The City of Saint John Heritage Development Board AGENDA. à 5 h 30 dans la salle de conférence, au 10 e étage

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2 The City of Saint John Heritage Development Board AGENDA Wednesday March 5, 2014 Le 5 mars, :30 P.M th floor Board Room à 5 h 30 dans la salle de conférence, au 10 e étage 1.0 Approval of Agenda/Adoption de l ordre du jour 2.0 Approval of Minutes/Approbation du procès-verbal de la dernière réunion 2.1 February 19 th, 2014 Meeting Minutes 3.0 Business Arising/Revue de la dernière réunion 4.0 Introduction of Applicants/Guests/Présentation des requérants et des invités 5.0 Applications for Certificates of Appropriateness and Grants/ Demandes relatives à des certificats de pertinence de à des subventions 5.1 Tim Jones, Princess Street a) Application for Certificate of Appropriateness b) Draft Certificate of Appropriateness 5.2 Clover Realty Limited/Peter Asimakos, Canterbury Street a) Application for Certificate of Appropriateness b) Draft Certificate of Appropriateness c) Application for Heritage Conservation Grant 6.0 Reports/ Rapports 6.1 Heritage Grant Funding Ratios Proposed Changes 6.2 Improvements to the Heritage Grant Program 7.0 Other Business/Autre affaires 8.0 Next Meeting/Prochaine reunion 9.0 Adjournment/Clôture de la réunion

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7 Heritage Development Board Minutes February 19 th, 2014 ITEM 5.1C APPLICATION FOR A HERITAGE CONSERVATION GRANT ERIC FALKJAR, 160 SYDNEY STREET Alice Fudge advised the application is for a Heritage Conservation Grant for brick masonry repairs to the street facing (west) walls, wood window restoration, metal roof cornice restoration and refurbishing metal window grates. The building is part of the Trinity Royal Conservation Area for which there is a Conservation Plan in place. Alice advised that the Grant application be tabled pending approval of the Grants for Heritage Conservation Program funding and policy amendments to be reviewed by the Heritage Development Board and approved by Common Council. MOVED by Bob McVicar SECONDED by Colin Waldschutz table the Heritage Conservation Grant for 25% up to a maximum of $5,000 based on project estimates, for the restoration work at 160 Sydney Street, until the 2014 Heritage Grants program funding policies have been established. CARRIED. ITEM 5.3A APPLICATION FOR A HERITAGE CONSERVATION PLAN GRANT WILLIAM RECTOR, CANTERBURY STREET Alice Fudge advised the application is for a Heritage Conservation Plan Grant to have a Conservation Plan prepared for Canterbury Street. The building is part of the Trinity Royal Conservation Area. Alice advised that the Grant application be tabled pending approval of the Grants for Heritage Conservation Program funding and policy amendments to be reviewed by the Heritage Development Board and approved by Common Council. MOVED by Donna Reardon, SECONDED by Gord Hewitt to table the Conservation Plan Grant for 50% up to a maximum of $1, based on project estimates, for the outlined work at Canterbury Street, until the 2014 Heritage Grants program funding policies have been established. CARRIED. ITEM 5.4A APPLICATION FOR A HERITAGE PERMIT TIM JONES, PRINCESS STREET Alice Fudge advised that the application is for a Certificate of Appropriateness to install a masonry drip-cap on the brick foundation wall edge, west facade. She recommended approval. ITEM 5.4B APPLICATION FOR A CERTIFICATE OF APPROPRIATENESS TIM JONES, PRINCESS STREET Set in place new brick water table course to match original brick in colour, size, and porosity bricks using lime-based mortar, consisting of: 1 part White Portland (type 10- grey is not acceptable);

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34 REPORT TO THE HERITAGE DEVELOPMENT BOARD: Implementation of 2014 Grants for Heritage Conservation Program Date: February 4 th, 2014 To: From: Prepared by: Approved by: Heritage Development Board Growth and Development Services Alice C. Fudge Heritage Officer Amy Poffenroth, P.Eng, MBA Deputy Commissioner BACKGROUND On February 1 st 2012, Common Council adopted the City s 2012 operating budget which featured a variety of service reductions. For the City s Heritage Service, the budget included a reduction in the Grants for Heritage Conservation Program to a total of $90,000 from the previous year s $200, amount. As a result of the lowered budget amount, considerable changes to the Heritage Grants Policy were adopted by Council so that the City of Saint John could continue to deliver the Grants for Heritage Conservation Program with an appropriate funding ratio model. On August 3 rd, 2012, Council resolved that the Heritage Grants be established in accordance with the following recommended reforms: a. The maximum funding for preparation of a Conservation Plan by a design professional be set at $1,000 at a funding ratio of 50%; b. The maximum Heritage Conservation Grant be set at $5,000 at a funding ratio of 15% to 25% with 25% being reserved for masonry/structure repairs and repairs to original windows/doors for projects that have a Conservation Plan in place; c. That the maximum Heritage Maintenance Grant be set at $500 at a funding ratio of 15%. This grant funding model has been administered by the City of Saint John for 2012 and At the time of the budget reduction, it was presumed that $90,000 would be insufficient to support all requests for grant funding. However, Heritage staff and the Heritage Development Board (HDB) have experienced a significant drop in the total number of successful grant awards and year-end grant total payout with released amounts of only 57% in 2012 and 30% in 2013 of the $90,000 budget total.

35 The HDB and Heritage staff express desire to implement changes to the 2014 Heritage Grant funding model (funding ratios and caps) to better serve the heritage community as well as aligning the focus with the program s primary objectives: to encourage retention of designated heritage buildings. The purpose of this report is to provide HDB with the proposed amendments to the Heritage Grant Policy as it relates to the funding ratios. DISCUSSION Current State: Grant funding year-end totals over the past two years has declined significantly since the grant policy reforms in The HDB and staff have identified several changes that have influenced the drop in annual grant awards to an all-time low of approximately 1/3 of the total funding budget (in 2013). For two years the Heritage Grant funding budget of $90,000 has not been reached; in 2012 a total of $51,466 was released (30 successful grants) in 2013 the total declined again to $27,188 (20 successful grants). In past years, the annual grant budget of $200,000 has not been sufficient to fund the number of requests for grants The total grant envelope is and was allocated on a first-come first-serve basis, where all of the funding was fully committed (conditionally approved) by late summer/early fall. Currently, a significant portion of the grant budget is left untouched at the end of the year. This decline is one indication that the current grant funding model is ineffectively supporting the heritage community. In recent years, heritage projects have been noticeably smaller, where the scope of work has been generally based on necessity, overdue repairs and maintenance. Compared to previous years, individual project scales are considered minor for instance, only one application in 2013 reached the maximum Conservation Grant amount of $5,000. When individual construction costs are less, along with low funding ratios, it results in a trifling year-end total. The shortfall in grant totals may be attributed to the current slow economic climate in this region. The population has been conservative with their spending and building projects, as noticed in the steadily declining numbers for Heritage Permits as well as Building Permits. Staff found that in some circumstances approved heritage projects were never started (2013); and some projects were started but not completed within the year, consequently, the property owner did not continue with the grant application process. It is presumed there may be a misperception among heritage property owners regarding the Grants for Heritage Conservation Program an assumption that there is little grant money available now, after the budget cut of 2012 and the grant reductions. This notion is likely an outcome of the insufficient awareness about the program. In past years, there has been very little public outreach regarding the categories of grant funding that is accessible for heritage maintenance/restoration projects, or the application process. Lack of awareness has been a weakness; the Heritage Service has seen some staff vacancies and a shortage of communication with the public at a time when the Grant program was undertaking major changes in its policy. Furthermore, the HDB and staff have implemented Council s reforms to the grant policy, with regards to grant eligibility, specifically, no longer funding roof replacement, new development (infill construction, decks, etc.), or contemporary materials. The grant policy s primary objectives have become foremost. More narrow focus on eligibility has contributed to the reduced grant totals, at the same time, has increased the accountability with respect to the use of public funds. Recommended Reforms:

36 Increased public awareness of the grant program will be a significant factor in creating a successful impact, and ultimately achieving the results we aim for. Adjustments to the policy and to the funding model are needed to better suit the circumstances of this economy and to better serve the community. The following reforms to the grant funding model will reflect the benefit of restoration and increase funding for individual projects: 1. Heritage Maintenance Grant: A grant of 25% up to a maximum of $750 per year provided for routine maintenance improvements such as painting, repairs, or storefront signage for tenants. Maintenance Grants are available to properties without a Conservation Plan in place. 2. Heritage Conservation Grant: A grant of 25% - 45% up to a maximum of $7,500 per year to support large conservation projects for properties which have a Conservation Plan in place. There are two levels of funding provided by the Conservation Grant, depending on the nature of the project: a) 25% up to a maximum of $7,500 for maintenance work. b) 45% up to a maximum of $7,500 for restoration work to original characterdefining elements, and for major projects such as masonry or structural repair. 3. Heritage Conservation Plan Grant: A grant provided to offset the cost of retaining a design professional (architect or engineer) to prepare a Conservation Plan for designated heritage properties. A Conservation Plan provides the property owner with a phased plan to undertake required heritage/structural work. 50% of the cost is funded up to a maximum of $1,500. In each category the grant funding maximums are increased by 50% as well as an increase in the funding ratios to 25%-45%. The HDB recognizes the cost burden of restoration work specifically that this work requires experienced trades workers and costly materials. Increasing the funding ratios will provide larger awards on an individual basis, while working within the same annual budget. When this new model is applied to the grant totals from 2012 and 2013, they are each still below the budget. The aim is not to simply exhaust the funding budget with the ratio changes, but to shape the parameters which more appropriately fund heritage conservation work. Furthermore, the goal is to provide real financial incentive for property owners to undertake necessary maintenance projects and encourage restoration rather than replacement. This year, Heritage Services are preparing for more grant applications, so the proposed changes are relatively conservative. Through the grant policy and procedural changes [report and discussion to be held at the following HDB meeting], a strong awareness piece will be implemented to open the lines of communication and attract new grant applications. RECOMMENDATION For the Heritage Development Board to consider the proposed changes to the Grants for Heritage Conservation Program as it relates to the grant funding ratios.

37 Improvements to the Heritage Grant Program Report to the Heritage Development Board, March 3, 2014 Attachments: 1. Deloitte Report: Grants for Heritage Conservation Program, January 31, City of Saint John: Grants for Heritage Conservation Program: Policy for Approval, March 3, Grants for Heritage Conservation Program: Application Form 4. Grants for Heritage Conservation Program: Grant Summary Form 5. Heritage Grant Application Process (Public Procedure) 6. Heritage Grant Application Form & Grant Summary Form Comparisons 7. External/Internal Procedure for a Heritage Grant (Internal Use Only) 8. Internal Comparison of Heritage Grant Procedures

38 REPORT TO HERITAGE DEVELOPMENT BOARD: IMPROVEMENTS TO THE HERITAGE GRANT PROGRAM PHASE ONE Date: March 3, 2014 To: From: Heritage Development Board Growth and Community Development Services Prepared by: Amy Poffenroth, P.Eng, MBA Deputy Commissioner BACKGROUND The Grants for Heritage Conservation Program is an incentive program designed to encourage heritage property owners to meet the spirit and intent of the Saint John Heritage Conservation Areas By-law, as expressed in the National Standards for Conservation of Historic Places in Canada and Saint John s own series of Practical Conservation Guidelines. Heritage Grants are not construction subsidies; they are intended to assist owners to retain traditional materials and details of characterdefining elements and, if necessary, replace them with new components, matching the original materials and profiles. In August 2012, Common Council adopted revised funding ratios for the three different types of grants and approved the Recommended Reforms to the Heritage Conservation Grant Guidelines, which also included the Policies for Approval: Grants for Heritage Conservation Program. ISSUES WITH THE EXISTING GRANT PROGRAM Late in 2012 and early in 2013, Staff noted a number of issues and deficiencies with the Grant program that needed to be corrected and improved. Some of these are listed below: Awareness, knowledge and understanding of the program was wanting among Heritage property owners; Processes and procedures were not documented; Internal controls, standards and targets were not developed or documented; Eligibility requirements were at times unclear;

