BUSINESS PLAN: 2013-2015

Canmore Community Housing Corporation

203, 600A 9
th
Street, Canmore, Alberta T1W 2T2
403.609.9983 | info@canmorehousing.ca
canmorehousing.ca

October 2012

I. INTRODUCTION


THE ORGANIZATION

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

Canmore has some of the highest shelter costs and the highest cost of living in Alberta.
1
There is
a housing affordability gap between what Canmore residents and workers can afford and the price
of market rental and ownership housing. It 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.

WHAT WE DO

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

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

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

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



1
2010 Alberta Spatial Price Index published by Alberta Finance and Enterprise.

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 the
problem, and a description of the opportunity that CCHC has identified for putting its
unique approach to work.
Social Impact Model: This section articulates CCHCs approach to addressing the
affordability 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 social
impact strategies into action. It includes a timeline, strategies and goals, a general
marketing plan, strategy for financial sustainability including operating budgets and a
capitalization plan, performance and impact indicators, and discussion of risk
management.
The business plan serves as a road map to address our targeted social problem: the Canmore
housing affordability gap.





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 opportunity
that 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 community
with an expanded service sector, growth in construction, and considerable in-migration of part-time
and more permanent residents making Canmore one of the fastest-growing communities in Alberta
to 2008.

A downside to this growth is that for many residents and workers, Canmore has become
unaffordable. 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 can
afford 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, permanent
population growth has been modest compared to that of the non-permanent population, increasing
by 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 of
non-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 getting
smaller. The share of residents over 65 years of age is growing, while the share of residents under
15 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. These
household changes are reflected in the decline in the number of permanent residents per dwelling
unit 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 as
Canmore moves towards urban build out, which was estimated to be about 30,000 people and
12,000 dwelling units in the 1998 Municipal Development Plan.

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


Employment levels are strong. The municipal census reported that 2.7% of Canmore adults were
unemployed in 2011. This is consistent with the regional unemployment rate of 2.7% reported in
the Alberta Labour Force Statistics Report for July 2011. The regional unemployment rate has
increased 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 outside
of Canmore at any time, primarily in the Bow Valley and Calgary. This allows Canmore not only to
benefit from local initiatives to boost tourism and investment, but also regional investment and
development 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 past
decade 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 by
residential development. Building permit values peaked in 2006-2007, followed by a sharp drop in
2009-2010, 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 average
hourly wage of $20.25 is 18% lower than the provincial average. This is not unexpected in service
sector economies. However, despite low wages, Canmore median income levels are comparable
to 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 with
inflation. Median income by household type only increased by 1.6% to 3.6% between 2008 and
2011, 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*
% Change
2008-2011
Single person
Canmore $34,350 $33,590 $34,050 $34,911 1.6%
Alberta $33,150 $32,580 $32,650 $33,476 1.0%
Lone-parent
families
Canmore $43,000 $42,790 $43,450 $44,549 3.6%
Alberta $41,470 $40,320 $40,150 $41,166 -0.7%
Couple Families
Canmore $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%.

Housing
The volume and median sales price of market homes peaked in 2007 at the same time that
construction building permit values peaked. Since then, median sales price of all housing types has
declined, but at differing rates and patterns depending on housing type (see Figure 1). Year to date
statistics 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 in
2007.

In the rental housing market, vacancies were low and rents continued to rise until 2007-08. This
changed 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 have
tightened 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

As rental availability decreased, the number of vacant units reported in the municipal census has
steadily increased, from 2.8% of all dwelling units in 2001 to 6% in 2011. Of these 411 vacant
units, 44% are apartments and 23% accessory suites. There is also a surplus of commercial
condominiums built for visitor accommodation purposes that remain vacant.
The homeownership rate of Canmore permanent residents has steadily declined over the past
decade, from 69% to 64%. Recent mortgage rule changes limiting amortization periods and future
interest rate increases are expected to have an impact on housing sales, affordability and
homeownership rates as buyers can afford less. This situation may create a greater demand for
rental 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 housing
availability. A gap exists when households are demanding to buy or rent housing at prices that are
not 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 like
Canmore all contribute to the problem.

