ownership housing.

B. TRENDS

Population

According to the municipal census, Canmores total population in 2011 was 18,299, of which 67%were permanent residents and 33% non-permanent residents. Over the past decade, permanentpopulation growth has been modest compared to that of the non-permanent population, increasingby 14% between 2001 and 2011 compared to 163% for non-permanent residents. The permanent

population continues to grow slowly with annual growth rates of 0-2% since 2006, while the pace ofnon-permanent population growth has slowed considerably since 2008 to only 2-3%.

The municipal census shows that the permanent population is aging and households are gettingsmaller. The share of residents over 65 years of age is growing, while the share of residents under15 years of age is shrinking along with the number of households with school-aged children.Moreover, the number of single person households nearly doubled between 2001 and 2011. Thesehousehold changes are reflected in the decline in the number of permanent residents per dwellingunit between 2001 and 2011 from 2.67 to 2.36.

It is unclear what the impact of this pattern and pace of growth will have on the population asCanmore moves towards urban build out, which was estimated to be about 30,000 people and12,000 dwelling units in the 1998 Municipal Development Plan.

Economy and Employment

Canmore transformed from a mining town into an international tourist destination by capitalizing onopportunities presented through exposure at the 1988 Winter Olympics. The result has been rapidphysical growth and socio-economic change with expansion of the service and construction sector,and the disappearance of primary industries.


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Employment levels are strong. The municipal census reported that 2.7% of Canmore adults wereunemployed in 2011. This is consistent with the regional unemployment rate of 2.7% reported inthe Alberta Labour Force Statistics Report for July 2011. The regional unemployment rate hasincreased in the past year to reach 3.7% in July 2012, but the region still boasts the lowest

unemployment rate in Alberta.

Canmore is a regional centre with 35-40% of employed adult permanent residents working outsideof Canmore at any time, primarily in the Bow Valley and Calgary. This allows Canmore not only tobenefit from local initiatives to boost tourism and investment, but also regional investment anddevelopment activities, such as the planned expansion of the Lafarge cement plant in Exshaw.

Tourism is the mainstay of the economy. The number of workers in the accommodation and food,retail and wholesale trade, and health and wellness sectors has steadily increased over the pastdecade to represent 44% of Canmore resident workers and 22% of non-resident workers in 2011.

Construction has been another important but volatile industry, and typically dominated byresidential development. Building permit values peaked in 2006-2007, followed by a sharp drop in2009-2010, and are now at historically low levels. Employment in construction saw similar volatility,and now employs about 12% of resident workers and 8% of non-resident workers.

Income

The Alberta Labour Force Statistics Report indicates that as of July 2012, the regional averagehourly wage of $20.25 is 18% lower than the provincial average. This is not unexpected in servicesector economies. However, despite low wages, Canmore median income levels are comparableto Alberta levels, which suggests that there are regional and/or local income disparities.

Real household incomes appear to be on the decline as median income is not keeping pace withinflation. Median income by household type only increased by 1.6% to 3.6% between 2008 and2011, while the all-items consumer price index, or inflation, increased by 3.4% for Alberta and 5.1%for Canada.

Table 1: Median Income by Household Type, Canmore and Alberta, 2008-2011

Household Type 2008 2009 2010 2011*% Change2008-2011

Single personCanmore $34,350 $33,590 $34,050 $34,911 1.6%

Alberta $33,150 $32,580 $32,650 $33,476 1.0%

Lone-parentfamilies

Canmore $43,000 $42,790 $43,450 $44,549 3.6%

Alberta $41,470 $40,320 $40,150 $41,166 -0.7%

Couple FamiliesCanmore $93,590 $92,510 $93,370 $95,732 2.3%

Alberta $94,170 $91,590 $93,820 $96,193 2.1%

Source: Statistics Canada, Table 111-0009; *2011 adjusted by % change in 2011 Alberta average weekly earnings of 2.53%.


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Housing

The volume and median sales price of market homes peaked in 2007 at the same time thatconstruction building permit values peaked. Since then, median sales price of all housing types hasdeclined, but at differing rates and patterns depending on housing type (see Figure 1). Year to datestatistics show that median prices of medium density homes are only 5% lower in 2012 than in

2007, while median prices of single family homes and apartments are about 15% lower than in2007.

