Laying the Groundwork for Long Term Affordable Housing in Your Community: A Tool Box. FONOM / MMA North-eastern Municipal Conference May 11, 2017

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1 Laying the Groundwork for Long Term Affordable Housing in Your Community: A Tool Box FONOM / MMA North-eastern Municipal Conference

2 Laying the Groundwork for Affordable Housing in your Community: A Tool Box

3 Existing Municipal Tools for Affordable Housing Planning Act Second Units Official Plans and Zoning By-laws Garden Suites Community Improvement Plans Min. and Max. Development Standards Demolition Control Areas Height and Density Exchange Development /Community Planning Permit System Subdivision Control Reduction in Parkland / Cash-in-Lieu Reduction / Exemption from Parking Requirements Waiving/reduction of application fees Municipal Act Tools Municipal and City Services Corporations Grants Municipal Capital Facilities Agreements New Multi-Residential Property Class Prohibiting the demolition and conversion of residential rental properties Development Charges Act Exempt/Reduce/Defer DCs 3

4 VISION Ontario s Updated Long-Term Affordable Housing Strategy (LTAHS Update) THEMES Appropriate and Sustainable Supply of Housing Equitable, Portable System of Financial Assistance People-Centred, Efficient Housing Programs Indigenous Housing Strategy Steps to End Homelessness Evidence-Informed System with Capacity to Respond Effectively to Changing Needs 4

5 Planning Act Tools 5

6 The Planning Act and Provincial Policy Statement (PPS) 2014 Sets out ground rules for land use planning and development in Ontario Provides a range of land use planning tools to help achieve a full range of housing including affordable housing Identifies the provision of a full range of housing, including affordable housing as a provincial interest PPS provides more specific policy direction Requires municipalities to address local housing needs 6

7 Planning for Second Units Also known as accessory or basement apartments, secondary suites and inlaw flats Self-contained residential units with kitchen and bathroom facilities within dwellings or within structures accessory to dwellings Must comply with any applicable laws and standards including the Building Code, the Fire Code and property standards bylaws 7

8 Benefits of Second Units Second units benefit homeowners, tenants and the wider community by: Increasing the stock of affordable rental units helping to create mixed-income communities Creating jobs in the construction / renovation industry, and supporting local businesses and the local labour market Maximizing use of existing housing stock and land Optimizing infrastructure, and supporting transit and active transportation Allow homeowners an opportunity to earn additional income to help meet the costs of homeownership Supporting changing demographics by providing more affordable housing options for extended family, elderly parents, or for live in caregivers 8

9 Overview of Second Units Planning Policy/Zoning in Ontario Note: Of the municipalities without second unit policies in their OP, 90% came into effect before January 1, 2012 Note: Of the municipalities without second unit provisions in their ZBL, 78% came into effect before January 1, 2012 Permissive 8% No policies 31% Permissive 30% No provisions 38% Restrictive 54% Restrictive 39% Official Plan Total: 381 Zoning By-Law Total: 412 Note: Permissive reflects the provincial position that second units should be permitted in all housing types specified in the Act, and there are no restrictions based on tenure, parking, or Ministry date of of construction. Municipal Restrictive Affairs indicates at least one restriction May 11, on 2017 housing type, tenure, parking or date of construction Ministry for second of Housing unit. 9

10 Official Plans can include: Official Plans Provisions for a range and mix of housing types and densities Measures and procedures for attaining housing objectives Targets for the provision of housing that is affordable to low and moderate income households 10

11 Municipal Zoning By-laws: Zoning By-laws Municipalities can specify minimum as well as maximum height and density in their ZBLs This could guide development towards more compact, intensified built-form outcomes and create opportunities for more affordable housing 11

12 Municipalities can pass temporary use by-laws authorizing garden suites as a temporary use for up to 20 years Garden Suites Planning Act Section 39.1 Municipalities can also extend the temporary authorization for garden suites by further three year increments, as needed 12

13 Community Improvement Plans (CIPs), Planning Act Section 28 Within a CIP area, municipalities can undertake a variety of community improvement activities, and provide financial incentives (e.g. grants, loans, and property tax assistance ) for development and redevelopment within built-up areas of a community Subsection 28 (1.1) expressly provides that community improvement includes the provision of affordable housing Municipal OPs must contain policies related to community improvement and municipalities have enacted a by-law designating a CIP project area 13

