Presentation to CHRA PanelMay 1, 2013

Presented by: Lois FineYWCA Toronto

YWCA Toronto:Elm Centre Housing BondThe Original Pitch

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

About YWCA Toronto

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. Sustainable development

◦ Designed to meet LEED silver standard◦ One of the largest geothermal heating and cooling systems in

North America 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

YWCA Elm Centre

Before Construction…

YWCA Elm Centre

Today…

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

Impact

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

Business Model

Elm Project Financing

Waived costs and rebates

$7.3 million Construction $56.9 millionSoft costs $5.5 millionFinancing $1.2 millionLand $8.0 millionTotal Project $78.9 million

Table: Elm Centre Project Budget

Municipal Rebates $3.6 millionProvincial Mortgage Grant $12.6 millionProvincial Rebates $1.3 millionFederal Grants/Rebates $11.6 millionTotal Government $29.1 millionYW Mortgage IO $26.3 millionYW Fundraising $15.0 millionCity Loans $8.5 millionTotal Project $78.9 million

Elm Project Financing

Table: Elm Centre Project Financing

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)

Elm Project Financing

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

Financing Overview

Capital Raise

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.

Summary

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