An analysis of available information in Table 2 suggests that homeownership is generally
unaffordable for all households, with the median sales price of a medium density home almost 5
times and a single family home at 8 times the medium income for couple households. While rental
housing provides more affordable options, the analysis in Table 3 suggests that a gap still exists for
median 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
Household
Type
2011
Median
Income
100%
# of
house-
holds
Maximum
Affordable
House
Price
Median Home Sales Price Gap
Apartmt

$329,000
Medium
Density
$475,000
Single
Family
$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.


Table 3: Canmore Affordability Gap for Renters, 2011
Household
Type
2011
Median
Income
100%
# of
house
holds
Maximum
Affordable
Monthly
Rent
Average Monthly Rental Rate Gap
1BR
$954
2BR
$1,296
3 BR
$1,736
Single Person $34,911 2,320 $796 $158 n/a n/a
Lone Parent $44,549 330 $1,009 n/a $287 $727
Couple $95,732 3,110 $2,288 n/a no gap no gap
Source: CCHC. Median income data derived from Statistics Canada, Table 111-0009. Rental statistics from CCHC.
D. ENVIRONMENTAL LANDSCAPE

CCHC currently administers an inventory of 104 affordable housing units and leases land to a 44
unit affordable housing cooperative project. These 148 affordable units account for 1.8% of the
8,303 Canmore dwelling units counted in the 2011 municipal census.

The role of CCHC is to create affordable housing options that complement those provided by
existing public and private housing providers. These options are intended to be long-term
affordable options for permanent residents and to facilitate the transition of these households along
the housing continuum (see Figure 3).

The Bow Valley Regional Housing Authority (BVRHA) is a public housing provider that provides
subsidized social housing to the lowest income groups, with a focus on seniors and family
housing, and administers a provincial rental assistance program. The BVRHA currently houses or
assists over 300 residents of the Bow Valley in approximately 188 units.
Figure 3: Canmore Housing Continuum

E. BARRIERS
Housing demand is a response to a set of complex variables. These variables include employment
rates, real household incomes, affordability and availability of housing choices, interest rates,
availability of finance, and confidence in the economy and housing market.
20% 40% 60% 80% 100% 120% 140%
Social Housing Affordable Rental Market Rental
Affordable Ownership Market Ownership

Median
Income

In Canmore, employment rates are strong but real household income is not growing; market
housing prices have declined, but there are still few affordable units available; and although
interest rates remain at historically low levels, finance is less available and confidence in the
housing market is not strong.
These barriers are reflected in CCHCs 2010 Affordable Housing Survey, in which affordability was
identified 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%) and
instability in the real estate market (15%).

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

F. OPPORTUNITIES

The municipality established CCHC as a non-profit arms length corporation in 2000 with the
objective of providing housing solutions to support a healthy and balanced community. The
municipality also recognizes that CCHC continues to be at the forefront of community efforts to
coordinate and promote the development of affordable rental and ownership homes. In addition,
the Canmore Comprehensive Housing Action Plan and other studies suggest that there is a need
for 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 our
Perpetually Affordable Housing (PAH) Program. The 60 unit purpose built rental development has
been at 98-100% occupancy for the past year, with a growing number of inquiries, applications and
wait list, particularly for studio/one-bedroom units. Demand for our existing ownership inventory
appears 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 a
housing cooperative that administers its own 44 unit PAH program, and 7.72 hectares of land for
future 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 housing
units. 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 the
number of vacant units and surplus of visitor accommodation units.

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

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

Any projects or programs undertaken by CCHC will need to be small and scalable in order to
complement, 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 the
optimal 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 organizational
capacity to deliver new programs and develop properties.

III. SOCIAL IMPACT MODEL

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

A. THE ORGANIZATION
CCHC was incorporated under the Alberta Companies Act in 2000 as an arms-length municipal
corporation wholly owned by the Town of Canmore. It was established with the objective of
providing housing solutions to support a healthy and balanced community.

CCHC is committed to the social sustainability of Canmore. Our vision is one where Canmore is
known for the quality of life of its citizens and where CCHC contributes to this by advancing
affordable housing options. CCHC identified the housing affordability gap as a significant issue.
Our mission is to bridge this affordability gap with long-term options for the well-being of the
community to the extent of our ability, resources and mandate.

A Board of Directors appointed by Town Council as Shareholder governs and provides direction to
the Corporation. The Managing Director carries out this direction, implements the Business Plan,
and oversees the daily operations with the support of a small administration team.

