district of squamish...affordable housing policy. at the same time, work on the other 10-points...

DISTRICT OF SQUAMISH REPORT TO: Council FOR: Strategy

PRESENTED: September 11th, 2007 FILE: 6410 AH FROM: Planning Department SUBJECT: AH Policy Component: Mixed Income Housing Program Recommendation:

That the District of Squamish Council receive the Mixed Income Housing Program for information and discussion; And That the District of Squamish Council endorse the completion of the Affordable Housing Policy that will include the following items:

The Mixed Income Housing Program: Eligibility Criteria Proposed Management Structure Proposed short-term plan for the Housing Reserve Fund

Policy Statement regarding Mobile/Manufactured Home Parks: Templates of Legal Documents Appendix of tools and related documents

CAO Recommendation: THAT the CAO concurs with the Planning Department report and recommendations. K. Anema, CAO 1. Background:

The Affordable Housing Policy work has been underway since November 2006. This work includes:

• Review of projected housing starts, median income, and other demographic data

• Meetings and interviews with developers; • Meetings with the Affordable Housing Task Force; • Preliminary Economic analysis of policy scenarios; • Council direction policy direction, including Mobile Home Park Policy

Affordable Housing Policy – Draft Mixed Income Housing Program September 11th - 2007

1Attached to this report, is the first draft of the Mixed Income Housing Program. The


2

draft MIHP is the product of the compilation of research, Council meetings and council direction, meetings with Stakeholders including the Affordable Housing Task Force, organizations representing developers, and interviews with a range of professionals who work with Housing Policy and implementation in BC.

2. Project Information:

The Affordable Housing Policy will consist of a number of components, including: The Mixed Income Housing Program: which addresses affordable housing

contribution from new development; Eligibility Criteria Proposed Management Structure Proposed short-term plan for the Housing Reserve Fund

Policy Statement regarding Mobile/Manufactured Home Parks: indicating that Council will not consider rezoning MH Parks; Templates of Legal Documents Appendix of tools and related documents

The Mixed Income Housing Program is the largest component of the Affordable Housing Policy, as it specifically addresses housing contribution from new development that is occurring in Squamish. Staff and the Consultants are bringing the draft Mixed Income Housing Program to Council to ensure that the program is consistent with Council direction. This document compiles previous direction from Council at Strategy Sessions, direction from the AH Task Force from Task Force meetings, economic analysis of land development in Squamish, consultation with the Development Community undertaken by the Consultants, and workshops with the Planning Department. The MIHP is the program and document that will be the key tool for developers that are considering rezoning and development in Squamish. It is designed to clearly communicate the dedication process to developers with potential applications, as well as Council and the community. Council consideration of the MIHP brings individual discussion of each component of the AH Policy to a close. With review and discussion of the MIHP, the Affordable Housing Policy can be assembled as a whole, reviewed by the AH Task Force and Council, and then adopted as official municipal policy. Next Steps: The final steps of the AH Policy process include:

Review of Draft AH Policy Document by the Affordable Housing Task Force; Council Strategy Session – Review of Draft AH Policy Document; Public presentation / consultation of the proposed AH Policy Staff review of final AH Policy Adoption of the 2007 Affordable Housing Policy at a District of Squamish Council

meeting.


3

3. Department Comments: Staff are pleased to bring the draft mixed income housing program forward for

Council review and comment. Staff note that while the policy meets a number of Strategic Directions identified in the

Council adopted 2005 Affordable Housing Strategy, the policy is not a silver bullet that will address all levels and all forms of housing needs and challenges in Squamish.

The Mixed Income Housing Program is based on provincial legislation that permits

municipalities to incorporate contributions towards housing through the rezoning process. The MIHP establishes the guidelines for developers who undertake projects in Squamish. It addresses housing contribution through land use, which is the realm where the District Council plays the greatest roll and has decision-making authority.

The MHIP does not substitute for, or remove the involvement of other key players,

including senior levels of government, non-profit partner organizations, and other stakeholders and agencies that are partners in housing solutions.

4. Policy Implication Consistent with the Council adopted Affordable Housing Strategy.

Policy Context: Steps towards Affordability Following the successful bid of the Vancouver-Whistler 2010 Olympics, housing prices in Squamish rose 38% in 2003, another 7% in 2004, and an additional 16% in 2005, for a total of 61% in 3 years. The Council of the day, and the Community of Squamish had no previous experience with a real-estate jump of this nature. While by 2004, affordability was constantly stated as a concern, exactly what that meant, and what should be done was unclear. In 2005, Council allocated $30,000 towards an Affordable Housing(AH) Strategy. This was an introductory document that was the ‘getting from nothing to something’ strategy, and identified definitions, roles, and established a 10-point strategy for helping Squamish to move forward. The 10-point strategy clarified municipal powers and abilities, and provided a full set of directions, from partnerships with non-government foundations, to re-assessing secondary suites, to steps such as AH contributions from development applications. The 10-point strategy was tailored to Squamish, and work on the 10-points is underway. However, a consistent message from Council, the Public, and the Affordable Housing Task Force is that new residential development in Squamish should make a contribution to affordability. Frequently, concerns were expressed that Squamish would ‘miss the boat’ on the opportunity to have new development contribution towards affordable living for Squamish


