GREATER VANCOUVER REGIONAL DISTRICT HOUSING COMMITTEE

Transcription

1 GREATER VANCOUVER REGIONAL DISTRICT HOUSING COMMITTEE REGULAR MEETING Friday, October 14, :00 pm 2nd Floor Boardroom, 4330 Kingsway, Burnaby, British Columbia A G E N D A1 1. ADOPTION OF THE AGENDA October 14, 2016 Regular Meeting Agenda That the Housing Committee adopt the agenda for its regular meeting scheduled for October 14, 2016 as circulated. ADOPTION OF THE MINUTES 2.1 June 10, 2016 Regular Meeting Minutes That the Housing Committee adopt the minutes of its regular meeting held June 10, 2016 as circulated. 2.2 September 14, 2016 Special Meeting Minutes That the Housing Committee adopt the minutes of its special meeting held September 14, DELEGATIONS No items presented. 4. INVITED PRESENTATIONS No items presented. 5. REPORTS FROM COMMITTEE OR STAFF Budget and Annual Work Plan Housing Policy & Planning Designated Speaker: Elisa Campbell That the Housing Committee endorse the 2017 Regional Planning (Housing Policy & Planning) Budget and Annual Work Plan as presented in the report 2017 Budget and Annual Work Plan Regional Planning (Housing Policy & Planning) dated October 3, Note: Recommendation is shown under each item, where applicable. October 7, 2016 HC - 1

2 Housing Committee Regular Agenda October 14, 2016 Agenda Page 2 of , and forward them to the Board Budget Workshop on October 21, 2016 for consideration Budget and Annual Work Plan - MVHC Designated Speaker: Don Littleford That the Housing Committee endorse the 2017 MVHC Budget and Work Plan as presented in the report 2017 Budget and Annual Work Plan MVHC dated September 26, 2016 and forward these to the Board Budget Workshop on October 21, 2016 for consideration. 5.3 Metro Vancouver Strategic Implementation Plan (Regional Affordable Housing Strategy Designated Speaker: Elisa Campbell Verbal Update 5.4 National Housing Strategy Consultation Update Designated Speaker: Margaret Eberle That the Housing Committee receive for information the report dated September 19, 2016 titled National Housing Strategy Consultation Update. 5.5 Payout of Heather Place Mortgage Designated Speaker: Don Littleford That the MVHC Board authorize staff to pay out the existing CMHC mortgage / 033 for the Heather Place property at West 13th Avenue, Vancouver BC, having a legal description of PID and , Lots B and C, Block 438, District Lot 526, Plan 19390, estimated to be $600,887 as of October 1, 2016, plus the interest that would be paid to maturity of $14,721, for a total of $615,608 subject to confirmation of eligible reserve use under the Umbrella Agreement from BC Housing. 5.6 Prepayment of Section 27 CMHC Debentures Designated Speaker: Dean Rear That the Metro Vancouver Housing Corporation Board approves MVHC to apply to the Canada Mortgage Housing Corporation (CMHC) to prepay the Section 27 debentures and to obtain financing through GVRD, contingent on approval by the GVRD Board. 5.7 Vacancy Performance 2nd Quarter 2016 Designated Speaker: Don Littleford That the Housing Committee receive the report dated September 26, 2016 titled Vacancy Performance 2nd Quarter 2016, for information. HC - 2

3 Housing Committee Regular Agenda October 14, 2016 Agenda Page 3 of Manager s Report Designated Speaker: Don Littleford That the Housing Committee receive for information the report dated October 3, 2016, titled Manager s Report. INFORMATION ITEMS July 2016 Report Item on Mixed Income Transit Oriented Rental Housing Study July 2016 Report Item on What Works: Municipal Measures for Sustaining and Expanding the Supply of Purpose Built Rental Sept Delegation on Sponsorship Request from Generation Squeeze for Homes First event Oct 25, 2016 Correspondence re Regional Affordable Housing Strategy to Minister Duclos 2016 June 29 Correspondence re Regional Affordable Housing Strategy to Minister Coleman 2016 June 29 Correspondence re Regional Affordable Housing Strategy to Member Municipalities 2016 June 29 News Release re Largest Housing Investment ever in Province s History 2016 Sep 19 Correspondence re Homelessness Partnering Strategy from Service Canada 2016 Jun 9 BC Ministry of Finance Additional Property Transfer Tax Foreign Entities - July 2016 CHRA Final pre-budget submission - Aug 2016 Correspondence re Proposed Federal Government Actions - MV Regional Affordable Housing Strategy to Ministry of Families Sep 16 Correspondence re Proposed Provincial Government Actions - MV Regional Affordable Housing Strategy to Ministry of Families Sep 16 Correspondence re Proposed Fraser Health Authority Actions - MV Regional Affordable Housing Strategy to Ministry of Families Sep 16 Correspondence re Proposed Vancouver Coastal Health Actions - MV Regional Affordable Housing Strategy to Ministry of Families Sep 16 Correspondence re Proposed TransLink Actions - MV Regional Affordable Housing Strategy to Ministry of Families Sep 16 Correspondence re Regional Affordable Housing Strategy - Incoming from Anmore 2016 Aug 9 Correspondence re Regional Affordable Housing Strategy - Incoming from Belcarra 2016 Aug 9 Correspondence re Regional Affordable Housing Strategy - Incoming from New Westminster 2016 Aug 9 Correspondence re Regional Affordable Housing Strategy - Incoming from Port Coquitlam 2016 Aug 9 Correspondence re Regional Affordable Housing Strategy - Incoming from Surrey 2016 Aug 9 Some Thoughts on a National Housing Strategy Steve Pomeroy July 2016 Correspondence re Progress Update - Vancity Developer Pod Concept 2016 Sep 16 HC - 3

4 Housing Committee Regular Agenda October 14, 2016 Agenda Page 4 of Correspondence re Jump Start Program Canadian Tire 2016 Oct 3 Sept 2016 Report Item on Shaping our Future Proposed Amendment to Incorporate Revised Housing Demand Estimates 7. OTHER BUSINESS No items presented. 8. BUSINESS ARISING FROM DELEGATIONS 9. RESOLUTION TO CLOSE MEETING That the Metro Vancouver Housing Corporation Board of Directors close its regular meeting schedule for October 14, 2016 pursuant to the Community Charter provisions, Section 90 (1) (e) as follows: 90 (1) A part of the meeting may be closed to the public if the subject matter being considered relates to or is one or more of the following: (e) the acquisition, disposition or expropriation of land or improvements, if the board or committee considers that disclosure could reasonably be expected to harm the interests of the regional district. (i) the receipt of advice that is subject to solicitor-client privilege, including communications necessary for that purpose; 10. ADJOURNMENT/CONCLUSION That the Housing Committee adjourn/conclude its regular meeting of October 14, Membership: Clay, Mike (C) Port Moody Jackson, Lois (VC) Delta Buchanan, Linda North Vancouver City Coté, Jonathan New Westminster Jordan, Colleen Burnaby Long, Bob Langley Township MacKay-Dunn, Doug North Vancouver District McNulty, Bill Richmond Meggs, Geoff Vancouver HC - 4 Read, Nicole Maple Ridge Stevenson, Tim Vancouver Stewart, Richard (M) Coquitlam Villeneuve, Judy Surrey

5 2.1 GREATER VANCOUVER REGIONAL DISTRICT HOUSING COMMITTEE Minutes of the Regular Meeting of the Greater Vancouver Regional District (GVRD) Housing Committee held at 1:04 p.m. on Friday, June 10, 2016 in the 2nd Floor Boardroom, 4330 Kingsway, Burnaby, British Columbia. MEMBERS PRESENT: Chair, Mayor Mike Clay, Port Moody Vice Chair, Mayor Lois Jackson, Delta Councillor Linda Buchanan, North Vancouver City Mayor Jonathan Coté, New Westminster Councillor Colleen Jordan, Burnaby Councillor Bob Long, Langley Township Councillor Doug MacKay-Dunn, North Vancouver District Councillor Bill McNulty, Richmond Councillor Geoff Meggs, Vancouver Mayor Nicole Read, Maple Ridge (arrived at 1:14 p.m.) Councillor Tim Stevenson, Vancouver Mayor Richard Stewart, Coquitlam (arrived at 1:16 p.m.) Councillor Judy Villeneuve, Surrey MEMBERS ABSENT: None. STAFF PRESENT: Don Littleford, Director, Housing Carol Mason, Commissioner/Chief Administrative Officer Deanna Manojlovic, Assistant to Regional Committees, Legal and Legislative Services 1. ADOPTION OF THE AGENDA 1.1 June 10, 2016 Regular Meeting Agenda It was MOVED and SECONDED That the Housing Committee adopt the agenda for its regular meeting scheduled for June 10, 2016 as circulated. CARRIED Minutes of the Regular Meeting of the GVRD Housing Committee held on Friday, June 10, 2016 Page 1 of 4 HC - 5

6 2. ADOPTION OF THE MINUTES 2.1 April 22, 2016 Regular Meeting Minutes It was MOVED and SECONDED That the Housing Committee adopt the minutes of its regular meeting held April 22, 2016 as circulated. CARRIED 3. DELEGATIONS No items presented. 4. INVITED PRESENTATIONS No items presented. 5. REPORTS FROM COMMITTEE OR STAFF 5.1 Homelessness Partnering Strategy Community Entity Update Report dated May 24, 2016 from Theresa Harding, Homelessness Partnering Strategy Community Entity Manager, Housing, providing an update on the fiscal year two Homelessness Partnering Strategy (HPS) funds allocation and on the HPS Community Entity RFQ/ RFP. Members were informed about the recent federal government announcement increasing Metro Vancouver s Designated Communities funding stream by approximately $4 million over two years. Request of Staff Staff was requested to provide the members with a copy of the resolution related to Homelessness Partnering Strategy funding passed at the Federation of Canadian Municipalities meeting. On-table correspondence received from Employment and Social Development Canada is retained with the June 10, 2016 Housing Committee agenda. It was MOVED and SECONDED That the Housing Committee receive the report titled Homelessness Partnering Strategy Community Entity Update dated May 24, 2016 for information. CARRIED 5.2 Manager s Report Report dated May 18, 2016 from Don Littleford, Director, Housing, providing an update on the Committee s 2016 work plan; Canada Mortgage and Housing Corporation seed funding for affordable housing; the National Housing Strategy; Metro Vancouver s mixed-income transit-oriented rental housing study; business Minutes of the Regular Meeting of the GVRD Housing Committee held on Friday, June 10, 2016 Page 2 of 4 HC - 6

7 case development for a transit-oriented affordable housing fund; Metro Vancouver s high home prices; regional affordable housing strategy adopted by the GVRD Board on May 27, 2016; and federal housing funds. 1:14 p.m. Mayor Read arrived at the meeting. 1:16 p.m. Mayor Stewart arrived at the meeting. Discussion ensued on the plan for transmitting the Regional Affordable Housing Strategy to member municipalities for endorsement as directed by the GVRD Board on May 27, Request of Staff Staff was requested to provide the members with a copy of the correspondence related to the Regional Affordable Housing Strategy when it is transmitted to member municipalities for their endorsement. Members offered comments about encouraging senior levels of government to take the lead on affordable housing policy. Request of Staff Staff was requested to incorporate the members comments into the advocacy letters that will form a part of the transmittal of the Regional Affordable Housing Strategy to senior levels of government; and to provide a copy of the letters to the members via . It was MOVED and SECONDED That the Housing Committee receive for information the report dated May 18, 2016, titled Manager s Report. CARRIED 6. INFORMATION ITEMS It was MOVED and SECONDED That the Housing Committee receive for information the following Information Items: 6.1 Social Housing Investments in Budget 2016 Dialogue with Duclos April Federal Mandate Letter Status report CHRA May Correspondence from CHRA re the National Housing Strategy 2016 May Rental Policy Bears Fruit - Financial Post May Homelessness and Affordable Housing Priority Resolution Liberals A National Housing Strategy for Canadians Priority Resolution Liberals Surrey Board of Trade Policy Resolution on Affordable Housing Passed by BC Chamber of Commerce May 2016 CARRIED Minutes of the Regular Meeting of the GVRD Housing Committee held on Friday, June 10, 2016 Page 3 of 4 HC - 7

8 7. OTHER BUSINESS No items presented. 8. BUSINESS ARISING FROM DELEGATIONS No items presented. 9. RESOLUTION TO CLOSE MEETING No items presented. 10. ADJOURNMENT/CONCLUSION It was MOVED and SECONDED That the Housing Committee conclude its regular meeting of June 10, CARRIED (Time: 2:06 p.m.) Deanna Manojlovic, Assistant to Regional Committees Mike Clay, Chair FINAL Minutes of the Regular Meeting of the GVRD Housing Committee held on Friday, June 10, 2016 Page 4 of 4 HC - 8

9 2.2 GREATER VANCOUVER REGIONAL DISTRICT HOUSING COMMITTEE Minutes of the Special Meeting of the Greater Vancouver Regional District (GVRD) Housing Committee held at 8:47 a.m. on Wednesday, September 14, 2016 in the 10th Floor Conference Centre, 5945 Kathleen Ave., Burnaby, British Columbia, the purpose of which was to meet with the Honourable Jean-Yves Duclos, Minister of Families, Children and Social Development, regarding housing-related issues including the Proposed National Housing Strategy. MEMBERS PRESENT: Chair, Mayor Mike Clay, Port Moody* Councillor Linda Buchanan, North Vancouver City Mayor Jonathan Coté, New Westminster Councillor Doug MacKay-Dunn, North Vancouver District Councillor Bill McNulty, Richmond Councillor Geoff Meggs, Vancouver Mayor Nicole Read, Maple Ridge Mayor Richard Stewart, Coquitlam Councillor Judy Villeneuve, Surrey * Also member of Intergovernment and Finance Committee MEMBERS ABSENT: Vice Chair, Mayor Lois Jackson, Delta Councillor Colleen Jordan, Burnaby Councillor Bob Long, Langley Township Councillor Tim Stevenson, Vancouver OTHERS PRESENT: Honourable Jean-Yves Duclos, Minister of Families, Children and Social Development Intergovernment and Finance Committee Members Present: Vice Chair, Mayor Greg Moore, Port Coquitlam Mayor Malcolm Brodie, Richmond Mayor Derek Corrigan, Burnaby Mayor Darrell Mussatto, North Vancouver City Mayor Richard Stewart, Coquitlam STAFF PRESENT: Don Littleford, Director, Regional Housing Carol Mason, Commissioner/Chief Administrative Officer Rae Ratslef, Recording Secretary Minutes of the Special Meeting of the GVRD Housing Committee held on Wednesday, September 14, 2016 Page 1 of 3 HC - 9

