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1 REPORT PLANNING DEPARTMENT To: Joanne Vanderheyden, Mayor and Members of Council From: Marc Bancroft Date: May 15, 2013 Re: Investment In Affordable Housing (IAH) for Ontario Program Ontario Ltd. (Tim Zavitz) Recommendation: That the Municipality of Strathroy-Caradoc support in principle the application of Ontario Ltd. for the construction of a 12-unit apartment building situated at 602 Albert Street under the Affordable Housing for Ontario Program (IAH). Purpose: The purpose of this report is to respond to the request sought by Mr. Tim Zavitz on behalf of Ontario Ltd. to support his IAH application to construct an affordable housing project in Strathroy. His request also includes any available funding (e.g. waiving of DCs, planning and building fees; property tax reduction) that the Municipality may be willing to provide to assist in further reducing the housing rental rates under the IAH program. Attached is a copy of Mr. Zavitz s letter dated April 10/13 requesting the foregoing under Appendix I (including a draft site plan). Background: The IAH program is governed by the City of London which also has jurisdiction in the County of Middlesex in dealing with affordable housing initiatives. Through this program, new homes are being constructed for low-income individuals and families, senior citizens and persons with disabilities. Essentially, the IAH is a private public partnership to foster the building of supportive housing. Since 2005, over 1,200 affordable housing units have been created in the City of London and Middlesex County. A Request for Proposal (RFP) has been circulated to 13 firms to facilitate the construction of affordable housing units under this initiative. There are approximately 69 units that are to be funded at $60,000 per unit under the IAH program. For those situated within the City of London, projects are eligible for an additional $60,000 per unit. Being one of the circulated firms, Mr. Zavitz on behalf of Ontario Ltd. intends to provide a submission in response to the RFP to construct a new 2.5 storey 12-unit apartment building on the north side of Albert Street and west of Jean Street in Strathroy as shown on Appendix II. 1
2 According to the Strathroy-Caradoc Official Plan, the Municipality shall use its best efforts to ensure an adequate supply of housing is available for those in social and economic need. In the absence of a market needs assessment, staff is unaware of whether there is a demand for this type of housing. Ultimately, the proponent of this project assumes the risk in this regard. Regarding the subject proposal, the lands are designated Residential and zoned High Density Residential (R3). As such, planning approvals would be limited to site plan approval ($1,350). Given that the subject property currently contains a 7-unit apartment building, it would appear that this proposal may be eligible for a DC credit given the existing units with the net increase of 5 additional units being subject to DCs ($4,879 per unit). DC credits are governed under the Municipality s development charges by-law. For projects situated in Middlesex County under the IAH, apartment units must be rented at 80% of the average market rent according to the Canada Mortgage and Housing Corporation (CMHC). With the average market rent being $753/mth (including heat and water), apartment units must be rented at $600/mth (including heat and water). A requirement of the IAH program is that property taxes be set at low density residential rate (or equivalent) rather than a multi-residential rate; or alternatively, a grant in lieu of this property tax reduction be provided. Under the IAH, successful proponents would be required to enter into an agreement with the City of London, agree to establish and maintain affordable rent levels for the apartment units and to make the apartment units available to households with income below the maximum household income limit for a period of at least 25 years from the project completion date according to the RFP. Conclusion: That the Municipality of Strathroy-Caradoc support in principle the application of Ontario Ltd. for the construction of a 12-unit apartment building situated at 602 Albert Street under the Affordable Housing for Ontario Program (IAH). 2
3 APPENDIX I 3
4 4
5 5
6 APPENDIX II Subject Lands 6
Municipality of Strathroy- Caradoc. Attachments: Marc Bancroft 6
Directed to: Municipality of Strathroy- Caradoc Mayor Vanderheyden and Members of Council Page 1 of 2 Staff Report Council Meeting Date: May 4 2015 Prepared by: Department: Subject: Attachments: Marc Bancroft
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