14 Reduction or waiving of application fees, Planning Act Section 69 Municipalities may reduce or waive planning application processing fees A reduction or waiver of fees for applications required for an affordable housing development would reduce the costs associated with that development 14

15 Reduction or Exemption from Parking Requirements Planning Act Section 40 Municipalities can enter into agreements with developers to allow for the reduction or waiving of parking requirements These agreements could be drafted so as to facilitate the provision of affordable housing 15

16 Conveyance of Parkland or Cash in lieu, Planning Act Sections 42 & 51.1 A municipality can require the conveyance of land (up to 5%) or cash-in-lieu for park purposes as a condition of approval of a plan of subdivision or development/redevelopment Municipalities could tailor their parkland/cash-in-lieu requirements to facilitate the development of affordable housing 16

17 Land Division Provisions Planning Act Sections 51 & 53 The Planning Act requires decision makers to have regard to the effect of a proposed subdivision or consent on matters of provincial interest Matters of provincial interest are listed in section 2 of the Act, including the adequate provision of a full range of housing 17

18 Height and Density Exchange Planning Act Section 37 Section 37 provides a discretionary, incentive-based system which enables municipalities, through their Official Plans, to negotiate density/height increases on specific sites in exchange for the provision of community benefits 18

19 Community Planning Permit System Planning Act Section 70.2 and O. Reg. 608/06 Formerly called Development Permit System Similar to a zoning by-law Combines zoning, site plan, and minor variance processes into one approval process A municipality can pass a by-law to establish a CPPS if set out in the official plan Can encourage affordable housing by: Promoting a range of housing types and densities Promoting appropriate residential intensification, compact form and building and site design Eliminating Third Party appeals to the Ontario Municipal Board 19

20 Demolition Control Areas, section 33 Municipalities can establish demolition control areas protecting ownership and rental properties, as well as properties with less than six units Within demolition control areas, municipalities can refuse to issue a demolition permit unless a building permit has been issued to erect a new building on the site 20

21 Inclusionary Zoning Bill 7 Promoting Affordable Housing Act, 2016 given Royal Assent December 8, Would allow municipalities to mandate that affordable housing units be provided within development projects This approach combines housing policy and land-use planning approvals to require private-market development to include below market-rate rental and/or ownership housing 21

22 Municipal Act Tools Development Charges Act Tools 22

23 Municipal Act, 2001 Section General power to make grants Municipalities may be able to provide property tax exemptions and other incentives such as: Loans Grants Development charge waivers Section 106 General prohibition on bonusing Prohibits municipalities from directly or indirectly assisting any manufacturing business or other industrial or commercial enterprise through the granting of bonuses 23

24 Municipal Act, 2001 Section General power to make grants Municipalities may be able to provide property tax exemptions and other incentives such as: Loans Grants Development charge waivers Section 106 General prohibition on bonusing Prohibits municipalities from directly or indirectly assisting any manufacturing business or other industrial or commercial enterprise through the granting of bonuses 24

25 Municipal Capital Facilities Agreements Municipal Act 2001, S. 110 and O. Reg. 603/06 These agreements can be used by municipalities to create relationship with other parties to deliver municipal facilities Assistance for municipal capital facilities from a municipality can include: Giving and lending money Giving, leasing, lending property Guaranteeing borrowing Property tax exemptions or reductions 25

26 Municipal Property Taxation Reduce tax ratio on the existing class of multi-residential properties Establish a new multi-residential class ratio and tax rate for the new class at or near the rate for the residential class 26

27 Demolition and Conversion of Residential Rental Properties Municipal Act 2001, S. 99.1(1) A tool that allows a municipality to prohibit demolition or conversion to condominium of residential rental property containing six or more units Municipalities must pass a by-law to give effect to this tool 27

28 Municipal Service Corporations Municipal Act 2001, S. 203 and O. Reg. 599/06 Municipalities can establish corporations for delivering municipal services and facilities to residents more efficiently Benefits of Corporations: Allows municipalities to work with partners in the public, private or non-profit sectors Potential to provide municipal services and develop facilities more efficiently May create increased capital, pooling of expenses, expertise and staff resources, and better economies of scale Authority to use a levy for economic development services with a definition that includes: Public Transit Housing Land Re-development Parking BIA type services Facilities for arts/heritage 28

