1. FINANCING CANADA’S AFFORDABLE HOUSING NEEDS
March, 2018

2. WHO IS HPC HOUSING INVESTMENT CORPORATION?
New Canadian lender, dedicated to the affordable housing sector
Three Founding Partners:
BC Housing
Manitoba Housing
Housing Services Corporation (Ontario)
Our DNA: Housing Partnership Canada
Peer network of affordable housing CEOs
More than 250K units across Canada 2

3. BUILDING AFFORDABLE HOUSING
A Global Challenge
2025: 1.6 billion people → inadequate housing
400 million in developed countries
$16 trillion → to close housing gap
$2 trillion+ for Canada & U.S. 3

4. FIXING THE GLOBAL CHALLENGE
McKinsey recommendations:
Unlock government lands
Reduce construction costs
Increase operational efficiencies
Create better financing solutions 4

5. CANADIAN REALITY Sector Challenges Highly diverse
FEDERAL NATIONAL HOUSING STRATEGY
$15.9B
TOTAL NEED OVER 10 YEARS:
~$100B
Sector Challenges
Highly diverse
Mostly community based organizations
Financing is well outside of comfort zone 5

6. VISION FOR THE SECTOR Today’s Realities Our Vision
Aging infrastructure
End of design life
Billions needed
Uneven government funding
Business self-sufficiency
Leverage the assets
Be entrepreneurial
More affordable housing 6

7. RELATIONSHIPS ARE CHANGING
Keep the Mission
Change Relationships Government: oversight  partner Providers: administrators  housing leaders & builders 7

8. PAN-CANADIAN INITIATIVE
Feasibility Study, Morrison Park Advisors
Commissioned by Housing Partnership Canada:
ADDITIONAL FUNDING PARTNERS:
CMHC
PROVINCE OF ONTARIO
CITY OF TORONTO AND A NUMBER OF ONTARIO SERVICE MANAGERS 8

9. HOUSING SECTOR FINANCING OPTIONS
Dedicated Housing Lender
Ongoing funding stability
Depends
Possibly No
Yes
Can handle fragmented sector
Somewhat
Customized to social housing
Leverages sector creditworthiness
Low financing costs
Government Debt Programs
Ongoing funding stability
Depends
Possibly
Can handle fragmented sector
Somewhat
Customized to social housing No
Leverages sector creditworthiness
Yes
Low financing costs
Direct to Capital Markets
Ongoing funding stability
Depends
Possibly No
Can handle fragmented sector
Somewhat
Customized to social housing
Leverages sector creditworthiness
Yes
Low financing costs
Ongoing funding stability
Can handle fragmented sector
Customized to social housing
Leverages sector creditworthiness
Low financing costs
Banks
Ongoing funding stability
Depends
Can handle fragmented sector
Somewhat
Customized to social housing No
Leverages sector creditworthiness
Possibly
Low financing costs
MPA slide 9

10. MARKET PRECEDENTS HOUSING FINANCE CORPORATION, UK
Non-Profit Corporation
Established in 1987
£5 billion loans
Direct capital markets
A+ credit rating
Staff complement of 20
TORONTO COMMUNITY HOUSING CORPORATION
$450M direct capital borrowings
AA- credit rating
Regeneration of Regent Park
FIRST NATIONS FINANCE AUTHORITY, CAN
$10M fed investment leveraged over $100M loans
60% annual operating grants
A- credit rating
“solid competitive position in a niche market” 10

11. THE MARKETS LIKE AFFORDABLE HOUSING
Well-run operations
Government-ish comfort
Global sector
Rating agency views 11

12. OUR SIMPLE BUSINESS MODEL
ADD UP THE FINANCING NEEDS OF THE SECTOR
BORROW FROM THE CAPITAL MARKETS
RE-LOAN TO THE SECTOR
MPA Slide 12

13. DEMAND FOR LOANS Our first round call for projects: 20 providers
$1B financing need
8,000 new/regenerated units
Estimated Pool of 3,000+ Canadian borrowers 13

14. WHY HPC HOUSING INVESTMENT?
Housing Finance for Housing People, By Housing People
Dedicated lender to affordable housing
Fixed rate 30+ year loans
Housing knowledge
Finance expertise
Lean, low-cost administration 14

15. Drive sector self-sufficiency Tackle declining funding commitments
Manitoba Challenges
Repair aging stock
Drive sector self-sufficiency
Tackle declining funding commitments
Demographics
Aging seniors
Indigenous
New immigrants
Mental health needs
Accessible

16. Manitoba Opportunities with HI-C
Mixed use and multi-residential units
Mayfair River
Better serve low income households
Westminister Housing Society
More seniors housing

17. INITIAL FUNDING $20 Million from federal Innovation Fund*
Loan loss protection
Leverages into $200M first tranche lending capacity
$2.5 Million from the 3 founding partners
Start up operations
$200 M loans → 2,000 new affordable homes 17

18. 2018 TIMELINE $20M Fed Investment and $2.5M Start-Up Commitments
Focus on Take Out Financing for Tranche #1
Meet Tranche #1 Borrowing Candidates
Bond Holder & Credit Rating Agencies
Prep Bond and Loan Documents
Build Pipeline for Tranche #2 and beyond
Fall 2018: Close $200M Tranche #1 projects 18

19. Q&A
QUESTIONS & ANSWERS

20. CONTACTS Shayne Ramsay, CEO, BC Housing
Steven Spry, CEO, Manitoba Housing
Howie Wong, CEO, Housing Services Corp
Joshua Broadhead, Senior Project Officer, BC Housing
Sandra Hodzic, Social Innovation Lead, Manitoba Housing