4

residents. While a detailed policy would take time, Staff and Council undertook a Strategy Session that provided Staff with basic negotiating guidelines for new development applications. In recognition that a better understanding and thorough consultation for development contributions would be required, Council also approved budget funding for a detailed Affordable Housing Policy. At the same time, work on the other 10-points continues. Combined, the Affordable Housing Strategy and Policy will result in a number of affordable units, options, and choices for Squamish residents, but these will not be realized over night. For example, items like a reserve fund will require a number of years to grow to a point where the fund is large enough to be effective. Likewise, discussions with the province to acquire crown land for the purposes of Affordable Housing are going to move according to a provincial timetable, rather than a municipal one. The challenge is that market prices for real-estate have always changed much more quickly than policy does, because policy needs to respond to long-term changes and trends, needs to have a long-term vision, and needs to respond to concerns that are broader than housing sale prices. Affordability is a big issue, and the solutions and responsibilities do not just rest on Municipal shoulders. There are a number of players who are going to be part of keeping Squamish an affordable place to live, and this includes the provincial government, the federal government, non-profit organizations, private developers, volunteers like the AH Task Force, as well as the District of Squamish. The good news is that in 2 years Squamish has made huge steps forward. These are noted on the attached table titled: 10-Point Strategy and Updates. Attachment B to this report also includes notes from the February 21, 2006 Committee of the Whole Session. These have been provided for Council as context for where we have come from, and what we have achieved in just under 2 years. 5. Recommendation:

That the District of Squamish Council receive the Mixed Income Housing Program for information and discussion; And That the District of Squamish Council endorse the completion of the Affordable Housing Policy that will include the following items:

The Mixed Income Housing Program: Eligibility Criteria Proposed Management Structure Proposed short-term plan for the Housing Reserve Fund

Policy Statement regarding Mobile/Manufactured Home Parks Templates of Legal Documents


5

Appendix of tools and related documents __________________________________________ Sabina FooFat Planner Attachment A: Draft Policy Component – Mixed Income Housing Program Attachment B: Contextual information: Summary of AH Strategy actions to date, and notes

from the Feb 21-06 COW

Proposed Mixed Income Housing Program CitySpaces Consulting, Coriolis Consulting — 31 August 2007

Page 1

MIxed-InCoMe HouSIng ProgrAM: A SoCIAlly SuStAInAble APProACHthe Mixed-Income Housing Program (MIHP) is one of three components to the Squamish Affordable Housing Policy. the focus of this component of the policy is on creating below-market housing units that will be attainable by eligible, pre-qualified working families and individuals with moderate incomes. this will be accomplished in collaboration with private sector residential developers. Programs such as this have been successful at generating a significant number of below-market housing units in communities in Canada and the uS. local governments are the primary instigators of these programs because they have the legal tools necessary for their implementation.

Squamish has been a forerunner in bC in helping to create an environment whereby there is a recognition that all development contributes towards a socially sustainable community. this has been demonstrated through Council’s adoption of policies that encourage sustainable, mixed-income neighbourhoods through a range of housing types, tenures and sizes (Affordable Housing Strategy, october 2005 and the draft oCP, november 2005). Additionally, the district has established a Housing reserve Fund (2006) and has actively been negotiating on an individual project basis with developers regarding the provision of below-market housing.

the program outlined in this document helps the district move from general policy and individual negotiations to a more consistently applied practice. Significantly, it establishes a “level playing field” for the development community and provides a guiding framework for the administration. As outlined below, flexibility is built into the program in order to account for unique circumstances, as well as to provide options and incentives for developers. these are meant to recognize the economic realities associated with development.

What are the overall benefits to the community?

All Squamish residents benefit by programs such as this that promote social sustainability and maintain inclusive communities with diverse households of mixed incomes. As a by-product of the implementation of the Mixed-Income Housing Program, there are other potential benefits:

Helps younger families put down roots in Squamish through affordable homeownership;

Indirectly, supports renters and lower-income households through in-lieu contributions (Housing reserve Fund) that will lead to the creation of additional non-market rental housing; and

Increases accommodation choices for renters through the creation of secondary suites in new single detached subdivisions.

Who is the primary target market?Eligible, pre-qualified working families and individuals with moderate incomes.

•

•

•

This program will result in homeownership with restrictions for a range of wage earners otherwise priced out of Squamish’s market. The housing will be built by developers and will always resell at below-market prices.

Incentives and flexibility have been built into the program, to make it easier for the development industry to participate.


Page 2

What is the income group being served?Working families and individuals who make between 60-80% of the annual median income (AMI). the AMI for Squamish households in 2007 is approximately $62,500. Consequently, households making between $37,500 and $50,000 would be the income group served in 2007. This figure will be reviewed annually.

What are the main aspects of the program?

For new multi-unit residential and mixed-used developments, a proportion of housing will be sold at below-market prices to qualified buyers on an “eligibility list” kept by the District. The District enters into a “housing agreement” with the initial purchaser that, among other things, restricts the maximum resale price. this agreement is registered on the title of the property. Future purchasers of the dwelling benefit from a discounted price. Over time, the portfolio of below-market housing increases.