29 Development Charges Act Tools Sections 5, 6 Municipalities can give a full or partial exemption from development charges to certain types of development Could be used as a financial incentive 29

30 Tools Working Together to Help Create Affordable Private Market, Supportive Housing in Your Communities 30

31 Planning Act Official Plan Policies Municipal Act Municipal Housing Facilities By-law and Planning Surplus Public Act Lands Tools Township of Seguin - Official Plan Policies Municipal Official Plan policies encourage the use of surplus public lands for affordable housing. Municipal Act 2001 Section 110 Municipal Housing Facilities By-Law Township adopted a Housing Facilities By-law to sell surplus public lands (at no cost), waive/rebate (Planning Act) application and (Building Permit) permit fees and lower property tax to a single residential rate. District of Parry Sound Social Services Administration Board Parry Sound DSSAB worked with the Township and private developer to create 10 new rental units to the community $1.2M in AHP-Extension funding created (4-one bedroom and 6 two-bedroom units) new rental units for seniors Outcomes: Created new seniors housing options in this small community (population 3988) allowing independent seniors to remain in the community. Reduced pressures on district wait list for social housing. Increased municipal taxation for new units versus vacant land. Seguin Place - 7 Seguin Road, Township of Seguin, Parry Sound District 10 unit seniors affordable housing project (two 5-unit complexes) 31

32 Planning Act - Official Plan Policies for Affordable Housing Township of Johnson Official Plan Council will also encourage and work with the public, private and not-for-profit sectors to deliver affordable housing. Waiving Planning Act application fees Algoma District Services Administration Board Algoma DSB worked with Township and private citizen/develop $200,000 in Investment in Affordable Housing program - created 4 Fully Accessible 2-bedroom units for persons with physical/cognitive disabilities Outcomes: Created 4 new fully-modified housing units for persons with physical-disabilities, to reside in the community and close to family. Allows for independent-living with support services case management provided on site. Increased municipal taxation for new project versus vacant land. PossAbility Community Homes, Desbarats, ON 32

33 Municipal Act / Assessment Act New Multi-Residential Planning Act Property Tools Tax Class Algoma District Services Administration Board Received $700,000 through the Strong Starts initiative of the 2007 Affordable Housing Program (AHP) Township of MacDonald, Meredith & Aberdeen Additional Township adopted a By-law to create a new multiresidential property tax class. Outcomes: Created new seniors housing options in this small community (population 1,464) allowing independent seniors to remain in the community. Reduced pressures on district wait list for social housing Increased municipal taxation for new units versus vacant land Hurley Haven - 10 unit affordable housing project targeted to seniors in the community of Echo Bay 33

34 Planning Act / Municipal Act Affordable Housing Community Improvement Plan City of Kenora Kenora Keewatin Community Improvement Plan: Seniors Housing Study Grant For background studies that support new multi-unit seniors housing & conversions Affordable Housing Tax Increment-Based Grant To stimulate rehabilitation, renovation or redevelopment of existing buildings and underutilized sites to promote the creation of affordable housing units Accessibility Grant To provide accessibility to existing buildings Outcomes: The CIP program created the opportunity to use financial incentives for the development of new affordable housing units in the City of Kenora s urban areas Community Improvement programs can provide financial incentives for the creation of affordable housing 34

35 Planning Act / Municipal Act Rental Housing Community Improvement Plan A Community Improvement Plan that uses property tax assistance, including grants, as an incentive to encourage new investment in rental housing. Outcomes: Community Improvement Programs created opportunities for local private developers to construct new affordable housing units in the City of Sault Ste. Marie Intent of Plan: To increase the inventory of the City of Sault Ste. Marie s affordable housing rental stock. Plan Objectives: To attract significant new investment to Sault Ste. Marie To further diversify the range and type of rental accommodation available To increase the municipality s residential tax base To encourage the construction of additional barrier free accommodation To encourage the development of facilities that support assisted living environments Rental Housing Tax Equivalent Grant Program: Grants are equal to a percentage of the municipal tax increment on a declining rate basis for a maximum 3 year period. 35

