Silvera for Seniors purchases hotel to be transformed into affordable seniors housing
Our Calgary office advised Silvera for Seniors (“Silvera”) in the purchase of a hotel to be transformed to affordable seniors housing. Funding for the acquisition and repurposing of the hotel was obtained through a program known as the Rapid Housing Initiative (or the “program”) administered through Canada Mortgage and Housing Corporation. This project was the largest of three to be granted funds within the City of Calgary.
To qualify for the program, Silvera was required to provide a variety of assurances to verify the use of the grant funds and the operation of the affordable seniors housing complex upon completion of the hotel’s conversion. Norton Rose Fulbright Canada was required to coordinate funding of the grant funds simultaneously with completing the hotel’s acquisition from a private third party and place security on title in favour of the City of Calgary to protect the aforesaid covenants and assurances.
The Rapid Housing Initiative is a C$1bn federal government program aimed to help address housing needs of vulnerable Canadians, especially in the context of COVID-19, through the rapid construction of affordable housing. This matter was particularly challenging due to the nature of the grant and the original hotel’s location. One of the program’s terms is that the housing created must be available for occupancy by the end of 2021. As a result, the grant process was very quick and the timeframe for executing the documentation involved in the program was compressed. The transaction also required an amendment to the airport zoning regulations as the complex’s location was zoned for hotel use near air traffic, and the zoning on the property had to be changed to accommodate residential accommodation. All challenges were overcome to meet client goals and the conversion of hotel property is on track to meet the program’s terms.
To qualify for the program, Silvera was required to provide a variety of assurances to verify the use of the grant funds and the operation of the affordable seniors housing complex upon completion of the hotel’s conversion. Norton Rose Fulbright Canada was required to coordinate funding of the grant funds simultaneously with completing the hotel’s acquisition from a private third party and place security on title in favour of the City of Calgary to protect the aforesaid covenants and assurances.
The Rapid Housing Initiative is a C$1bn federal government program aimed to help address housing needs of vulnerable Canadians, especially in the context of COVID-19, through the rapid construction of affordable housing. This matter was particularly challenging due to the nature of the grant and the original hotel’s location. One of the program’s terms is that the housing created must be available for occupancy by the end of 2021. As a result, the grant process was very quick and the timeframe for executing the documentation involved in the program was compressed. The transaction also required an amendment to the airport zoning regulations as the complex’s location was zoned for hotel use near air traffic, and the zoning on the property had to be changed to accommodate residential accommodation. All challenges were overcome to meet client goals and the conversion of hotel property is on track to meet the program’s terms.