For detached housing, there is no requirement to sell any housing at below-market prices. Secondary suites, small lots and a one-time contribution for each small lot created are part of the MIHP.

What is expected of a developer?

A developer will make a specific contribution towards the creation of below-market housing from all proposed residential and mixed-use developments that need a rezoning, development permit or a subdivision approval. A contribution from projects that do not need a rezoning, development permit or a subdivision approval is desirable and encouraged. the program provides incentives to developers with the intent of minimizing the impact of the program on a project’s economic viability.

on submission of an application for a rezoning, development permit or subdivision, a developer will file a letter with the District that outlines how the project will contribute to the creation of below-market units in acknowledgement of the expectations as outlined below.

A developer of multi-unit and mixed-use projects will be expected to provide on-site construction of units that are affordable to working families and individuals who make between 60-80% of the AMI, calculated annually by the district using AMI data provided by Statistics Canada. the reason for integrating below-market units within the development is to ensure they are in a equally desirable location and be equally accessible to amenities, such as open space, as the market units.

As illustrated in the financial analysis report prepared by Coriolis Consulting (June 2007), multi-unit projects that require a rezoning (under certain assumptions) could financially support a contribution to the mixed income housing program. Many projects that require a rezoning will typically realize additional “land lift” that would support a contribution of 10% of units given certain assumptions and the offer of additional density.

For apartment projects, units will be priced at 80% of current market value. these below market units will be the average size of all units in the project.

•

Working families and individuals with an annual income between $37,500 and $50,000 are the target group for this program.


Page 3

For townhouse projects, units will be priced at 65% of current market value. the below market units will be the average size of all units in the project.

For large projects of 50 units or more, the units contributed will have different sizes to accommodate different household types.

For subdivision for detached housing, developers are not expected to build below-market units within the subdivision, although that would be acceptable. Instead, the requirements for subdivision for detached housing are:

A minimum of 25% of lots to be “small lots” (less than 450 m2). At the present time the district’s minimum lot size in the r1 zone is 690 m2. these lots will trade at market value.

A minimum of 25% of detached houses to have a rental secondary suite (not strata titled). Where flood plain restrictions prevent below grade construction, a secondary suite could be a suite over a garage or a separate garden suite. these units will rent at market value.

A contribution of $1.00 per square foot on a net basis (e.g., 4,000 square foot lot = $4,000 contribution; a 60-lot subdivision with 25% small lots would make a contribution of $60,000.)

Under what circumstances will this be required?

there are three circumstances where this program is in effect:

An application for a rezoning of 10 units or more;

An application for subdivision of 10 units or more; and

An application for significant variances from the current zoning for multi-unit projects.

note: there may be unique circumstances associated with a development proposal and the district reserves the right to vary or waive the requirement. For example, in some circumstances the district may require a higher contribution for other community amenities and be willing to reduce the mixed-income requirement.

Are there options for a developer?yes. While the preference is for on-site construction, the district will consider these three options if circumstances warrant:

off-site construction of an equivalent number of below-market units; or

In-lieu fees paid into district’s Housing reserve Fund for smaller projects (i.e., generate less than one unit), or in unique circumstances. these in-lieu fees will be calculated by the district, and assessed on a square foot basis that is reviewed annually; or

In-lieu land dedicated to the district. the value of the land to be dedicated will be determined by fair market value. If there is a shortfall between the value of

•

•

•

•

•

•

•

•

•

•

•

While the objective is to have below-market units fit seamlessly into a project, options such as in-lieu contributions, off-site construction and in-lieu land dedication can be considered.


Page 4

the land to be dedicated and the equivalent in-lieu fees, the residual will be paid as in-lieu fees.

What incentives are there for developers?

Recognizing that the profitability or viability of a project may be affected by the below-market housing requirement, the district will consider any (or some combination) of the following incentives, if requested in writing by the applicant.

density bonus;

development Cost Charge reduction for below-market units;

Application fee reductions for below-market units;

Flexible interior design standards for below-market units;

Parking requirement reductions for below-market units;

Phased building of a certain proportion of below-market units1;

time-limited property tax exemption in revitalization areas that may be established by the district; and

Reduced below-market housing requirement for brownfield remediation or extraordinary site-specific infrastructure costs.

What is the in-lieu contribution structure?the in-lieu contribution is determined reviewed annually by the district in relation to current market conditions. The basis of determining the contribution is as an “equivalency” — the amount equivalent to contributing 10% of units as below-market units. the in-lieu funds will be directed to the district’s Housing reserve Fund for future capital expenditures.

The in-lieu contributions for 2007, as determined through a financial analysis, are as follows:

Apartment projects: The in-lieu contribution will be $40.00 psf

townhouse projects: the in-lieu contribution will be $75.00 psf

the total in-lieu contribution for a project is calculated on a dollar value per square foot basis multiplied by the total number of square feet of an average unit for the project, then multiplied by the number of below-market units that would have been required to be constructed.

Illustration #1: A 40-unit apartment condominium project. 4 below-market units.

[In-lieu PSF] x [Average Size of units] x [number of below-Market units] $40.00 X 800 sf X 4 = $128,000.

Illustration #2: A 40-unit townhouse project. 4 below-maket units.