36 Planning Act - Affordable Housing Targets in Official Plans Official Plans: Affordable Housing Targets Smiths Falls Official Plan (OP) contains a target of 30% for the provision of housing that is affordable Smiths Falls OP contains policies including incentives for affordable housing such as fast-tracking the development approval process Outcomes: Official Plan policies provide clear direction to the municipality and private sector regarding the creation of affordable housing in the community. 36

37 Planning Act Tool Consultation Policies in Official Plans Town of Kirkland Lake Official Plan Approved by the Minister September 2, 2015 Official Plan Section 2.5.6, Affordable Housing : Council will encourage housing forms and densities which focus on moderate and lower income households, as encouraged within the 10 Year Housing and Homelessness Plan created by the District of Timiskaming Social Services Administration Board. (DTSSAB) : Conditions of draft Plan of Subdivision or Condominium Approval may include specific requirements for phasing of housing types to ensure the development of affordable forms of housing and a range of housing types. The Town of Kirkland Lake shall notify the DTSSAB when large residential development proposals are being considered, for their professional input on achieving housing targets, which may change from time to time. Outcomes: The provision of policy creates opportunities for the Town of Kirkland Lake to engage the DTSSAB when major development is proposed, and to assess new development proposals against both the Town s and the DTSSAB s housing priorities. 37

38 Planning Act Second Units Planning Act - Second Units Second Units - Planning Act, Sections 16 (3), 35.1 (1) Municipalities must establish Official Plan (OP) policies and Zoning By-Law (ZBL) provisions that permit second units in detached, semi-detached, and row houses Policies for second units cannot be challenged at the Ontario Municipal Board Example: County of Bruce Secondary Suites Affordable Housing Grant Program started in and is administered by the County of Bruce Secondary suites permitted within the primary residence building within the residential designation Outcomes: Stimulates homeowner investment to create alternate housing options Provides a forgivable loan up to a maximum of $25,000 to develop a secondary suite Uniform approach to permitting and supporting suites County-wide Pilot commenced in Kincardine and Saugeen Shores in 2016; two applications received to date and one of those is nearing construction start 38

39 Planning Act - Official Plan Policies - Cost-effective Development Standards Official Plan policies may encourage cost-effective development standards Thunder Bay District Social Services Administration Board Pocket Suites - Eight-Plex Developments in the City of Thunder Bay Pocket Suites create a unique alternative to living in a rooming house setting Building form is designed to fit on city lots less than 33 to take advantage of unused properties in developed areas Outcomes: Two new Pocket Suites (eight studio-sized units) were created in to address high needs for non-senior singles (approximately 60% of the DSSAB s waiting list) 39

40 Create opportunities..things to consider Consider your housing needs Access sustainability of the housing options for your community Take inventory of municipal tools what is in it, what is not, what do you need? Leverage new tools, amend existing create new opportunities Engage with partners - foster greater relationships with Housing Service Managers (DSSABs), Private Market developers, non-profit, Co-op Seek advice, gather resources dare to consider the possibilities and outcomes 40

41 New and Existing tools.create opportunities What can they really do? Promote Open for business opportunities Attract new affordable, private market, non-profit development Retain and sustain housing options/types in your community Create opportunity for new rental units including second units, garden suites Create new revenue streams (business, permits, applications) Generate taxation (you never had) Create employment and economic development opportunities 41

42 Thank you.. QUESTIONS? 42

43 For more information: and Northern Municipal Services Office - Sudbury 159 Cedar Street, Suite 401 Sudbury, ON P3E 6A5 Regional Housing Services Cindy Couillard, Team Lead (705) Cindy.Couillard@Ontario.ca Steve May, Sr. Housing / Planning Advisor (705) Steve.May@Ontario.ca Wendy Kaufman, Manager Community Planning and Development (705) Wendy.Kaufman@Ontario.ca Sophia Minor Senior Municipal Financial Advisor (705) Sophia.Minor@ontario.ca 43

44 Select Resources The Municipal Act, 2001: The Planning Act: The Provincial Policy Statement, 2014: The Housing Services Act. 2011: The Housing Policy Statement: Community Improvement Planning Handbook, 2008: Municipal Tools for Affordable Housing Handbook, 2011: 44

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