10 1. ADOPTION OF THE AGENDA September 14, 2016 Special Meeting Agenda This item was not considered. INVITED PRESENTATIONS 2.1 Honourable Jean-Yves Duclos, Minister of Families, Children and Social Development Subject: Housing-related Issues including the Proposed National Housing Strategy Chair Clay provided an overview of the Housing Committee s mandate and guiding documents including the Regional Affordable Housing Strategy (RAHS) adopted by the Board on May 27, The Chair noted Metro Vancouver s interest in partnering with the provincial and federal governments on funding of capital costs associated with infrastructure for new affordable housing in the region. The Honourable Jean-Yves Duclos, Minister of Families, Children and Social Development, offered comments about: federal government interest to build on existing relationships and efforts, and to utilize resources efficiently to assist in meeting housing needs of average Canadians $2.3 billion over three years to be allocated through existing mechanisms as part of the phase 1 housing investment local government opportunities to work closely with the Province of BC over the next 18 months to determine how phase 1 resources can best be invested phase 2 housing investment with the provinces and territories as primary partners as part of the 2017 budget federal government consultation efforts over the last eight months to develop a National Housing Strategy (NHS) hope that the NHS will signal opportunities for the federal government to further cooperate with other stakeholders across Canada interest in redefining and enhancing the role of the Canada Mortgage and Housing Corporation (CMHC) Affordable Rental Housing Innovation Fund - $200 million over the next several years providing grants to meet the needs of housing services Affordable Rental Housing Financing Initiative - $2.5 billion over five years providing opportunities for CMHC to leverage and support community resources Committee members offered comments about: support for the federal government s re-engagement in housing and in the development of a NHS Metro Vancouver s RAHS in terms of developing the NHS facilitating tax credits for the development industry to encourage rental housing Minutes of the Special Meeting of the GVRD Housing Committee held on Wednesday, September 14, 2016 Page 2 of 3 HC - 10

11 3. the disconnect between supply and demand of rental units the need to find incentives for the market to produce more rental housing to address the critical need for rental units hope that the phase 2 investment is more substantive and inclusive of partnerships with local governments consideration of private sector and pension trustees being mobilized to make long-term investments in rental housing the need for reports on how monies transferred to the Province have been used for rent supplements versus the production of housing interest in collaboration between ministries, and the need for a new relationship and direct dealings with organizations such as the Metro Vancouver Housing Corporation (MVHC) MVHC success in producing affordable and social housing for communities and MVHC priorities and actions City of Maple Ridge s recent success in deconstructing homelessness the importance of investment into affordable after-school care concerns regarding the fragmented approach to treat substance abuse and mental health issues support for Truth and Reconciliation Commission recommendations regarding upstream investments in prevention turning funding announcements into lower mainland non-market projects social determinants of health preventing people from living productive lives inability for people to afford to live in communities where they work creating transportation and transit infrastructure issues concern that only 2 percent of the health budget targets prevention City of Richmond s successful co-op housing program and interest in more focus to reinstitute similar programs to benefits communities ability of Metro Vancouver local governments to work together MVHC identification of under-density sites near transit that are prime for redevelopment Local government interest to partner with MVHC as the housing provider MVHC s willingness to provide staff and political support to ensure successful implementation of a NHS ADJOURNMENT/CONCLUSION The Housing Committee concluded its special meeting of September 14, 2016 at 10:06 a.m. Rae Ratslef Recording Secretary Mike Clay, Chair FINAL Minutes of the Special Meeting of the GVRD Housing Committee held on Wednesday, September 14, 2016 Page 3 of 3 HC - 11

12 5.1 To: Housing Committee From: Elisa Campbell, Director, Regional Planning & Electoral Area Services, Planning, Policy and Environment Date: October 3, 2016 Subject: 2017 Budget and Annual Work Plan Regional Planning (Housing Policy and Planning) Meeting Date: October 14, 2016 RECOMMENDATION That the Housing Committee endorse the 2017 Regional Planning (Housing Policy and Planning) Budget and Annual Work Plan as presented in the report 2017 Budget and Annual Work Plan Regional Planning (Housing Policy and Planning) dated October 3, 2016, and forward them to the Board Budget Workshop on October 21, 2016 for consideration. PURPOSE To present the 2017 Regional Planning (Housing Policy and Planning) Budget and Annual Work Plan for consideration by the Housing Committee. BACKGROUND The Regional Planning function provides research and policy analysis and implementation in support of a prosperous, resilient and livable region for all 23 members within Metro Vancouver. A primary responsibility is to develop, implement and monitor Metro 2040: Shaping our Future (Metro 2040), the regional growth strategy, which also identifies a mandate for Metro Vancouver to develop complete communities that are characterized by diverse and affordable housing choices. This includes considering the full continuum of housing needs in the region. Regional Planning (Housing Policy & Planning) is guided by the Board Strategic Plan, by Metro 2040, and by the Regional Affordable Housing Strategy with a focus on the following strategic directions and goals: Continue to advocate to other orders of government for funding and programs to improve the affordability of housing in the region Facilitate collaboration among members to expand the range of housing options in the region Update the Regional Affordable Housing Strategy to address the breadth of current regional issues Examine the potential for partnerships involving Metro Vancouver and members on the expansion of affordable housing stock in the region. In the past year Metro Vancouver has initiated a long term financial planning process, in particular with an increased emphasis on the development of a five year financial plan. The focus of this report and the budget and annual work plans attached is Preliminary five year financial plans have been prepared utilizing the framework presented to the Intergovernment and Finance Committee on HC - 12

13 2017 Budget and Business Plan Regional Planning (Housing Policy & Planning) Housing Committee Meeting Date: October 14, 2016 Page 2 of 4 July 20, The Five Year Financial Plan will be an agenda item for the Board Strategic Workshop scheduled for February 24th, BUDGET AND ANNUAL WORK PLAN This report is structured to provide the budgetary highlights of the Regional Planning function, with a particular focus on the Housing Policy & Planning program. The Budget Details (Attachment 1) and the 2017 Annual Work Plan (Attachment 2) are provided for the Committee s consideration. In addition, an organizational chart is attached that shows the department structure for Regional Planning (Attachment 3). The 2017 Regional Planning (Housing Policy & Planning) Budget and Annual Work Plan have been prepared to respond to the strategic direction provided by the Board and in support of implementing Metro 2040, the Regional Affordable Housing Strategy, and a forthcoming Metro Vancouver Strategic Implementation Plan (RAHS). Operating Budget Highlights The Housing Committee is responsible with reviewing the annual budgets for the Housing Policy and Planning Program and associated communication initiatives which comprise part of the GVRD Regional Planning function. As shown in the table below, the proposed 2017 Budget for these programs are increasing by $ 240,713 for a total of $418,304. The following is an excerpt from the overall proposed 2017 GVRD Regional Planning budget (Attachment 1). Housing Policy and Planning $177,591 $407,304 $- $11,000 $177,591 $418,304 Communication Program This increase is primarily due to the inclusion of new staff positions, a Communications Program, and an increase in corporate costs allocated across all departments. The 2017 operating budget includes the following key actions: Implementation of a Strategic Implementation Plan (RAHS) for exploring funding, financing and partnership options to increase the stock of affordable housing in the region Preparation of updated Apartment Parking study Preparation of a Rental Housing Facts in Focus publication Expand and prioritizing the criteria through which decisions are made about development / redevelopment opportunities Ongoing support for members in implementing complete community / housing affordability actions in Metro 2040 Highlights of consulting projects anticipated to be undertaken in 2016 to respond to work plan requirements within the operating budget include the following: Apartment Parking Study (Update and Expansion) ($20,000) Data Collection on Current Rental Rates ($20,000) HC - 13

14 2017 Budget and Business Plan Regional Planning (Housing Policy & Planning) Housing Committee Meeting Date: October 14, 2016 Page 3 of 4 Best Practices in Management of Affordable Units Gained Through Inclusionary Zoning Policies ($20,000) SIF - Transit Oriented Affordable Housing Fund ($100,000) The budget includes $11,000 for a Communications Program to support the work plan. Associated activities include multi-media services, stakeholder engagement and corporate communications. Two new positions are proposed to respond to the work plan. One position is for a Development Planner that would support activities related to development of affordable rental housing units, consistent with the Metro Vancouver Strategic Implementation Plan (Regional Affordable Housing Strategy). A second position would be for an analyst that would support activities associated with housing policy and planning activities. As previously reported to the Board, the impact of the financing of the December 2015 purchase of a new head office complex has been included in the 2017 centralized support budget. The allocation of these costs to the various Metro Vancouver entities and functions, as shown in Attachment 1, reflects the 2017 borrowing costs. Annual Work Plan Performance Indicators Within the Regional Planning (Housing Policy & Planning) Annual Work Plan, performance indicators have been developed and are being tracked. These include: Percent of median income spent on housing and transportation costs New housing units by type and tenure The trend in these performance measures suggests that affordability is a growing problem for the region as the cost of housing continues to rise and median household incomes in the region remain lower than in other metropolitan regions in Canada. Recent data illustrates transportation is also a major cost in working households, and transportation mode choice and accessibility can greatly impact the combined cost burden. The region s housing stock continues to diversify, with most areas showing larger shares of new housing in the form of apartments and row housing. BUDGET APPROVAL PROCESS The proposed 2017 Budget and Annual Work Plan for Regional Planning (Housing Policy & Planning) are presented to the Housing Committee for consideration and endorsement before being forwarded to the Board for consideration. The next steps of the budget process are: The 2017 Budget and Annual Work Plan for Regional Planning (Housing Policy & Planning) will be presented at the Board Budget Workshop on October 21, The Board will consider adoption of the Budget on October 28, ALTERNATIVES 1. That the Housing Committee endorse the 2017 Regional Planning (Housing Policy & Planning) Budget and Annual Work Plan as presented in the report 2017 Budget and Annual Work Plan Regional Planning (Housing Policy & Planning) dated September 27, 2016 and forward to the Board Budget Workshop on October 21, 2016 for consideration. HC - 14

15 2017 Budget and Business Plan Regional Planning (Housing Policy & Planning) Housing Committee Meeting Date: October 14, 2016 Page 4 of 4 2. That the Housing Committee make recommendations and endorse the 2017 Regional Planning (Housing Policy & Planning) Budget and Annual Work Plan as amended and forward to the Board Budget Seminar on October 21, 2016 for consideration. FINANCIAL IMPLICATIONS The 2017 Budget and Annual Work Plan for Regional Planning (Housing Policy & Planning) as presented in Alternative 1 comprise part of the overall GVRD tax requisition. The 2017 Regional Planning budget, if approved by the GVRD Board, is projecting a requisition of $3,351,769 (9.2%) which is part of the overall GVRD requisition of $51.6 million representing a $2 increase to the average household after accounting for population growth in the region. While the majority of revenue to cover projected Regional Planning expenditures will come from the GVRD tax requisition, non-tax revenue sources account for approximately XX% of the operating budget. These non-tax revenue sources include: Sustainability Innovation Fund Reserves; and funds from the Regional Planning Growth Strategy reserve. Under Alternative 2, the Committee may wish to consider recommending amendments to the operating budget to reflect Board strategic priorities. Any proposed changes would require an update to the tax requisition for the service. SUMMARY / CONCLUSION As part of the annual budget process for 2017, Annual Work Plans have been prepared to accompany service area budgets in order to provide Committee and Board members with a high level overview on the role of the service, the total budget, overall staff complement, performance indicators and key actions for the coming year. The 2017 Budget for Regional Planning is projecting a tax requisition increase of 9.2% over This increase is due to the inclusion of a request for one new staff position, the inclusion of a Communications Program, and allocation of Centralized Support Costs to reflect the 2017 borrowing costs for the purchase of a new Head Office complex. The Budget for 2017 has been prepared to respond to direction provided in the Board Strategic Plan, support the goals of the Metro 2040: Shaping our Future, the regional growth strategy and the Regional Affordable Housing Strategy, and to support the implementation of a Metro Vancouver Strategic RAHS Implementation Plan. Staff recommend endorsing the 2017 Budget and Annual Work Plan for Regional Planning (Housing Policy & Planning) as presented under Alternative 1. Attachments: Regional Planning Operating Budget Detail (# ) 2. Regional Planning (Housing Policy & Planning) 2017 Annual Work Plan (# ) 3. Organizational Chart for Planning, Policy and Environment Department - Regional Planning HC - 15

16 Attachment 1 B25A ALO GREATER VANCOUVER REGIONAL DISTRICT REGIONAL PLANNING 2017 BUDGET REVIEW BUDGET ACTUAL BUDGET BUDGET % BUDGET CHANGE REVENUES GVRD Requisition Sustainability Fund Reserves Reserves TOTAL REVENUES $ 2,882,410 40,000 50,000 $ 2,882,410 21,400 36,000 $ 3,069,324 58, ,000 $ 3,351, , , % $ 2,972,410 $ 2,939,810 $ 3,312,924 $ 3,771, % $ 2,039, ,087 2,590,050 $ 1,932, ,350 2,275,989 $ 2,337, ,090 2,876,145 $ 2,518, ,682 3,052, % EXPENDITURES Operating Programs: Regional Planning Environment Housing Policy and Planning 181,917 Communications Program - Allocation of Centralized Support Costs TOTAL EXPENDITURES 160, ,443 $ 2,972,410 HC ,448 $ 2,636,813 $ 177, , % 64,000 75, % 195, , % 3,771, % 3,312,924 $

