Housing Forever Bonds

CCOC will disburse interest annually via electronic fund transfer. Interest costs are calculated as part of the capital cost of a development project and are embedded in the total cost for a project. For acquisitions, the interest costs will be covered by the stable rental revenue from the acquired building.

Instead of CCOC using financing at a market rate (currently around 6.5%), the community bond allows us to attract mission-driven, CCOC-supporter capital as financing at a more efficient interest rate resulting in lower financing cost.

Principal dollar amounts will be held for the term of the bond ranging from three to seven years. After the term expires, CCOC will pay back the principal capital to the bondholder and provide an opportunity to re-invest the principal for a new term.

As community bond capital finances pre-development activities and projects achieve shovel-ready status, long-term financing will replace bond funds. Securing long-term financing for its growth projects will allow CCOC to pay back the bond investors. For acquisitions, equity take-out from acquired buildings will replace bond funds. Therefore, capital will be available should investors wish to redeem their bond principal upon maturity.

Series D bonds require a security registration. CCOC Bonds issued under this offering are secured by charges registered on the property owned by CCOC located at 20 Robinson Avenue, Ottawa, for a total of $7,500,000. The first of these charges will fully secure all registered (RRSP/TFSA) bondholders (Series D investors) for no more than $2 million and the second charge (a minimum of $5.5 million) will secure non-registered (Direct) bondholders purchasing Series A, Series B, and Series C bonds.

CCOC has a solid track record and a scenario of loan default where it cannot repay the bondholders is highly unlikely. In the case of loan default, CCOC has various means of covering any outstanding debts, including refinancing or accessing its line of credit.