Port Moody Affordable Housing Workshop. Dan Garrison, City of Vancouver June 9, 2018
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1 Port Moody Affordable Housing Workshop Dan Garrison, City of Vancouver June 9, 2018
2 Housing Vancouver Strategy The 10-Year Housing Vancouver Strategy is intended to foster a diverse and vibrant city, and is founded on the following: 1. Creating the Right Supply of housing and address speculative demand 2. Protect and retain the existing rental stock 3. Support vulnerable residents 2
3 Housing Stock Growth Increased starts and completions; highest rental construction in decades Increased starts and completions in market rental, non-market, and ownership housing - nearly 16,000 units started and almost 11,000 units completed in the last two years; rental units are being approved at levels we have not seen since the 1970s 12,000 10,000 8,000 6,000 4,000 2, % 6% 12% 15% 19% 14% 26% 19% 22% 27% Vancouver annual housing starts, Owner Rental 10-Year Average ( ) Market and Non-Market Rental Approved and/or Under- Contruction Non-Markwet Rental Completed Market Rental Completed Historical Rental Housing Development 3
4 Housing Market Demand Strong ownership and rental demand High level of property sales over 10,000 property sales in 2017 Low purpose-built rental vacancy rates 0.9% Citywide in primary rental apartment market in ,000 12,000 10,000 8,000 6,000 4,000 2, Total Annual Property Sales in City of Vancouver, CoV Vacancy Rate (%) for Primary Rental Apartments, Apartment Attached Detached Metro Vancouver 4
5 Housing Market Demand Growing city and regional labour force 640, , , ,000 Growth in population population has grown over the past 10 years 600, , , , , , , ,486 Residents 550, City of Vancouver population, ,400,000 1,350,000 Increasing regional labour force more people are working in Metro Vancouver, which impacts housing in CoV 1,300,000 1,250,000 1,200,000 1,150,000 1,100,000 1,169,725 1,273,335 1,355,520 Vancouver CMA 1,050, Metro Vancouver Labour Force,
6 Housing Market Demand Major spikes in home prices; modest increases in incomes and rents 200% 180% Detached price - Van East Primary market average rent Apartment price - Van East Median income Prices continue to increase faster than incomes Benchmark prices rising at higher rate than incomes. Increases to average rent more closely matches increases to income. 160% 140% 120% 100% 80% 60% 40% 20% 0% Cumulative change in housing costs and income,
7 Housing Affordability Higher income brackets representing more of population Changing income distribution households in lower income brackets are less prevalent in the city than they were 10 years ago and higher income brackets are more prevalent. This is true in both rental households and owner households. 100% Owner Households 100% Renter Households 90% 90% 80% 80% 70% 70% 60% >$150k 60% >$150k 50% 40% 30% 20% 10% $80-150k $50-80k $30-50k $15-30k <$15k 50% 40% 30% 20% 10% $80-150k $50-80k $30-50k $15-30k <$15k 7 0% Income distribution, owner household annual income 0% Income distribution, renter household annual income
8 8 Shifting to the Right Supply
9 Housing Vancouver Targets Drive a Shift Toward the Right Supply 72,000 new housing units over 10 years 65% of new housing will be for renters including: 20,000 purpose-built rental units 12,000 social, co-op and supportive housing units 10,000 new ground-oriented units suitable for families with children and downsizing seniors 9
10 Affordable Housing Delivery 1. Private Sector Incentive Programs 2. Social Housing on City Land: contributed to partners at discounted or nominal rates 3. Social Purpose Real Estate Program: capital grants, development incentives, expedited processing for non-profit affordable housing projects 4. Inclusionary Housing: social housing requirements in private developments
11 Secured Market Rental Housing Incentives Rental 100 Program (2012) Density bonus Waiver of Development Cost Levies Parking relaxations Relaxation of unit size to 320 sq. ft. Concurrent processing to expedite development approvals = 350 units per year = 1,100 units per year 11 11
12 Moderate Income Rental Housing Pilot Program Time-Limited Pilot to Deliver up to 20 Projects 100% rental projects with a minimum 20% of floor area for moderate income households earning $30k-$80k per year First 20 project proposals include approximately 3,000 units total with ~25% secured at below market rates in perpetuity Key Objectives Prioritize rental housing shift towards the right supply Target a key gap in the market Test development industry interest to create this type of rental Test feasibility at different locations and housing forms 12
13 VAHA - Community Land Trust Partnership 7 new sites of City-owned land Will deliver approximately 1,000 units of affordable rental, expected to be ready for occupancy by 2021 Units will be targeted to households earning $30k- $80k per year Largest one-time municipal land investment in community housing sector in Canada ($130M)
14 Delivering Temporary Modular Housing Dedicated staff team & expedited process for reviewing and approving TMH Goal of building 600 units in 2018 DP/BP average: 8 week concurrent process 4 of 8 weeks = public consultation 406 Homes Approved and Underway 156 Built & Tenanted 104 Under Construction 46 at DP Stage 100 Pre-DP
15 Housing Vancouver Priority Actions Launch a New Social Purpose Real Estate Incentive Program Support non-profit, co-op, and faith-based partners in expanding and renewing affordable and social housing. Develop an incentive program that includes additional density and increases in per-door grants 48
16 Developer Contributions and Inclusionary Zoning The Creek by Concert Properties 135 units of mixed income affordable housing - 50% of the units for families with children New Housing Co-op being established to operate under Community Land Trust Enabling renewal of other co-ops 16
17 Protect and Retain Existing Stock
18 Housing Vancouver Approach to Rental Protect Renew Redevelop New Supply RHS ODP protects existing stock Encourage upgrades + energy retrofits Community plans enable redevelopment of existing rental, with affordability requirements Target for >40K new rental units: Broadway Corridor; Station Area Plans; MIHRPP Protect and Support Renters Work with BC gov on RTA reform Tenant Relocation and Protection Policy
19 Rental Protection Regulations: Rental Housing Stock Official Development Plan Rate of Change Areas (1:1 Replacement and Tenant Relocation and Protection Policy Other Areas Where Tenant Relocation and Protection Policy Applies 19
20 Regulations Effective in Stopping Rental Loss Market Rental Units Demolished in Rental Housing Stock ODP Areas ( )
21 The result: Rental units are being approved at levels we have not seen since the 1970s
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