17 Attachment ANNUAL WORK PLAN PARKS, PLANNING & ENVIRONMENT Regional Planning (Housing Policy & Planning) Description of services Regional Planning undertakes research and policy analysis and implementation in support of a prosperous, resilient and livable region. A primary responsibility is to develop, implement and monitor Metro 2040: Shaping our Future, the regional growth strategy, which also identifies a mandate for Metro Vancouver to develop complete communities that are characterized by diverse and affordable housing choices. This includes considering the full continuum of housing needs in the region. The Housing Policy & Planning Program relates to the development and implementation of housing policies in support of affordable housing and contributes to development decisions related to Metro Vancouver Housing Corporation. The 2017 budget for Regional Planning (Housing Policy & Planning) is $418,304. Strategic directions and high level goals supported Board Strategic Plan Support an evidence-based approach to analyzing the affordability challenges in the Metro Vancouver region. Facilitate collaboration among members to expand the range of housing options in the region. Continue to advocate to other orders of government for funding and programs to improve the affordability of housing in the region. Performance indicators Indicator Historical and/or industry benchmark Average percent of median income spent on housing and transportation costs 2011 baseline: 49% for renter households; 40% for owner households New housing units by type (diversity) 2011 baseline of existing units: 51% groundoriented; 9% row housing; 40% apartment HC - 17 Current performance 49% for renter households; 40% for owner households (Can only be measured every 5 years) new additional units: 21% groundoriented; 16% row housing; 63% apartment 2017 performance objectives 40% for all households Ongoing diversity

18 Indicator New housing units by tenure (diversity) Historical and/or industry benchmark 2011 baseline: 42% freehold; 23% condominium; 35% rental Current performance new additional units: 24% freehold; 57% condominium; 19% rental 2017 performance objectives Ongoing diversity 2017 key actions Implementation of a Metro Vancouver Strategic Implementation Plan (RAHS) Exploring funding, financing and partnership options to increase the stock of affordable housing in the region Preparation of updated Apartment Parking study Preparation of a Rental Housing Facts in Focus publication Expand and prioritizing the criteria through which decisions are made about development / redevelopment opportunities Ongoing support for members in implementing complete community / housing affordability actions in Metro HC - 18

19 Attachment 3 GENERAL MANAGER Department Support FTRs = 9.0 AIR QUALITY ELECTORAL AREA SERVICES REGIONAL PARKS REGIONAL PLANNING Policy & Management Development Services Planning & Engineering Services Growth Management Ambient Air Quality Monitoring FTRs = 1.5 Visitor & Operation Services Planning & Analytics Climate Change Policy & Management Parks East Services Environment Sampling & Investigation Parks Central Services Housing Policy & Planning Data & Assessment Parks West Services FTRs = 31.0 FTRs = FTRs = 18.5 Parks, Planning and Environment 2016 Total FTRs = Proposed FTRs = September 28, 2016 HC - 19

20 5.2 To: Housing Committee From: Don Littleford, Director, Housing Date: September 26, 2016 Subject: 2017 Budget and Annual Work Plan MVHC Meeting Date: October 14, 2016 RECOMMENDATION That the Housing Committee endorse the 2017 MVHC Budget and Annual Work Plan as presented in the report 2017 Budget and Annual Work Plan MVHC dated September 26, 2016 and forward these to the Board Budget Workshop on October 21, 2016 for consideration. PURPOSE To present the 2017 MVHC Budget and Annual Work Plan for consideration by the Housing Committee. BACKGROUND The Housing function comprises all 23 members within Metro Vancouver and is focused on providing affordable rental housing while working to end homelessness in the region. Housing comprises two functions with separate budgets and funding sources: - Metro Vancouver Housing Corporation (MVHC): The MVHC provides about 3400 units of affordable, mixed income rental housing. MVHC is financed primarily through rents collected from tenants with no impact on regional rate payers. - Homelessness Partnering Strategy: Metro administers the Homelessness Partnering Strategy program funded entirely by the federal government. There is no impact on regional rate payers. The Housing function is guided by the Board Strategic Plan and Regional Affordable Housing Strategy with a focus on the following strategic directions and goals: Continue to provide safe, secure and affordable rental housing in the region across a range of incomes through the MVHC Expand the supply of housing units offered by the MVHC, focusing on large scale, transit oriented developments where possible Facilitate collaboration among Metro members to expand the supply and range of other housing in the region Continue to fulfill obligations under the Metro contract with Service Canada under the Homelessness Partnering Strategy HC - 20

21 In the past year Metro Vancouver has initiated a long term financial planning process, in particular with an increased emphasis on the development of a five year financial plan. The focus of this report and the budget and annual work plans attached is Preliminary five year financial plans have been preen prepared utilizing the framework presented to the Intergovernment and Finance Committee on July 20, The Five Year Financial Plan will be an agenda item for the Board Strategic Workshop scheduled for February 24th, BUDGET AND ANNUAL WORK PLAN This report is structured to provide the budgetary highlights of Housing functions. The Operating and Capital Budget Details (Attachments 1 & 2) and the Work Plan (Attachment 3) are provided for the Committee s consideration. In addition, an organizational chart shows the department structure for Housing (Attachment 4). The 2017 Housing Budget and Annual Work Plan has been prepared to respond to the strategic direction provided by the Board. This is reflected in the two areas Housing works in: MVHC is a major landlord in the region, and in 2017 efforts will continue to ensure that the MVHC provides safe, secure, and affordable housing through its 49 complexes and 3400 suites. Continuing to meet a high level of maintenance and capital replacement standards is a major driver for 2017, and includes a capital replacement program of $6 million. The housing stock is generally 30 or more years old and dozens of projects are scheduled that include roofing replacements, boiler and plumbing upgrades, and selective exterior upgrading such as window replacements. As well, to maintain market appeal, older kitchens, bathrooms and flooring are replaced on tenant turnover. The Board s strategic direction also includes ending Homelessness. Metro is the administrator of the federal government s Homelessness Partnering Strategy program. Following the announcement in June 2016 of an additional $2 million per year in funding over the next two years, Metro Housing s homelessness staff will continue to issue proposal calls, make contract awards, and administer various projects under the auspices of the agreement. Operating Budget Highlights The MVHC operating budget is proposed to increase by $512,000 (1.3%) in 2017 for a total operating budget of $41.1 million (Attachment 1). This increase is primarily due to an increase in operational costs in the MVHC such as annual increases in labour, materials, contractor charge-out rates as well as an increase in the cost of taxes and insurance. As previously reported to the Board, the impact of the financing of the December 2015 purchase of a new head office complex has been included in the 2017 centralized support budget. The allocation of these costs to the various Metro Vancouver entities and functions reflects the 2017 borrowing costs. The 2017 MVHC operating budget includes the following key actions: Advancement of priority MVHC property developments, including development applications to municipalities Completion of conversion of laundry facilities to direct MVHC equipment ownership and operation Continue natural gas and electrical energy reduction projects, tracking and benchmarking energy use, and developing an annual energy reporting structure. There are no major operating budget consulting assignments anticipated in HC - 21

22 There is no change in the overall staffing number. Capital Budget Highlights The Housing capital budget for 2017 is $ 12.6 million (Attachment 2). This increase reflects about $7 million per year for routine capital replacement projects, typical of past years, and provision of $5.7 million for the commencement of construction of Heather Place Phase 1. The latter remains dependent on achieving City of Vancouver building and demolition permit approvals necessary to commence construction. Highlights of capital projects planned for 2017 include the following: Building Envelope upgrades at Grandview Gardens, Evergreen and Tivoli and other smaller projects Construction of Heather Place Phase 1 Roofing replacements at Le Chateau, London Square, Hemlock Court, Maple Vine Court, Lynden Court Exterior painting projects at six sites Major balcony replacement projects at McBride and Minato West Boiler Replacements at London Square, Regal Place and Inlet Centre Annual Work Plan Performance Indicators Within the Housing Annual Work Plan, 3 performance indicators have been developed and are being tracked. These include: Percentage of total units rented to subsidized tenants Overall vacancy percentage Percentage of MVHC communities with tenant associations The trend in these performance measures suggest that the MVHC has reached a sustainable number of subsidized units and tenant associations within its current financial capacity while achieving vacancy rates below CMHC benchmarks. BUDGET APPROVAL PROCESS The proposed 2017 Budget and Annual Work Plan for Housing is presented to the Housing Committee for consideration and endorsement before being forwarded to the Board for consideration. The next steps of the budget process are: The 2017 Budget and Annual Work Plan for Housing will be presented at the Board Budget Workshop on October 21, The GVRD Board will consider the broader Budget on October 28, The MVHC Board will consider the 2017 Housing Budget on October 28, 2017 HC - 22

23 ALTERNATIVES 1. That the Housing Committee endorse the 2017 MVHC Budget and Annual Work Plan as presented in the report 2017 Budget and Annual Work Plan MVHC dated September 26, 2016 and forward these to the Board Budget Workshop on October 21, 2016 for consideration. 2. That the Housing Committee make recommendations and endorse the 2017 MVHC Budget and Annual Work Plan as amended and forward to the Board Budget Workshop on October 21, 2017 for consideration. FINANCIAL IMPLICATIONS The 2017 Budget and Annual Work Plan for the MVHC function in Housing is presented in Alternative One. MVHC Operations and the Homelessness Partnering Strategy are financed by sources that have no impact on the GVRD tax requisition. The MVHC is funded by tenant rents, parking fees and laundry revenue, while the Homelessness program is funded entirely by the federal government. Housing policy is now under Regional Planning, and is budgeted through Regional Planning and is supported by the tax requisition. Under Alternative Two, the Committee may wish to consider recommending amendments to the operating and/or capital budget to reflect Board strategic priorities. Proposed changes would not affect the tax requisition other than for the Housing Policy function. SUMMARY / CONCLUSION As part of the annual budget process for 2017, Annual Work Plans have been prepared to accompany service area Budgets in order to provide Committee and Board members with a high level overview on the role of the service, the total budget, overall staff complement, performance indicators and key actions for the coming year. The 2017 MVHC budget will increase by 1.3%, covered by market tenant rent increases. The Homelessness function has no impact on the tax requisition. The Housing policy function is budgeted through Regional Planning. Within the MVHC function, operating expenditures as outlined in the 2017 Annual Work Plan are projected to increase by $512,000 (1.3%) over 2016 while capital program expenditures total $12.6 million which includes $5.7 million to cover year one of the new Heather Place construction. The Budget for 2017 has been prepared to respond to direction provided in the Board Strategic Plan, support the goals of the Regional Affordable Housing Strategy and to maintain the MVHC in good repair. Staff recommend endorsing the 2017 Budget and Annual Work Plan as presented under Alternative One. Attachments: Housing Operating Budget Detail (# ) Housing Capital Budget Detail (# ) 3. Housing 2017 Annual Work Plan (# ) 4. Organizational Chart for Housing HC - 23

24 B16A ALO Attachment 1 METRO VANCOUVER HOUSING CORPORATION HOUSING 2017 BUDGET REVIEW BUDGET ACTUAL BUDGET ACTUAL YTD BUDGET % BUDGET CHANGE REVENUES Housing Rents Housing Subsidies Other External Revenues TOTAL REVENUES $ 34,727,509 4,139, ,560 $ 35,686,436 4,063, ,693 $ 35,770,618 3,965, ,729 $ 24,366,205 2,717, ,567 $ 36,761,446 3,321,289 1,001, % $ 39,699,775 $ 40,607,521 $ 40,572,020 $ 27,760,094 $ 41,083, % $ 17,151,402 1,742, , , , ,110 21,552,661 $ 17,187,834 1,679, , ,975 1,104, ,603 21,597,521 $ 17,673,262 1,874, , ,088 1,143, ,593 22,445,844 $ 11,179,156 1,356, , , , ,560 14,550,455 $ 18,080,715 2,050, , ,451 1,153, ,003 23,054, % EXPENDITURES Operating Programs: Property Operations Maintenance Financial Services Tenant Program and Services Site Administration Administration and Department Support Allocation of Centralized Costs Total Operating Programs Debt Service Contribution to Reserve TOTAL EXPENDITURES 1,667,140 23,219,801 1,667,136 23,264,657 2,080,217 24,526,061 1,386,811 15,937,267 4,124,906 27,179, % 10.8% 15,509,979 15,380,307 15,163,814 11,347,576 12,675,690 (16.4%) 1,228, % $ 39,699, ,995 $ 40,607,521 1,962,557 $ 40,572, ,145 $ 27,284,843 $ 41,083, % $ 5,349, ,824 21,500 7,106, ,667 6,189, , , ,803 15,509,979 35,343,107 $ 5,314, ,139 24,121 7,388, ,941 6,186, , , ,834 15,380,307 35,258,296 $ 5,478, ,497 42,000 7,497, ,087 6,608, , , ,580 15,163,814 35,890,125 $ 3,825, ,782 67,816 4,971,483 54,361 3,839,357 78, , ,219 11,347,576 24,751,676 $ 5,592, ,206 62,094 7,891, ,831 6,617, , , ,318 12,675,690 34,011, % 19.1% 47.8% 5.3% 1.5% 0.1% 14.9% 0.0% 1.2% (16.4%) (5.2%) EXPENDITURES BY TYPE Direct Expenditures Salaries and Benefits Consulting, Contracted and Professional Services Legal Repairs and Maintenance Materials and Supplies Utilities, Permits and Taxes Training/Conference/Travel Vehicles and Equipment Operating Other Debt Service Contribution to Reserves Allocated Expenditures Shared Services Corporate Services TOTAL EXPENDITURES $ 2,689,528 3,682,090 2,601,678 1,146,355 2,947, % 1,667,140 1,667,140 1,667,136 1,667,136 2,080,217 2,080,217 1,386,811 1,386,811 4,124,906 4,124,906 N/A 98.3% 98.3% 41,083, % 39,699,775 $ 40,607,521 HC - 24 $ 40,572,020 $ 27,284,843 $