In the rental housing market, vacancies were low and rents continued to rise until 2007-08. Thischanged in 2008-09 as units under construction were completed, speculators could not sell units,renters moved in, and population growth slowed. However, since 2009, rental vacancies havetightened up with 40% fewer units being advertised each month and rental rates increasing by 3-10% for most unit types, except four or more bedrooms. Figure 2 illustrates this trend.

Figure 1 Canmore Median House Sales Prices 2007-2012

Figure 2 Canmore Average Monthly Rental Rates 2009-2012

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000$900,000

2007 2008 2009 2010 2011 2012

Single Family

Medium Density

Apartment

$-

$500

$1,000

$1,500

$2,000

$2,500

$3,000

2009 2010 2011 2012 YTD

Shared

Studio

One Bed

Two Bed

Three Bed

Four+ Bed

Source: Dan Sparks, Century 21 Nordic Realty, Canmore

Source: CCHC


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As rental availability decreased, the number of vacant units reported in the municipal census hassteadily increased, from 2.8% of all dwelling units in 2001 to 6% in 2011. Of these 411 vacantunits, 44% are apartments and 23% accessory suites. There is also a surplus of commercialcondominiums built for visitor accommodation purposes that remain vacant.

The homeownership rate of Canmore permanent residents has steadily declined over the pastdecade, from 69% to 64%. Recent mortgage rule changes limiting amortization periods and futureinterest rate increases are expected to have an impact on housing sales, affordability andhomeownership rates as buyers can afford less. This situation may create a greater demand forrental housing or create downward pressure on housing prices, or both.

C. THE HOUSING AFFORDABILITY GAP

Housing affordability is a multidimensional issue involving income, housing prices and housingavailability. A gap exists when households are demanding to buy or rent housing at prices that arenot available in the market. Low wage employment, high market housing costs, the lack of

affordable units, and the overall high cost of living in a high-amenity mountain community likeCanmore all contribute to the problem.

An analysis of available information in Table 2 suggests that homeownership is generallyunaffordable for all households, with the median sales price of a medium density home almost 5times and a single family home at 8 times the medium income for couple households. While rentalhousing provides more affordable options, the analysis in Table 3 suggests that a gap still exists formedian income single person and lone parent households.

These tables show that housing affordability is not just a problem for the lower income population.It is also an issue for essential workers in higher paid occupations, such as teachers, nurses, and

police officers. They all struggle with the high cost of housing and living in Canmore.

Table 2: Canmore Affordability Gap for Buyers, 2011

HouseholdType

2011MedianIncome100%

# ofhouse-holds

MaximumAf fordable

HousePrice

Median Home Sales Price Gap

Apartmt

$329,000

MediumDensity

$475,000

SingleFamily

$769,000

Single Person $34,911 2,320 $115,000 $214,000 $360,000 n/a

Lone Parent $44,549 330 $140,000 $189,000 $335,000 $629,000

Couple $95,732 3,110 $ 370,000 no gap $105,000 $399,000

Source: CCHC. Median income data derived from Statistics Canada, Table 111-0009. Median sales prices from Dan Sparks, Realtor,Century 21 Canmore.


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In Canmore, employment rates are strong but real household income is not growing; markethousing prices have declined, but there are still few affordable units available; and althoughinterest rates remain at historically low levels, finance is less available and confidence in thehousing market is not strong.

These barriers are reflected in CCHCs 2010 Affordable Housing Survey, in which affordability wasidentified as the main barrier to buying a home (84%), followed by the lack of down payment(49%), instability in employment and/or income (18%), inability to qualify for a mortgage (18%) andinstability in the real estate market (15%).

In this environment, households may choose to continue to rent, creating a greater demand forrental housing. Alternatively, downward pressure on housing prices could continue but it is unlikelyto be enough to bridge the large affordability gap. Regardless, the lack of availability of and accessto affordable ownership and rental options will continue to be barriers in addressing the housingaffordability gap.

F.

OPPORTUNITIES

The municipality established CCHC as a non-profit arms length corporation in 2000 with theobjective of providing housing solutions to support a healthy and balanced community. Themunicipality also recognizes that CCHC continues to be at the forefront of community efforts tocoordinate and promote the development of affordable rental and ownership homes. In addition,the CanmoreComprehensive Housing Action Planand other studies suggest that there is a needfor 1,000 affordable housing units by build out and up to 2,500 employee housing beds.