[In-lieu PSF] x [Average Size of units] x [number of below-Market units] $75.00 X 1100 sf X 4 = $330,000

1 At a minimum, 10% of the below-market requirement are to be provided by the time market-rate units are 30% complete. For example, a project of 100 units would require 10 below-market units. by the time 30 units are constructed, at least one below-market unit would be required.

•

•

•

•

•

•

•

•

•

•

•

•


Page 5

How will the in-lieu fees be used?

The District will accumulate funds in the Housing Reserve Fund for five years from its inception with no disbursements. thereafter, the district may continue to accumulate funds or use them for any of the following:

land purchase for non-market housing purposes; and

Grants to non-profit housing organizations for capital projects associated with below-market housing.

no costs associated with the district’s administration of the Sustainable Mixed-Income Housing Program will be taken from the Housing reserve Fund.

What eligibility criteria will be used for affordable home ownership?

the district will establish an eligibility list; applicants will be given an eligibility number based on the date of receipt of their completed application. All prospective purchasers will meet the following criteria.

Minimum age and citizenship. 19 years of age or older; Canadian citizen or permanent resident.

Employment or Residency Requirement. At least one member of the applicant household:

Is currently a resident of Squamish and has been living in Squamish for a minimum of two years prior to their application; or

Has worked in Squamish for a minimum of six months immediately prior to their application (as an employee of a business located in Squamish or self-employed and the location of their place of employment is in Squamish); or

Is a retiree that has worked in Squamish for five years or more.

Maximum household income. does not exceed 80% of the AMI for a household at the median income, adjusted for household size.

Maximum household assets. net household assets, including real estate, not to exceed the purchase price.

Financial capability. A written mortgage pre-approval from an established lending institution will be required indicating the household has financial capability sufficient to purchase a condominium at 80% of market value or a townhouse at 65% of market value, including strata fees.

Occupancy. unit must be used as a permanent residence and may not be rented out.

Will the below-market units be identical to other units?

the below-market units will be visually indistinguishable from market units and be integrated with the rest of the development. they will be constructed at a comparable design, quality

•

•

•

•

»

»

»

•

•

•

•


Page 6

and exterior finish as the development as a whole. Minor relaxations are permitted on the interior finish quality.

How long do the units remain below-market?

below-market ownership units in multi-family projects will be maintained perpetually at below-market.

How is the maximum resale price determined?

In order to keep prices below-market for future purchasers, the maximum price will be restricted upon resale to the same percentage below market as at the time of purchase. Apartment units will be purchased and resold at no more than 80% of market value and townhouses at no more than 65% of market value, as determined by “fair market value” through an appraisal. the district will maintain a list of eligible purchasers and will advise these prospective purchasers in writing at the time the homeowner indicates an intent to sell.

What is involved in the management of the program

there are numerous tasks associated with the management and administration of a housing program such as this. the district’s real estate Manager will administer the Mixed-Income Housing Program start-up and on-going operation. Some of the anticipated tasks associated with the implementation of the program include:

developing an Administration Manual for the program;

Managing the eligibility list and identifying desirable unit sizes and types2;

reviewing applications of prospective purchasers;

Fielding inquiries by developers, media, and general public;

Writing “housing agreements” and land title covenants / liaison with legal advisors;

Reviewing requests by homeowners (e.g. improvements, refinancing, etc.);

Monitoring the effectiveness of the program and identifying potential program changes;

negotiating with developers on options and incentives; and

liaising with lending institutions.

What is included in a “housing agreement”?

the district will be the Administrative Agent of the MIHP program and will enter into a “housing agreement” with the initial purchaser of each unit. The agreement will be registered on title by the district before the unit is given an occupancy permit.

2 Example: ensuring an “accessible unit” is offered to a household who has one or more people with mobility impairment.

•

•

•

•

•

•

•

•

•

The restrictions on resale do not prevent the property owner from realizing a profit on the resale of the dwelling. Rather, the resale restriction passes on the initial discounted rate enjoyed by the initial buyer to the new qualified buyer.

For example, if an apartment condominium valued at $200,000 is sold for $160,000 it has sold for 80% of its value. If the appraised value of the unit at the time of proposed resale is $240,000, the unit may be sold for no more than $192,000 – 80% of the appraised value of $240,000.


Page 7

Although the details of a housing agreement will be finalized by the District in consultation with its legal advisors, the following points are normally covered in an agreement:

Length of time unit is subject to requirements of the “housing agreement” (e.g., perpetuity, number of years);

tenure (e.g., must be principal place of residence);

Restrictions on resale (e.g., eligible, pre-qualified purchaser from District’s eligibility list, initial discount rate between the sale price and the unit’s appraised value at time of resale, first right of refusal);

Improvements (e.g., none to affect bedroom configuration, all improvements to be approved in advance and in writing);

Maintenance and insurance requirements;

lease or rent (e.g., not allowed except in case of short-term hardship or short-term education travel and approved in writing); and

remedies in the event of breach or threatened breach of the agreement.