39 Applicants were providing insufficient and/or incomplete submissions, deadlines were not being met, receipts submitted by the applicant were not linked to the approved Certificate of Appropriateness [Heritage Permit]; The program was at risk of being abused; for instance, required permits were not always in place and amounts claimed for the grant program were sometimes higher than the estimates provided for purposes of obtaining building permits; Grant renewals followed no particular process and were difficult to track and manage; some property owners were being funded more than the maximum over the life of the project; The forms were not clear or easy to use; Information and letters from the City were not always clear; program requirements were not clear; Applicants have submitted multiple applications in one year for various pieces of their project for the same building, making tracking and approvals confusing and difficult; Deadlines did not always make sense. For instance, applicants could successfully be approved for a grant 2 weeks before the end of the submission date; Conditional approvals are based on informal estimates provided by the applicant, but often they were not accurate either understated or overstated; Property owners may not have been aware that their tenant was applying for a grant for their building; Applicants had to wait until the end of the year to get their funding, even though their project may be completed months earlier. Recognizing that significant improvements were required and understanding the staffing shortage experienced by the Heritage Program, staff decided to engage the consulting services of Deloitte to: conduct a best practice review and research of other heritage grant programs in the country, identify areas for improvement and controls that should be implemented, develop and document a sound, supportable policy with associated processes and forms for the heritage grant program. The review was intended to assist staff implement a grant program that was more accountable and transparent for tax payers, provide clarity and consistency for applicants, improve communications for heritage property owners and generally provide more efficient and effective service delivery. THE DELOITTE REPORT FINDINGS AND RECOMMENDATIONS The final Deloitte report was received by staff on February 28, It is attached for the Board s review. Deloitte performed benchmarking research on various heritage grant programs in Canada and included Atlantic Canadian cities as well as others across Canada. They reviewed heritage grant program guidelines and associated forms, as well as conducted interviews with the following 2 P a g e

40 municipalities with similar heritage grant programs to the City: Moncton, Halifax, Cape Breton, Toronto, Victoria and Vernon BC. Their best practice summary is shown on page 2 to 4 as well as Appendix A of their report. Deloitte also interviewed past applicants of Saint John s heritage grant program. Staff provided Deloitte with a list of past applicants; each of these property owners was invited by letter to participate in the interview by calling if they were interested. Deloitte interviewed four past applicants to get their feedback. General feedback identified a number of issues, including a lack of information about the program s objectives and processes; difficult to understand the process; lack of communication with current and prospective grant applicants; information is difficult to find on the website. Based on their best practice research and interviews with staff and past applicants, Deloitte developed a number of recommendations for policy and procedural change and/or clarification to implement a number of internal controls to the program. Deloitte recommended that the changes be implemented in two phases. Staff agrees with a phased approach, but will be recommending slight changes to the phasing that Deloitte has suggested. The significant changes as recommended by Deloitte are summarized below and are detailed on pages 5 7 of their report. Property owners must be in good standing with the City, meaning no unpaid taxes/accounts, outstanding by-law or permit violations; Property owners must have insurance on the property; The project for which a grant has been conditionally approved must be completed within the fiscal year; Heritage grant applications are to have submission deadlines in the Spring (Phase 2); Grant funding is released after 60 days of the summary form being completed; Applicants are to provide written estimates with the application form. In addition to these changes, Deloitte and staff has worked together to develop and document administrative processes of the program, including improving both the Application form and the Grant Summary form and any associated letters. THE PHASED APPROACH Based on the Deloitte report and in-depth staff review and discussion, we are proposing a phased approach to the grant program improvements. Phase 1 focuses on administrative improvements and a clear, concise policy document; it is recommended to be implemented as soon as it receives Board endorsement and final Council approval. Phase 2 implements changes that require more research and discussion on the details and implementation plan, including communication with heritage 3 P a g e

41 property owners prior to rolling out the changes. Phase 2 is intended to be implemented on January 1, 2015, with Board and Council approval in early Fall. Significant changes in Phase 1 include: Applicants to be in good standing with the City; Applicants to have home insurance on the subject property; Applicants to provide a written estimate; Clarification that property owners are eligible for one grant per category per year per PID #; Tenants are eligible for a grant for storefront signage without affecting the property owner s ability to access a Conservation grant; Applicants can receive grant funding within 60 days of submitting the Grant Summary form they do not have to wait until the end of the year for payment. Significant changes in Phase 2 include all of Phase 1 improvements in addition to: Two written estimates (including business numbers) are required with the application form; grant conditional approvals will be based on an average of the two estimates; Grant applicants will be received between January and April only with approval decisions being made by June; Applicants must complete their projects within the fiscal year except in exceptional circumstances; Grant conditional approvals will be approved by staff to reduce applicant wait times. Phase 2 improvements require further review and research and will be brought to the Board at a future date for its consideration. PHASE 1 IMPROVEMENTS Phase 1 of the grant improvement program includes some policy changes and clarifications, new forms and letters and administrative improvements. The policy document is attached to this report. Also attached to this report is a chart that explains and compares the current procedures/policies with the proposed changes in phase 1 and phase 2. This document provides more details on the individual improvements that are proposed. Highlights of the changes in the policy are discussed below: POLICY Categories of Grants The funding ratios for the categories of grants have been modified as previously discussed with the Board. In each category the grant funding maximums are increased by 50 percent as well as an increase in the funding ratios to percent. It also outlines a new initiative that intends on increasing flexibility for tenants so they can access grant funding 4 P a g e

42 for storefront signage without affecting their landlord s ability to access Conservation grant funding. A tenant in this scenario is eligible for a maintenance grant for 25% of their signage project, up to a maximum of $750. The property owner can still access a Conservation grant up to a maximum of $7,500 in the same year. Eligible Properties This section clarifies practices that are typically already in place but have not been documented, and implements Deloitte s recommendations. New items include clarity around one grant per category per year per PID #, what is meant by in good standing with the City and outlines that home insurance is required. Eligible and Ineligible Work and Materials These sections clarify practices and policies are that already in place. Heritage Grant Funding Applications This section outlines application requirements, documents existing practices and implements Deloitte s recommendations concerning the application form. It also requires that applicants submit a written estimate. Building Inspection and Heritage Officer Inspection These sections clearly outline that a successful building inspection and heritage officer inspection is required prior to receiving grant funding, and that it is the responsibility of the applicant to call for the inspections once the project is complete. This will help to address some of the compliance issues that have been experienced and allows time for alterations to be made prior to final submission of the grant summary form. Grant Summary Form FORMS This section outlines form requirements, documents existing practices and implements Deloitte s recommendations concerning the grant summary form. It also provides for a turnaround time of 60 days for staff to send the final approval letter with the payment. This means that applicants do not have to wait until the end of the year to receive the grant payment. The Application form and the Grant Summary form (both attached) have been improved so it is easier for applicants to fill out and easier for staff to process. Submission requirements are clearly outlined on the forms to ensure completeness. Also attached to this report is a chart that explains and compares the current form requirements with those in phase 1 and phase 2. 5 P a g e

43 ADMINISTRATIVE IMPROVEMENTS The administrative improvements include documenting existing practices into the policy, documenting the procedure, developing easy to use forms and modifying the tracking spreadsheets so information is more readily available. The policy document, the application process handout and new forms will all be available on the website and at the office. NEXT STEPS If endorsed by the Board, the next step would be for the Board to prepare a brief report to Council recommending approval of the Policy document. If the Board is in a position to endorse the Phase 1 improvements, then staff will prepare a report to council for the meeting of March 17 th. Once approved, staff will mail out an information package to all heritage property owners with a cover letter, the policy document, the application and grant summary forms, and the application process handout. This information will also be included on the City s website on the Heritage Services page. Staff is also in discussions with the City s Communications office to explore additional opportunities for raising awareness about the grant program improvements. We will keep the Board advised of any press releases, or other media events. Any applicants who have already applied for a grant will be contacted by staff immediately after Council approval to provide them with the new forms and advise them of the requirements. They will be required to submit new forms, to be considered by the Board for approval. Staff recommends that they retain their current priority sequence even if they do not submit the form in the same sequence. It is suggested that they are given 30 days to submit the new forms in order to retain their priority sequence. After Phase 1 is fully implemented, staff will be continuing research and discussion on the Phase 2 improvements, with the intention of returning to the Board for endorsement in early Fall. RECOMMENDATION Staff recommends that the Heritage Development Board endorse the Phase 1 improvements to the Heritage Grant program as outlined in this report and prepare a report to Council recommending approval of the attached Grants for Heritage Conservation Program: Policy for Approval. 6 P a g e

44 January 31, 2013 Grants for Heritage Conservation Program The City of Saint John

45 Table of contents Section 1: Summary of scope and deliverables... 1 Section 2: Summary of benchmarking research and best practices... 2 Section 3: Recommended policy/procedure improvements... 5 Section 4: Grants for Heritage Conservation Program Policy... 8 Section 5: Implementation of internal controls Appendices Appendix A Benchmarking research of similar programs Appendix B Application form Phase 1 Appendix C Application form Phase 2 Appendix D Grant summary form Appendix E Conditional approval letter Phase 1 Appendix F Conditional approval letter Phase 2 Appendix G Denial letter Phase 1 Appendix H Denial letter Phase 2 Appendix I Grant funding approval letter Appendix J Grant funding denial letter Appendix K Frequently asked questions Phase 1 Appendix L Frequently asked questions Phase 2 Appendix M Process flow chart Deloitte LLP and affiliated entities. City of Saint John Grants for Heritage Conservation Program i

46 Section 1: Summary of scope and deliverables Overview of facts and circumstances The Grants for Heritage Conservation Program (the Heritage Grant program ) currently lacks a formal administration policy and the appropriate processes and internal controls to support such a policy. As a result, the Growth and Community Development Services of The City of Saint John (the City ) has requested Deloitte LLP s ( Deloitte ) assistance with the design and documentation of an administrative policy and the resulting processes and internal controls for the Grants for Heritage Conservation Program. Scope of report The scope of this report is based on the agreed upon deliverables in the Statement of Work as agreed to by the City and Deloitte. The scope and associated deliverables have been updated as appropriate throughout the engagement based on discussions with City staff. The agreed upon scope of engagement and final deliverables were outlined as follows: Information gathering and research Performing benchmarking research on similar existing heritage grant programs in Canada, with a focus on Municipalities with similar heritage programs. Best practices identified during the benchmarking research are included in Section 2 and Appendix A of this report. Interviews with City Staff (Acting Commissioner, Heritage Officers, and Building Inspectors) and other stakeholders have occurred to gain an understanding of existing process and areas that require improvement. Review and consideration of recommendations from the Heritage Development Board. Interviews with former Heritage Grant applications to understand areas for improvement. Review of a sample of grant applications that are considered problematic to understand the current program limitation. Review of documentation of the existing process relating to the Heritage Grant program prepared by the City. Reporting Project status updates with the Acting Commissioner. Closing meeting with management to review deliverables. Deliverables Report to management summarizing the project and best practices observed in our research. Heritage Grant program policy and process document for phase 1 and full implementation. Heritage Grant application form for phase 1 and full implementation. Heritage Grant fact sheet (e.g., Frequently Asked Questions). Heritage Grant communication of approval and denial letters for phase 1 and full implementation. Heritage Grant program process flow chart. Deloitte LLP and affiliated entities. City of Saint John Grants for Heritage Conservation Program 1

47 Section 2: Summary of benchmarking research and best practices Existing grant programs in Canada Deloitte performed benchmarking research on various heritage grant programs available in a number of Canadian municipalities. Our research focused on both Atlantic municipalities and others across Canada to provide the best cross section of best practices. We obtained Heritage Program Guidelines and Application Forms as well as performed interviews with the following municipalities across Canada that had similar heritage grant programs to The City of Saint John: Moncton, New Brunswick Halifax, Nova Scotia Cape Breton, Nova Scotia Toronto, Ontario Victoria, British Columbia Vernon, British Columbia There were a number of eligibility and application requirements for heritage grant funding that were consistent across the majority of municipalities selected for the comparison. These best practices for eligibility and final funding are as follows: Where required, appropriate building permits must be obtained prior to commencing proposed project. Applicant and property owner are required to be in good standing with the municipality and shall not have unpaid taxes or any other legal claim outstanding. A minimum of two to three contractor estimates from qualified restoration professionals for the proposed work were required to be provided with the application form. Owner performed labour is not eligible for grant funding. Any changes made to proposed work need to be appropriately reported to the Heritage Department and any additional work completed that is not reported will not be eligible for grant funding. Projects must be completed within the fiscal year for which they are approved. Grants conditionally approved for projects not completed by the end of the fiscal year are forfeited except in exceptional circumstances. Grant payment is conditional on satisfactory completion of approved work by a Heritage Officer, photographic documentation of completed work, and submission of receipts and paid invoices, all by the deadline outlined in the policy. Final grant funding is contingent on available program funds. Deloitte LLP and affiliated entities. City of Saint John Grants for Heritage Conservation Program 2

