p. gurstein & a. lesnikowski, ubc vancouver presented at acsp 2014 conference
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Models for Addressing Affordable Housing: The
Municipal Role
P. Gurstein & A. Lesnikowski, UBC Vancouver
Presented At ACSP 2014 Conference
The National Story: Canada
No National Housing Strategy
“Affordability Gap”: gap between income and costs Nearly ¼ of Canadian households spend 30% or more of
their gross household income on housing 13.5% of households are in “core housing need”
Homelessness has grown dramatically – up to
300,000 across Canada…UN Rapporteur 2009: “crisis of homelessness and inadequate housing”
Aboriginal communities have worst housing in Canada 28% of Aboriginal households living off-reserve are in “core
housing need” On-reserve housing is inadequate
The Local Story: Vancouver, BC
Ranked as the 2nd worst in the world for homeownership affordability
High Housing Prices and Low Average Incomes:▪ Average income is one of lowest in Canada - $71,140;▪ benchmark price of single family, detached house almost $1
million
Rental vacancy rates are among the lowest in Canada at 2.6 %
Highest average rent in Canada
Homelessness and Housing Insecurity…
HEDGE
CITY
Vancouver’s Downtown Eastside
one of the poorest neighbourhoods in North America…
SRO, homeless,addiction and mentalIllness, infestations ofbed bugs and vermin
strong community activism and solidarity
Housing Creation in Vancouver
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Figure 1: Vancouver Historical Starts by Intended Market
Homeowner Rental Condo Co-Op All
Metro Vancouver Housing Strategies
Table 1: Metro Vancouver Affordable Housing Strategies Recommended Policies and Measures
Abbotsford
Coquitlam
Langley Maple Ridge
New Westminster
Port Moody Richmond
Vancouver
West Vancouver
Amend Official or Area Plans
Housing First Policy Secondary Suites Laneway Housing Inclusionary Zoning Density Bonusing Rental Conversion Control
Infill Reduced Parking Requirements
Streamlined Approval Processes
Fee Exemptions Supply of City Lands Tax Incentives Grants or Loans Housing Reserve Funds
Land Banking Standards of Maintenance Bylaws
Advocacy Partnerships Public Education Staff Resources Task Force Call for Proposals
Vancouver’s Housing Policies Increasing the supply of subsidized,
supportive, and rental housing Partnerships with provincial agencies
like BC Housing and non-profit housing operators or private developers
Encouraging a mix of housing tenures and types
Expanding capacity in emergency shelters
Community Amenity Contributions (CACs)
Type of growth financing fee paid by a developer to the City when applying to change the type and/or density of development permitted on a site – rezoning
A way to fund public benefits including non-market rental housing
Development approvals that involve bonus density only small portion of the total number of development permits Between 2010 and 2012, such approvals were
only 2-3% of all approved development permits but are large projects
CACs
Development approvals that involve bonus density make up a relatively small portion of the total number of development permits issued each year
Between 2010 and 2012, such approvals were only 2-3% of all approved development permits but tend to involve large, high profile projects
Affordable Housing Approved through CACs
Table 1: Affordable Housing Obtained Through Additional Density Approvals (2010-2012)
2010 2011 2012Projects approved with additional density
23 36 44
Share of development permits issued
2% 3% 3%
Net additional density approved 2.2 million sq. ft.
4.2 million sq. ft.
2.4 million sq. ft.
Total value of public benefits secured
$27 million $180 million $68 million
Share allocated to affordable housing
11% 22% 25%
Value allocated to affordable housing
$2.97 million $40.6 million $17.5 million
Non-market rental units built on-site
405 units1 100 units 70 units
Market rental units built on-site 106 units 602 units2 1,011 units3
1 Built through 4 not-for-profit housing projects2 400 units provided through STIR3 Provided through the Secure Market Rental Policy Source: City of Vancouver
•through bonus density received through a
Housing Need in Vancouver
2008 2009 2010 2011 2012 20130
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
Figure 2: BC Housing Non-Market Housing Wait List - City of Vancouver
Implications
It seems unlikely that private sector development of non-market housing will ever be able to compensate for funding gaps left by federal government cuts to affordable housing programs
The nature of financing tools like CACs means that non-market housing construction using these funds will face strong competing demands from other policy priorities
Re-Imagining Policy Responses to Housing Affordability
Range of tenure modelsMixed income communitiesSocial housing revivalRent bankTax speculation Income support programmesReform of Residential tenancy lawCommunity Land Trusts
Community Land Trust and Portfolio Model
Community Land Trust Foundation has brought together a group of co-ops and non-profit organizations to work together to create 355 affordable housing on four city-owned sites The City has leased the land to
the Land Trust for free, greatly reducing the cost of the project
The housing projects themselves will be financed by money raised by the non-profits, by generating income from some units renting at just below market rate, and from selling leasehold interest to commercial spaces
Community Land Trust Model
The Community Land Trust model has the potential to create more sustainable affordable housing stock in the city by allowing housing built to be permanently affordable.
Conclusion
Efforts are needed to ensure that the various levels of government have a housing strategy
It is the concerted efforts of government and the private and non-profit sectors that are needed to start building new relationships that ensure the provision of affordable housing for future generations
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