25 B17 Attachment 2 METRO VANCOUVER HOUSING CORPORATION CAPITAL PROGRAMS & PROJECT DETAILS REGIONAL HOUSING 2017 BUDGET 2017 CAPITAL BUDGET CAPITAL EXPENDITURES Housing Development - Heather Place - Building A $ Capital Replacement 5,650,000 6,974,446 $ TOTAL CAPITAL EXPENDITURES HC ,624,446

26 Attachment ANNUAL WORK PLAN METRO VANCOUVER HOUSING CORPORATION Description of services Metro Vancouver Housing Corporation (MVHC) owns and operates 49 housing sites that provide over 3,400 units of affordable rental housing for low and moderate income households across the region. MVHC is financed primarily through the collection of rents from its tenants. As such, MVHC has no impact on municipal tax requisitions. Housing also provides advice and research for municipalities on affordable housing and is the administrator of the Federal Government Homelessness (HPS) program. The annual operating budget for this business area is $41,083,767 and the capital budget is $12,624,446, comprising of $6,974,446 for Operating Capital and $5,650,000 for Development Capital. Strategic directions and high level goals supported Board Strategic Plan Operate and expand mixed income affordable rental housing in the region through MVHC Implement actions under the recently adopted Regional Affordable Housing Strategy Advocate for funding and collaborate with senior governments, member municipalities and industry stakeholders for programs and measures to improve housing affordability Goals To provide safe, secure and affordable rental accommodation to individuals and families across a range of incomes. To expand the supply of MVHC rental housing. To develop policies and actions to encourage an increase in the supply of affordable housing in the region. Performance indicators Indicator Percentage of total units rented to subsidized tenants Vacancy percentage (based on # units) Percentage of MVHC communities with tenant associations Historical and/or industry benchmark 33% CMHC in 2015: 1.06% 0 28 In 5 years Current performance 2016 projected: 33% 2016 projected: 1.5% 2016: 57% (28) 2017 performance objectives 33% 1.5% 57% 2017 key actions 50% completion of Heather Place Building A (Phase 1) Pre-Application and rezoning application submitted for Malaspina Village redevelopment Pre-application and rezoning application for Kingston redevelopment (subject to BCHMC funding) Improved digital connectivity for MVHC operations and maintenance process HC - 26

27 Attachment 4 GENERAL MANAGER Department Support FTRs = 2.0 BUDGETS, BUSINESS SUPPORT & ANALYSIS FINANCE OPERATIONS & SYSTEMS PROPERTY SERVICES PURCHASING & RISK MANAGEMENT FINANCIAL PLANNING PROCESSES HOUSING CORPORATION Financial Analysis Accounting Operations Property Acquisitions Purchasing & Risk Management Treasury & Long-Term Planning Tenant Services & Support FTRs = 10.0 Financial Systems Property Management Materials Management Business & Risk Advisory Finance Accounts Payable FTRs = 16.0 Duplicating & Mailing Services FTRs = 9.0 Operations & Maintenance SW Area Payroll Operations Fleet Services NW Area FTRs = 26.0 FTRs = 44.0 SE Area NE Area FTRs = 64.0 Financial Services 2016 Total FTRs = Proposed FTRs = September 28, 2016 HC - 27

28 5.4 To: Housing Committee From: Margaret Eberle, Senior Housing Planner, Parks, Planning & Environment Department Date: September 19, 2016 Subject: National Housing Strategy Consultation Update Meeting Date: October 14, 2016 RECOMMENDATION That the Housing Committee receive for information the report dated September 19, 2016, titled National Housing Strategy Consultation Update. PURPOSE This report provides the Housing Committee with a description of the federal government s current work to develop a National Housing Strategy, the consultation process, and Metro Vancouver s input to date. BACKGROUND The 2016 federal budget committed the Government of Canada to a Phase 1 investment in housing Canada-wide of $2.3 billion, with approximately $150 million allocated to B.C. over two years. The new government also committed to the development of a National Housing Strategy to inform Phase 2 investments. The consultation underway in aid of development of a National Housing Strategy is unfolding quickly and offers a unique opportunity for Metro Vancouver, member municipalities and the Metro Vancouver Housing Corporation to influence national housing policy direction, including future federal housing program expenditures. NATIONAL HOUSING STRATEGY The Government of Canada s role in affordable housing from 1993 until last year has, for the most part, been limited to paying long term obligations. There has been little federal interest in addressing the need for additional affordable housing supply, preserving the quality of the existing stock and/or addressing impacts of expiring non-profit and cooperative operating agreements. In contrast, the home ownership market has grown, benefiting from very low interest rates and some macro prudential changes to lending policy at various times. With the arrival in 2015 of a new government, however, there has been a renewed focus on rental and affordable rental housing, and the commitment to a National Housing Strategy as a strategic guide for future federal affordable housing investments and as a key input into the 2017 federal budget. The following vision guides the development of a National Housing Strategy: All Canadians have access to housing that meets their needs and they can afford. Housing is the cornerstone of building sustainable, inclusive communities and a strong Canadian economy where we can prosper and thrive. The federal strategy will address the whole housing continuum from homelessness to home ownership. The federal government is working through CMHC, with the assistance of the Department HC - 28

29 of Finance, and other federal Ministries as needed. CMHC is also working closely with provincial and territorial governments through the FPT working group of which B.C. is the chair. Housing affordability is a key public concern in the Metro Vancouver region. The GVRD Board recently adopted a new Regional Affordable Housing Strategy (RAHS) demonstrating the regional commitment to supporting the supply of housing that is affordable. The new RAHS relies on investments from senior levels of government in order to realize rental housing demand estimates for very low and low income households earning under $50,000 per year. Consultation Process The federal government, led by CMHC and in partnership with provincial and territorial housing ministers, announced on June 28, 2016 that it would commence public, expert and stakeholder engagement leading up to the development of a National Housing Strategy. CMHC is offering a number of different avenues for stakeholder and public engagement including: LetsTalkHousing website inviting public input until Oct 21, 2016 (Reference 1) Expert Roundtables Ottawa, September 7-9, 2016 National Housing Stakeholder Consultation September 19, 2016 Aboriginal and rural consultation Focus groups with persons with lived experience such as the homeless Stakeholder Meetings In addition, provincial governments have been asked by the federal government for their input. Some local governments are providing submissions directly to the National Housing Strategy. CMHC plans to release a summary of feedback called What We Heard on November 22, 2016, National Housing Day. This input will form the foundation of the eventual National Housing Strategy. Metro Vancouver input Metro Vancouver, through the GVRD Board, MVHC, the Housing Committee and the Intergovernment and Finance Committee, has had the following input to date: a) GVRD Board transmittal of RAHS to the federal government (dated June 29, 2016) as newly adopted Board policy; b) GVRD Board letter requesting federal government actions, as outlined in RAHS; c) The Minister of Families, Children and Social Development, and Minister Responsible for CMHC, the Honourable Jean-Yves Duclos met with the Metro Vancouver Housing Committee and invited guests from the Intergovernment and Finance Committee on September 14, The Minister shared his government s plans and vision for the National Housing Strategy, and heard from each Committee member in attendance on the potential for partnerships with municipalities and the region; d) Metro Vancouver housing policy staff participated in two Expert Roundtables in September in Ottawa: Social Housing Sustainability and Affordability in High Priced Market with about 100 other experts; e) The Federation of Canadian Municipalities and Canadian Housing and Renewal Association (of which Metro Vancouver and MVHC are members respectively) have also provided input on behalf of their members via the Expert Roundtables in Ottawa and/or the National Stakeholders event in Ottawa; HC - 29

30 Provincial and local input Many provincial governments and some local governments are hosting their own consultations or making submissions directly to the federal government. The Province of BC has engaged experts and will be engaging local governments in B.C. on their input into the National Housing Strategy. A consultation session occurred on September 14, 2016, attended by Metro Vancouver and MVHC staff, as well as several municipal staff. A second session is planned for UBCM on Sept 27, 2016 with mayors and councillors. B.C. will submit its input to the federal government in October. Staff is aware that some Metro Vancouver municipalities are making submissions directly to the federal government specifically the City of Vancouver and Maple Ridge. ALTERNATIVES This is an information report. No alternatives are presented. FINANCIAL IMPLICATIONS The financial and other implications of an enhanced federal role in affordable housing are significant to the region and its member jurisdictions. Without senior government capital or subsidy funds, nonprofits or cooperatives are unable to create additional rental housing affordable for households earning under $50,000 per year at any level approaching the scale needed in the regional context. Federal investment is also important because it can lever matching provincial dollars or other forms of investment. SUMMARY / CONCLUSION The 2016 federal budget committed the Government of Canada to a Phase 1 investment in housing Canada-wide of $2.3 billion, with approximately $150 million allocated to B.C. over two years. The new government also committed to the development of a National Housing Strategy to inform Phase 2 investments. The consultation underway in aid of development of a National Housing Strategy is unfolding quickly and offers a unique opportunity for Metro Vancouver, member municipalities and the Metro Vancouver Housing Corporation to influence national housing policy direction, including future federal housing program expenditures. Metro Vancouver, through the GVRD Board, MVHC, the Housing Committee and the Intergovernment and Finance Committee, has contributed a range of inputs to date, and will continue to build strong relationships with housing representatives from the federal government in order to follow up on the positive meeting held on September 14, 2016 between Housing Committee and Intergovernment and Finance Committee members with the Honourable Jean-Yves Duclos. Metro Vancouver s role is defined in large part by the newly adopted Regional Affordable Housing Strategy (RAHS) as well as through MVHC operations. Additional staff efforts to prepare a RAHS Implementation Plan will help to further identify opportunities to participate in and leverage the Government of Canada s contributions. Staff will also report back with any new developments, including CMHC s What We Heard report, when available. References 1. CMHC LetsTalkHousing HC - 30

31 5.5 To: Housing Committee From: Don Littleford, Director, Housing Date: September 26, 2016 Subject: Payout of Heather Place Mortgage Meeting Date: October 14, 2016 RECOMMENDATION That the MVHC Board authorize staff to pay out the existing CMHC mortgage / 033 for the Heather Place property at West 13th Avenue, Vancouver BC, having a legal description of PID and , Lots B and C, Block 438, District Lot 526, Plan 19390, estimated to be $600,887 as of October 1, 2016, plus the interest that would be paid to maturity of $14,721, for a total of $615,608 subject to confirmation of eligible reserve use under the Umbrella Agreement from BC Housing. PURPOSE To request MVHC Board approval to pay out the Heather Place mortgage prior to maturity. BACKGROUND The Heather Place project, Phase 1, to construct 67 units of rental housing, will start construction following final approvals by the City of Vancouver. Part of the final approvals involves legal agreements, drafted by the City, which need to be registered as charges against title to the Heather Place lands. These legal agreements embody various terms and conditions required by the City of Vancouver in granting the development approval. The legal agreements to be registered on the land title of the Heather Place property must, by the City s requirements, be in first position as charges against title to the lands. However, at present, the existing CMHC mortgage is registered in first priority position preventing this from happening. Title Charges The CMHC mortgage on Heather Place has a balance of approximately $600,887 and is due to mature on January 1, The mortgage is in first position as a charge against title to the lands, and it must either be discharged through the mortgage maturity, early payout, or be moved to a lower priority position charge. The City appears unwilling to register its charges in a lower position than the CMHC mortgage, and this is the position it takes with all development requiring registered charges. The MVHC could wait until the mortgage matures and is discharged from title but this would mean delaying the Heather Place project until January 1, This is untenable given the acute rental housing shortage being experienced in the region, and especially in Vancouver. The MVHC could also request that CMHC consent to granting the new City of Vancouver charges priority over its existing charge. However, following discussions with BC Housing, which administers the CMHC mortgage funding programs (which are linked to the operating agreements) on behalf of CMHC, this HC - 31

32 would be a very lengthy process. CMHC would require a formal application through BC Housing and there would be no guarantee that CMHC would agree. Metro and BC Housing staff agree that the MVHC should pay out the balance owing on the mortgage now and discharge the mortgage from title to the lands. There is no payout penalty. Interest of about $14,700 is due either way, if the mortgage is paid out now, or held until maturity. Another charge against title to the lands is required under homeowner protection legislation to allow the Heather Place redevelopment to proceed. BC Housing administers the Homeowner Protection Warranty program whereby all new residential buildings in the province are required to be registered under the program. There are certain exemptions. The Heather Place development can be exempt from the requirements of the program if, among other things, MVHC registers a covenant against title to the lands prohibiting sale of any single dwelling unit and requiring that the dwelling units and common property in the development be used solely for rental purposes for a period of ten years. The MVHC has received confirmation from BC Housing that they will accept their charge on title in a subordinate position to any financial charges so this does not affect the City of Vancouver charges. It would, though, require that CMHC agree to lower the priority of its mortgage (as this is a financial charge) if it remains on title. ALTERNATIVES 1. That the MVHC Board authorize staff to pay out the existing CMHC mortgage / 033 for the Heather Place property at West 13th Avenue, Vancouver BC, having a legal description of PID and , Lots B and C, Block 438, District Lot 526, Plan 19390, estimated to be $600,887 as of October 1, 2016, plus the interest that would be paid to maturity of $14,721, for a total of $615,608 subject to confirmation of eligible reserve use under the Umbrella Agreement from BC Housing. 2. That the MVHC Board authorize staff to formally request that CMHC agree to grant priority to the new City of Vancouver charges over its existing charge against title to the Heather Place lands. 3. That the MVHC Board receive the report titled Payout of Heather Place Mortgage dated October 7th, 2016 and provide alternate direction. The first alternative is recommended. FINANCIAL IMPLICATIONS Should the Board select the first alternative, there is no prepayment penalty for paying out the mortgage now. The MVHC will immediately pay off the principal of $600,887 plus $14,721 in interest, which is the same if it was paid over the balance of the term. Subject to confirmation of eligible reserve use under the Umbrella Agreement from BC Housing, the total of $615,608, will be paid from the anticipated $1.2 million surplus expected in the 2016 operating budget. The use of annual surplus for paying out the mortgage reduces the amount of surplus available at year end, however this will all be recovered by the end of 2017 due to the eliminated monthly debt servicing costs. HC - 32