B. SOCIAL IMPACT MODEL
The Social Impact Model has four main components (see Figure 4). The social issue, mission and
vision of success constitute the foundation of the model and do not change as the business plan is
implemented. The fourth component includes strategies, our operating model, and impact and
performance indicators. The indicators measure short- and long-term impact and create a feedback
loop so that adjustments and corrections to improve our operating model and social impact
strategies can be identified over the course of the business plan.

C. OPERATING MODEL
Figure 5 illustrates the components and relationships of the Operating Model, specifically, what
CCHC does and how it is done.
Properties & Programs
Our properties and programs are at the core of CCHCs operating model. As an inventory of
properties is created through development or acquisition, it is made available to our clients through
programs. At present, our properties consist of 44 townhouse and apartment style condominium
units, 60 apartment units, a 0.867 hectare land lease to a housing cooperative that administers its
own 44 unit property, and 7.72 hectares of land for future development.



















MISSION



To bridge
Canmores housing
affordability gap
with long-term
options for the well-
being of the
community.







SOCIAL
ISSUE

High cost of
housing relative to
income
Affordability gap
exists between
what Canmore
residents and
workers can afford
to pay and the price
of market housing.
Issue is access to
and the availability
of appropriate
affordable housing
options.





VISION OF
SUCCESS

Canmore is known
for the quality of
life of its citizens.

CCHC improves
the availability of
and access to
affordable housing
options




STRATEGIES
1. Build new units and utilize existing
market units to increase availability
of affordable housing
2. Innovative finance and housing
programs to improve housing
access
3. Improve organizational capacity to
deliver programs and develop
properties
OPERATING MODEL
1. CCHC administers, develops and
manages affordable housing
properties and programs by
engaging working partners to
deliver programs and manage
properties and by engaging clients
so that they can access our
programs and properties.
2. CCHC researches and advises with
respect to: 1) development of
housing policy and programs; and
2) planning and development of
properties. This work is informed by
working partners, clients and
government policy.


IMPACT
INDICATORS
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.

PERFORMANCE
INDICATORS
1. Occupancy rates
2. Applications
processed
3. Days in inventory
4. Customer satisfaction
5. Earned
program/project
revenues as % of
costs

Figure 4: Social Impact Model


CCHC currently administers the sale and rental of the 104 affordable housing units through our
Perpetually Affordable Housing (PAH) Programs, ensuring that the principles underpinning PAH
are adhered to. The three fundamental principles of PAH are: 1) rental and sales prices must be
and 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 & Advise
CCHC researches and advises with respect to the planning and development of properties, and the
development 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 so
that our programs can better meet our clients needs.
Administer, Develop & Manage
CCHC administers, develops and manages affordable housing properties and programs. We
engage 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 and
properties. CCHC is accountable to its Shareholders, the Town of Canmore, for its impact and
financial sustainability. Our Shareholders are accountable to provide the necessary support for
CCHC so that the corporation is able to achieve success.

Figure 5: CCHC Operating Model




D. SOCIAL IMPACT STRATEGIES

Social impact strategies are the major actions that CCHC will take to carry out our mission and to
strengthen 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 as
informed 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 affordable
housing.
2. Develop and implement innovative finance and housing programs to improve access to
affordable housing.
3. Improve organizational capacity to deliver programs and develop properties.

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



IV. IMPLEMENTATION STRATEGY
The implementation strategy outlines the actions needed to put the social impact strategies of the
previous section into action. It includes a timeline, strategies and goals, a general marketing plan
and 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 living
document where strategies, the operating model, and indicators are reviewed annually to
determine if CCHC is targeting the social problem effectively to the extent of its resources and
mandate.
B. STRATEGIES & GOALS
The strategies in this section are derived from the strategies identified in the Social Impact Model in
Section III. For each strategy, a first phase and second phase goal is identified, each phase lasting
12- to 24-months. The first phase goal of new strategies is typically an identification, development
and 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 building new units
Phase 1 (2013-2014) Phase 2 (2014-2015)
Pending the feasibility of a new affordable
housing project business plan, implement pre-
development strategy: secure land, secure
funding, design development/building, obtain
municipal approvals, and engage
partner/builder.