48 Additionally, some municipalities included limits on the number of grants and/or the amount of grants per property over certain time periods including: Moncton, NB and Halifax, NS both limited the number of grants per property to one per year and two in any four year period. Cape Breton, NS limits one project per property approved in any given year. Victoria, BC limits the grants for any one property to a total of $20,500. In Vernon, BC, the owner of a property on the Vernon Heritage Register can apply for a Heritage Restoration Grant, for a maximum of $5,000; and, notwithstanding the amount of the first grant awarded, the heritage property may be awarded a second grant which is not to exceed $3,000 and is not to be awarded within 5 years of the first grant being received by the property owner. Some of the municipalities selected for the benchmarking research comparison also have grant preference or priority guidelines including: Moncton, NB Preference is given to first time applicants and for restoration of publicly visible features. Priority is also given to projects involving preservation and restoration of historic structural and weatherproofing elements. Cape Breton, NS Priority is given to first time applicants. Priority is also given to projects that significantly enhance the heritage value of the property. Vernon, BC Priority is given to projects in the following order of importance: 1) exterior restoration, 2) exterior and structural repair, and 3) exterior painting. The findings discussed above were taken into consideration when drafting the formal policy and application forms for the Grants for Heritage Conservation Program. The full analysis and results of the benchmarking research we performed is included in Appendix A. Interviews with past applicants Interviews were performed with four past applicants with varied degrees of experience with the program, ranging from three years to ten years. The following general feedback was obtained: There is a lack of information available to the public surrounding the Grants for Heritage Conservation Program objectives and processes, making it difficult to understand. There is a lack of communication between the staff involved in the Grants for Heritage Conservation Program and current and prospective applicants. The information that is currently available is difficult to find on the City s website. Deloitte LLP and affiliated entities. City of Saint John Grants for Heritage Conservation Program 3

49 The interviewees also made the following suggestions to aid in reducing the negative feedback outlined above: Information, including the program s policy and application forms, should be available on the Heritage Conservation section of the City s website. Outreach to real estate agents could be performed to inform them of the grant program and the requirements. This would aid in their discussions regarding the impact of purchasing a heritage property with new heritage property owners. Public information meetings should be held early each year to remind experienced heritage property owners and inform new heritage property owners of the Heritage Grant policy requirements and to communicate any changes to the program or policy. Communication of the meetings should be publicized in the newspaper, radio, on the City s website, and where possible, individual heritage property owners should be sent an or a letter communicating that a meeting will be held. There should be more consistent communication with current year applicants throughout the year, including reminder letters about deadlines, issues with grant summary forms that are returned early, and conditional approval letters should be sent out in accordance with the timelines outlined in the new policy. The feedback gathered through our interviews was taken into consideration in the analysis of our research used to create the formal policy and application forms for the Grants for Heritage Conservation Program. Deloitte LLP and affiliated entities. City of Saint John Grants for Heritage Conservation Program 4

50 Section 3: Recommended policy/procedure improvements Overview Transformation of processes and policies is of great significance to the public sector today. Currently, all public sector entities are under scrutiny related to the ways programs are developed, funded and delivered. Transparency and accountability, and efficient service delivery are critical to the success of any public sector organization. Public sector organizations that are able to master change will thrive; those that cannot will continually be challenged by increasing costs and public criticism and the City of Saint John Heritage Conservation Program is no different in this regard. Currently, the only existing policy for the Grants for Heritage Conservation Program is documented in the August 27, 2012 Council Report. As a result, there is limited public awareness and understanding of the program, as well as confusion regarding the administration and internal controls of the program. This increases the risk that the program will not be able to meet its objectives and the program will be seen by taxpayers as waste of resources. In our compilation of this report we have obtained information from staff interviews, applicant interviews, a review of program documentation and benchmarking research. Through our analysis of the information obtained we have recommended a number of changes to the current policy for the Heritage Grant program and recommend the implementation of a number of internal controls. We recommend that the proposed changes to the Heritage Grant program, resulting from the new policy, be implemented in two phases over the next two years. The first phase (contemplated for fiscal 2014) will see changes made to the requirements the applicants must meet in order to receive both conditional and final approval for grant funding. It will also involve implementing internal controls around the program to improve the effectiveness and efficiency of the administration of the program. The second phase will involve the implementation of further requirements for applicants as well as application deadlines for both grant applications and grant summary forms. Outlined below are the significant changes recommended to the current policy (including the proposed phase for implementation). We have outlined why we believe the change is necessary and the benefits of implementing this change. We have also provided two versions of the Heritage Grant program policy corresponding with each phase. Both versions of the formal policy are outlined in Section 4. Internal control recommendations are discussed in the next section, Section 5 of this report. Other documents referenced in the policies below (e.g., forms and applications) can be found in Appendices B through M. Recommended policy changes Home owners must be in good standing with the City The policy should include a requirement that property owners applying for Heritage Grant funds must be in good standing with the City, meaning they shall not have unpaid taxes or other significant amounts or outstanding bylaw violations and/or building permit violations. The purpose of this recommended requirement is to ensure that the City is not disbursing tax payer money to applicants who have outstanding accounts with the City or violations and building permit violations. This recommendation reduces the risk that the Heritage Grant Program will be seen as a mechanism to provide funding for those applicants not in good standing with the City to pay outstanding balances. Deloitte LLP and affiliated entities. City of Saint John Grants for Heritage Conservation Program 5

51 We recommend that this requirement be implemented using a phased in approach as a process will need to be developed to coordinate with other City departments and services to ensure information on balances owing by property owners can be shared. We recommend in Phase 1 of the policy implementation that the requirement only states that applicants cannot have unpaid taxes and bylaw and building permits violations with the City of Saint John. We recommend the other requirements related to other significant amounts be implemented in Phase 2. Other significant amounts may include outstanding water and sewage balances owing or significant balances of parking tickets or other violations, which are all administered by different departments. Consent must be obtained from the property owner to acquire this information from other City departments and services, which has been added to the application form in the following Appendices. Insurance We recommend the Phase 1 policy requires that the property owner has home insurance on the heritage property for which Heritage Grant Program funding is being received, and specifically, that any damage to work completed would be covered by this insurance. This requirement ensures that the City s investment in the heritage conservation of a given property through Heritage Grant funding is protected in the event of damage or loss of the heritage property through coverage of insurance. Secondly, this recommendation also reduces the risk that the City is investing tax payer money in heritage buildings that cannot obtain comprehensive insurance due to building code violations or other unsafe practices, or in properties where the owner does not care to protect their investment. This is also a best practice we noted that is currently implemented by half of the municipalities in the benchmarking research. Completion of project within fiscal year The current Heritage Grant program does not currently have any established limits on project durations or a required completion date. In some cases, projects are carried on for years and the applicants may continue to receive grant funding over a number of years for a continuing project. This gives the appearance that there is no limit of the amount of grant funding that can be obtained for a given project and can lead to abuses of the program through a lack of controls over project timelines. To reduce the risk of abuse of the Heritage Grant program in future years we recommend that there be a requirement that all projects applying for grant funding be completed by the end of the fiscal year. This also means that any incomplete projects will be forfeited except in exceptional circumstances, which will be determined on a case by case basis by the City staff responsible for the determination of grant funding. If the applicant meets the exceptional circumstances, they can make a new application for the proposed work in the subsequent year. This recommendation is also considered a best practice as it is currently implemented by every municipality included in the benchmarking research. We recommend that this change be implemented in Phase 1 of the policy. Heritage grant application form deadlines Currently, Heritage Grant applicants can apply for a grant at any time during the year prior to the end of November. This increases the risk that projects will not be completed within the fiscal year and that abuses of program funding may occur, as discussed in the above paragraph. It also increases the difficultly of year over year planning and administration of the Heritage Grant program and ultimately, the distribution of budgeted funds in the most effective and efficient manner. We recommend implementing a deadline for the submission of Heritage Grant Application forms, to be introduced in Phase 2 of the policy changes. The purpose of introducing this deadline is to facilitate the planning and administration of the Heritage Grant program and to limit the abuses associated with a lack of deadlines. With all applications received by a deadline, the Heritage Staff will have the ability to provide a better service to applicants and have more consistent and timely communication with the conditionally approved applicants throughout the remainder of the year, improving relationships with heritage property owners and increasing the overall awareness of policy requirements. It will also allow planning for the administration of the budget more efficiently and effectively. This deadline will also facilitate the ability of the City to provide the heritage grant funding sooner if all requirements for funding are met. This new requirement will also allow the City to implement a priority system in the future if desired. This recommendation is considered a best practice as it is currently implemented by every municipality included in the benchmarking research. Deloitte LLP and affiliated entities. City of Saint John Grants for Heritage Conservation Program 6

52 60 day deadline for approval/denial In the past, the deadline for Grant Summary Forms was the end of November, after which funding was approved or denied and cheques were typically run and sent out in mid-december. We recommend that this deadline remain to facilitate the administration of the Heritage Grant Program; however, changes to the policy should be implemented that reward heritage property owners who comply with policies and complete their project work early, have inspections completed and submit their grant summary forms on a timely basis. We recommend that Heritage Grant payments for successful grant applicants be paid 60 days after receiving a successfully completed Heritage Grant Summary Form. This means that the Heritage Staff are required to complete the review process, approve or deny funding and provide payment within a 60 day timeframe. Upon approval or denial, the appropriate letter will be sent out to the applicant and if approved, a cheque will also be sent. The purpose of this policy change is to give conditionally approved applicants the incentive to complete their proposed projects in a timely manner as they will then receive their funding when their project is completed as opposed to the end of the fiscal year. Estimates The current policy requires applicants to state the estimated project cost on the Heritage Permit Application Form. This amount is used to calculate the preliminary amount of Heritage Grant funding. Currently there is no requirement for formal project estimates from contractors to be submitted with the Heritage Permit Application Form, increasing the risk that inaccurate estimates will be used to calculate the conditionally approved amounts or that property owners have not contemplated the full cost of the project. We recommend that applicants for Heritage Grant funding be required to submit two formal contractor estimates for the proposed work with their Heritage Grant Application. This recommendation is considered a best practice as it is currently implemented by every municipality included in the benchmarking research. We recommend that this change to the policy be implemented in Phase 2 to give the City adequate time to introduce this significant change. As discussed above, formal project estimates will allow the amount of conditional approval to be more accurately calculated; however, the requirement does not completely eliminate the risk of inaccurate estimates being provided. Applicants may have pre-existing business or personal relationships with contractors and may request overstated formal estimates to increase the amount of conditional approval and grant funding to be received. In order to ensure that a fair amount of grant funding is awarded for the proposed work and minimize the risk of overpayment of grant funding, it is recommended that the amount of conditional approval be calculated as the average between the two formal project estimates provided with the Heritage Grant Funding Application. Deloitte LLP and affiliated entities. City of Saint John Grants for Heritage Conservation Program 7

53 Section 4: Grants for Heritage Conservation Program Policy Policy Phase 1 Program Aim The Grants for Heritage Conservation Program is an incentive program designed to encourage owners to meet the spirit and intent of the Saint John Heritage Conservation Areas Bylaw, as expressed in the National Standards for Conservation of Historic Places and Saint John's own series of Practical Conservation Guidelines. Heritage Grants are not construction subsidies; they are intended to assist owners to retain traditional materials and details of character-defining elements and, if necessary, replace them with new components, matching the original materials and profiles. Objectives Primary: To encourage retention of designated heritage buildings and their character-defining elements, including their materials and details To maximize conservation of the character defining elements of designated heritage buildings using an approach of: understanding, documenting, planning (for proposed use) and then intervening. Secondary: To create employment opportunities for the citizens of Saint John To discourage demolition of designated heritage buildings To reduce waste and the impact on the environment by demonstrating that the greenest building is one that already exists To encourage owners to undertake necessary but costly major conservation projects. Categories of Grants 1. Heritage Maintenance Grant: a) 15% to a maximum of $500 b) For applicants who do not have a conservative plan in place, with the exception of a proposed commercial tenant sign. 2. Heritage Conservation Grant: a) 15%-25% to a maximum of $5,000 b) 25% is reserved for structural or masonry repairs or repairs to original doors and windows c) Eligibility requires a Conservation Plan to be in place 3. Heritage Conservation Plan Grant 50% to a maximum of $1,000. Deloitte LLP and affiliated entities. City of Saint John Grants for Heritage Conservation Program 8