33 Alternative 2 would carry significant administrative and legal costs to request CMHC change the priority of their charge on the title. Monthly payments of principle and interest would continue as currently scheduled. Interest expense will be $14, 721 to maturity on January 1, 2018, the same as if paid out in full now. Delays in the commencement of the Heather Place Building A redevelopment extends the amount of time that the property continues to operate with reduced rental revenue from the vacant building to be redeveloped, approximately $30,000/mth, and ultimately delays the additional rental revenue expected from the new building. SUMMARY / CONCLUSION In order to proceed with the Heather Place redevelopment, certain legal agreements required by the City of Vancouver must be registered in first position against the Heather Place land titles. This requires that the existing first mortgage be removed from priority position and the preferred way to do this is by paying out the mortgage now, prior to maturity, as shown in Alternative 1. There is no interest penalty for doing so HC - 33

34 5.6 To: Housing Committee From: Dean Rear, Director - Financial Planning and Operations Date: September 28, 2016 Subject: Prepayment of Section 27 CMHC Debentures Meeting Date: October 14, 2016 RECOMMENDATION That the Metro Vancouver Housing Corporation Board approves MVHC to apply to the Canada Mortgage Housing Corporation (CMHC) to prepay the Section 27 debentures and to obtain financing through GVRD, contingent on approval by the GVRD Board. PURPOSE To obtain authority to prepay the CMHC Section 27 debenture loans through new financing arrangements without penalty under the Federal Government s Loan Repayment program. BACKGROUND In June 2016, the Federal Government announced that they will provide $150 million of funding over four years to allow prepayment of long-term debt held by CMHC without penalty so that social housing providers may access financing from the private market at current lower interest rates. If approved by the Board, MVHC plans to submit the prepayment application to CMHC by the next available application due date of February 1, The projected prepayment date is April 1, Metro Vancouver Housing Corporation (MHVC) holds five properties under Section 27 portfolio that are eligible for prepayment: Property Address Earle Adams Village 7550 Northumberland Avenue, Vancouver, BC 3485 Foster Avenue, Vancouver, BC 2535 N. Grandview Hwy, Vancouver, BC 2929 Nootka Street, Vancouver, BC 100, 150, 200 Semlin Drive, Vancouver, BC Euclid Square Grandview Gardens Kelly Court Semlin Terrace Projected Debenture Balance as at April 1, 2017 $ 2,988,212 $ 877,775 $ 638,350 $ 1,246,527 $ 943,419 These properties are on 60-year City of Vancouver leased lands with approximately 20 years remaining until the properties revert to the City of Vancouver. The Operating Agreements for the Section 27 portfolio fall under the National Housing Act but are administered provincially by BC Housing. This arrangement is costly, restrictive and creates administrative load with little benefit to MHVC. In 2005, MHVC bought out three Section 27 HC - 34

35 properties (Minato West, Meridian Village and St. Andrews Place) and noted that efforts would be made towards buying out the remaining five properties in the future. The CMHC Section 27 debentures have a fixed-rate of 8% with expected maturities ranging from September 2026 to January This is significantly higher compared to the current available borrowing rates that range from 1.89% to 2.49% as illustrated in Appendix A. PREPAYMENT OF LOAN The total prepayment balance or the outstanding debenture balance as at April 1, 2017 will be $6.69 million. The potential savings from refinancing the existing loan are estimated to range from $1.19 million to $1.55 million as illustrated in Appendix A. In addition to lower financing costs, prepayment of the Section 27 debentures would provide us with an opportunity to terminate the existing operating agreements without incurring penalties, estimated at $3.9 million at the end of This would allow MHVC to gain full control over operations of these properties without any stipulations imposed by the operating agreements. With the cancellation of the operating agreements, the rental assistance from BC Housing would likely be discontinued. However, the rental assistance is not material in value and the loss of revenues is expected to be fully offset by the increase in rental revenues. FINANCING Financing options are as follows: 1. GVRD Internal Financing The GVRD can provide MVHC with financing under its general corporate power, under subsection 176(1)(c) of the Local Government Act, in that it provides assistance for the purpose of benefiting the community of any aspect of the community. Similar to the existing internal mortgages, the interest rate would be variable based on GVRD s internal rate of return which represents opportunity cost of capital or the rate of interest had the monies been invested rather than loaned to the MHVC. The key advantage of internal financing is flexibility which would allow for preferred terms such as an early repayment clause. This option requires the approval by the GVRD Board. The estimated net savings on a 10 year amortization internal mortgage at the current variable rate of 1.89% is $1.55 million. 2. MFA Debenture Financing MHVC cannot borrow directly from the MFA but could borrow through the conduit of GVRD. Debenture financing is less flexible compared to internal financing. Furthermore, the timing of the loan is limited to twice a year, spring and fall; therefore, MHVC may require bridge financing from the time of the prepayment to when the MFA loan proceeds are received. This option requires the issuance of security and loan bylaws as well as an approval by the GVRD Board. The estimated net savings on a 10 year debenture loan at an indicative rate of 2.49% is $1.45 million. HC - 35

36 3. Commercial Mortgage A traditional commercial mortgage could be obtained. The estimated costs associated with setting up the new mortgages exceed $200,000 as illustrated in Appendix A. Like the MFA loan, a temporary bridge financing may be required due to the timing of the prepayment and the receipt of loan proceeds. This option does not require the approval by the GVRD Board. The estimated net savings on a 10 year mortgage at an indicative rate of 2.28% is $1.19 million. For all three financing options, a 10 year term was selected in order keep the loan payments comparable to the existing debenture payments. This would reduce potential variances against the current budget and alleviate cash constraints from increased payments. ALTERNATIVES 1. That the Metro Vancouver Housing Corporation Board approves MVHC to apply to the CMHC to prepay the Section 27 debentures and to obtain financing through GVRD, contingent on approval by the GVRD Board. 2. That the Metro Vancouver Housing Corporation Board approves MVHC to apply to the CMHC to prepay the Section 27 debentures and to obtain financing through the MFA which is contingent on the approval by the GVRD Board and the passing of the appropriate bylaws. 3. That the MHVC Board receives the report titled Prepayment of Section 27 CMHC Debentures dated September 28th, 2016 and provides alternate direction. FINANCIAL IMPLICATIONS If the Board approves alternative one, MVHC may realize the highest potential savings of approximately $1.55 million and allow for flexibility in the borrowing terms. If the Board approves alternative two, MHVC may realize the second highest potential savings of approximately $1.45 million but have less flexibility in the borrowing terms and may require temporary bridge financing. The commercial loan still offer potential net savings of $1.19 million but will incur significant administrative and set-up costs including brokerage fees, CMHC insurance application and premium fees and legal fees, and it may require temporary bridge financing. Not approving the initiative to prepay the Section 27 debentures may result in lost savings up to $1.55 million and lost opportunity to terminate the Federal operating agreements without penalty. SUMMARY / CONCLUSION MHVC has an opportunity to prepay the existing Section 27 portfolio debentures at a fixed-rate of 8% through alternate financing arrangements. HC - 36

37 As presented in alternative one, it is recommended that the Board approves MHVC to move forward with the prepayment of Section 27 portfolio debentures through internal financing from GVRD upon approval by the GVRD Board. This would allow MHVC to realize the maximum potential savings and to set up loan arrangements similar to the existing internal mortgages with flexible terms HC - 37

38 Appendix A Prepayment Financing Options HC - 38

39 5.7 To: Housing Committee From: Don Littleford, Director, Housing Date: September 26, 2016 Subject: Vacancy Performance 2nd Quarter 2016 Meeting Date: October 14, 2016 RECOMMENDATION That the Housing Committee receive the report dated September 26, 2016 titled Vacancy Performance 2nd Quarter 2016, for information. PURPOSE To provide the Housing Committee with vacancy management performance statistics for the 2nd Quarter of BACKGROUND The vacancy statistics are reported to the Housing Committee on a quarterly basis. In the second quarter of 2016 the average vacancy was 0.72%, relative to the target of 2.00%. CMHC provides an annual benchmark but has not updated it yet in The October 2015 benchmark was 0.8% Statistics by Portfolio and Municipality for the second quarter are shown in Attachments 1 & 2. The Vacancy Rate Trend is shown in Attachment 3. ALTERNATIVES This is an information report only. No alternatives are presented. FINANCIAL IMPLICATIONS Vacancy rates favourable to target will have a positive impact on the 2016 financial performance. SUMMARY / CONCLUSION MVHC average vacancy rate in the second quarter is 0.72%. Attachments and References: Attachment 1 2nd Quarter 2016 Vacancies by Portfolio Attachment 2 2nd Quarter 2016 Vacancies by Municipality Attachment /2016 Vacancy Rate Trend HC - 39

40 Metro Vancouver Housing Corporation 2nd Quarter 2016 Vacancies by Portfolio Attachment 1 Ref: Portfolio Sponsor Total Units Total Rentable Units Average Rentable Units Vacant 2nd Quarter* Vacancy 1 BC Housing Umbrella Agreement % 2 MVHC % 3 Section % 4 CMHC/BCHMC % TOTALS: % * Not Included in Above Table: 1 Units unavailable due to repair 2.67 Downtown Eastside Vancouver Units excluded: 1 Hugh Bird - Contract Managed 64 3 Regal Place - Contract Managed 40 2 Claude Douglas - Contract Managed 39 TOTAL MVHC UNITS: 143 HC - 40

41 Metro Vancouver Housing Corporation 2nd Quarter 2016 Vacancies by Municipality Attachment 2 Municipality Total Rentable Units Average 2nd Quarter Vacant Units Average 2nd Quarter Vacancy CMHC Benchmark Oct. 1, 2015 Burnaby % 1.20% North Vancouver % 0.45% Port Moody % 1.20% New Westminster % 0.90% Port Coquitlam % 1.20% Coquitlam % 1.20% Richmond % 0.90% Delta / Ladner % 0.60% Vancouver % 0.60% Surrey % 1.90% Maple Ridge % 1.60% 3237 ** Excluding Contract Managed Units in the Downtown Eastside (Regal Place, Claude Douglas, Hugh Bird Residence) HC - 41

42 Attachment 3 Metro Vancouver Housing Corporation 2015/16 Vacancy Rate Trend 3.00% 2.50% 2.00% 1.8%.8% CMHC (Oct Average) Benchmark for preceding 12 months 1.48% 1.50% 1.03% 0.72% 1.00% 0.68% 0.50% 0.00% 3rd Qtr th Qtr st Qtr nd Qtr 2016 HC - 42

43 5.8 To: Housing Committee From: Don Littleford, Director, Housing Date: October 3, 2016 Subject: Manager s Report Meeting Date: October 14, 2016 RECOMMENDATION That the Housing Committee receive for information the report dated October 3, 2016, titled Manager s Report. Housing Committee 2016 Work Plan Attachment 1 to this report sets out the Committee s Work Plan for The status of work program elements is indicated as pending, in progress or complete. The listing is updated as needed to include new issues that arise, items requested by the Committee, and changes to the schedule. RAHS Update Following endorsement of the Regional Affordable Housing Strategy (RAHS) by the Board on May 27, 2016 and as approved by the Board, GVRD Board Chair Moore transmitted the new Strategy to Mayor and Councils, requesting that each Council consider endorsement of RAHS, and seeking a response by November 30, As of Sept 21, 2016 three additional municipalities have endorsed RAHS, bringing the total to six at this time. Staff have reached out to municipal staff to determine the anticipated timing for each Council s deliberations. Transmittal letters were also sent to the Hon. Jean Yves Duclos, Minister of Families, Children and Social Development and Minister responsible for the Canada Mortgage and Housing Corporation, and to the Hon. Richard Coleman, Minister of Natural Gas Development and Minister Responsible for Housing and Deputy Premier. On Sept 16, 2016, the GVRD Board Chair sent letters to key government and quasi-governmental stakeholders (federal and provincial government, Vancouver Coastal and Fraser Health Authorities and TransLink) requesting that each stakeholder implement the actions for them proposed in RAHS. Metro Vancouver 2040: Shaping our Future Minor Amendment to Incorporate Updated Housing Demand Estimates At its meeting on October 14, 2016, the Regional Planning Committee considered a report providing an opportunity to consider initiation and first and second readings of a Type 3 Minor Amendment to Metro Vancouver 2040: Shaping our Future (Metro 2040), the regional growth strategy, to incorporate updated housing demand estimates. As part of the process of developing the new Regional Affordable Housing Strategy (RAHS), Metro Vancouver, in collaboration with municipalities and other agencies, developed updated housing demand estimates for the period 2016 to These estimates were included in the Regional Affordable Housing Strategy adopted by the GVRD Board on May 27, Metro 2040 Section h) provides that updated housing demand estimates can be incorporated into the regional growth strategy through a Type 3 Minor Amendment. Metro Vancouver staff are proposing such an HC - 43