Pending the outcome of pre-development
activities, undertake sales and construction of
new affordable housing project.
Other activities: Initiate planning of Block 6 Palliser Lands in collaboration with Town and Stone
Creek Properties



STRATEGY 1.2 Increase availability of affordable housing units by utilizing market units
for affordable housing purposes
Phase 1 (2013-2014) Phase 2 (2014-2015)
Develop a strategy to utilize existing market
housing stock for affordable housing purposes,
such as visitor accommodation units.
Develop and implement a pilot project to test the
strategy.

Assess pilot project performance, determine
key success factors, and make improvements
based on lessons learned.

STRATEGY 2.1 Improve access to housing through innovative finance and housing
programs
Phase 1 (2013-2014) Phase 2 (2014-2015)
Develop and implement an employee housing
program in partnership with the Town of
Canmore
Assess performance of employee housing
program, determine key success factors, and
make improvements based on lessons
learned.
Develop a strategy to improve access to
purchase housing (ie. mortgage insurance,
down payment assistance, rent-to-own) and
design and implement a pilot project.

Assess performance of pilot project,
determine key success factors, and make
improvements based on lessons learned.
STRATEGY 3.1 Improve organizational capacity to deliver programs and develop
properties
Phase 1 (2013-2014) Phase 2 (2014-2015)
Review organizational structure and recommend
changes to accommodate growth in inventory
and programs.
Implement changes as required.
Identify and foster partnerships with employers
to strengthen operating model and scale social
impact.
Assess effectiveness of partnerships.
Develop and implement policy and procedures
to re-profile CCHC housing inventory to ensure
inventory mix is appropriate for demand.
Assess effectiveness of policy and
procedures.

C. MARKETING

To increase impact, CCHC needs to communicate in a compelling way to our clients and working
partners. CCHC recently rebranded, adopting a simple and professional logo with the message
Community 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 and
strategies to engage them.
Target Market
CCHCs target market consists of people and families who are defined as being in need of
affordable housing and having a connection to Canmore.

Need is typically measured by household income and/or net assets and is informed by the
affordability gap analysis. CCHC typically defines its primary target markets in terms of income
levels, targeting households earning 80% to 120% of median income for its ownership program
and 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 the
ownership program has been on the retention of Canmore workers and long-term residents, while
the rental program primarily targets new and existing Canmore workers.

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

CCHC recognizes the value of referrals, meeting with and providing information to employers and
working 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 of
our 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 partner
with respect to how our programs can better meet their employee housing needs.

D. FINANCIAL SUSTAINABILITY
Financial sustainability means that CCHC has adequate revenues to cover its property, program
and organizational costs. Revenues can be earned through project, program and organizational
activities, 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 by
municipal 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-kind
contribution of office space. Other revenues include earned interest revenue from reserve funds
and donations and grant monies.

CCHC holds significant land and property assets which have been transferred from the municipality
at a nominal cost. These assets include both developed and undeveloped land and The Hector at
Palliser Village 60 unit rental property. These assets have holding and development costs, but also
have 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 financial
and organizational capacity, identifying the total amount of social investment required to execute
the business plan and strategies to acquire the necessary resources to cover shortfall. This also
ensures a balance between the pace of program growth and pace that financial and organizational
capacity can grow. The capitalization plan must be updated regularly as strategies evolve and
revenues and expenditures change.
E. OPERATING BUDGET: 2013-2015

The 2013-2015 Operating Budget, Reserve Fund Balances and Capitalization Plan are found in
Figures 6, 7 and 8. Explanations of changes in revenues, expenditures, and reserve fund transfers
are provided in the section below.
Revenues
Revenues are categorized as general, program or project revenues. General revenues include
contributions from the Town of Canmore and unrestricted interest revenues. Program and project
revenues include contributions and earned revenues derived from and used for a specific program
or project.

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

PAH Rental revenues are budgeted to increase in 2013-2014 due to high occupancy rates and
rental rate increases in response to higher operating costs.
If feasible, CCHC will proceed with the development of a new affordable housing project as
part of strategy 1.1. Project development revenues are required for pre- and site development
costs 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 funds
that may be accessed as per the Capitalization Plan. Project revenues anticipate sales and
occupancy starting in 2015.