At present, the CCHC administers the sale and rental of 104 affordable housing units through ourPerpetually Affordable Housing (PAH) Program. The 60 unit purpose built rental development hasbeen at 98-100% occupancy for the past year, with a growing number of inquiries, applications andwait list, particularly for studio/one-bedroom units. Demand for our existing ownership inventoryappears to be balanced at this time. This could change with the changing economic environment.

The CCHC also owns land for affordable housing purposes, including 0.867 hectares leased to ahousing cooperative that administers its own 44 unit PAH program, and 7.72 hectares of land forfuture development. CCHC has developed a business plan for a new affordable housing project,but the feasibility and the timing of the project is not yet determined.

The opportunity exists for CCHC to continue its efforts to increase availability of affordable housingunits. This could be done through the creation or acquisition of new units as has been done

previously, or by utilizing existing market housing, particularly for rental purposes, given thenumber of vacant units and surplus of visitor accommodation units.

There are also opportunities for CCHC to explore in the area of new finance and housingprograms. Innovative finance programs would be intended to address barriers in accessing financeto buy housing. These might include down payment assistance or alternative mortgage insuranceoptions. New housing programs would be intended to meet changing housing demand, and could


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include an employee housing program that would require partnerships and collaboration withCanmore employers.

Any projects or programs undertaken by CCHC will need to be small and scalable in order tocomplement, rather than compete with, existing market and non-market housing options. The

organization will need to be flexible to meet changing needs and demands and to ensure theoptimal use of our inventory given the uncertainty in the housing market and economy.

To move ahead with these opportunities, CCHC will need to continue to build its organizationalcapacity to deliver new programs and develop properties.


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CCHC currently administers the sale and rental of the 104 affordable housing units through ourPerpetually Affordable Housing (PAH) Programs, ensuring that the principles underpinning PAHare adhered to. The three fundamental principles of PAH are: 1) rental and sales prices must beand remain below market prices; 2) PAH homes are available to eligible persons only; and 3) PAH

homes must be used as the residents permanent primary residence.

Research & Adv ise

CCHC researches and advises with respect to the planning and development of properties, and thedevelopment of housing policy and programs. This work is informed by our working partners,clients and government policy. CCHC also advocates to government to effect change to policies sothat our programs can better meet our clients needs.

Administer, Develop & Manage

CCHC administers, develops and manages affordable housing properties and programs. Weengage working partners, clients and shareholders to strengthen the operating model and scale

social impact. Our working partners include lenders, developers and builders, realtors, lawyers,potential investors, decision-makers and employers, without which we would not be able to create,sell and rent our inventory. CCHC engages clients so that they can access our programs andproperties. CCHC is accountable to its Shareholders, the Town of Canmore, for its impact andfinancial sustainability. Our Shareholders are accountable to provide the necessary support forCCHC so that the corporation is able to achieve success.

Figure 5: CCHC Operating Model


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D. SOCIAL IMPACT STRATEGIES

Social impact strategies are the major actions that CCHC will take to carry out our mission and tostrengthen our operating model, while working toward achieving our vision of success.

CCHC identified three key strategies to improve availability of and access to affordable housing asinformed by the needs and opportunity analysis in Section II. These strategies are:

1. Build new units and/or utilize existing market units to increase availability of affordablehousing.

2.

Develop and implement innovative finance and housing programs to improve access toaffordable housing.

3. Improve organizational capacity to deliver programs and develop properties.

Specific goals and actions to implement these strategies are identified in Section IVImplementation Strategy.


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IV. IMPLEMENTATION STRATEGY

The implementation strategy outlines the actions needed to put the social impact strategies of theprevious section into action. It includes a timeline, strategies and goals, a general marketing planand a strategy for financial sustainability including operating budgets and a capitalization plan.

A. BUSINESS PLAN TIMELINE

The business plan spans a three year time frame. It is intended that the business plan be a livingdocument where strategies, the operating model, and indicators are reviewed annually todetermine if CCHC is targeting the social problem effectively to the extent of its resources andmandate.

B. STRATEGIES & GOALS

The strategies in this section are derived from the strategies identified in the Social Impact Model inSection III. For each strategy, a first phase and second phase goal is identified, each phase lasting12- to 24-months. The first phase goal of new strategies is typically an identification, developmentand pilot phase, followed by assessment and roll out in the second phase. For existing strategies,goals for each phase are dependent on the status of the initiative.