44 amendment. The associated staff report is included in the Housing Committee s agenda package as Information Item Allowable Rent Increases The Residential Tenancy Branch in BC provides, in August of each year, the allowable rent increase for residential tenants in BC. For 2017 this will be 3.7%. The MVHC increases market rents in step with allowable rent increases wherever possible. Tenants with subsidized rents pay an amount equal to 30% of household income and this is reviewed and calculated each year following a formal income review. MVHC Bad Debts Expense Staff were requested to report back on MVHC bad debt expense. Staff endeavor to collect all rent each month from market and subsidized tenants. However, on occasion, tenants leave without notice, or fail to make rental payments until they are evicted. This results in some uncollected rent each year. In 2015, the bad debt expense was $92,304 on total rent to be collected of $35,579,134, or 0.26% of the rents to be collected. Bad debt expense at August 31, 2016 was $62,841, under budget by $11,983. Housing and the Future of City Building, Vancouver, October 24-29, 2016 The City of Vancouver is hosting a conference related to its efforts to update its Housing and Homeless Strategy. Called Re:Address: Housing and the Future of City Building, the event will be the City's first international housing conference, with international, national and local thought leaders and experts brought together to contribute to achieving housing affordability goals. The program will include keynotes, a mayors roundtable, panel discussions and short presentations. A Summit will occur on Oct 26 and 27, 2016 and is by invitation only. A regional summit is planned for Oct 28, 2016 with a formal Metro Vancouver role under development. The conference program is to be announced shortly. Housing Central Conference November 20-23, 2016 This year, the BC Non-Profit Housing Association (BCNPHA) and the Cooperative Housing Federation are holding a joint annual conference, under the banner Housing Central. While geared to the needs of the non-profit housing sector, sessions will include development and redevelopment of nonprofit housing. Metro Vancouver housing and policy staff are participating or moderating several conference sessions. Homelessness Partnering Strategy The federal 2016 budget provided additional funds of $4,841,000 to the Metro Vancouver Community Entity (CE) for the period October 1, 2016 to March 31, The HPS Community Advisory Board (CAB) approved adding the additional funds to the current RFP, resulting in $2,672,000 allocated to Housing First Projects and $2,169,000 allocated to Capital Projects. The proposal call funding limit was expanded accordingly and, following the successful proposal call, awards are in the contracting phase. Once all contracts have been signed, the list of awarded projects will be provided to the Housing Committee. Homeless Count The regional Homeless Count is done every three years, and is due again in The 2017 Count will be done under the leadership of the BC Non-Profit Housing Association with a consultant s HC - 44

45 assistance. March 29th will likely be the date for the Count and this will be confirmed prior to the end of the year. Of note for 2017, the Homeless Count will include joint planning and implementation with Fraser Valley Regional District, and will expand engagement with the Aboriginal community. As well, there will be a new emphasis on ensuring rural and hidden homeless enclaves are included in the enumeration. MVHC Tenant Insurance The MVHC recommends tenants acquire a comprehensive tenant insurance policy which includes coverage for loss due to fire or water damage, as well as liability coverage. However, not all tenants do so. The MVHC approached the BC Non Profit Housing Association some time ago and suggested both organizations approach Marsh Canada (the insurance company supported by BC Housing) to offer an affordable insurance package. Marsh Canada offers $15,000 coverage (with $1,000,000 liability insurance) for $ per year and tenants can go on a monthly payment plan at no additional cost. Tenants are encouraged to shop for the best package suited to their needs. Marsh Canada reports that to date over 200 MVHC residents have signed on. Launch of CMHC Innovation Fund On September 30th, 2016, the Honourable Jean-Yves Duclos, Minister of Families, Children and Social Development and the Minister responsible for CMHC, announced that CMHC is now ready to accept applications under the Affordable Rental Innovation Fund. The Fund, administered by CMHC, totals $200M to help create new affordable rental units over 5 years, reducing the number of Canadians living in housing need and the reliance on long-term government subsidies. The MVHC plans on applying for funding and demonstrating that its planned projects fit with innovative approaches that lower the costs and risks of affordable rental housing projects. HC - 45

46 5.8 Attachment 1 Housing Committee 2016 Work Plan 2016 Key Actions/Priorities Housing Policy/MVHC 1st Quarter Provide update on HPS projects to Housing Committee in February Receive Regional Affordable Housing Strategy Update and Approval Process Report - February 4th quarter 2015 Vacancy Report to MVHC Board Feb. Report on Syrian refugee housing status under system with Immigrant Services 2016 MVHC Work Plan Report Feb. Report on MVHC redevelopment criteria Feb. 2nd Quarter Stakeholder Feedback to Draft RAHS and Proposed Responses Report - April New federal housing stimulus announcement expected in Q2 2016; Develop plan to respond quickly to any opportunity. - April Provide final RAHS to Housing Committee to consider for adoption - May 27 GVRD Board meeting Launch call for proposals ( contract period) for HPS projects new online format Information Item for Committee - June MVHC Redevelopment Criteria Policy draft April 2015 year-end Umbrella Performance report to BC Housing / MVHC Board 2015 year-end financial performance report (from Finance) - April First 2016 financial report to MVHC Board - April 1st Quarter Vacancy Report - April Heather Place rezoning enactments / development status report April Second 2016 financial performance report - June 2nd Quarter Vacancy Report - June Draft 2016 budget to MVHC Board/Housing Committee - June Tenant Programs and Activities Update Report - June Draft MVHC Redevelopment Priorities Report - June Status Complete Complete Complete Complete Complete Complete Complete In progress Complete Complete Complete Complete Complete Complete Complete Pending Pending Pending Pending Pending Pending 3rd Quarter (no meeting) 4th Quarter Report by Rental Supply Coalition on joint platform for 2017 BC election Provide list of awarded HPS projects to Housing Committee - October Housing Policy 2017 budget approval - October Implementation plan for Regional Affordable Housing Strategy action items (Metro Vancouver) - October Demographic Trends in Regional Centres Research Report - October In progress Pending In progress In progress Final What Works for Purpose Built Rental Housing Report - October Complete HC - 46 Complete

47 Interim results on Transit Oriented Mixed Income Development Viability Study research (Joint with Regional Planning Cte) - October Complete DCC Waiver bylaw changes with related work done by Finance/GVS&DD October Final 2016 financial performance report to MVHC Board In progress 2017 MVHC Budget approval - October Pending Third 2016 financial performance report Pending Borrowing strategy Report to MVHC Board Pending 3rd Quarter Vacancy Report - November Pending MVHC portfolio redevelopment priorities report to MVHC Board with recommendation of top three priority projects Pending HC - 47 Pending Pending

48 6.1 To: Regional Planning Committee From: Raymond Kan, Senior Regional Planner, Parks, Planning and Environment Margaret Eberle, Senior Housing Planner, Parks, Planning and Environment Date: June 29, 2016 Subject: The Metro Vancouver Mixed Income Transit-Oriented Rental Housing Study Meeting Date: July 15, 2016 RECOMMENDATION That the GVRD Board receive for information the report dated June 29, 2016, titled The Metro Vancouver Mixed Income Transit-Oriented Rental Housing Study. PURPOSE This report provides the GVRD Board with an update on the Metro Vancouver Mixed Income Transit Oriented Rental Housing (MITORH) study. BACKGROUND The MITORH Study is a regional planning research initiative identified in the 2016 Budget and Business Plan for Regional Planning. The MITORH study advances policy objectives embedded in the Board Strategic Plan, Metro Vancouver 2040: Shaping our Future, and the Regional Affordable Housing Strategy, and associated with those in TransLink s Regional Transportation Strategy Strategic Framework. Staff began developing the scope of work for MITORH in mid The Regional Planning Advisory Committee (RPAC) was instrumental in helping staff refine the scope of work. In late 2015, staff established a Partners Committee comprising key agencies to collaborate on the study. The study was initiated in early The Housing Committee received an update on the study at its meeting on June 10, Now that the Partners Committee and scope of work has been finalized staff are bringing forward the first in a series of regular study updates to the GVRD Board. STUDY OVERVIEW The Metro Vancouver Housing and Transportation Cost Burden Study, completed in 2015, presented a new way of looking at regional affordability that connects housing and transportation two typically disparate policy areas involving different decision-makers in relation to the regional economy and growth management. The MITORH study was conceived as the next step to advance understanding of the benefits and challenges of co-locating mixed income housing near transit. The study will examine specific tools, existing and new, for their potential to spur new housing that is affordable to households earning less than $50,000 annually. Both Metro Vancouver s Regional Affordable Housing Strategy and TransLink s Regional Transportation Strategy Strategic Framework call for increasing rental housing development near the Frequent Transit Network HC - 48

49 Strategic Partnership Staff have convened a group of partners for the MITORH study having a common interest to advance housing and transit development that is coordinated and affordable. Senior staff from BC Housing, BC Non-Profit Housing Association, TransLink, and Vancity have joined the study as partners. A Partners Committee has been struck and two meetings have been convened to date. One of the benefits of this partnership is the opportunity for Metro Vancouver to deepen relationships with the Province, the non-profit sector, finance sector, and the regional transportation authority on the topic of integrated housing and transportation planning. Scope of Work The MITORH study comprises five major activities (the BC Non-Profit Housing Association is leading Activity 1; Metro Vancouver is leading Activities 2-5): Activity 1: Setting the Context Understanding Constraints and Opportunities (underway) This activity will set the policy context for the study. It will research, summarize, and synthesize existing Canadian, US, and European literature on the barriers and opportunities (financing, land tenure, partnerships, and policy) to creating (and, where appropriate, preserving) mixed income rental housing in transit-oriented locations. Activity 1 is jointly funded by the Real Estate Foundation of BC and Metro Vancouver. Activity 2: Examining Transit Ridership Effects (underway) Activity 2 examines the linkages among income, tenure, and transit usage. During the development of the scope of work, partners expressed a desire to gain a better understanding of the transit ridership effects of mixed-income communities. The hypothesis is that transit usage is higher for workers living in transit-oriented locations, and that housing tenure and income influence transit usage. Analysis relies on data from the 2011 National Household Survey, which collected information on the journey to work trip for 1 out of 3 households in the region (voluntary participation). Staff have begun to explore early findings with the Partners Committee, and several staff advisory committees including RPAC, RPAC Housing Subcommittee, RPAC Social Issues Subcommittee, and the Regional Transportation Advisory Committee. Activity 3: Identifying Mixed Income Transit-Oriented Housing Opportunity Sites (underway) This activity will provide a snapshot, for illustrative purposes, of the extent and nature of land ownership near transit, with a focus on lands held by public and non-profit entities. Some of the key information to be examined includes the number and size of these parcels, and their relationship with the Frequent Transit Network. The summarized information may be utilized by a variety of partners to inform ongoing policy work. Activity 4: Assessing Tools to Deliver New Mixed-Income Housing Units in Transit-Oriented Locations (initiate in summer/fall 2016) This activity will test the financial viability of mixed income housing projects in transit-oriented locations by applying current resources and existing tools; and by applying new tools. Potential tools to be tested include a transit-oriented affordable housing fund, land banking, targeted rent supplements, inclusionary housing policies, etc. Activity 4 will take into account new commitments set out by the federal and provincial governments on housing investments. The outputs of Activities 1 and 3 will inform the scope of Activity 4. The work will provide insight into the size of the funding gap currently, and which tools (or combination thereof) may be useful in which situations to close the gap. HC - 49

50 Activity 5: Deliverables and Communication (initiate in fall 2016) Where appropriate, Metro Vancouver will convert the technical work into graph documents for widespread distribution to stakeholders and the public. Other activities, such as Metro Vancouver sustainability breakfasts and participation in external forums, will be considered to communicate the key findings and any guidance. BENEFITS OF THE MITORH STUDY TO LAND USE AND TRANSPORTATION DECISION-MAKERS Recent announcements about housing and transit investments have affirmed the timeliness and practicality of the MITORH Study. On February 12, 2016, the provincial government announced $355 million over a five-year period to construct or renovate affordable housing units across the province. On March 22, 2016, the federal government announced in its federal budget an initial injection of $370 million for transit projects in Metro Vancouver. On May 26, 2016, the provincial government announced $246 million will be provided to the region for transit capital. On the same day, the Mayors Council on Regional Transportation announced a funding strategy to deliver the Mayors Council vision. On June 16, 2016, the Prime Minister of Canada formally announced implementation of phase one of the Mayors Council vision. These are crucial investments for a region that continues to experience robust population and employment growth. Moreover, the federal government recently launched consultation on a National Housing Strategy, and the province is introducing a series of measures to address housing affordability this summer. Within this context, the MITORH study has immediate relevance to land use and transportation decision-makers. Implementation planning for new rapid transit corridors will begin shortly. Land development activity by the private sector will heat up in and around existing and future transit corridors and station locations. Staff recognize that developable sites near transit are in high demand and very costly. The lessons from the study will provide additional evidence to the GVRD Board, TransLink, municipal partners, federal and provincial governments, and other stakeholders about the constraints of connecting housing and transit, and any opportunities to overcome these constraints to achieve transitoriented development that is socio-economically inclusive and effective for the regional transit system. Staff anticipate that the findings and products from the MITORH study will be of immediate relevance and benefit for a broad range of stakeholders and will bring forward results on a regular basis to the relevant standing committees and the GVRD Board. ALTERNATIVES As this is an information report, there are no alternatives presented. FINANCIAL IMPLICATIONS The approved 2016 Regional Planning budget identifies $35,000 for the MITORH study. BC Housing has committed $20,000. Vancity has committed $15,000. The BC Non-Profit Housing Association was awarded a $15,000 grant from the Real Estate Foundation of BC to undertake Activity 1. TransLink is providing in-kind services. These funds and in-kind services are anticipated to be sufficient to complete the study. HC - 50

51 SUMMARY / CONCLUSION The Mixed Income Transit Oriented Rental Housing Study is a regional planning research initiative intended to advance established GVRD Board policy objectives and provide evidence-based guidance to municipal partners, provincial and federal government ministries, and other stakeholders. The study was initiated in early A Partners Committee (with representation from BC Housing, the BC Non Profit Housing Association, TransLink and Vancity) has been established and has helped to finalize the scope of work. The MITORH study comprises five activities: Activity 1: Setting the Context Understanding Constraints and Opportunities Activity 2: Assessing Transit Ridership Effects Activity 3: Identifying Mixed Income Transit-Oriented Housing Opportunity Sites Activity 4: Assessing Tools to Deliver New Mixed-Income Housing Units in Transit-Oriented Locations Activity 5: Deliverables and Communication The findings and products from the MITORH study will be of immediate relevance and benefit for a broad range of decision-makers in light of the following: the federal government launched consultation in June on a National Housing Strategy, which could be in place by the end of 2016; the provincial government has begun introducing actions to address housing affordability this summer; the federal and provincial governments have committed millions of dollars for affordable housing initiatives and transit expansion in Metro Vancouver; the Mayors Council has endorsed a funding strategy, which includes a proposed development cost charge on new developments; local governments are actively planning for growth in transit stations areas and corridors under the guidance of Metro 2040; and the development community is actively seeking and assembling sites for redevelopment in transit-oriented locations. Staff anticipate that the findings and products from the MITORH study will be of immediate relevance and benefit for a broad range of stakeholders and will bring forward results on a regular basis to the relevant standing committees and the GVRD Board. Reference: The Metro Vancouver Housing and Transportation Cost Burden Study Available at: HC - 51