54 Eligible Properties Grants are awarded based on the Property Identification Number (PID) rather than per civic address. Each PID is eligible to receive one grant per category per year. Property must be a non-government owned, designated heritage property located in one of the designated Heritage Conservation Areas in the City of Saint John. Refer to the Saint John Heritage Conservation Areas By-Law for a listing of Saint John Heritage Conservation Areas. A copy of the By- Law can be found on the City s website, or picked up in person at the Growth and Community Development Services offices. Property must be covered by home insurance. Property owner must be in good standing with the City of Saint John and shall not have unpaid taxes. Property owner must not have any outstanding property related bylaw violations and/or building permit warrants. Eligible Work and Materials Commercial tenant signage using traditional detailing and materials. Projects must be to the exterior of the property. For appropriate materials and restoration approaches please see the Practical Conservation Guidelines on the City s website, which can also be picked up in person at the Growth and Community Development Services offices. Projects must be completed prior to the Grant Summary form deadline Grant funding for projects not completed by the deadline will be forfeited except in exceptional circumstances. Ineligible Work and Materials Contemporary materials such as vinyl or aluminum clad windows, steel doors, or vinyl siding. Work carried out prior to issuance for a Certificate of Appropriateness (Heritage Permit). Work carried out without required building permits in place prior to work being undertaken. Work related to landscaping, contemporary roof repairs/replacement, or new infill development/addition. Owner performed labour. Poor or defective work. Heritage Grant Funding Applications Before completing and submitting a Heritage Grant Funding Application form, applicants must first apply for a Certificate of Appropriateness (Heritage Permit) and building permit (if required), and include application numbers on their Heritage Grant Funding Application form. Application forms can be found on the City s website, or picked up in person at the Growth and Community Development Services offices. The following must accompany the completed application form: Building permit number, if required for proposed work; Recent photographs of all sides of the building and detailed photographs of area related to proposed work; Signature of both the applicant and owner of the property; Those applying for a Heritage Conservation Grant must copy and attach page extracts from the Heritage Conservation Plan that relate to the proposed work to be funded. Those applying for a Heritage Conservation Plan Grant must include a copy of the Heritage Conservation Plan. Approval of a Heritage Grant Application conditionally approves the applicant for grant funding at the end of the fiscal year rather than guaranteeing it. Owner must provide start and end date for proposed project. Deloitte LLP and affiliated entities. City of Saint John Grants for Heritage Conservation Program 9

55 Review of Heritage Grant Funding Applications for Conditional Approval or Denial Applications will be screened for basic eligibility as they are received (i.e., application package is complete and legible). Applicants will be notified promptly if their application is ineligible. Applications will be reviewed by Heritage Staff for the following: Ensuring the Certificate of Appropriateness (Heritage Permit) was issued. If required, confirming building permit application has been issued. Reviewing project estimates and calculating amount of requested grant funding. Awarding conditional approval to applicants that meet the eligibility requirements. Heritage staff will notify applicants in writing within 30 days of their conditional approval or denial. Building Inspections A successful building inspection by Building & Inspections Services for the proposed work to be funded is required to receive grant funding. It is the responsibility of the grant applicant to notify the Building & Inspections Services offices of the project completion and arrange for inspection. Building inspections must be arranged and completed prior to submission of the Grant Summary Form as outlined below. The inspection must be completed by November 30. Heritage Officer Inspection A successful inspection by a Heritage Officer of the City of Saint John is required to receive grant funding. It is the responsibility of the grant applicant to notify the Growth and Community Development Services offices that the project is complete and ready for inspection by the Heritage Officer. Heritage Officer inspections should be arranged and completed prior to submission of the Grant Summary Form as outlined below. The Heritage Officer will inspect the completed work to ensure that it shows good craftsmanship and was completed in a professional manner and according to the Certificate of Appropriateness (Heritage Permit). Photographs of the completed work will also be obtained. The inspection must be completed by November 30. Grant Summary Form The Grant Summary Form is required to be completed and submitted once the project work related to the grant application is complete in order to receive grant funding. Grant Summary Forms are accepted until November 30. The Grant Summary Form should include the following information and attached documents: Using the space provided, an itemized summary of the invoices and receipts that correspond to the work outlined in the Certificate of Appropriateness (Heritage Permit) with the amounts stated pre-hst Legible photocopies of all invoices and receipts included in the summary with proof of payment Applicant must assert that both a successful building inspection and heritage inspection have been completed. Signature of the Certificate of Appropriateness (Heritage Permit) applicant, the legal owner of the property, and contractors who performed the project. It is the responsibility of the applicant to ensure that the itemized summary is complete, accurate, and legible. Grant Summary Forms are reviewed when received and applicants will be notified through written communication within 60 days of submission whether the form is approved, with attached cheque, or whether it has been denied. Deloitte LLP and affiliated entities. City of Saint John Grants for Heritage Conservation Program 10

56 Payment or Denial of Grant Funding Grant funding depends on successful building and heritage inspections and a properly completed and approved Grant Summary Form. The deadline for release of grant funding is 60 days after submission of the Grant Summary Form provided all requirements are met. Policy Phase 2 (Full Implementation) Program Aim The Grants for Heritage Conservation Program is an incentive program designed to encourage owners to meet the spirit and intent of the Saint John Heritage Conservation Areas Bylaw, as expressed in the National Standards for Conservation of Historic Places and Saint John's own series of Practical Conservation Guidelines. Heritage Grants are not construction subsidies; they are intended to assist owners to retain traditional materials and details of character-defining elements and, if necessary, replace them with new components, matching the original materials and profiles. Objectives Primary: To encourage retention of designated heritage buildings and their character-defining elements, including their materials and details To maximize conservation of the character defining elements of designated heritage buildings using an approach of: understanding, documenting, planning (for proposed use) and then intervening. Secondary: To create employment opportunities for the citizens of Saint John To discourage demolition of designated heritage buildings To reduce waste and the impact on the environment by demonstrating that the greenest building is one that already exists To encourage owners to undertake necessary but costly major conservation projects. Categories of Grants 4. Heritage Maintenance Grant: a) 15% to a maximum of $500 b) For applicants who do not have a conservative plan in place, with the exception of a proposed commercial tenant sign. 5. Heritage Conservation Grant: a) 15%-25% to a maximum of $5,000 b) 25% is reserved for structural or masonry repairs or repairs to original doors and windows c) Eligibility requires a Conservation Plan to be in place 6. Heritage Conservation Plan Grant 50% to a maximum of $1,000. Deloitte LLP and affiliated entities. City of Saint John Grants for Heritage Conservation Program 11

57 Eligible Properties Grants are awarded based on the Property Identification Number (PID) rather than per civic address. Each PID is eligible to receive one grant per category per year. Property must be a non-government owned, designated heritage property located in one of the designated Heritage Conservation Areas in the City of Saint John. Refer to the Saint John Heritage Conservation Areas By-Law for a listing of Saint John Heritage Conservation Areas. A copy of the By- Law can be found on the City s website, or picked up in person at the Growth and Community Development Services offices. Property must be covered by home insurance. Property owner must be in good standing with the City of Saint John and shall not have unpaid taxes. Property owner must not have any outstanding property related bylaw violations and/or building permit warrants. Eligible Work and Materials Commercial tenant signage using traditional detailing and materials. Projects must be to the exterior of the property. For appropriate materials and restoration approaches please see the Practical Conservation Guidelines on the City s website, which can also be picked up in person at the Growth and Community Development Services offices. Projects must be completed prior to the Grant Summary form deadline Grant funding for projects not completed by the deadline will be forfeited except in exceptional circumstances. Ineligible Work and Materials Contemporary materials such as vinyl or aluminum clad windows, steel doors, or vinyl siding. Work carried out prior to issuance for a Certificate of Appropriateness (Heritage Permit). Work carried out without required building permits in place prior to work being undertaken. Work related to landscaping, contemporary roof repairs/replacement, or new infill development/addition. Owner performed labour. Poor or defective work. Heritage Grant Funding Applications Heritage Grant Funding Applications are accepted from January 1 April 30 of each fiscal year. Before completing and submitting a Heritage Grant Funding Application form, applicants must first apply for a Certificate of Appropriateness (Heritage Permit) and building permit, if required, and disclose these application numbers on their Heritage Grant Funding Application form. Application forms can be found on the City s website, or picked up in person at the Growth and Community Development Services offices. The following must accompany the grant application form: Building permit number, if required for proposed work Minimum of two written project estimates detailing work to be performed and the associated cost of the work from 2 separate contractors Recent photographs of all sides of the building and detailed photographs of area related to proposed work Signature of both the applicant and owner of the property Those applying for a Heritage Conservation Grant much copy and attach page extracts from the Heritage Conservation Plan that relate to the proposed work to be funded. Those applying for a Heritage Conservation Plan Grant must include a copy of the Heritage Conservation Plan. Approval of a Heritage Grant Application conditionally approves the applicant for grant funding at the end of the fiscal year rather than guaranteeing it. Deloitte LLP and affiliated entities. City of Saint John Grants for Heritage Conservation Program 12

58 Review of Heritage Grant Funding Applications for Conditional Approval or Denial Applications will be screened for basic eligibility as they are received (i.e., application package is complete and legible). Applicants will be notified promptly if their application is ineligible. A full review process of all grant funding applications will take place between May 1 and June 15. Applications will be reviewed by Heritage Staff for the following: Ensuring the Certificate of Appropriateness (Heritage Permit) was approved If required, confirming building permit application has been filed Reviewing project estimates and calculating amount of requested grant funding Awarding conditional approval to applicants that meet the eligibility requirements The amount of conditional approval will be calculated as the average of the two estimates provided. Deadline for sending out the conditional approval and denial letters is June 15 and the letters shall include the following information: Whether the applicant was approved or denied for conditional approval of grant funding If approved, a listing of the conditions that must be met. If denied, the reason for denial and additional information regarding the policy for heritage grant funding. Building Inspections A successful building inspection by Building & Inspections Services is required to receive grant funding. It is the responsibility of the grant applicant to notify the Building & Inspections Services offices of the project completion and arrange for inspection. Building inspections must be arranged and completed prior to submission of the Grant Summary Form as outlined below. The inspection must be completed by November 30. Heritage Officer Inspection A successful inspection by a Heritage Officer of the City of Saint John is required to receive grant funding. It is the responsibility of the grant applicant to notify the Growth and Community Development Services offices of the project completion and arrange for inspection by the Heritage Officer. Heritage Officer inspections should be arranged and completed prior to submission of the Grant Summary Form as outlined below. The Heritage Officer will inspect the completed work to ensure that it shows good craftsmanship and was completed in a professional manner and according to the Certificate of Appropriateness (Heritage Permit). Photographs of the completed work will also be obtained. The inspection must be completed by November 30. Grant Summary Form The Grant Summary Form is required to be completed and submitted once the project work related to the grant application is complete in order to receive grant funding approval. Grant Summary Forms are accepted until November 30. The Grant Summary Form should include the following information and attached documents: Using the space provided, an itemized summary of the invoices and receipts that correspond to the work outlined in the Certificate of Appropriateness (Heritage Permit) with the amounts stated pre-hst Legible photocopies of all invoices and receipts included in the summary with proof of payment Applicant must assert that both a successful building inspection and heritage inspection have been completed. Signature of the Certificate of Appropriateness (Heritage Permit) holder, the legal owner of the property, and contractors who performed the project. Deloitte LLP and affiliated entities. City of Saint John Grants for Heritage Conservation Program 13