Concluding Comments

the proposed MIHP was developed by CitySpaces Consulting and Coriolis Consulting. their work involved extensive literature and web-based research, telephone conversations with program administrators and a scenario based proforma analysis of the financial impacts of a below-Market Housing contribution on development projects in Squamish. the consultants also held two meetings with representatives of the development industry.

the program is only one element of the district’s broader housing strategy. Although it will take time to build a portfolio of homes with a restriction on resale price, where these programs have operated for a number of years, there have been significant sustainability benefits to the community. As Squamish considers embarking on this program, there is much to be learned from other communities that have learned along the way, revising their program to ensure that the intended benefits are fully realized.

•

•

•

•

•

•

•

Table 9 – Timeframe and Staffing, Strategic Directions – update by Planning Staff – October 2007

Strategic Direction

Specific Actions

Timeframe as proposed in the 2005 Strategy

Staffing / Consulting Requirements

Update as of September 2007

Course of Action

1

State District’s vision and policies clearly

Adopt AH Strategy

Amend OCP

Fall 2005

Prepare Council reports

A contract to develop a detailed AH policy was awarded to CitySpaces Consulting and Coriolis consulting. This assignment will run from October 2006, through 2007.

The AH Policy will be concluded the fall of 2007.

The new District of Squamish OCP will be adopted in 2007.

2

Engage the development community

Hold workshop to explore incentives, regulatory reform and requirements.

Winter 2005/06

Moderate to significant

Prepare background papers; organize and facilitate workshop

Part of the AH Policy assignment, and will be lead by CitySpaces and Coriolis.

Consultation with the Development community, through interviews and focus groups with the UDI and individual landowners has been ongoing.

3

Consider the potential loss of existing affordable housing

Request a “no net loss” plan for relevant development applications

Review secondary suites bylaw

Immediately

Winter 2005/06

Modest Review applications

Research, consult, report

Council Motion not to Rezone MH parks until policy work is completed – July 13, 2006:

Council direction at June 12, 2007 Strategy Session to craft Policy Statement saying that Council will not consider rezoning MH Parks.

Secondary Suites above detached garages are approved May of 2006.

Undertake study of a demolition control bylaw and demolition reserve fund

Winter 2005/06

Research, consult, report

The Demolition Control Bylaw is under the jurisdiction of ComDev and the Building Department. Not yet assigned by Council

4

Facilitate community partnerships

Establish an ongoing advisory committee

Work with groups / partners to build seniors and special needs housing

Fall 2005

As opportunities arise

Modest, ongoing

Potentially significant

BC Housing has allocated 20 assisted living bed units to Squamish. An application has been received by the Planning Department in October 2006, approved by Council on April 17th 2007

Other partnerships and opportunities will continue to be identified and developed in an ongoing, long-term focus on affordability.

5

Investigate creating a municipal housing corporation

Review options and develop a “business plan”

Spring 2006

Significant in both short and long term

The feasibility of a dedicated housing corporation will be better understood through the 2006-2007 AH policy assignment

6

Investigate a Housing Reserve Fund

Research methods and efficacy

Spring 2006

Significant in both short and long term

A Housing Reserve Fund was established in the Fall of 2006.

Bylaw No. 1951 to establish a Housing Reserve Fund was Adopted on September 12, 2006

7

Ensure land supply

Predesignate/prezone for affordable multi-family and manufactured homes

Ongoing

Modest, ongoing

Preliminary research on Crown Land supplies for AH lands began in the summer of 2006.

Planning and Property management are pursuing Crown Land Dedication of suitable parcels with assistance and from the BC Housing Policy Branch.

8

Examine financial tools to ensure affordability

Examine best practices, including incentives

Spring 2006

Significant

This is also a component of the AH policy assignment.

Measures such as increasing the property transfer tax threshold, as well as learning about funding programs is underway

This is an ongoing process, and will continue to evolve locally, provincially, and federally.

The provincial property transfer tax was raised from $265,000 to $375,000 in the Feb.2007 provincial budget.

9

Gift or lease municipally owned land

As opportunities arise

Moderate, periodic

There are limited amounts of developable Municipal Land.

Planning Staff will work with Municipal Land Management Staff on an ongoing basis to identify opportunities.

10

Maintain fair and consistent guidelines. Make information available.

Promote existing programs, make relevant information widely available

Ongoing

Modest, ongoing

A large portion of this work will come out of the AH policy assignment.

The Policy will establish the major guidelines for new development or redevelopment in Squamish.

Areas requiring further work will be more easily identified following the policy assignment.

District of Squamish Affordable Housing - 2006

Committee of the Whole – Affordable Housing Workshop February 21, 2006 (Amend Agenda – add Item 4(b) – Homelessness)

1. Introduction: a. Goal of the day – to establish a policy framework for creating

Affordable Housing in Squamish

• Early discussions in the planning department made it evident that a common understanding of terms, definitions, goals and processes is important.

• Policy should come from Council. We need to avoid helter-

skelter policy, and Council should set the bar, as opposed to developers, or other un-elected interest groups.

• Check to see if there are any questions with the terms and

definitions b. Vision – What does Council want in ten years? In two years?

One vision for Council?