52 6.2 To: Regional Planning Committee From: Margaret Eberle, Senior Housing Planner, Parks, Planning and Environment Date: June 20, 2016 Subject: Metro 2040 Implementation Guideline #6 What Works: Sustaining and Expanding the Supply of Purpose Built Rental Housing Meeting Date: July 15, 2016 RECOMMENDATION That the GVRD Board receive for information the report dated June 20, 2016 titled Metro 2040 Implementation Guideline #6 What Works: Sustaining and Expanding the Supply of Purpose Built Rental Housing. PURPOSE The purpose of this report is to convey to the GVRD Board the Metro 2040 Implementation Guideline #6 What Works: Sustaining and Expanding the Supply of Purpose Built Rental Housing. BACKGROUND One of the ways that Metro Vancouver supports its member municipalities is through research and information dissemination. To this end, Metro Vancouver has prepared the second in a series of What Works documents titled: Metro 2040 Implementation Guideline #6: What Works: Sustaining and Expanding the Supply of Purpose Built Rental Housing. It is modeled on the 2012 Metro 2040 Implementation Guideline #3: What Works: Municipal Measures for Affordable Housing in Metro Vancouver. Metro 2040 Implementation Guideline #6 transmits evidence about what municipal and other measures work to both sustain existing purpose built rental housing and to facilitate the development of new purpose built rental housing. It is envisioned as one of the first implementation actions of the newly adopted Regional Affordable Housing Strategy (2016). PURPOSE BUILT RENTAL HOUSING Purpose built rental housing is a form of private market rental housing that offers security of tenure not available elsewhere in the rental market (except for non profit housing), and it has the potential to act as a substitute for increasingly costly ownership housing. New purpose built rental housing does not create affordability levels like existing purpose built rental housing or non profit housing, but it does meet a market demand. Both Metro Vancouver 2040: Shaping our Future (Metro 2040), the regional growth strategy, and the newly adopted Regional Affordable Housing Strategy (RAHS) underline the importance of this regional resource. RAHS Goals 2 and 4 address rental supply and preservation, particularly in locations near TransLink s Frequent Transit Network (FTN). Federal taxation measures in the 1960s to 1970s created the conditions for significant private investment in purpose built rental housing. With the termination of the federal tax incentives, the development of new purpose built rental was largely curtailed. Advocacy on the part of the apartment owners, the Federation of Canadian Municipalities and others, including the Metro HC - 52

53 Vancouver led Rental Housing Supply Coalition have yet to create movement on this file federally, although the federal government did campaign on a small rental tax reform that has yet to be implemented. Along with high and rising ownership prices, continued low rental vacancy rates are of serious concern to residents, local governments and businesses in Greater Vancouver. Recent market conditions combined with municipal policies and incentives have to various degrees reenergized this sector in Metro Vancouver and there is renewed interest in building new purposebuilt rental. Metro 2040 Implementation Guideline #6: What Works: Sustaining and Expanding the Purpose Built Rental Housing Supply Staff worked with the Regional Planning Advisory Committee (RPAC) and the RPAC Housing Subcommittee to develop the content. A consultant prepared the guideline with information obtained from the literature, staff reports and interviews with municipal planners. Metro Vancouver staff also provided a draft of the report to LandlordBC and met with LandlordBC to discuss owner/operator perspectives on the rental market. The report refers to the 2012 Metro Vancouver Purpose Built Market Rental Housing: Inventory and Risk Analysis and staff from Coriolus Consulting Corp was consulted about broad rental market trends. While recognizing the significant role that senior governments have played in the past and could play in the future with respect to enhancing the supply of purpose built rental housing and protecting tenants, municipalities also have a role. This resource focuses on what measures municipalities have implemented, in some cases with others, to meet the growing demand for market rental housing in their jurisdictions and to protect tenants. Specifically it demonstrates the leadership of Metro Vancouver municipalities in addressing this important regional issue. The Regional Planning Advisory Committee (RPAC) received a report and presentation conveying the scope of work for this item in July 2015 and the draft final report on May 5, Comments offered by RPAC have been incorporated in the final document. This project is on the Housing Committee workplan and the Housing Committee has been apprised of its development. This report is before the Regional Planning Committee and the GVRD Board as the next Housing Committee meeting is not until October The Housing Committee will receive this report for information at that time. The intended audience of Metro 2040 Implementation Guideline #6 is municipal staff and politicians, and community and industry stakeholders. What Works: Sustaining and Expanding the Purpose Built Rental Housing Supply highlights three types of municipal and other measures: Measures to sustain the existing supply aim to improve the economics of ongoing operation to encourage owners to retain the aging stock, before making a decision to redevelop. Measures to expand the supply aim to improve the economics of rental housing development to incent the market to build new rental housing units. Measures to address tenant displacement that occurs when existing purpose built market rental housing is redeveloped. HC - 53

54 Metro 2040 Implementation Guideline #6 has two sections: a) Evidence about Municipal Measures That Work: Summarizes limited published evidence on the use and effectiveness of specific measures; and b) Showcase of Municipal Measures: 16 illustrative profiles of measures have been used in Metro municipalities, elsewhere in Canada as well as some US examples. The profiles are divided into three broad categories, recognizing that some measures can both facilitate sustaining the existing stock and creating new. The categories are: Measures to Sustain the Supply 1. Infill rental units in purpose built rental housing 2. Infill and intensification of purpose built rental housing sites 3. Mixed uses in existing purpose built rental buildings 4. Incentive package to retain existing purpose built rental housing 5. Standards of maintenance bylaws 6. Rental replacement policies and practices 7. Support energy efficiency upgrades in existing buildings 8. Rate of change and rezoning policies 9. Strata conversion policies Tenant Protection 10. Tenant relocation policies Measures to Expand the Supply 11. Density bonus and density transfer 12. Parking reductions and relaxations 13. Incentive package to encourage new purpose built market rental housing 14. Inclusionary policies 15. Tax increment financing 16. Reduction of development fees Each profile notes the costs to the municipality (if any and known) and outcomes to date, again where known. Findings In the absence of senior government action in the recent past to stimulate or sustain purpose built rental housing or to enhance tenant protection, some Metro Vancouver municipalities have stepped in to facilitate the market response. A range of municipal measures are being implemented to both sustain and expand the supply of purpose built rental housing, and to protect tenants during redevelopment. This is a growing area of interest in Metro Vancouver and many of the local examples are relatively new. There is limited published information that can be applied generally on the effectiveness of specific measures and their outcomes. This material fills an important gap and will be useful to member municipalities contemplating a new or updated Housing Action Plan or development of specific measures targeting the rental housing supply, preservation or tenant displacement. The document notes that, as the market changes relatively quickly and different conditions apply throughout the region, independent economic advice is necessary to determine if and how a measure should be considered in a certain municipality or area. HC - 54

55 ALTERNATIVES This is an information report. No alternatives are presented. FINANCIAL IMPLICATIONS This work was completed through the GVRD Board approved 2015 and 2016 Regional Planning budgets. SUMMARY / CONCLUSION Metro Vancouver has prepared the second in a series of What Works documents to convey best practices for implementing regional housing policy direction titled Metro 2040 Implementation Guideline #6: What Works: Sustaining and Expanding the Supply of Purpose Built Rental Housing. It demonstrates municipal leadership in addressing a pressing public concern with housing affordability and diversity. Rental housing is a key policy focus of the GVRD Board through the newly adopted Regional Affordable Housing Strategy (2016). This work supports RAHS Goals 2 and 4 which address rental housing supply and preservation, particularly in locations near TransLink s Frequent Transit Network (FTN). This guideline is envisioned as one of the first implementation actions of the newly adopted Regional Affordable Housing Strategy (2016). One of the ways that Metro Vancouver supports its member municipalities is through research and information dissemination. This report transmits evidence about what municipal and other measures work to sustain the existing supply of purpose built rental housing and to facilitate the development of new purpose built rental housing as well as highlights local municipalities efforts in this area. This report informs key stakeholders about the current state of practice, reflects on these practices (some of them quite new), and advances understanding about the most effective ways for municipalities to sustain and expand the purpose built rental housing supply and protect tenants during redevelopment. Staff worked with member municipalities to develop the content, through the RPAC Housing Subcommittee, and consulted with industry. The Housing Committee has been apprised of the work and will receive a copy of this report for information in October Attachment: Metro 2040 Implementation Guideline #6: What Works: Sustaining and Expanding the Supply of Purpose Built Rental Housing. (Orbit Doc # ) HC - 55

56 5.7 Attachment REGIONAL GROWTH STRATEGY IMPLEMENTATION GUIDELINE #6 What Works: Municipal Measures for Sustaining and Expanding the Supply of Purpose-Built Rental Housing HC - 56 metrovancouver.org

57 ACKNOWLEDGEMENTS Metro Vancouver acknowledges and appreciates the following contributions to this report: The Metro Vancouver Regional Planning Advisory Committee, Housing Sub-Committee; Staff from municipalities and other agencies - information for the profiles of municipal measures; LandlordBC information from the perspective of purpose-built rental housing owners and managers; Coriolis Consulting Corp. overview of regional rental housing market economics; and Heather Evans Consulting assisted Metro Vancouver staff with research and writing of the report. Note: Information and links in this report are current as of May WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY 2016 HC - 57

58 TABLE OF CONTENTS 1. Introduction... 4 Report Outline...4 Background and Purpose...4 Rental Housing Trends in Metro Vancouver...6 Expanding Rental Housing Supply Evidence about Municipal Measures that Work Scan of Literature and Practice...11 Sustaining Purpose-Built Rental Housing What Works?...13 Expanding the Supply of Purpose-Built Rental Housing What Works? Showcase: Municipal Measures for Sustaining and Expanding the Supply of Purpose-Built Rental Housing Introduction...19 Profile 1. Profile 2. Profile 3. Profile 4. Profile 5. Profile 6. Profile 7. Profile 8. Profile 9. Infill Rental Units in Existing Purpose-Built Rental (City of North Vancouver)...25 Laneways 2.0 Infill Housing Strategy in West End (City of Vancouver)...27 Mixed Uses in Apartment Towers (City of Toronto, ON)...31 Secured Market Housing Policy - Sustain Existing (City of New Westminster)...33 Rental Premises Standards of Maintenance Bylaw (City of Maple Ridge)...37 Rental Replacement Policies and Practices (District of North Vancouver)...39 High-Rise Retrofit Improvement Support (Hi-RIS) Program (City of Toronto)...43 Rate of Change Policy and Rezoning Strategy (City of Vancouver)...47 Strata Conversion Policy (multiple municipalities)...51 Profile 10. Tenant Assistance Policy (City of Burnaby)...53 Profile 11. Density Bonus and Community Amenity Policy (City of North Vancouver)...55 Profile 12. Reduced Parking Requirements for Purpose-Buil. Rental Housing near Transit (Cities of New Westminster and Coquitlam)...59 Profile 13. Secured Market Rental Housing Policy - Increase Supply (City of New Westminster)...63 Profile 14. Inclusion of Market Rental Housing in Master-Planned Developments (District of West Vancouver)...67 Profile 15. Downtown Residential Development Grant Program (City of Winnipeg, MB)...69 Profile 16. Reduced Development Fees and Accelerated Application Processing for Rental Housing Projects (multiple municipalities)...73 Endnotes HC - 58 WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY

59 1. INTRODUCTION REPORT OUTLINE This report is organized in the following three sections: 1. Introduction. Background and purpose, purposebuilt market rental trends in Metro Vancouver, roles of the private sector and economics, roles of government. 2. Evidence about Municipal Measures that Work. Findings from the literature on practices and measures that are considered to be effective for sustaining and expanding the supply of purposebuilt rental housing. 3. Showcase of Municipal Measures. Profiles of municipal measures that are being implemented to sustain and expand the supply of purpose-built rental housing in Metro Vancouver communities and other Canadian cities. BACKGROUND AND PURPOSE Purpose-built rental housing refers to multi-family housing that is constructed for the purpose of long-term rental tenure and is not subdivided into co-op, strata condominium, or fractional ownership arrangements. 1 Purpose-built rental housing is a vital component of the long-term secure rental housing supply in Metro Vancouver. Secured market rental housing is a term with similar meaning that refers to more recently-created market rental units that are secured by municipalities, by legal agreements that secure the rental tenure. Older purpose-built rental housing (developed in previous decades) may have different types of agreements in place and/or rely on municipal strata conversion policies to prevent loss of rental tenure over time. Additional types of rental housing are included in the secondary rental market, consisting of rented condominiums, secondary suites, and laneway homes. These are also an important component of the rental housing stock, but are only available for rent based on overall economic and real estate conditions and the owner s discretion. 2 An expanding supply of investor owned condominiums, secondary suites, laneway houses have been the main sources of new rental supply in this region for years. Metro Vancouver has estimated that between 2011 and 2014, the supply of new rental housing fell short of the demand by about 1,600 units. There has been relatively little purpose-built rental housing construction in the past 25 years. Combined with continued population growth and demand for rental housing, this has led to very low vacancy rates, which have been well below 3% for years (the rate that is considered to be a healthy rate). In late 2015, vacancy stood a. 0.8% regionally. 3 As such, sustaining and expanding the supply of purpose-built market rental housing continues to be a pressing policy matter in the region. Two recent regional trends provide the motivation for this report: Existing purpose-built market rental housing in key locations, usually near transit, is beginning to be demolished for redevelopment. New purpose-built rental housing is beginning to be developed thanks to changing market conditions and innovative municipal incentive programs. Preserving and enhancing the rental housing supply is a key direction of Metro Vancouver s Regional Affordable Housing Strategy (2016) and the regional growth strategy, Metro One of the ways that Metro Vancouver advances regional planning and housing policy goals is by conducting policy research and analysis. A previous report in this series looked at municipal measures for facilitating affordable housing, typically non-profit or non-market housing renting at below market levels, usually affordable to low and moderate income households. Purpose-built rental housing is market-based housing that rents at prevailing market rates. The older, existing stock of purpose-built rental housing 4 WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY 2016 HC - 59

