Print Page


Tool 9: Making the Case for Investment

This tool allows you to make the case for investment by summarizing and presenting the costs and full range of benefits of an affordable housing project. Calculating both the quantitative and qualitative benefits of an affordable housing project enables stakeholders to make a strong case to potential investors for the necessary financing.

Please note that the blue cells below are calculation cells and thus, do not require entered information.

Steps:

  1. In row A, enter a target group in each column.
  2. In row B, enter the type of units to be created for that priority group.
  3. In row C, enter the number of units to be created for that priority group.
  4. In row D, enter the annual operating cost of the outlined units, per unit.
  5. For row E, click the "calculate" button to determine the total annual operating cost of all units.
  6. In row F, enter the contribution provided by the tenant (through the payment of their rent).
  7. For row G, click the "calculate" button to determine the net costs.
  8. In rows H to L, enter all economic (quantitative) benefits. See the footnotes for guidance on calculating benefits.
  9. For row M, click the "calculate" button to determine the total economic (quantitative) benefits.
  10. In rows N to S, place a checkmark beside all social (qualitative) benefits that apply.

 

 
A) Target Group
B) Type of units required
C) Number of Units required
D) Annual operating cost per unit, take from budget
E) Annual operating costs, all units (C x D)
F) Contribution by tenants*
G) Net Costs* (E-F)

Benefits**

Economic Enumerated Benefits

H) Reduced usage of social assistance (C x 0.2 x $13,044, if applicable)
I) Reduced usage of health/mental services (
J) Reduced usage of emergency shelters (C x 80 x $35, if applicable)
K) Reduced usage of police and justice services (
L) Improved contribution to tax base (C x $600, if applicable)
M) Total Enumerated Benefits (H + I + J + K + L)

Social (Qualitative) Benefits

Two Bedroom Studio Transitional SRO units
N) Greater social cohesion/reduced social exclusion
O) Reduced intergenerational transmission of poverty
P) Longer school stays by children
Q) Improved long-term income prospects
R) Reduced stress on public services
S) Longer life expectancy
*Assumes tenant rent contribution of 40 per cent of gross income and average income of $20,000 per annum per household or $13,000 for SRO clients.
**Assumes a 20 per cent improvement in labour force attachment and, thus, a 20 per cent reduction in the number of households requiring social assistance of $13,044 per year. Assumes a $3,000 increase in income. This income is taxed at a rate of 20 per cent, generating $600 in tax revenue. (Note, however, that SRO households are not required to pay any tax due to their low incomes.) Assumes a 20 per cent reduction in the use of hospital services ($3,000 per year) or a 50 per cent reduction among SRO households.
Assumes a reduction in the use of emergency shelters by 80 nights per year. Shelter space costs $35 per person per night.
Assumes that 1 per cent of lone-parent and single, working-poor households and 20 per cent of SRO households will no longer require police and justice services of $2,000 per household per annum.
               

More Tools