2. How do we get there? (Who does what?)

a. Federal role: The Federal government largely acts as a matching-fund partner. The Federal government also funds the Canadian Mortgage and Housing Corporation (CMHC).

b. Provincial role: The province is the primary level of government

responsible for social housing. The Province of British Columbia has 2 housing branches:

a) BC Housing is an arm’s length provincial corporation that manages and funds social and subsidized housing. Areas such as homelessness, rent subsidies for seniors on fixed incomes, disability housing needs, and similar housing challenges fall under BC Housing.

b) The Province of BC also has a Housing Policy branch

that is being developed to assist municipalities through providing education, tools and information at a local level. This is a newer role for the province, and provincial scope in this area is expanding.

Committee of the Whole workshop – February 21-2006 1


c. Municipal Regulatory Tools:

i) economics of development and affordable housing ii) changes in land use

iii) when land use stays the same iv) other tools the Municipality can think about

a. incentives: b. dis-incentives

3. Strategy No.1 – State the Districts Vision and Policies clearly:

a. Why we need a policy: Fairness for the development community:

b. What is the target population:

• Growth Management Strategy Summary & population table (Hand out Table 1: Population)

i. In 2031 27% of the population will be between the ages of

25-and 40. Those people are currently between the ages of 11 and 25. It is unlikely that most of that age group currently owns or rents housing

ii. In 2031, 21.1% of the population will be 60 years or older.

This population may currently own housing, but it may not be suitable housing for seniors.

iii. As of March 6, 2006, a 2-bedroom apartment in the new

“Squamish Point” building was selling for $240,000.

iv. The average RRSP for someone like me who started investing at 30 years, will be $342,000 by the time I retire at 60.

v. The Consultants, as well as the Task Force identified the

target populations are the future workforce, as well as Seniors who may be land rich but income poor. The goal is to provide housing options that are dedicated to Squamish residents, so they can stay in the community. Does Council agree with this direction? Do they want another one?

• Affordable Housing task Force and Strategy identified a need for

Seniors and young families, now and in the future.



• Population projections - We can deduct that Squamish will need entry-level as well as senior-suited housing. What we don’t know is what the current housing stock can support, and what this housing stock will be over the next 25 years. A housing needs assessment is the best tool that can help determine exactly what kinds of housing we should be targeting….

(however, staff recommend)

• Start the ball rolling: adopt a policy, undertake a housing needs

assessment, and monitor our progress. c. Policy Framework Table

i) What we already do: • The District of Squamish is already a progressive Municipality in

terms of the Secondary Suite Bylaw that was adopted in 2000. • The pending amendments to the Residential zones will also

introduce Carriage House suites (suites above detached garages to accommodate the Flood Construction Level).

Table 2: Proposed Policy Framework: Rezoning applications. Type % dedication Cash-in-lieu

equivalent What it adds up to

Townhouse – Brownfield

10% gross floor area

A cash contribution equivalent to 10% of the gross floor area.

In a 12-unit townhouse development with each unit measuring approx. 1400 square feet, this would mean 1,680 square feet (about one townhouse unit) or the cash equivalent of liveable space.

Apartment – Brownfield

10% gross floor area

A cash contribution equivalent to 10% of the gross floor area.

In a 65 unit apartment building measuring 36,815 square feet, this would mean 3,681.50 square feet of constructed living units (about



four 2-bedroom units) or the cash equivalent of 3,681.50 sq ft of liveable space.

Detached lot – Greenfield Rezoning and Subdivision

1 out of every 10 subdivided lots dedicated as integrated small lot (3000 ft2). Lot is sold at 25% less than market value.

A cash contribution equivalent to the price of the small lot at 25% less than market value.

A 3,000 square foot lot valued at $150,000 with a 25% deduction would sell at $112,500.

Mobile Home Parks

XX% replacement of affordable units

Must rezone to redevelop.

Multi-family with redevelopment potential

XX% replacement of affordable units

Council Direction: Is the priority to maintain or redevelop?

Likely only a DP to redevelop.

NOTE: Staff have not yet figured out the purchase and management part of the equation (waiting for preliminary direction from Council). Table 3: Policy Framework: Non-rezoning applications: Legal parameters: Where there is no change to the land use, the municipality has a reduced legal ability to acquire amenities. Technically, Development Permit only addresses form and character, and Subdivision does not require Council approval. Staff can, however, suggest that a developer make a contribution to affordable housing. Type % dedication Cash in lieu

equivalent What it adds up to

Development Permit

Subdivision

ii) Manufactured Home Parks – discussion

• Stating Council’s preference • New approaches and initiatives – innovative ideas • Municipal Financial support



d. Rental and Ownership Goals: • Ownership goals – are we aiming for live-work,

commuting population? etc. • Rental needs better stats & management. Current

information gathering and distribution is insufficient. If Council wants to manage the rental housing stock, a partnership with an agency who can take this on, or a dedicated municipal function is required.

e. Management of Affordable Housing units, a reserve fund,

rental statistics and rental supply, and any other assets:

Table 4: Comparative Table of Municipal involvement. High Involvement Medium Involvement Low Involvement Location Whistler Langford Surrey How are they involved?

Housing Authority that manages employee / resident restricted units for both rental and ownership

Cash-in-lieu requirement for all multi-family developments, and lot-dedication to the municipality for all detached-lot subdivisions.

Cash-in-lieu dedication for all new development, the municipality partners with non-profit orgs. as a cash partner.