STRATEGY 1.1 Increase availability of affordable housing units by build ing new units

Phase 1 (2013-2014) Phase 2 (2014-2015)

Pending the feasibility of a new affordablehousing project business plan, implement pre-development strategy: secure land, securefunding, design development/building, obtainmunicipal approvals, and engagepartner/builder.

Pending the outcome of pre-developmentactivities, undertake sales and construction ofnew affordable housing project.

Other activities: Initiate planning of Block 6 Palliser Lands in collaboration with Town and StoneCreek Properties


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STRATEGY 1.2 Increase availability of affordable hous ing units by utili zing market unitsfor affordable housing purposes

Phase 1 (2013-2014) Phase 2 (2014-2015)

Develop a strategy to utilize existing markethousing stock for affordable housing purposes,such as visitor accommodation units.

Develop and implement a pilot project to test thestrategy.

Assess pilot project performance, determinekey success factors, and make improvementsbased on lessons learned.

STRATEGY 2.1 Improve access to housing through innovative finance and housingprograms

Phase 1 (2013-2014) Phase 2 (2014-2015)

Develop and implement an employee housingprogram in partnership with the Town ofCanmore

Assess performance of employee housingprogram, determine key success factors, andmake improvements based on lessonslearned.

Develop a strategy to improve access topurchase housing (ie. mortgage insurance,down payment assistance, rent-to-own) anddesign and implement a pilot project.

Assess performance of pilot project,determine key success factors, and makeimprovements based on lessons learned.

STRATEGY 3.1 Improve organizational capacity to deliver programs and developproperties

Phase 1 (2013-2014) Phase 2 (2014-2015)

Review organizational structure and recommendchanges to accommodate growth in inventoryand programs.

Implement changes as required.

Identify and foster partnerships with employersto strengthen operating model and scale socialimpact.

Assess effectiveness of partnerships.

Develop and implement policy and proceduresto re-profile CCHC housing inventory to ensureinventory mix is appropriate for demand.

Assess effectiveness of policy andprocedures.


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C. MARKETING

To increase impact, CCHC needs to communicate in a compelling way to our clients and workingpartners. CCHC recently rebranded, adopting a simple and professional logo with the messageCommunity Lives Here and marketing materials with images of people to reflect our focus on

community. This section includes a description of our target market, our working partners andstrategies to engage them.

Target Market

CCHCs target market consists of people and families who are defined as being in need ofaffordable housing and having a connection to Canmore.

Need is typically measured by household income and/or net assets and is informed by theaffordability gap analysis. CCHC typically defines its primary target markets in terms of incomelevels, targeting households earning 80% to 120% of median income for its ownership programand households earning 60% to 100% of median income for its rental program.

A connection to Canmore is typically determined by employment and/or residency. The focus of theownership program has been on the retention of Canmore workers and long-term residents, whilethe rental program primarily targets new and existing Canmore workers.

CCHC engages directly with prospective clients through information sessions, open houses, atcommunity events, and through email distribution lists. CCHC engages indirectly with these clientsthrough newspaper advertising, community publications, and public posters. Our website is centralto our marketing activities. It includes information for clients looking to buy, looking to rent, orsimply looking for information about PAH or current listings.

CCHC recognizes the value of referrals, meeting with and providing information to employers andworking partners, and inviting our existing clients to refer friends and coworkers.

Working Partners

CCHCs working partners strengthen our operating model. Our working partners include lenders,developers and builders, realtors, lawyers, potential investors, decision-makers and employers.They provide necessary services to CCHC and our clients in the development and delivery ofour properties and programs.

CCHC engages with working partners in tailored information sessions, private or group meetings,

industry events, and by email. CCHC plans to have a greater focus on employers as a partnerwith respect to how our programs can better meet their employee housing needs.


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D. FINANCIAL SUSTAINABILITY

Financial sustainability means that CCHC has adequate revenues to cover its property, programand organizational costs. Revenues can be earned through project, program and organizationalactivities, or can be cash or in-kind contributions in the form of a grant or loan.

CCHC currently earns revenues from ownership and rental programs. This revenue is restricted bymunicipal policies that establish maximum sales administration fees and rental rates. Accordingly,CCHC receives an annual cash contribution from the municipality for operations and an in-kindcontribution of office space. Other revenues include earned interest revenue from reserve fundsand donations and grant monies.

