Meeting re Finances – 2005-02-11

Present: John Vance, Allan Durand, Michael Hale

Topics: Financing process; Green Building; Affordability; Ownership form; Project Plan.

Financing process Edit

  • Lenders will look at revenue (existing/future).
  • Pre-leasing assists in leveraging
  • Commercial mortgages are to a maximum of 65%; Residential 75% conventional, 95% high ratio (CMHC)—requires 50% sales.
  • Farm credit is available for anything farm related.
  • Increasing definition
    • Get clarity on each component
      • e.g., For wastewater, initially use the simplest, most cost effective conventional system.
    • Complete working drawings
      • basis for estimating costs
    • Describe phases and link them to achieve synergies in financing.

Green buildingEdit

Alternative building materials are not necessarily cheaper. However, anything that is stackable or easily assemblable (e.g. concrete blocks) allows for many less-skilled workers, and can cut costs.

Other cost saving ideas:

  • Timber frame building—The Timber Frame Builders' Guild [1] will provide expertise and support for groups that wish to build timberframe structures.
  • Extruded materials—Ecrete or recycled materials recast as building materials.


An option that has been recommended is a cooperatively-owned strata property:

  • The cooperative is the developer.
  • Tie cooperative to the Strata Corporation
    • Agreement by strata members to assign shares to the cooperative.
    • The cooperative has a share on title
    • The amount of cooperative ownership can be increased to achieve greater affordability (see next section)


There are a number of options that can be built into any project to provide affordable housing options:

  • Pod house
  • Rent-to-buy option (cooperative owns units)
  • In the ownership model described above, the cooperative can own a greater share, e.g., 30% to achieve relative affordability.
  • Trailers
    • Need replacement clause
    • Can be produced very quickly
    • Attach to grow home concept
    • Approach manufacturer (e.g.Britco) to provide shell ("Habitat" concept).

Project planEdit

  • Update concept plan
  • Feasibility study – address costs in greater detail
  • Identify wastewater treatment system
  • Phasing plan
    • Financial elements
      • People ready to by
      • Estimate of costs (price point)
      • Leases/sales/rentals
      • Cost to complete
  • Leasing plan for commercial (prorate over square footage)
  • Building system (e.g., timber frame)
  • Working drawings
    • Select supervisor
    • Strong structural orientation and credentials
  • Advisors (recommendations given)
  • Tenure options
  • List of due dilligence requirements – John Vance to provide