- Greater ability to steer direction of housing (control for integration of units; - units are built or provided by the experts (developers); - the municipality does not have to manage construction or development; - Direct control over a portion of the housing stock.

- A blend of both. - little-to-no management staff or structure - partners propose projects, and municipality only operates as funding partner - less ability to steer direction for housing; - no direct control over housing stock.

Annual budget to operate:

Whistler Housing Authority: $200,000.00 for two full-time staff and one part time staff.

Planner at the District of Langford estimates approximately $67,000 for start up, and $50,000 annually to maintain, plus one part-time position, and

$35,000 annual fee to the Greater Vancouver Housing Authority, plus all staff in-kind time for application review, advertising, reports to Council, fee processing, and internal administration. The



additional staff time and review.

GVHA has also advised that it will no longer be operating in 2006.

i. The perfect solution, and Plan B.

There are no quick and easy solutions. On the one hand, acquiring and managing units under some form of a housing authority is daunting. On the other hand, collecting funds and trying to make them go as far as we can either through acquiring AH land, or trying to build AH units is equally daunting.

- Developers are the land development experts. They are the experienced provider of housing.

- How does Council want to secure housing – through Developers, through partnerships, or municipally built, etc?

- what level of involvement and control does Council want in terms of Administration?

f. Obstacles, pitfalls, and challenges:

• Silver bullets • Shooting from the hip • Flavour of the week • NIMBY-ism • Lip-service

g. Staying on-top!

• Lazer-like focus, staying consistent • Shrewd and timely partnerships • Innovative and built-in-Squamish solutions • Recognizing internal and external strengths and weaknesses.

f. Assessing what Developers bring forward:

i. Council – the ultimate approving body:

ii. Evaluating proposals: Staff, the AH Task Force, and Council.

• Task Force is not an approval body, but an advisory body and a sounding board that can assist with ideas and goals.

iii. What does Council and Staff want to know? What should the

developer provide?



4. Filling in the Blanks – Direction from Council: a. Council direction on:

• Management Structure & Municipal involvement • Rezoning Policy • Mobile Home Park Policy • Development Permit Policy • Further technical review (housing needs assessment? financial

land value study? etc.) • More COW sessions for Council

5. Next Steps: a. Further technical review – does Council want a Housing Needs

Assessment, and a financial land value assessment (up to $30,000 of consultant work)

b. Fleshing out the Policy c. Consultation with the Development Community

d. Approving, Endorsing, and Communicating the Policy.

e. Establishing a management structure.

f. Items for future discussion

i. Eligibility criteria ii. Secondary home ownership

6. Staff Recommendation:

That the District of Squamish Council make an early release of budget money for the purpose of continuing with the implementation of the Affordable Housing Strategy;

And That the District Council Direct the Chief Financial Officer to establish a Housing Reserve Fund; And that the District of Squamish Council endorse the Planning Department to continue with the Affordable Housing work program (outlined in Item No. 5).



Terms and Definitions – reference sheet Please note that these definitions are not absolute. Definitions will vary and change between countries, municipalities, bylaws, challenges, and goals. The definitions that follow were selected from a variety of sources as the most relevant to the affordability question in Squamish as of 2006.

• Affordable Housing (refer to page 15 of the Affordable Housing Strategy):

o “Rental or ownership housing which has a market price that would

be affordable to households of low and moderate incomes. Households of low and moderate income are those who have household incomes that are 80% or less than the median income reported by Statistics Canada at the previous Census.”

o “Perpetual Affordable Housing” means rental housing which, under

the terms of a Housing Agreement with the District, remains affordable to initial and future households of low and moderate incomes. Households of low and moderate incomes are those who have household incomes that are 80% or less than the median income reported by Statistics Canada at the previous Census.

• Subsidized Housing: Subsidized housing encompasses all types of

housing where by the provincial government provides some type of subsidy or rent assistance, including public, non-profit and co-operative housing, as well as rent supplements for people living in private market housing

(from the BC Housing Website – www.bchousing.org) • Homelessness: A consequence of […] financial restraint and/or physical

disability including psychiatric disease and drug/alcohol addiction

(From the Ottawa InnerCity Health Project* and Ottawa University “delivering healthcare to the homeless” webpage)

• Non-market housing : means housing that is owned or controlled by a

government or a non-profit entity and is rented to low and moderate income households at less than market rent, or made available for purchase at less than market value.

• Restricted housing: means housing that through a housing agreement, can be rented or purchased if specific conditions are met and agreed to. Also referred to as title-restricted, or deed-restricted, these units have a notice on title that legally notes what kind of restriction to rental or ownership exists.


http://www.bchousing.org/

http://www.med.uottawa.ca/ichpsuo/

http://www.uottawa.ca/

http://www.uottawa.ca/


• Housing agreements: legal documents that specify conditions of a

housing lease, rental agreement, or ownership. Housing agreements are legal documents that also result in a notation on the title of the affordable housing unit.

• Dedication of units: means a contribution of completed liveable units

by developers in a multi-family development, or of single-detached lots in a detached-lot subdivision (including bare-land strata subdivisions).

• Cash-in-lieu: A monetary contribution to the affordable housing reserve

fund, instead of the dedication of units. The cash contribution is determined through municipal policy and is not subject to negotiation.