CCHC holds significant land and property assets which have been transferred from the municipalityat a nominal cost. These assets include both developed and undeveloped land and The Hector atPalliser Village 60 unit rental property. These assets have holding and development costs, but alsohave the potential to generate capital or earned revenues to contribute to future financial

sustainability and reduce contributions required from the municipality.

A capitalization plan is used to ensure a sustainable balance between programs and our financialand organizational capacity, identifying the total amount of social investment required to executethe business plan and strategies to acquire the necessary resources to cover shortfall. This alsoensures a balance between the pace of program growth and pace that financial and organizationalcapacity can grow. The capitalization plan must be updated regularly as strategies evolve andrevenues and expenditures change.

E. OPERATING BUDGET: 2013-2015

The 2013-2015 Operating Budget, Reserve Fund Balances and Capitalization Plan are found inFigures 6, 7 and 8. Explanations of changes in revenues, expenditures, and reserve fund transfersare provided in the section below.

Revenues

Revenues are categorized as general, program or project revenues. General revenues includecontributions from the Town of Canmore and unrestricted interest revenues. Program and projectrevenues include contributions and earned revenues derived from and used for a specific programor project.

General revenues are budgeted to increase in 2013 due to a 10% increase in the annual cashcontribution requested from the Town of Canmore, from $250,000 to $275,000. This is subjectto approval by Town Council. This amount has not increased since 2008 despite considerableexpansion of properties and development of programs over this period. The increase is largelyto cover wage increases due to inflationary and performance increases and an amount forprogram development as per strategies 1.2 and 2.1.


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PAH Rental revenues are budgeted to increase in 2013-2014 due to high occupancy rates andrental rate increases in response to higher operating costs.

If feasible, CCHC will proceed with the development of a new affordable housing project aspart of strategy 1.1. Project development revenues are required for pre- and site developmentcosts budgeted in 2013-14, and construction costs starting in the second half of 2014. These

are not committed funds. Instead, the amount includes grants, loans and internal reserve fundsthat may be accessed as per the Capitalization Plan. Project revenues anticipate sales andoccupancy starting in 2015.

Expenditures

General expenditures include administration and human resource costs for the organization. PAHProgram and Capital Project expenditures are costs directly associated with the programs andprojects, excluding general expenditures noted above. However, any contract employment as aresult of new project and program activities are allocated to the appropriate program or projectexpenditure.

No significant changes are expected in general administration, resulting in only a modestincrease for inflation.

A new line item is included for program development expenditures in relation to theimplementation of strategies 1.2 and 2.1.

PAH rental program expenditures are expected to increase due to increasing operatingexpenditures and increasing reserve fund contributions.

As noted above, if feasible, CCHC will proceed with the development of a new affordablehousing project as part of strategy 1.1 with pre- and site-development costs budgeted in 2013-2014, and construction starting in the second half of 2014.

Reserve Fund Transfers

CCHC has three reserve funds, each for a different purpose:

The Capital Reserve can be used for capital project expenditures with transfers approvedannually by the Board of Directors.

Transfers to and from the Operating Reserve are intended to even out operational cashsurpluses and deficits, and optimally is equal to 3 to 6 months of general revenues.

The Hector Reserve can only be used for capital expenditures for The Hector rental propertyas identified in an approved capital reserve fund plan or as approved by the Board of Directors.

The end result of reserve fund transfers is an operating budget with a zero cash balance. Projectedreserve fund balances after transfers are found in Figure 7.

Capitalization Plan

The capitalization plan in Figure 8 shows a shortfall for each year specifically with respect to thecosts of developing a new affordable housing project (strategy 1.1). Financing arrangements anddeveloper partnership agreements, if necessary, are projected to be finalized in 2013. Salesrevenues are projected to be realized starting in the second half of 2015. These amounts aresubject to change as this strategy evolves, and as other strategies are explored and implemented.