59 It is the responsibility of the applicant to ensure that the itemized summary is complete, accurate, and legible. Grant Summary Forms are reviewed when received and applicants will be notified through written communication within 60 days of submission whether the form is approved, with attached cheque, or whether it has been denied. Payment or denial of grant funding Whether the applicant receives grant funding depends on successful building and heritage inspections and a properly completed and approved Grant Summary Form. The deadline for grant funding payments is 60 days after submission of the Grant Summary Form provided all requirements are met. Annual process timeline overview Phase/Requirement January 1 April 30 May 1 June 15 November 30 December 31 Heritage Grant application period x Review of Heritage Grant Funding Applications x Deadline for Letters of Conditional Approval or Denial to be sent x Inspection and Grant Summary Form deadline x Review of Grant Summary Forms x Deadline for Letters of Approval with cheques or Letters of Denial to be sent x Deloitte LLP and affiliated entities. City of Saint John Grants for Heritage Conservation Program 14

60 Section 5: Implementation of internal controls Overview Strong internal controls are vital to the success of any organization or program. Internal controls not only help prevent errors and other issues from occurring; they also drive better performance. Generally, when an organization has an inadequate level of internal controls, it can experience additional costs, wasted resources and heightened exposure to risk. To prevent these outcomes, and ensure the organization is running efficiently, it needs to ensure relevant internal controls are implemented and operating effectively. The Heritage Grant program is no different. Implementing a relevant and effective internal control structure will ensure program costs are reasonable, and will ensure effective management of both the funds allocated to the program, and its fiduciary responsibility to the tax payers of the City. As discussed in Section 3, through interviews with staff, and applicants, review of documentation and benchmarking research, weaknesses were identified related to the internal controls of administering the Heritage Grants Program. These weaknesses are identified below and recommendations on internal controls have been made accordingly. Documentation 1. The master spreadsheet that is used to track Certificates of Appropriateness and Grant Funding by the heritage staff is stored on the department network which gives all department employees access to the spreadsheet and the ability to alter the document, which could lead to errors or deletions in the content. It is recommended that while the master spreadsheet should remain on the network for access by heritage staff, the spreadsheet should be password protected so that only the appropriate heritage staff members can access and alter the information. 2. Generally, spreadsheets lack appropriate controls related to the security, completeness, accuracy, and validity of the information. As a result, incorrect information could be presented in reports to various stakeholders, incorrect amounts could be paid to Heritage Grant applicants or other errors can occur. Additionally, the previous master spreadsheet needs to be redesigned to reflect the information needs required to administer the new policy outlined in this report. A number of modifications were made to the spreadsheet to reflect the new information required and to increase the security, completeness, accuracy and validity of the data: a) Additional columns have been added related to requirements of the new policy, including ones that document when a control or program requirement has occurred, for example, building and heritage inspection signoffs. This ensures that there is a tracking mechanism for program requirements and ensures the data and tracking of information for the heritage grant program is complete. b) A number of columns now include lists that limit the value or type of input that can occur. This can reduce input errors and increase the overall accuracy and validity of the data. c) Two columns have automated formulas to calculate the conditional grant funding and the final grant funding. The cells in these columns have been locked via the protect sheet functionality in excel. Automation and security of certain cells will reduce potential input and formula errors and will increase the accuracy and validity of the information contained in the spreadsheet. Deloitte LLP and affiliated entities. City of Saint John Grants for Heritage Conservation Program 15

61 Owner vs. tenant The Grants for Heritage Conservation Application asks the applicant to specify if they are the owner of the property listed on the application. If they are not the owner, the contact information and signature of the owner is required on the application. There is no requirement for the applicant to attach proof of ownership. The applicant may not be the owner of the building and may forge the owner s signature to receive grant funding for work performed. The owner may also apply for grant funding for similar projects for the same property. It is recommended that prior to approving the applicant for conditional grant funding; a member of the Heritage Staff should confirm that the owner identified on the grant application form is the owner of the building. Building permits Not all applicants apply for and obtain the required building permits for the heritage work proposed on the grant funding application form and in the past there has been infrequent communication with the Building Permit division to ensure that an approved building permit has been obtained. Additionally, in cases where an approved building permit has been obtained, the estimates provided on the Heritage Grant application form are not compared to those provided on the Building Permit Application to confirm that the work being reported to both divisions is consistent. As a result, heritage renovation/restoration work may be completed and funding awarded to applicants who did not have the appropriate building permits in place or did not pass a final building inspection and therefore the work may not be up to code. It also gives applicants the ability to overstate estimates on their grant applications and understate estimates on their building permit applications. To help eliminate these issues, the application form has been updated requiring applicants to disclose their building permit number. In addition, we recommend a member of the heritage staff also confirms the application for a building permit was submitted and approved prior to granting conditional approval and to ensure the building permit was finalized and approved within 60 days of the applicant submitted their Grant Summary Form. The heritage staff should also confirm that the estimates are comparable. We also recommend that before final approval is made that the heritage staff also confirm that the work completed on the property passed its final building inspection. Grant Summary Form reminder In the past, after sending conditional approval letters to approved applicants, there was little to no further communications until the Heritage Staff receives communication from the applicants or receives Grant Summary Forms. A lack of formal communication with applicants increases the risk that deadlines for Grant Summary form completion will be missed resulting in either the heritage grant program not being fully utilized to the extent that is approved in the budget or it will result in exceptions to the policy, which may lead applicants to believe that the policy requirements are not enforceable. We recommend that reminder letters be sent out by October 1 to all conditionally approved applicants reminding them of the November 30 deadline for both building permit and heritage permit inspections and Grant Summary Form submissions. A copy of a blank Grant Summary Form should also be attached. Additionally, we recommend that contact information for arranging both a heritage inspection and a building inspection be included in the reminder. Matching of receipts to heritage permit In the past, applicants have submitted receipts for work that is not related to the work approved by the Heritage Permit. In some cases it is hard for Heritage Staff to determine whether receipts submitted relate to the approved Certificate of Appropriateness (Heritage Permit). To reduce the incidence of this occurring, the Grant Summary Form has been updated, requiring the applicant to reference their attached invoices and receipts individually and describe which part of the completed work it relates to. Judgment will still be required to determine if the invoice and receipts are appropriate for the completed work and any suspicious invoices and receipts should be questioned or rejected. Deloitte LLP and affiliated entities. City of Saint John Grants for Heritage Conservation Program 16

62 Appendix A Benchmarking research of similar programs Building permit required Good standing with city/heritage laws and committee Property must be privately owned House must be for residential or commercial use Property must be insured Work must add to public's understanding of conservation Highly visible from public right-of-way Saint John, NB Moncton, NB Halifax, NS Cape Breton, NS St. John s, NL Toronto, ON Victoria, BC Vernon, BC Yes Yes Yes Yes Yes Yes Yes Yes No Yes Yes Yes N/A Yes Yes Yes No Yes Yes Yes No No Yes Yes No Yes Yes Yes Commercial No Yes Yes No Yes No No N/A No Yes Yes No No No No N/A Yes No No No No Yes No N/A Yes No Yes Estimates required N/A Changes to be reported Large grants need additional paperwork No Yes Yes Yes N/A Yes Yes Yes No Yes Yes No N/A No No No Deloitte LLP and affiliated entities. City of Satin John Grants for Heritage Conservation Program

63 Receipt/invoice summary required with support Deadline for receipts/invoices Progressive funding payments Appeal period when denied Completed in fiscal year approved Additional unrelated work funded Grant forfeited for incomplete work Limit on amount of grants (# or $) Priority for first time applicants Priority given to certain work Approval contingent on available funds HST/GST reimbursement Compensation for work prior to approval Deadline to commence work Warranty for work done Saint John, NB Moncton, NB Halifax, NS Cape Breton, NS St. John s, NL Toronto, ON Victoria, BC Vernon, BC Yes Yes Yes Yes N/A Yes Yes Yes Yes Yes Yes Yes N/A Yes 2 Years Yes Yes No Yes No No No No No No No No Yes 15 days No Yes Yes Yes Yes No N/A Yes No No Yes extensions allowed Yes exceptions made No No No No N/A No No No No Yes Yes Yes N/A No Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes No Yes Yes Yes N/A No No No No Yes Yes Yes N/A Yes No Yes Yes Yes Yes Yes N/A Yes No Yes Sometimes Yes No No N/A Yes Yes No Yes No No Yes N/A No No No No No No No N/A Yes Yes Yes No No No No N/A No No Yes Owner labour allowed No No No No N/A Yes No Yes 1 Unable to reach St. John s for questions Yes Deloitte LLP and affiliated entities. City of Satin John Grants for Heritage Conservation Program

64 Appendix B Application form Phase 1 For in office use only Grant Application # Date received in office: HDB Meeting date: Please note: it is the Applicant s responsibility to understand and comply with all aspects of the Grants for Heritage Conservation Program Policy. Failure to understand and comply with the policy may result in the denial of a grant. A Certificate of Appropriateness (Heritage Permit) is required before commencing any work on a property in a Heritage Conservation Area. Before preparing your application form please review the Grants for Heritage Conservation Program Policy and apply for a Certificate of Appropriateness (Heritage Permit). Certificate of Appropriateness Application #: Description of work from approved Certificate of Appropriateness Application: Property Indentification (PID) #: If a building permit is required for the proposed work, please include the building permit application number in the space below. If you are unsure whether you need a building permit for the proposed work, please contact the Building & Inspections Services at (506) Building Permit Application #: Deloitte LLP and affiliated entities. City of Saint John Grants for Heritage Conservation Program

65 Grant Type Heritage Maintenance Grant: 15% to a maximum of $500 For applicants who do not have a conservative plan in place, with the exception of a commercial tenant sign Heritage Conservation Grant: 15%-25% to a maximum of $5,000 25% is reserved for structural or masonry repairs or repairs to original doors and windows Eligibility requires a Conservation Plan to be in place Heritage Conservation Plan Grant 50% to a maximum of $1,000 Personal Information Name of Applicant: Mailing Address of Applicant: Home Phone #: Work Phone # Fax #: Address: Would you prefer to receive communications via letter or ? Letter Are you currently in good standing with the City of Saint John, meaning you have no unpaid taxes or outstanding bylaw violations? Yes No Are you the legal owner of the property? Yes Continue to Property Information section of application. No Please indicate the legal owner s contact information below. Deloitte LLP and affiliated entities. City of Saint John Grants for Heritage Conservation Program

66 Name of Owner: Mailing Address of Owner: Home Phone #: Work Phone # Fax #: Address: As the owner of the property, I am aware that, by allowing the tenant to apply for a Heritage Conservation Grant, I am forfeiting my right to apply for a Heritage Conservation Grant in the applicable year. Property Information Address of Heritage Property: Heritage Conservation Area: Is the property described above covered by home insurance? Yes No Please attach any historic photographs (if available) you have as well as recent photographs of all exterior sides of the building in digital format. Also required are close up recent photographs of the exterior area where the proposed work will take place. Attached Not available Project Estimate Please provide an estimate and breakdown of project costs (pre-hst): Structural: Other: Deloitte LLP and affiliated entities. City of Saint John Grants for Heritage Conservation Program

67 Description of Proposed Project Estimated Start Date of Work (ex. April 25, 201x): Estimated Completion Date of Work (ex. October 25, 201x): Heritage Grant Funding Application Checklist Ensure your application includes all of the following items: Certificate of Appropriateness (Heritage Permit) Application number Confirmation of good standing with the City of Saint John Confirmation that owner, if different from applicant, is aware of grant application Confirmation of comprehensive home insurance Any historic photographs of the property Recent photographs of all exterior sides of the building including close up recent photographs of the exterior area where the proposed work will take place If required, the Building Permit Application number Signature of applicant and legal owner of the building If you are applying for a Heritage Conservation Grant you also need to attach page extracts from the Heritage Conservation Plan that relate to the proposed work to be funded If you are applying for a Heritage Conservation Plan Grant you also need to attach a copy of the Heritage Conservation Plan. Signatures I hereby request that this application be considered under the Grants for Heritage Conservation Program for the Growth and Community Development Services Department of The City of Saint John. By signing below I certify that all information included on this application form is truthful and accurate information. Applicant s printed name Property owner s printed name Applicant s signature / / DD/MM/YYYY Property owner s signature / / DD/MM/YYYY Deloitte LLP and affiliated entities. City of Saint John Grants for Heritage Conservation Program

68 Application Submissions Heritage Conservation Grant Applications may be submitted either by mail or in person at the following address: Heritage Staff Growth and Community Development Services 10 th Floor, City Hall, P.O. Box 1971 Saint John, New Brunswick E2L 4L1 If you have any questions or concerns the Heritage Staff can be contacted at: Phone: (506) Fax: (506) Deloitte LLP and affiliated entities. City of Saint John Grants for Heritage Conservation Program