• Housing Reserve Fund: A special municipal fund dedicated specifically

to housing, where all withdrawals from the fund must be approved by Council through a spending Bylaw. While not the most flexible form of managing affordable housing funds, a housing reserve fund can be a start-up financial tool.

• Housing types:

o Single-detached: commonly known as a single-family home, this type of housing sits on a subdivided or bare-land strata lot, and can have a secondary rental suite on the lot to assist with mortgage payments (unless otherwise specified in the zoning bylaw).

o Duplex: two completely separate dwelling units that share at least

20% of a common wall. Duplexes allow slightly higher density of development. The Squamish zoning bylaw does not allow secondary suites in duplexes.

o Apartments: Complete dwelling units (kitchen, bathroom, living

and sleeping) that are built within one large building. o Townhouses/Condominiums: Multi-storey dwelling units that

are part of larger structures, and typically share 2 common walls. These units are located on common property and are regulated through a strata land agreement.

o Freehold Rowhouses /Townhouses: Townhouse

developments where each townhouse owns the immediate parcel that it is located on, and a joint-wall agreement for the shared walls is registered on title. This eliminates the requirement for a strata agreement on the development. Effectively the same as single-detached houses without side yard setbacks, Freehold Rowhouses are common in places like Eastern Canada, Europe and the UK.



o Single Room Occupancy(SRO): A room that is available for rent, with individual or shared bathroom facilities. There may be a shared kitchen facility also. Often located in aging hotel structures, SRO units can be temporary or long-term accommodation for very-low income people. Increasingly, maintenance and standards of SROs in the lower mainland is occurring through partnerships with the provincial and federal governments.



The Level Enterprise Portal

Print This Page

What is subsidized housing?

Click on these links to find out about subsidized housing:

Definition of subsidized housing Types of subsidized housing How to apply for subsidized housing Housing listings

Definition of subsidized housing Subsidized housing encompasses all types of housing where by the provincial government provides some type of subsidy or rent aincluding public, non-profit and co-operativehousing, as well as rent supplements living in private market housing.

ssistance,

for people

ubsidized housing developments are for people with low to moderate incomes,

Seniors ith mental or physical disabilities

omelessness

es

Types of subsidized housing mbia includes public housing managed by BC

inancial support for subsidized housing is generally administered based on “

t

by

Glen Arbor, a supportive

seniors housing development in Williams Lake subsidized

BC Housing.

Sincluding:

People w Individuals who are homeless or at risk of h Women and children fleeing abuse relationships Aboriginal people Low income famili

Subsidized housing in British ColuHousing and buildings operated by non-profit societies and housing co-operatives. Frent-geared-to-income”. Rent-geared-to-income is for low-to-moderate incomehouseholds. Tenants pay rent based on the gross income of the household ratherthan paying the market rate. Affordable rent is defined as costing no more than 30% of a household’s total gross monthly income, subject to a minimum rent tha


http://www.bchousing.org/applicants/affordable?printerFriendly=true&pageNumber=

http://www.bchousing.org/applicants/apply

http://www.bchousing.org/applicants/housing_listing


tenants will be asked to pay based on the number of persons living in the home. Rent-geared-to-income units include all public housing stock and many developments managed by non-profit and co-operative housing provider

s.

. Public housing 7,800 public housing units for low-income families, seniors

. Non-profit housing es also manage subsidized housing developments

es

. Co-operative housing (Co-ops) and managed by residents, who

king,

on-profits and co-operatives are often called housing providers .

ubsidized housing in British Columbia provides homes for more than 55, 700

e

Renters

ow end of market units tive housing developments have low end market

t,

ore Needs Income Threshold for major centres in British Columbia (Excerpt

egion Bachelor 1 bedroom 2 bedroom

1BC Housing managesand people with disabilities. We also fund more than 300 group homes for people with various special needs. 2Non-profit housing societiacross the province, and select tenants for these buildings. Non-profit societiare landlords under the Residential Tenancy Act. 3Housing co-operatives are jointly ownedbecome co-operative members. Members participate in decision-mashare the responsibilities of running the co-operative, and select new members. N Shouseholds, in over 140 communities across the province. More than 650 housing providers—non-profit societies and housing co-operatives—managabout 35,500 of these units. BC Housing manages an additional 7,800 public housing units with the remainder of these units are rent supplements administered through programs such as the Shelter Aid for Elderly(SAFER). LSome non-profit and co-operaunits to rent, as well as rent-geared-to-income units. Market unit rents are set aor slightly below, the rents charged for similar apartments in the private market. Cfrom the 2003 Core Needs Income Threshold) R 3 bedroom 4 bedroom Abbotsford $19,000 $23,500 $29,000 $34,500 $38,000 Vancouver $27,500 $31,000 $37,500 $44,000 $48,500 Kelowna $20,500 $23,500 $29,500 $33,000 $36,500 Kamloops $19,000 $21,500 $27,500 $33,000 $36,000 Vernon $17,000 $21,500 $25,500 $28,500 $32,000 Victoria $22,000 $25,500 $32,000 $41,500 $45,500 Prince George

$17,500 $21,500 $24,500 $27,000 $30,000


http://www.bchousing.org/programs/SAFER

http://www.bchousing.org/programs/SAFER