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The Ottawa Community Land Trust  (OCLT) is a non-profit corporation, operating as a social enterprise, pursuing innovative ways of preserving housing affordability in the National Capital region. We envision our city as a place where adequate, affordable housing is available to anyone who needs it, and community-based housing providers are leading solutions to make that happen. 

We go about this in two key ways. The first is acquiring existing rental properties to preserve affordability, and the second is securing vacant land to develop various types of affordable housing in the future. 

We are fueling these two objectives through community bonds (ours are known as Housing Forever Bonds), foundation and government grants, and long-term debt financing options.

Additionally, we collaborate with other local groups in the housing space, from developers to non-profit housing providers and housing co-operatives, and with organizations supporting individuals to remain stably housed – all to improve housing affordability and housing security in Ottawa.

At OCLT, we recognize that affordability is relative. Recognizing the common international standard – that households should only use 30% of pre-tax household income on housing

costs – it is important to recognize that affordability is dependent on household income. OCLT aspires to offer housing that is affordable to households within the low and moderate-income categories in Ottawa. 

Notwithstanding the above, within the funding and financing landscape, rental affordability is often defined against the average market rate (AMR) with a community, as determined by the Canada Mortgage and Housing Corporation (CMHC). AMR shows rent levels in both new and existing structures, weighing the average of all units combined, whether vacant or occupied. The OCLT considers many factors in determining our rent levels. These may include available funding, unit type and numbers, and subsidies for residents. As an example, balancing both long-term viability and affordability, rent levels at our Kirkwood property will be capped at 80% of AMR.  Through an agreement with the City of Ottawa, we have ensured that new tenants will pay rents geared to income, while City subsidies fill the gap between ability-to-pay and 80% AMR.

OCLT’s first property is a six-unit multi-residential apartment building located at 887 Kirkwood Avenue in Ottawa’s Carlington neighbourhood. Purchased in October 2023, this acquisition represents the preservation of six ‘naturally occurring’ affordable units – effectively the transfer of six units from the speculative market to community ownership – that will remain affordable in perpetuity.  The Kirkwood property was financed through a combination of grants, donations, and debt-based financing.

OCLT’s Housing Forever Bonds are OCLT’s community bond offering. Community bonds are a social finance tool used by charities, non-profits, and cooperatives to finance initiatives with social and environmental impact. Not unlike a traditional bond, a community bond is an interest-bearing loan from an investor with a rate of return and a fixed term. Investors in this case, are members of the community investing in their community.

This investment will serve the express purpose of preserving and creating affordable housing in the Ottawa region forever. Funds raised from the Housing Forever Bond campaign will allow OCLT to pay the remaining debt on our Kirkwood property, finance our 2nd and 3rd properties in 2024, and sustain OCLT and the overall growth of affordable housing in Ottawa. 

We have teamed up with Tapestry Community Capital, a firm that specializes in community bonds and has raised over $100 million in community bonds across 59+ projects,  to create this offering and invest in Ottawa’s future.

When you buy a Housing Forever Bond, you are making a meaningful direct investment into maintaining and increasing the supply of affordable housing in Ottawa. Your kindness and generosity mean individuals and families pay less in rent and are consequently able to save more, and/or allocate funds to education, skills or personal development. This has a profound impact on an individual’s mental and physical health, and contributes positively to the social and economic growth of the greater community. Your capital never leaves this city – it enriches it. Meanwhile, you’re generating a financial return on your investment.

Housing Forever Bonds will be repaid via rent revenue, long-term patient investment, and future bond and financing offerings.

The OCLT is prepared to retire capital at the end of bond terms, as agreed-upon with investors, drawing upon the cash flow arising from property assets. However, we will retain patient capital, when investors concur and according to agreed-upon terms, to continue the organization’s mission. Our modelling anticipates retiring up to 27% of community bond debt within a 5-year window, refinancing debt into mortgage financing. This assumption is based on the potential of numerous bondholders reinvesting, and new bondholders entering into the space – at ratios consistent with long-term Tapestry experience. We also plan to draw less on our mortgage than we are eligible for, and can increase mortgage financing to repay greater amounts if necessary.

OCLT is using a blended capital approach to support acquisitions, including mortgage financing, Housing Forever Bonds and public and philanthropic funding.

Repayment of all OCLT 2024 Housing Forever Bonds will be secured by charges registered on the Real Property held by OCLT – as soon as it is practically possible to do so – subordinate to any commercial mortgage and vendor take mortgage, if any, pari-passu with other OCLT Bonds, and held by a trustee appointed by OCLT pursuant to a Trust Agreement for the benefit of all OCLT bondholders.

For our first investment campaign, and due in part to the added costs of offering RRSP / TFSA bonds, Housing Forever Bonds will not be RRSP / TFSA eligible. However, we do plan for future investment campaigns, and in the future, we will explore options to ensure tax-free gains.

All Bond series are transferable to another OCLT bondholder with approval from the OCLT Board of Directors and a $100 administration fee. Early redemption is only available in extraordinary circumstances, and with the approval of OCLT Board of Directors.