69 Appendix C Application form Phase 2 For in office use only Grant Application # Date received in office: HDB Meeting date: Please note: it is the Applicant s responsibility to understand and comply with all aspects of the Grants for Heritage Conservation Program Policy. Failure to understand and comply with the policy may result in the denial of a grant. A Certificate of Appropriateness (Heritage Permit) is required before commencing any work on a property in a Heritage Conservation Area. Before preparing your application form please review the Grants for Heritage Conservation Program Policy and apply for a Certificate of Appropriateness (Heritage Permit). Certificate of Appropriateness Application #: Description of work from approved Certificate of Appropriateness Application: Property Indentification (PID) #: If a building permit is required for the proposed work, please include the building permit application number in the space below. If you are unsure whether you need a building permit for the proposed work, please contact the Building & Inspections Services at (506) Building Permit Application #: Deloitte LLP and affiliated entities. City of Saint John Grants for Heritage Conservation Program

70 Grant Type Heritage Maintenance Grant: 15% to a maximum of $500 For applicants who do not have a conservative plan in place, with the exception of a commercial tenant sign Heritage Conservation Grant: 15%-25% to a maximum of $5,000 25% is reserved for structural or masonry repairs or repairs to original doors and windows Eligibility requires a Conservation Plan to be in place Heritage Conservation Plan Grant 50% to a maximum of $1,000 Personal Information Name of Applicant: Mailing Address of Applicant: Home Phone #: Work Phone # Fax #: Address: Would you prefer to receive communications via letter or ? Letter Are you currently in good standing with the City of Saint John, meaning you have no unpaid taxes or other significant amounts and no outstanding bylaw violations? Yes No Are you the legal owner of the property? Yes Continue to Property Information section of application. No Please indicate the legal owner s contact information below. Deloitte LLP and affiliated entities. City of Saint John Grants for Heritage Conservation Program

71 Name of Owner: Mailing Address of Owner: Home Phone #: Work Phone # Fax #: Address: As the owner of the property, I am aware that, by allowing the tenant to apply for a Heritage Conservation Grant, I am forfeiting my right to apply for a Heritage Conservation Grant in the applicable year. Property Information Address of Heritage Property: Heritage Conservation Area: Is the property described above covered by home insurance? Yes No Please attach any historic photographs (if available) you have as well as recent photographs of all exterior sides of the building in digital format. Also required are close up recent photographs of the exterior area where the proposed work will take place. Attached Not available Description of Proposed Project Estimated Start Date of Work (ex. April 25, 201x): Estimated Completion Date of Work (ex. October 25, 201x): Deloitte LLP and affiliated entities. City of Saint John Grants for Heritage Conservation Program

72 Project Estimates Please attach two formal project estimates from qualified contractors for the proposed work and summarize the pre-hst costs in the space provided below. The estimates should include details of the proposed work as well as materials to be used. There are Practical Conservation Guidelines which provide useful tips and information on conserving your heritage property as well as eligible work and materials. These are available both on the City s website and in person at the Growth and Community Development Services offices. Estimate #1: Name of Contractor: Contact # of Contractor: Estimate Provided (Pre-HST): Estimate #2: Name of Contractor: Contact # of Contractor: Estimate Provided (Pre-HST): If one of the two estimates detailed above includes an estimate provided by the applicant/owner who is a contractor, please include the contractor s business number below: Contractor's Business Number: Heritage Grant Funding Application Checklist Ensure your application includes all of the following items: Certificate of Appropriateness (Heritage Permit) Application number Confirmation of good standing with the City of Saint John Confirmation of owner forfeiture of additional grants for the applicable year Confirmation of comprehensive home insurance Any historic photographs of the property Recent photographs of all exterior sides of the building including close up recent photographs of the exterior area where the proposed work will take place Two formal project estimates from qualified contractors for the proposed work If required, the Building Permit Application number Signature of applicant and legal owner of the building If you are applying for a Heritage Conservation Grant you also need to attach page extracts from the Heritage Conservation Plan that relate to the proposed work to be funded. If you are applying for a Heritage Conservation Plan Grant you also need to attach a copy of the Heritage Conservation Plan. If application is complete you will receive notice by June 15. Deloitte LLP and affiliated entities. City of Saint John Grants for Heritage Conservation Program

73 Signatures I hereby request that this application be considered under the Grants for Heritage Conservation Program for the Growth and Community Development Services Department of The City of Saint John. By signing below I certify that all information included on this application form is truthful and accurate information. Applicant s printed name Property owner s printed name Applicant s signature / / DD/MM/YYYY Property owner s signature / / DD/MM/YYYY Application Submissions The application period for Heritage Grant Funding is January 1 April 30 and the applications may be submitted either by mail or in person at the following address: Heritage Staff Growth and Community Development Services 10 th Floor, City Hall, P.O. Box 1971 Saint John, New Brunswick E2L 4L1 If you have any questions or concerns the Heritage Staff can be contacted at: Phone: (506) Fax: (506) Heritage@SaintJohn.ca Deloitte LLP and affiliated entities. City of Saint John Grants for Heritage Conservation Program

74 Appendix D Grant Summary Form For in office use only Date received in office: Date notified of conditional approval: Application Submissions The deadline to submit a Grant Summary Form for a conditionally approved grant is November 30, xxxx and the application may be submitted either by mail or in person at the following address: Heritage Staff Growth and Community Development Services 10 th Floor, City Hall, P.O. Box 1971 Saint John, New Brunswick E2L 4L1 If you have any questions or concerns the Heritage Staff can be contacted at: Phone: (506) Fax: (506) Heritage@SaintJohn.ca General Information Name of Applicant: Property Address: Certificate of Appropriateness #: Grant Application #: Summary of Costs In the space provided below, please complete an itemized summary of the invoices/receipts incurred in relation to the work outlined in the Certificate of Appropriateness (Heritage Permit) that was submitted to obtain conditional heritage grant approval. A legible photocopy of each invoice/receipt included in the itemized summary below should be attached to this form. When summarizing the information required, please follow the guidelines below: Deloitte LLP and affiliated entities. City of Saint John Grants for Heritage Conservation Program

75 1. Reference each invoice/receipt as A-Z and when summarizing, enter this reference in first column below. 2. Provide a description of both the nature of the work itemized on the invoice/receipt (i.e., labour, materials, or rentals) in the second column. 3. Provide which component identified in the approved Certificate of Appropriateness (Heritage Permit) to which the work relates in the third column. 4. The amount to be entered into the fourth column is the pre-hst amount of the invoice or receipt. Receipt Reference Description/Location of Work Component of Certificate of Appropriateness (Heritage Permit) Amount (Pre-HST) If more space is required to provide a complete itemized summary, please obtain and attach a second Grant Summary Form. Deloitte LLP and affiliated entities. City of Saint John Grants for Heritage Conservation Program

76 Signatures I hereby submit this Grant Summary for consideration under the Grants for Heritage Conservation Program for the Growth and Community Development Services Department of The City of Saint John. By signing below I certify that all information included on this application form and each point below is truthful and accurate information: Work summarized above has been completed in accordance with the terms and conditions indicated on the Certificate of Appropriateness (Heritage Permit) A Heritage Officer of the City of Saint John was informed that the project is complete and the subject property has had a successful inspection A Building Inspector was informed that the work related to the grant funding is complete and the subject property has had a successful inspection All information provided on this form is truthful and accurate information. Applicant s printed name Property owner s printed name Applicant s signature / / DD/MM/YYYY Property owner s signature / / DD/MM/YYYY First contractor s printed name Second contractor s printed name First contractor s signature / / DD/MM/YYYY Second contractor s signature / / DD/MM/YYYY Deloitte LLP and affiliated entities. City of Saint John Grants for Heritage Conservation Program

77 Appendix E Conditional approval letter Phase 1 Date of Letter Applicant Name Applicant Address Line #1 Applicant Address Line #2 Saint John, New Brunswick Postal Code Re: Conditional Approval for Heritage Grant Funding for Property Address Dear Applicant, We are pleased to advise you that your application for Heritage Grant Funding for Property Address was accepted and you are conditionally approved to receive funding. However, each year Growth and Community Development Services is granted an annual funding budget for the Heritage Conservation Grant Program which may not allow all applicants who meet the eligibility requirements and/or are conditionally approved to receive grant funding. In order to qualify for grant funding the project must be completed as outlined in your approved Certificate of Appropriateness (Heritage Permit). At the completion of your project, you must also provide a completed Grant Summary Form which includes the following requirements: An itemized summary of the invoices/receipts with amounts (stated pre-hst) incurred for the work outlined in the Certificate of Appropriateness (Heritage Permit) that was approved and submitted for conditional grant funding approval Legible photocopies of all invoices/receipts included in the itemized summary on the form, with proof of payment, should be attached to the form Certification that both a building inspection and Heritage Officer inspection have been completed and Signature of the Certificate of Appropriateness (Heritage Permit) holder, the legal owner of the property, and contractors who performed the project. A blank copy of the Grant Summary Form has been enclosed with this letter. Upon the completion of your project you may submit your completed grant summary form at any point until November 30, which is the 2014 submission deadline. Late or incomplete submissions will be rejected. Your successful submission will then receive grant funding within 60 days. We are looking forward to seeing the positive results of your project and our Grants for Heritage Conservation Program. If you have any questions or concerns feel free to contact me at Sincerely, Alice Fudge Heritage Analyst Growth & Community Development Services Enclosure Deloitte LLP and affiliated entities. City of Saint John Grants for Heritage Conservation Program

78 Appendix F Conditional approval letter Phase 2 April 30, 20xx Applicant Name Applicant Address Line #1 Applicant Address Line #2 Saint John, New Brunswick Postal Code Re: Conditional Approval for Heritage Grant Funding for Property Address Dear Applicant, We are pleased to advise you that your application for Heritage Grant Funding for Property Address was accepted and you are conditionally approved. However, each year the Growth and Community Office is granted an annual funding budget for the Grants for Heritage Conservation Program which may not allow all applicants who meet the eligibility requirements and/or are conditionally approved to receive grant funding, as outlined below. In order to qualify for final grant funding approval the project must be completed as outlined in your approved Certificate of Appropriateness (Heritage Permit). At the completion of your project, you must also provide a Grant Summary Form which should include the following: An itemized summary of the invoices/receipts with amounts (stated pre-hst) incurred for the work outlined in the Certificate of Appropriateness (Heritage Permit) that was approved and submitted for conditional grant funding approval Legible photocopies of all invoices/receipts included in the itemized summary on the form, with proof of payment, should be attached to the form Certification that both a building inspection and Heritage Officer inspection have been completed and Signature of the Certificate of Appropriateness (Heritage Permit) holder, the legal owner of the property, and contractors who performed the project. A blank copy of the Grant Summary Form has been enclosed with this letter. The deadline for submission of the Grant Summary Form is November 30, xxxx. Late or incomplete submissions will be rejected. The deadline for grant funding approval, with funding cheques, and /or denial letters is December 30, xxxx. We are looking forward to seeing the positive results of your project and our Grants for Heritage Conservation Program. If you have any questions or concerns feel free to contact me at Sincerely, Alice Fudge Heritage Analyst Growth & Community Development Services Enclosure Deloitte LLP and affiliated entities. City of Saint John Grants for Heritage Conservation Program

79 Appendix G Denial letter Phase 1 Date of Letter Applicant Name Applicant Address Line #1 Applicant Address Line #2 Saint John, New Brunswick Postal Code Re: Denial for Heritage Grant Funding for Property Address Dear Applicant, We regret to inform you that your application for Heritage Grant Funding for Property Address has been denied for the following reason(s): Reason. If the issue above is addressed appropriately, you may re-apply for a Heritage Grant for This Fiscal Year. If you have any questions or concerns feel free to contact me at Sincerely, Alice Fudge Heritage Analyst Growth & Community Development Services Deloitte LLP and affiliated entities. City of Saint John Grants for Heritage Conservation Program

