CEDIF Funds
La Residence Acadienne Co-operative Limited
The project is a 20-unit senior housing complex, for retired middle income people. These high quality apartments will each have a private entrance, stack-able washer and dryer, a dishwasher and hardwood floors. They will also have extras, such as: hairdressing, cleaning, shopping, meals, business or medical appointments, etc. available for a fee. There will be a professional manager for the complex. Snow removal and grounds maintenance will be part of the monthly rent.The Issuer will have a Board of Directors consisting of a minimum of six (6) directors and a maximum of nine (9) who shall each be elected for terms of three (3) years, with six (6) of the directors having been elected from within the community. The Board will appoint a president, secretary, and other officers as deemed necessary by the Board. The Directors shall meet as often as the business of the Issuer warrants, but not less than three (3) times per year. The Issuer may issue shares from time to time, at a par unit value of one hundred dollars ($100.00), (minimum of 5 shares) upon which there shall be unlimited dividends. The manager will be chosen by and overseen by the Board of Directors, who in turn, will report to the CEDIF investors. The revenue for the project will be generated from the tenants’ monthly rents. Because it is a co-operative, the project is not expected to make a large profit. However, we are not expecting a deficit either; the rents being regulated to cover the expenses; plus 10% to be put in a reserve fund.
Each tenant will invest $15,000. in the Co-operative for a total of $300,000.The investments from the Issuer (the Co-operative) will diminish the amount of money to be borrowed from a financial institution. The total cost of the project has been estimated at $l,625,000., by the engineering department of Co-op Atlantic. This money will be collected prior to obtaining the mortgage for the project. The total project is for $l,625,000. By collecting a minimum of $300,000. from tenants, it leaves a balance of $1,325,000., minus whatever amount we will raise through the CEDIF. The total loan will be $1,625,000. less CEDIF.
“A Need & Demand Study for Senior Housing” for the region of Cheticamp, Cape Breton, Nova Scotia, which was effected in March 2003, clearly indicates an aging population trend, (for the region, approx. 2000 persons 55 years of age and older, and a current total of 108 senior units.) Most of these units are owned by the municipality and charge 30% of monthly income as rents, making this unattractive for this middle income group. Our project will provide reasonable rents, services on demand and ideal location within proximity of essential services, (doctors, hospital, church, stores, etc.) If this group’s needs are not met, they may be forced to move away to obtain these services.
We have checked with municipal and provincial governments for any regulations and have been assured that we meet all the regulations; for example: the Department of the Environment tells us that we need to have our own well, as we are not allowed to connect to town water. The Department of Transportation tells us there are no problems with the proposed entrance off the highway and the Department of Public Works tells us we can connect our sewage system to town sewage. The zoning as it stands permits the construction of a 20-unit apartment complex.
| Status: | Open |
| Details: |
2004-05 Letter of no-objection (100K PDF) 2004-05 Offering Document (78K PDF) |
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