The Contribution Agreement shall describe legal obligations and reporting requirements for the project. All Service Managers are required to enter into Contribution Agreements directly with proponents and shall require the forgivable loan to be secured through a mortgage or alternate form of security.

The deadline to commit funding – i.e., execute Contribution Agreements and submit executed Agreements of Purchase and Sale (for acquisition projects), registration of mortgage security or an alternate form of security (for modular housing projects) – will be January 31, 2021, to allow time for reprofiling between operating and capital funding, or reallocation of funds if necessary.

MMAH reserves the right to return a project application for revision and resubmission if it is not consistent with the Program Guidelines.

3.5.4 Funding

Funding under the Capital Funding – New Facilities component must be provided as a secured forgivable capital loan.

Service Managers are required to perform their due diligence to ensure that a project is financially viable from a construction cost and on-going operating perspective, and the program expenditures represent a prudent and best value use of public dollars.

3.5.5 Payment Process

MMAH will advance funding directly to Service Managers, who will be responsible for making project payments to housing proponents.

Service Managers will advance funds to proponents based on the completion of milestones and compliance with the program requirements.

Funding for acquisition, rehabilitation and/or modular housing will be advanced to Service Managers based on the following instalments:

  1. Up to 90 per cent following signing of the Contribution Agreement and,

    1. submission of Agreement of Purchase and Sale for acquisition projects (funding will be advanced within 15 business days of the closing date); or,

    2. registration of mortgage security or an alternate form of security (modular housing projects) that is acceptable to the ministry.

  2. Remaining funding upon confirmation of completion no later than December 31, 2021.

Up to 100 per cent of the funding may be provided, if required, to finance the purchase. If the capital funding provided under the SSRF Phase 2 is insufficient to cover the cost