80 Appendix H Denial letter Phase 2 April 15, 20xx Applicant Name Applicant Address Line #1 Applicant Address Line #2 Saint John, New Brunswick Postal Code Re: Denial for Heritage Grant Funding for Property Address Dear Applicant, We regret to inform you that your application for Heritage Grant Funding for Property Address has been denied for the following reason(s): Reason. You may apply for a Heritage Grant for Next Fiscal Year between January 1 and April 30, Fiscal Year. If you have any questions or concerns feel free to contact me at Sincerely, Alice Fudge Heritage Analyst Growth & Community Development Services Deloitte LLP and affiliated entities. City of Saint John Grants for Heritage Conservation Program

81 Appendix I Grant funding approval letter December 15, 20xx Applicant Name Applicant Address Line #1 Applicant Address Line #2 Saint John, New Brunswick Postal Code Re: Approval for Heritage Grant Funding for Property Address Dear Applicant, We are pleased to advise you that your Grant Summary Form for Property Address has been reviewed and determined to be in compliance with the requirements and you have been approved to receive $ in heritage grant funding for Fiscal Year. The approved grant amount you are entitled to has been calculated based on a grant funding ratio of xx% multiplied by the eligible project costs outlined in the Grant Summary Form up to a maximum of Maximum Amount. We would like to commend you for your efforts in heritage conservation and thank you for participating in the Grants for Heritage Conservation Program. We truly appreciate your engagement in assisting the City of Saint John achieve its objectives of heritage conservation. If you have any questions or concerns feel free to contact me at Sincerely, Alice Fudge Heritage Analyst Growth & Community Development Services Enclosure Deloitte LLP and affiliated entities. City of Saint John Grants for Heritage Conservation Program

82 Appendix J Grant funding denial letter April 15, 20xx Applicant Name Applicant Address Line #1 Applicant Address Line #2 Saint John, New Brunswick Postal Code Re: Denial for Heritage Grant Funding for Property Address Dear Applicant, We regret to inform you that your Grant Summary Form for Property Address has been denied. Upon inspection of the property and review of the Grant Summary Form for Property Address, it was determined that the following conditions have not been met in order for you to be rewarded grant funding: Condition not met Condition not met If you have any questions or concerns feel free to contact me at Sincerely, Alice Fudge Heritage Analyst Growth & Community Development Services Deloitte LLP and affiliated entities. City of Saint John Grants for Heritage Conservation Program

83 Appendix K Frequently asked questions Phase 1 1. What is a Certificate of Appropriateness (Heritage Permit) and why do I need one prior to applying for a Heritage Grant? A Certificate of Appropriateness (Heritage Permit) is a permit that is required in order to perform any exterior work to a property that is within one of the designated Heritage Conservation Areas in the City of Saint John, New Brunswick. Heritage Grant funding cannot be awarded for work that has not been approved through a Certificate of Appropriateness (Heritage Permit). 2. How do I apply for a Heritage Grant? The first step in applying for a Heritage Grant is to read the Grants for Heritage Conservation Program Policy to gain an understanding of the program and the requirements. Next you should fill out the Grants for Heritage Conservation Application Form and submit it either by mail or in person at the following address: Heritage Staff Growth and Community Development Services 10 th Floor, City Hall, P.O. Box 1971 Saint John, New Brunswick E2L 4L1 If you have any questions or concerns the Heritage Staff can be contacted at: Phone: (506) Fax: (506) Heritage@SaintJohn.ca 3. I am a tenant rather than the owner of a heritage property. Can I apply for a Heritage Grant for the work I would like to perform on the unit I occupy? For the tenant of a heritage property to perform work and receive Heritage Grant funding, the owner must be aware and approve of the proposed work and Heritage Grant Funding Application. The owner s contact information and signature are required on the Grants for Heritage Conservation Application form as well as the Grant Summary Form. The owner must also certify on the Grants to Heritage Conservation Application form that they are aware that by signing the form. 4. The Grants for Heritage Conservation Program Policy states that I must submit my building permit number on my Grants for Heritage Conservation Application form if one is required. How do I determine if a building permit is required for the work I am planning? If you are unsure whether you need a building permit for the proposed work, please contact the Building & Inspections Services at (506) It is the responsibility of the applicant to obtain all information and required building permits. Deloitte LLP and affiliated entities. City of Saint John Grants for Heritage Conservation Program

84 Appendix L Frequently asked questions Phase 2 1. What is a Certificate of Appropriateness (Heritage Permit) and why do I need one prior to applying for a Heritage Grant? A Certificate of Appropriateness (Heritage Permit) is a permit that is required in order to perform any exterior work to a property that falls within one of the designated Heritage Conservation Areas in the city of Saint John, New Brunswick. Heritage Grant funding cannot be awarded for work that has not been approved through a Certificate of Appropriateness (Heritage Permit). 2. How do I apply for a Heritage Grant? The first step in applying for a Heritage Grant is to read the Grants for Heritage Conservation Program Policy to gain an understanding of the program and the requirements. Next you should fill out the Grants for Heritage Conservation Application Form and submit it either by mail or in person at the following address: Heritage Staff Growth and Community Development Services 10 th Floor, City Hall, P.O. Box 1971 Saint John, New Brunswick E2L 4L1 If you have any questions or concerns the Heritage Staff can be contacted at: Phone: (506) Fax: (506) Heritage@SaintJohn.ca 3. I am a tenant rather than the owner of a heritage property. Can I apply for a Heritage Grant for the work I would like to perform on the unit I occupy? For the tenant of a heritage property to perform work and receive Heritage Grant funding, the owner must be aware and approve of the proposed work and Heritage Grant Funding Application. The owner s contact information and signature are required on the Grants for Heritage Conservation Application form as well as the Grant Summary Form. The owner must also certify on the Grants to Heritage Conservation Application form that they are aware that by signing the form they are forfeiting the ability to apply for additional grants in the applicable year. 4. The Grants for Heritage Conservation Program Policy states that I must submit my building permit application number on my Grants for Heritage Conservation Application form if one is required. How do I determine if a building permit is required for the work I am planning? If you are unsure whether you need a building permit for the proposed work, please contact the Building & Inspections Services at (506) It is the responsibility of the applicant to obtain all information and required building permits. Deloitte LLP and affiliated entities. City of Saint John Grants for Heritage Conservation Program

85 5. The Grants for Heritage Conservation Program Policy states that owner performed labour is not eligible for Heritage Grant funding. What if I am the owner of my property and also a contractor? If the applicant is the owner of the eligible property as well as a contractor and would like to perform the work themself, they may receive funding for the labour as long as they submit the two required estimates with one being their own and the other being another independent contractor s estimate. If the two required estimates are not submitted, the work performed by the applicant will be considered owner performed labour and the applicant will only be eligible for claiming funding for materials and equipment rentals. The owner/contractor must also submit their business number on the Grants for Heritage Conservation Application Form. 6. The Grants for Heritage Conservation Program Policy states that projects must be completed within the fiscal year for which they are approved and Heritage Grant funding for projects not completed by the end of the fiscal year will be forfeited except in exceptional circumstances. What constitutes exceptional circumstances and what steps should be taken if they occur? Exceptional circumstances involve situations in which the work could not be completed due to circumstances outside of the applicant s control. An applicant wishing to extend a project must provide by November 1 of the fiscal year which they have been approved for a Heritage Grant, in writing, the exceptional circumstances they have encountered. The Heritage Staff will then review the request and determine if a project extension is appropriate and will notify the applicant by December 15 of the fiscal year of approval or denial of said project extension. Deloitte LLP and affiliated entities. City of Saint John Grants for Heritage Conservation Program

86 Appendix M Process flow chart Deloitte LLP and affiliated entities. City of Saint John Grants for Heritage Conservation Program

87 Deloitte, one of Canada's leading professional services firms, provides audit, tax, consulting, and financial advisory services. Deloitte LLP, an Ontario limited liability partnership, is the Canadian member firm of Deloitte Touche Tohmatsu Limited. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. Deloitte LLP and affiliated entities.

88 March 5 th, 2014 GRANTS FOR HERITAGE CONSERVATION PROGRAM: POLICY FOR APPROVAL PROGRAM AIM The Grants for Heritage Conservation Program is an incentive program designed to encourage property owners to meet the spirit and intent of the Saint John Heritage Conservation Areas By-Law, as expressed in the National Standards for Conservation of Historic Places and Saint John's own series of Practical Conservation Guidelines. Heritage Grants are not construction subsidies; they are intended to assist owners to retain traditional materials and details of character-defining elements and, if necessary, replace them with new components, matching the original materials and profiles. OBJECTIVES Primary: To encourage retention of designated heritage buildings and their character-defining elements, including their materials and details; To maximize conservation of the character-defining elements of designated heritage buildings using an approach of: understanding, documenting, planning (for proposed use) and then intervening. Secondary: To create employment opportunities for the citizens of Saint John; To discourage demolition of designated heritage buildings; To reduce waste and the impact on the environment by demonstrating that the greenest building is one that already exists; To encourage owners to undertake necessary but costly major conservation projects. CATEGORIES OF GRANTS 1. Heritage Maintenance Grant: A grant of 25% up to a maximum of $750 per year available to properties without a Conservation Plan in place; also available to tenants for storefront signage. 2. Heritage Conservation Grant: A grant of 25% - 45% up to a maximum of $7,500 per year to support large conservation projects for properties which have a Conservation Plan in place. There are two levels of funding provided by the Conservation Grant, depending on the nature of the project: a) Minor funding: 25% up to a maximum of $7,500 for maintenance work, as outlined in the Conservation Plan. b) Major funding: 45% up to a maximum of $7,500 for restoration work to original characterdefining elements, and for major projects such as masonry or structural repair. 3. Heritage Conservation Plan Grant: A grant provided to offset the cost of retaining a design professional (architect or engineer) to prepare a Conservation Plan for designated heritage properties. A Conservation Plan provides the property owner with a phased plan to undertake required heritage/structural work. 50% of the cost is funded up to a maximum of $1,500.

89 ELIGIBLE PROPERTIES Grants are awarded based on the Property Identification Number (PID) rather than per civic address. Each PID is eligible to receive one grant per category per year. Property must be a non-government owned designated heritage property located within one of the designated Saint John Conservation Heritage Areas. Refer to the Saint John Heritage Conservation Areas By-Law for a listing of properties. A copy of the By-Law can be found on the City s website, picked up in person at the Growth and Community Development Services office, or an official copy at the Common Clerk s office. Property must be covered by home insurance. Property owner must be in good standing with the City of Saint John and shall not have unpaid taxes. Property owner must not have any outstanding property-related by-law violations and/or building permit violations. ELIGIBLE WORK & MATERIALS Projects must be to the exterior of the property and in accordance with the terms and conditions of a Certificate of Appropriateness [Heritage Permit]. For appropriate materials and restoration approaches, please see the Practical Conservation Guidelines on the City s website, which can also be picked up in person at the Growth and Community Development Services offices. Projects must be completed prior to the Grant Summary Form deadline and grant funding for projects not completed by the end of the fiscal year will be forfeited except in exceptional circumstances. INELIGIBLE WORK & MATERIALS Contemporary materials such as vinyl or aluminum clad windows, steel doors, or vinyl siding. Work carried out prior to issuance of a Certificate of Appropriateness [Heritage Permit]. Work carried out without required building permits in place prior to work being undertaken. Work related to landscaping, roof replacement, or infill construction. Owner performed labour. Poor or defective work. HERITAGE GRANT FUNDING APPLICATIONS Before completing and submitting a Heritage Grant Funding Application form, applicants must first obtain a Certificate of Appropriateness [Heritage Permit] and building permit (if required), and include these numbers on their Heritage Grant Funding Application form. Application forms can be found on the City s website, or picked up in person at the Growth and Community Development Services office, 10th floor City Hall. The following must accompany the completed application form: o Certificate of Appropriateness [Heritage Permit] number; o Building permit number (if required) for proposed work; o Recent photographs of all sides of the building and detailed photographs of area related to proposed work; o Start and end date for proposed project; o Signature of both the applicant and owner of the property; o Those applying for a Heritage Conservation Grant must copy and attach page extracts from the Heritage Conservation Plan that relate to the proposed work to be funded; o Those applying for a Heritage Conservation Plan Grant must include the Heritage Conservation Plan; o Written project cost estimate;