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Figure 6 CCHC Operating Budget 2013-2015

ACTUAL BUDGET

2011 2012 2013 2014 2015

REVENUES

General Revenu es

Town of Canmore transfer 250,000$ 250,000$ 275,000$ 275,000$ 275,000$

Town of Canmore rent in kind (non cash) -$ 24,000$ 24,528$ 25,068$ 25,619$

Interest Income and Other 300,826$ 7,250$ 12,000$ 12,000$ 12,000$

Total General Revenues 550,826$ 281,250$ 311,528$ 312,068$ 312,619$

Program/Project Revenues

PAH Rental Revenues - The Hector 590,128$ 593,792$ 605,047$ 635,300$ 635,300$

PAH Sale Revenues 26,712$ 31,250$ 25,000$ 25,000$ 25,000$

Project Revenues -$ -$ -$ -$ 2,707,676$

Project Development Funding -$ -$ 438,762$ 3,102,288$ 1,773,549$

Total Program/Project Revenues 616,839$ 625,042$ 1,068,809$ 3,762,588$ 5,141,525$

TOTAL REVENUES 1,167,666$ 906,292$ 1,380,337$ 4,074,655$ 5,454,144$

EXPENDITURES

General Expendi tures

Administration Expenditures 50,483$ 82,850$ 77,304$ 76,906$ 78,543$

Human Resource Expenditures 199,049$ 209,150$ 219,690$ 228,158$ 236,964$

Total General Expenditures 249,532$ 292,000$ 296,994$ 305,064$ 315,507$

PAH Program Expenditures

ProgramDevelopment Expenditures -$ -$ 20,000$ 20,000$ 20,000$

PAH Rental Expenditure - The Hector 590,128$ 599,367$ 608,259$ 620,503$ 627,846$

PAH Sale Expenditures 16,269$ 17,500$ 18,750$ 18,750$ 18,750$Total PAH Program Expenditures 606,397$ 616,867$ 647,009$ 659,253$ 666,596$

Capital Project Expendit ures

Affordable Housing Project Development -$ -$ 438,762$ 3,102,288$ 4,481,225$

Palliser Lot 7 1,417$ 3,000$ 2,044$ 2,089$ 2,135$

Palliser Block 6 -$ -$ -$ -$ -$

TSMV Lot 39 7,638$ 8,000$ 7,794$ 7,965$ 8,140$

Other 1,756$ -$ -$ -$ -$

Total Property Expendit ures 10,812$ 11,000$ 448,600$ 3,112,342$ 4,491,500$

TOTAL EXPENDI TURES 866,741$ 919,867$ 1,392,603$ 4,076,659$ 5,473,603$

NET CASH SURPLUS/DEFICIT BEFORE T 300,925$ (13,575)$ (12,266)$ (2,003)$ (19,460)$

TRANSFER (TO)/FROM RESERVES

CCHC Capital Reserve Fund (278,605)$ 8,000$ 9,838$ 10,054$ 10,275$

CCHC Operating Reserve Fund (22,320)$ -$ 2,428$ (8,051)$ 9,184$

Town PAH Reserve Fund -$ 5,575$ -$ -$ -$

Total Transfers (300,925)$ 13,575$ 12,266$ 2,003$ 19,460$

CASH B ALANCE AFTER TRANSFERS -$ -$ -$ -$ -$

BUDGET


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Figure 7 CCHC Reserve Fund Balances 2013-2015

ACTUAL BUDGET

2011 2012 2013 2014 2015

RESERVE BALANCESCCHC Capit al Reserve Fund

Opening Balance 379,946$ 658,551$ 648,925$ 639,087$ 629,033$

Increase/(Decrease) 278,605$ (8,000)$ (9,838)$ (10,054)$ (10,275)$

Closing Balance 658,551$ 650,551$ 639,087$ 629,033$ 618,758$

CCHC Operating Reserve Fund

Opening Balance 25,620$ 47,940$ 70,089$ 67,661$ 75,712$

Increase/(Decrease) 22,320$ -$ (2,428)$ 8,051$ (9,184)$

Closing Balance 47,940$ 47,940$ 67,661$ 75,712$ 66,527$

The Hector Building Reserve

Opening Balance -$ 24,823$ 51,176$ 82,061$ 117,198$

Increase: Contributions 28,049$ 28,000$ 32,582$ 36,886$ 41,685$

Decrease: Capital Expenditures -$ (1,648)$ (1,697)$ (1,748)$ (41,133)$

Closing Balance 28,049$ 51,175$ 82,061$ 117,198$ 117,750$

BUDGET


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Figure 8 CCHC Capitalization Plan 2013-2015

BUDGET PROJECTED

2012 2012 2013 2014 2015

Earned Revenu es

Total General Earned Revenues 1,250$ 1,372$ 1,372$ 1,372$ 1,372$Total Hector Revenues 595,542$ 611,893$ 606,919$ 637,172$ 637,172$