Expenditures
General expenditures include administration and human resource costs for the organization. PAH
Program and Capital Project expenditures are costs directly associated with the programs and
projects, excluding general expenditures noted above. However, any contract employment as a
result of new project and program activities are allocated to the appropriate program or project
expenditure.

No significant changes are expected in general administration, resulting in only a modest
increase for inflation.
A new line item is included for program development expenditures in relation to the
implementation of strategies 1.2 and 2.1.
PAH rental program expenditures are expected to increase due to increasing operating
expenditures and increasing reserve fund contributions.
As noted above, if feasible, CCHC will proceed with the development of a new affordable
housing 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 approved
annually by the Board of Directors.
Transfers to and from the Operating Reserve are intended to even out operational cash
surpluses 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 property
as 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. Projected
reserve 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 the
costs of developing a new affordable housing project (strategy 1.1). Financing arrangements and
developer partnership agreements, if necessary, are projected to be finalized in 2013. Sales
revenues are projected to be realized starting in the second half of 2015. These amounts are
subject to change as this strategy evolves, and as other strategies are explored and implemented.


Figure 6 CCHC Operating Budget 2013-2015
ACTUAL BUDGET
2011 2012 2013 2014 2015
REVENUES
General Revenues
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 $
EXPENDI TURES
General Expenditures
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 Expenditures
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 Expenditures 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/DEFI CI T BEFORE TR 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 BALANCE AFTER TRANSFERS - $ - $ - $ - $ - $
BUDGET


Figure 7 CCHC Reserve Fund Balances 2013-2015



ACTUAL BUDGET
2011 2012 2013 2014 2015
RESERVE BALANCES
CCHC Capital 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

Figure 8 CCHC Capitalization Plan 2013-2015
BUDGET PROJECTED
2012 2012 2013 2014 2015
Earned Revenues
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 $
Total 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 Contributions 274,000 $ 284,000 $ - $ - $ - $
Surplus/(Deficit) (13,575) $ 12,523 $ (750,556) $ (3,404,359) $ (2,093,628) $
Likely Contributions
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 Contributions 13,575 $ (12,523) $ 311,794 $ 302,071 $ 320,079 $
Capitalization Amount (shortfall) - $ 0 $ (438,762) $ (3,102,288) $ (1,773,549) $
BUDGET


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 properties
2. Days units for sale held in inventory
3. Number of applications processed by program
4. Customer satisfaction levels
5. Ratio of earned program/project revenues to program/project costs.
Social and economic impact indicators are more challenging to develop and measure. These are
reported on annually where appropriate, and at a minimum, every three years at the end of the
business 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 feedback
loop so that adjustments and corrections to improve our operating model and social impact
strategies 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 permanent
population, to support the development of new units and to support the
resale and rental of existing inventory.
Mitigation: CCHC will continue to monitor economic and housing market statistics, including
demographics, market prices and demand and ensure development is
appropriately staged and inventory is appropriate for the demand.

Risk: Mortgage rule and interest rate changes further limit access to mortgage
insurance 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 to
communicate with existing and new lenders with respect to financing PAH
properties.
Investigate innovative finance arrangements such as self-insuring mortgage and
down payment assistance programs.
Consider other PAH ownership models as appropriate.


Risk: Lack of committed funds from the Town of Canmore as its annual business
planning and budget cycle allows only a one year commitment to CCHC
operations.
Mitigation: Maintain effective relationships with the municipality through Council
representatives appointed to the Board, the Town liaison to CCHC and
shareholders.
Ensure that CCHC is involved in all discussions and decisions related to affordable
housing program, planning and development and that the municipality is aware of
all business costs to CCHC associated with municipal policy.

Risk: As a municipal controlled corporation, CCHCs financial position is included
in municipal consolidated financial statements, which are subject to
provincial regulations with respect to debt limits and servicing. This may
impact CCHCs ability to assume debt to finance new affordable housing
developments and the acquisition of housing for rental purposes.
Mitigation: Explore innovative partnering agreements with developers so that the risk and
debt is shared appropriately.












BOARD OF DIRECTORS

Hans Helder
Bob Kocian
Sean Krausert
Sarah Law
Garth Lyon
Kimber Meister
Cathy Robinson
Dan Sparks




























































203, 600 A 9
th
Street
Canmore, Alberta T1W 2T2
(403) 609.9983