90 REVIEW OF HERITAGE GRANT FUNDING APPLICATIONS FOR APPROVAL OR DENIAL Applications will be screened for basic eligibility as they are received (i.e. application package is complete and legible). Applicants will be notified promptly if their application is ineligible. Applications will be reviewed by Heritage Staff for the following: o Ensuring the Certificate of Appropriateness was approved; o If required, confirming building permit has been issued; o Reviewing project estimates and calculating amount of requested grant funding; o Awarding conditional approval to applicants that meet the eligibility requirements. Approval of a Heritage Grant Application conditionally approves the applicant for grant funding at the end of the fiscal year rather than guaranteeing it. BUILDING INSPECTION A successful building inspection by Building & Inspections Services for the proposed work is required to receive grant funding. It is the responsibility of the grant applicant to notify the Building & Inspections Services offices of the project completion and arrange for inspection. Building inspection should be arranged and completed prior to submission of the Grant Summary Form as outlined below. The inspection must be completed by November 30. HERITAGE OFFICER INSPECTION A successful inspection by a Heritage Officer of the City of Saint John is required to receive grant funding. It is the responsibility of the grant applicant to notify the Growth and Community Development Services offices that the project is complete and ready for inspection by the Heritage Officer. Heritage Officer inspections should be arranged and completed prior to submission of the Grant Summary Form as outlined below. The Heritage Officer will inspect the completed work to ensure that it shows good craftsmanship and was completed in a professional manner and according to the Certificate of Appropriateness [Heritage Permit]. Photographs of the completed work will also be obtained. The inspection must be completed by November 30. GRANT SUMMARY FORM The Grant Summary Form is required to be completed and submitted once the project work related to the grant application is complete in order to receive grant funding. Grant Summary Forms are accepted until November 30. The Grant Summary Form should include the following information and attached documents: o Using the space provided, an itemized summary of the invoices and receipts that correspond to the work outlined in the Certificate of Appropriateness with the amounts stated pre-hst; o Legible photocopies of all invoices and receipts included in the summary with proof of payment; o Signature of the applicant, the legal owner of the property, and contractors who performed the project. Applicant must assert that both a successful building inspection and heritage inspection have been requested and completed. It is the responsibility of the applicant to ensure that the itemized summary is complete, accurate, and legible. Grant Summary Forms are reviewed when received and applicants will be notified through written communication within 60 days of submission whether the form is approved, with attached cheque, or whether it has been denied.

91 PAYMENT OR DENIAL OF GRANT FUNDING Whether the applicant receives grant funding depends on successful building and heritage inspections and a properly completed and approved Grant Summary Form. The deadline for grant funding payments is 60 days after submission of the Grant Summary Form provided all requirements are met. Heritage Services Growth and Community Development Services 10 th Floor, City Hall, P.O. Box 1971 Saint John, New Brunswick E2L 4L1 If you have any questions or concerns Heritage Staff can be contacted at: Phone: (506) Fax: (506) heritage@saintjohn.ca

92 Grant Application #: In-Office Use Only Date Submitted: Date for Return (60 days): GRANTS FOR HERITAGE CONSERVATION PROGRAM APPLICATION FORM A Certificate of Appropriateness [Heritage Permit] is required before commencing any work on a property in a Heritage Conservation Area. Before preparing your application form please review the Grants for Heritage Conservation Program Policy for Approval and obtain a Certificate of Appropriateness [Heritage Permit]. Please note: it is the Applicant s responsibility to understand and comply with all aspects of the Grants for Heritage Conservation Program Policy. Failure to understand and comply with the policy may result in the denial of a grant. Required: Address of Property: Certificate of Appropriateness [Heritage Permit]: PID #: Please include the building permit number, if required, for the proposed work. Work performed prior to issuance of a (required) building permit is ineligible for a Heritage Grant. To be sure whether your proposed project requires a building permit, please contact the Building Inspections Services at (506) or by buildinginspection@saintjohn.ca. Building Permit #: Personal Contact Information Name of Applicant: Mailing Address: Daytime Phone #: Cell Phone #: Fax #: Address: Would you prefer to receive communications concerning your Heritage Grant application via letter or ? Letter Application submissions: Heritage Grant Applications may be submitted either by mail or in person at the following address: Heritage Services Growth and Community Development Services 10 th Floor, City Hall, P.O. Box 1971 Saint John, New Brunswick E2L 4L1 If you have any questions or concerns Heritage Staff can be contacted at: Phone: (506) Fax: (506) heritage@saintjohn.ca Page 1 of 5

93 Grant Categories (Check that which applies to you) Heritage Conservation Plan Grant: A grant provided to offset the cost of retaining a design professional (architect or engineer) to prepare a Conservation Plan for designated heritage properties. A Conservation Plan provides the property owner with a phased plan to undertake required heritage/structural work. 50% of the cost is funded up to a maximum of $1,500. Heritage Maintenance Grant: A grant of 25% up to a maximum of $750 per year available to properties without a Conservation Plan in place; also available to tenants for storefront signage. Heritage Conservation Grant: A grant of 25% - 45% up to a maximum of $7,500 per year to support large conservation projects for properties which have a Conservation Plan in place. There are two levels of funding provided by the Conservation Grant, depending on the nature of the project: Project Cost Estimate Minor funding: 25% up to a maximum of $7,500 for maintenance work as outlined in Conservation Plan. Major funding: 45% up to a maximum of $7,500 for restoration work to original character-defining elements, and for major projects such as masonry or structural repair. In the table below please describe your project cost estimates within the applicable Heritage Grant Category; include the work items from the associated Certificate of Appropriateness [Heritage Permit] plus the total cost of each item before HST (example - Restoration of 4 original windows - $XXX). Written project estimates must be attached with application form. CATEGORY APPROVED ITEM[S] FROM COA COST ESTIMATE PRE-HST Heritage Conservation Plan Grant [n/a] $ Heritage Maintenance Grant $ $ $ Heritage Conservation Grant $ $ $ $ $ Estimated Project Start Date: Estimated Project End Date: Recent photographs [close-up and whole elevation] of the exterior area where the proposed work will take place. Attached to form Submitted Digitally If available, include any historic photographs of your property. Attached to form Submitted Digitally Not available Page 2 of 5

94 Property Information Are you the legal owner of the property? Yes No Please indicate the legal owner s contact information below. Name of Property Owner: Mailing Address of Property Owner: Daytime Phone #: Cell Phone #: Fax #: Address: To be completed by the Property Owner: Is the subject property covered by home insurance? Yes No Are you currently in good standing with the City of Saint John, meaning you have no unpaid taxes or outstanding property-related by-law violations? Yes No As the owner of the property, I am aware that, by allowing my tenant to apply for a Heritage Conservation Grant, I am forfeiting my opportunity to apply for a Heritage Conservation Grant in the applicable year. Property owner s printed name Property owner s signature DD/ MM/YYY Heritage Grant Funding Application checklist Ensure your application is complete and includes all of the following items: Certificate of Appropriateness number If required, the Building Permit number Any historic photographs of the property Recent photographs of all exterior sides of the building including close up recent photographs of the exterior area where the proposed work will take place Confirmation of good standing with the City of Saint John Confirmation that owner, if different from applicant, is aware of grant application Confirmation of home insurance Signature of applicant and legal owner of the building If you are applying for a Heritage Conservation Grant you also need to attach page extracts from the Heritage Conservation Plan that relate to the proposed work to be funded If you are applying for a Heritage Conservation Plan Grant you also need to attach a copy of the Heritage Conservation Plan. Page 3 of 5

95 Signatures I hereby request that this application be considered under the Grants for Heritage Conservation Program for the Growth and Community Development Services Department of The City of Saint John. By signing below I certify that all information included on this application form is truthful and accurate. / / Applicant s printed name Applicant s signature DD/ MM/ YYYY Page 4 of 5

96 Grant Application #: In-Office Use Only Date Submitted: Date for Return (60 days): GRANTS FOR HERITAGE CONSERVATION PROGRAM GRANT SUMMARY FORM APPLICANT: Mr. Johnny Heritage MAILING ADDRESS: 123 Historic Street, Saint John, NB E2L 2E2 PROPERTY: 123 Historic Street HERITAGE PERMIT #: GRANT TYPE: Heritage Conservation Grant GRANT APPLICATION #: DATE CONDITIONALLY APPROVED: April 30 th, 2014 CONDITIONAL APPROVAL: Maximum grant of $3, based on project estimates - Structural/Restoration at 45%: $6, = $2, Maintenance at 25%: $1, = $ Application submissions: The deadline to submit a Grant Summary Form for a conditionally approved grant is November 30, 2014 and the application may be submitted either by mail or in person at the following address: Heritage Services Growth and Community Development Services 10 th Floor, City Hall, P.O. Box 1971 Saint John, New Brunswick E2L 4L1 If you have any questions or concerns Heritage Staff can be contacted at: Phone: (506) Fax: (506) heritage@saintjohn.ca GRANT SUMMARY CHECKLIST Ensure your application is complete and includes all of the following items: Legible photocopies of paid invoices/receipts attached with this submission Signature of applicant and legal owner of the building Signature of Contractor(s) of the project.

97 SUMMARY OF COSTS In the table provided below, please complete an itemized summary of the paid invoices/receipts incurred that correspond to the work outlined in the Certificate of Appropriateness submitted with your heritage grant application. A legible photocopy of each invoice/receipt included in the itemized summary below should be attached to this form. When summarizing the information required, please follow the guidelines below: 1. Reference each paid invoice/receipt as #1, #2, etc., enter this reference in first column of summary below; 2. Provide a description of the nature of the work recorded on the invoice/receipt (i.e., labour, materials, or rentals) in the second column. 3. Provide which component identified in the approved Certificate of Appropriateness to which the work relates in the third column. 4. The amount to be entered into the fourth column is the pre-hst amount of the invoice or receipt. Summary of Project Costs Receipt Reference [# Numbered] Ex: 1 Description of Receipt Item(s) Supplies for painting Component of Certificate of Appropriateness [A-Z] B Prime and Paint clapboards on east facade Amount (Pre-HST) $ [Staff Use] TOTAL: $ [If more space is required to complete the summary, please obtain and attach a second Grant Summary Form]

98 Applicant Signature I hereby submit this grant summary form for consideration under the Grants for Heritage Conservation Program for the Growth and Community Development Services Department of The City of Saint John. By signing below I certify that all information included on this Grant Summary form and each point below is truthful and accurate: Work summarized above has been completed in accordance with the terms and conditions indicated on the Certificate of Appropriateness. A Heritage Officer of the City of Saint John was informed that the project is complete and the subject property has had a successful inspection. Date of Heritage Inspection: A Building Inspector was informed that the work related to the grant funding is complete and the subject property has had a successful inspection. Date of Building Inspection: All information provided on this form is truthful and accurate information. / / Applicant s printed name Applicant s signature DD/ MM/ YYYY Property Owner Signature / / Property owner s printed name Property owner s signature DD/ MM/ YYYY Contractors Signatures / / First contractor s printed name Second contractor s printed name DD/ MM/ YYYY / / First contractor s signature Second contractor s signature DD/ MM/ YYYY

99 HERITAGE GRANT APPLICATION PROCESS For assistance or questions regarding the Grants for Heritage Conservation Program contact heritage staff at or by phone at (506) PROVIDE Be sure that you have an approved Certificate of Appropriateness [Heritage Permit] in place for work. Contact Buildings and Inspection Services to determine if a Building Permit is required for your project. If one is required, be sure your permit has been issed prior to completing the heritage grant application form. APPLY Review the Grants for Heritage Conservation Program Policy. Fill out Heritage Grant Application form. [Policy and Forms are available Online or at Heritage Services] SUBMIT Drop off your completed Heritage Grant Application form to Heritage Services, 10th floor City Hall. Be sure that all required information and signatures are included with your application! Please see the checklist of requirements provided on the application form. WORK Receive letter of conditional grant approval and Grant Summary Form for your scope of work this year. Begin your heritage project! Be sure to follow the conditions on the Certificate of Appropriateness [Heritage Permit]. Keep in touch with the Heritage Officer during the project. NOTIFY Once your project is complete you must notify Heritage Services and Buildings and Inspection Services to arrange for required inspections. COMPLETE Drop off your completed Grant Summary Form to Heritage Services, 10th floor City Hall. Be sure that legible photocopies of all paid invoices and receipts are included in the itemized summary and are attched to the form. Please see the check list of requirements provided on the Grant Summary Form. RECEIVE Upon sucessful review of your Heritage Grant Application, you will recieve a letter of approval with a grant cheque enclosed.