Total PAH Sale/Resale Revenues 31,250$ 24,251$ 25,000$ 25,000$ 25,000$

Total Project/Property Earned Income 4,250$ 8,756$ 8,756$ 8,756$ 2,716,432$

Tot al Earned Revenues 632,292$ 646,272$ 642,047$ 672,300$ 3,379,976$

Expenditures

Total General Expenditures 202,650$ 195,876$ 207,896$ 213,545$ 220,855$

Total Hector Expenditures 628,317$ 621,629$ 637,958$ 651,009$ 659,397$

Total PAH Sale/Resale Expenditures 60,925$ 64,628$ 83,299$ 84,510$ 86,076$

Total Project/Property Expenditures 27,975$ 35,617$ 463,449$ 3,127,595$ 4,507,276$

Total Expenditures 919,867$ 917,750$ 1,392,603$ 4,076,659$ 5,473,603$

Surplus/(Deficit) (287,575)$ (271,477)$ (750,556)$ (3,404,359)$ (2,093,628)$

Committed Contributions

Town of Canmore transfer 250,000$ 250,000$

Town of Canmore rent in kind (non cash) 24,000$ 24,000$

Project Development Funding -$ 10,000$

Total Committed Contrib utio ns 274,000$ 284,000$ -$ -$ -$

Surplus/(Deficit) (13,575)$ 12,523$ (750,556)$ (3,404,359)$ (2,093,628)$

Likely Contribution s

Town of Canmore transfer 275,000$ 275,000$ 275,000$

Town of Canmore rent in kind (non cash) 24,528$ 25,068$ 25,619$

CCHC Capital Reserve Fund 8,000$ 9,626$ 9,838$ 10,054$ 10,275$

CCHC Operating Reserve Fund -$ (22,149)$ 2,428$ (8,051)$ 9,184$

Town PAH Reserve Fund 5,575$ -$ -$ -$ -$

Total Likely Contribu tion s 13,575$ (12,523)$ 311,794$ 302,071$ 320,079$

Capitalizat ion Amount (short fall) -$ 0$ (438,762)$ (3,102,288)$ (1,773,549)$

BUDGET


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F. PERFORMANCE & SOCIAL IMPACT INDICATORS

Organizational and program performance indicators assess CCHCs capacity to deliver programs.These are to be reported on a quarterly basis where appropriate, and at a minimum, annually.Performance indicators include the following:

1.

Occupancy rates of sales and rental properties2.

Days units for sale held in inventory3. Number of applications processed by program4.

Customer satisfaction levels5.

Ratio of earned program/project revenues to program/project costs.

Social and economic impact indicators are more challenging to develop and measure. These arereported on annually where appropriate, and at a minimum, every three years at the end of thebusiness planning period. Impact indicators include the following measurements:

1. Increase in # and % of affordable housing units.2.

Decrease in households dissatisfied with current housing status.3.

Decrease in households spending over 35% of income on housing.

As stated previously, these indicators measure short- and long-term impact and create a feedbackloop so that adjustments and corrections to improve our operating model and social impactstrategies can be identified over the course of the business plan

G. RISK MANAGEMENT

In this section, external and internal risks are identified, as well as strategies to mitigate the risks.

Risk: Lack of economic and housing market recovery, and growth of permanentpopulation, to support the development of new units and to suppor t theresale and rental of existing inventory.

Mitigation: CCHC will continue to monitor economic and housing market statistics, includingdemographics, market prices and demand and ensure development isappropriately staged and inventory is appropriate for the demand.

Risk: Mortgage rule and interest rate changes further limit access to mortgageinsurance and finance for purchasers of PAH units .

Mitigation: Advocate with CMHC to secure approval for mortgage insurance for PAH products

and with Genworth to retain current mortgage insurance support; and continue tocommunicate with existing and new lenders with respect to financing PAHproperties.

Investigate innovative finance arrangements such as self-insuring mortgage anddown payment assistance programs.

Consider other PAH ownership models as appropriate.


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BOARD OF DIRECTORS

Hans Helder

Bob Kocian

Sean Krausert

Sarah Law

Garth Lyon

Kimber Meister

Cathy Robinson

Dan Sparks


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203, 600 A 9thStreetCanmore, Alberta T1W 2T2

(403) 609.9983

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Cchc Business Plan 2013-15 Final

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