60 Lions Bay Sound we Ho Bowen Island North Vancouver District West Vancouver B u rr Anmore Belcarra North Vancouver City a rd Port Moody In le t Electoral Area A Coquitlam Vancouver Pitt Port Meadows Coquitlam Maple Ridge Burnaby New Westminster Str Richmond ait Surrey of G eo rg Fraser R iv ia er Langley City Delta B ou Tsawwassen nd Langley Township ary Bay White Rock CANADA in Metro Vancouver is relatively affordable, due to its age, although still offered at market rents. New purpose-built rental housing, on the other hand, while also renting at market rates, rents at much higher levels due to the fact that it is new construction, with up-to-date features and amenities. Market rents in these units are typically quite a bit higher, and affordable to moderate or above moderate income households. The aim is that with increased supply a market demand is satisfied, and a future inventory of rental housing is assured that over time will become more affordable. It is also more affordable than homeownership for those households without access to the large down-payments required. It is recognized that new purpose-built rental housing does not create affordability levels similar to existing purpose-built rental housing or non-profit housing, but it does meet a market demand. Vancouver member municipalities and elsewhere to facilitate this. Measures to sustain the existing supply aim to improve the economics of ongoing operation to encourage owners to retain the aging stock for longer, before making a decision to redevelop. Measures to expand the supply aim to improve the economics of rental housing development to encourage the market to build new rental housing units. This report is intended to inform key stakeholders about the current state of practice, reflect on current measures and practices (some of them are quite recently implemented), and advance understanding about the most effective ways for municipalities to sustain and expand the purpose-built rental housing supply. The purpose of this report is to synthesize what the literature says about effective municipal practices to both sustain the existing supply of purpose-built rental housing and expand the purpose-built rental housing supply, and to highlight some examples of measures that have been employed by Metro HC - 60 WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY

61 RENTAL HOUSING TRENDS IN METRO VANCOUVER SUPPLY OF PURPOSE-BUILT MARKET RENTAL HOUSING Figure 1 shows that purpose-built market rental housing is an important part of the supply of rental housing in Metro Vancouver, comprising about one-third (31%) of rental units or between 328,000 and 340,000 renter households. FIGURE 1. ESTIMATED DISTRIBUTION OF RENTER HOUSEHOLDS BY SOURCE OF RENTAL UNITS, METRO VANCOUVER, The universe of purpose-built rental housing in the region declined slightly between 2004 and 2014, with an upward trend evident since Some new units were added but a greater number have been lost since Figure 2 illustrates this trend. Secondary Suites 25 27% Townhouse & Duplex 5% Single Detached 8% Private Condo Rental 15% Purpose-Built Rental 31% Social Housing 15% SOURCE: METRO VANCOUVER HOUSING DATA BOOK. NOVEMBER FIGURE 2. PURPOSE-BUILT RENTAL APARTMENT INVENTORY, METRO VANCOUVER, , , , , , , , , , , ,000 98,000 96,000 94,000 92,000 90, SOURCE: METRO VANCOUVER HOUSING DATA BOOK. NOVEMBER WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY 2016 HC - 61

62 This regional rental inventory was the subject of an in-depth investigation by Coriolis Consulting Corp. for Metro Vancouver in 2012, in a study that included a review of the inventory and analysis of the risk of redevelopment. 4 The purpose-built rental inventory was characterized as relatively old, with a significant majority (88%) built before The inventory is also concentrated: the largest share of purpose-built market rental buildings in the region was in Vancouver (58% of buildings), followed by Burnaby (10%), New Westminster (8%), City of North Vancouver (6%) and Surrey (5%). The study found that without intervention, approximately 16% to 18% of rental units (in the six municipalities of the region that were studied) are at risk of redevelopment in the next ten years. Further, A rental property is at risk of demolition and redevelopment if its market value as an income producing investment property is less than (or equal to) its value as a redevelopment site (land value). Some of the factors contributing to this are age and physical condition of the property, extent to which permitted density is underutilized under existing zoning, location, OCP and zoning designations, and the contribution of building improvements to overall property value. 8 In a report for City of Vancouver, McClanaghan and Associates noted that economic pressures favour redevelopment once the economic viability of build new is established, and the pace of development can be very quick. 5 Since the referenced study was completed, the risk of redevelopment may be heightened as redevelopment of rental housing become increasingly attractive due to market factors. Outside of Vancouver: In the District of North Vancouver and in Richmond there is a high proportion of rental buildings at risk of redevelopment, in the City of North Vancouver and West Vancouver a moderate proportion is at risk, and in Surrey and New Westminster a low share is currently at risk. About 31% of the existing rental stock is in buildings that are 5 storeys or more, primarily concrete buildings, about one third more than 40 years old. The concrete rental stock is less likely to include properties that are candidates for redevelopment than the wood frame inventory. About 64% of the buildings that are 4-storeys or less were constructed before 1970 and are wood frame. There are examples of 40 to 50 year old wood frame rental buildings in the region which have been demolished for redevelopment. DEMAND FOR RENTAL HOUSING To meet the region s forecast population growth, 18,200 new housing units per year over the next 10 years are estimated to be required. Table 1 shows that about 30% of this estimated demand is for rental housing or 5,300 new rental units per year over the next ten years. About two-thirds of the rental units are estimated to be for very low to low income households. Looking ahead a decade to the mid s it is clear that additional supply of purpose-built market rental housing is needed, both to catch up from unmet demand and to accommodate demand from growth. HC - 62 WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY

63 TABLE 1. METRO VANCOUVER 10 YEAR HOUSING DEMAND ESTIMATES BY MUNICIPALITY Municipality Total Demand Ownership Demand Rental Demand Very Low Total Rental Demand by Income Low Income Moderate Income Above Moderate High Income Metro Vancouver 182, ,000 54,000 23,500 11,200 8,700 4,800 5,800 Burnaby 19,000 13,100 5,900 2,520 1,260 1, New Westminster 5,000 2,800 2,200 1, Langley City 2,000 1, Langley Township 17,000 14,100 2, Maple Ridge 5,000 3,800 1, Pitt Meadows 1, Coquitlam 17,000 12,000 5,000 2,140 1, Port Coquitlam 3,000 2, Port Moody 2,000 1, North Vancouver City 2,000 1,000 1, North Vancouver District 3,000 2, West Vancouver 2,000 1, Delta 3,000 2, Richmond 14,000 10,800 3,200 1, Tsawwassen First Nation 1, Surrey 47,000 35,500 11,500 4,290 2,600 2,200 1,200 1,100 White Rock 1, (30) Vancouver 32,000 19,200 12,800 5,910 2,340 1,930 1,120 1,450 Source: Prepared by Metro Vancouver, Regional Planning, December NOTES: 1. To meet this estimated demand, funding from other levels of government is required. 2. Increase in total households over 10 years based on regional population and household projections. Regional total exceeds municipal aggregate totals due to municipal variance. 3. Very low income <$30,000/year, Low income <$30,000-50,000/year, Moderate income $50,000-75,000/year, Above moderate $75,000-$100,000/yr, High income $100,000/yr plus. 4. Household maintainer rates and cohort projection method using census/nhs based household maintainer rates and projected demographic, characteristics (age, births, deaths, immigration, Canadian migration, intra-regional migration). Assumes that household income and household type ratios remain constant over the projection period. See Metro Vancouver Regional Planning. Metro Vancouver Housing Demand Projections Overview of Assumptions and Methodology. Dec These estimates are to assist in long range planning and represent an approximate range of potential increase in each municipality. 8 WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY 2016 HC - 63

64 EXPANDING RENTAL HOUSING SUPPLY PRIVATE SECTOR ROLE AND ECONOMIC FACTORS Purpose-built rental housing is largely developed, owned and operated by the private sector and thus market conditions determine supply. Up until fairly recently, there have been good economic reasons for the lack of new purpose-built rental housing, notably a financial feasibility gap between the total rent from residential units that a building owner could expect to receive and the cost of constructing and operating a project. Past studies suggested that the financial feasibility gap existed for both concrete and wood frame buildings, but the gap was greater for concrete buildings. Scenario modelling in 2010 for the City of Vancouver suggested that this gap averaged between $51,500 to $108,000 per unit depending on unit type, unit mix, and location. Based on results of scenario testing in 2009/2010 a new purpose-built market rental unit requires a rent of $1.80 to $2.50 per square foot, which works out to be significantly higher than the rent that is affordable for a median income household in Vancouver. 6 There has been a preference in the private sector to construct strata condominiums over the development of purpose-built rental because it is less risky and more profitable. Residential zoned land can generally not be acquired at a price that makes rental housing a viable option instead of strata titled residential development. 7 Of course market conditions vary across the region and over time. The CMHC purpose-built inventory figures suggest a modest increase in this inventory since 2010 (from 104,460 units to 106,945 units in 2015), but the recent resurgence in rental housing projects is mostly still under construction or in the development approval process. This suggests that the financial feasibility gap has narrowed or closed in some specific local markets, for specific construction types (i.e. wood-frame) or locations, or at least in markets with available incentives. The Canadian Federation of Apartment Associations (CFAA) has attributed a recent resumption of rental starts in some local Canadian markets to relatively high rents and low interest rates making rental development more feasible. 8 The CFAA notes that a rise in interest rates could reverse this trend, and will result in new rental starts dropping off, as well as an increase in demand for rental housing as homeownership will no longer be affordable to some. This trend has been visible in Metro Vancouver with some recently approved development applications construction starts for 100% rental projects. The Urban Development Institute hosted a forum in Vancouver that explored an apparent renaissance in developing market rental housing in the region. 9 Panelists attributed development interest in rental to a variety of factors, including: Municipal incentives for rental housing, e.g. City of Vancouver STIR and Rental 100 programs, City of New Westminster Secured Market Rental Housing Policy Broader economic and market factors, e.g. volatility of other investments, stability and value of the multi-family rental asset class, low interest rates; and Regional market conditions, e.g. high rents and declining vacancies. In addition to factors mentioned above there may be additional considerations affecting demand and consumer preference for rental housing, though these are not explored further in this report. HC - 64 WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY

65 According to an Ontario study in 2013, the economics of acquiring an existing rental building are better than building a new one. Rental buildings can be acquired for a good price and provide stable cash flows. However many rental owners generally do not earn a high enough rate of return to justify further investment; some of the factors limiting investment are lower rents, higher energy costs, and difficulty in assessing deferred capital repair costs. 10 The Canadian Federation of Apartment Associations attributes this to the current tax system and its impact on the rate of return and incentive to invest or divest. 11 ROLE OF GOVERNMENT In previous decades, federal government policies and programs (which no longer exist) and a responsive housing finance system encouraged the construction of purpose-built market rental housing. Between the early 1950s and early 1970s federal taxation measures included incentives for new rental residential development. Between the mid- 1970s and mid-1980s more targeted incentives for rental residential were introduced to address supply constraints following the introduction of condominium tenure. Also in this period non-profit and co-op housing programs were introduced. Since the mid-1980s the federal government has retreated from programs and incentives for rental supply and consequently, rental housing production has dropped considerably in the past few decades. 12 The rental housing industry and tenant advocates have proposed many ways the federal and provincial governments could improve the economics of rental development, through more favourable tax treatment for rental properties and low income housing tax credits similar to those in the United States. Municipalities have a number of land use, regulatory and financial tools at their disposal and can play a pivotal role in purpose-built market rental housing retention and supply. While some authors have concluded that municipalities on their own do not have the jurisdiction nor the resources to provide the required incentives to meaningfully stimulate rental housing supply, recent trends and market conditions in some municipalities and locations in Metro Vancouver indicate that together with favourable market conditions, municipal incentives may be sufficient to encourage new rental projects, without senior governments involvement. This report focuses on municipal actions for encouraging purpose-built rental housing, however this does not preclude the possibility or desirability for a senior government role. Provincial or federal incentives would level the playing field and help ensure access to new rental housing in all municipalities. Two municipal profiles in Section 3 of this report, notably those from outside of BC (Ontario and Manitoba), demonstrate a provincial government role in sustaining and expanding rental housing supply, for example leading legislative changes and participating in programs that enable new municipal policies and incentives for rental housing. Other organizations may also play a role or partner with the private sector or municipal government. For example, development and housing industry organizations (e.g. LandlordBC), utilities (e.g. Fortis), and some co-op and non-profit housing agencies are involved in some measures showcased in the municipal profiles in Section 3 of this report. 10 WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY 2016 HC - 65

66 2. EVIDENCE ABOUT MUNICIPAL MEASURES THAT WORK SCAN OF LITERATURE AND PRACTICE A review of literature for this report included a search of academic and practice-based sources with an emphasis on Canadian sources, and yielded about a dozen reports of direct relevance. There is a limited amount of published literature on broadly based effectiveness of municipal tools and measures to sustain or expand the purpose-built rental supply. Most of them were written by (or for) local governments, advocacy organizations, industry groups, non-profit and government agencies, or academic institutions. The most relevant sources for this report were conducted on behalf of Metro Vancouver municipalities and focused on presenting recommendations for local action, usually based on analysis of financial feasibility for market rental in the local market. Two sources are heavily referenced in this report: McLanaghan and Associates for City of Vancouver. August City of Vancouver Rental Housing Strategy Research and Policy Development Synthesis Report. This report includes synthesis an analysis of seven specialized studies on the topic of rental housing that were completed in , on the topics of both sustaining and expanding the supply of rental housing in the city. Coriolis Consulting Corp. for Metro Vancouver. 8 May Metro Vancouver Purpose-Built Market Rental Housing: Inventory and Risk Analysis. This report contributed toward a database of existing purpose-built rental housing in the region, explored the risk of redevelopment and demolition, and suggested strategies for retention. Other municipalities in the region have also commissioned market studies to inform their rental housing policies and strategies. The effectiveness of municipal measures for sustaining or expanding rental housing is hinged on whether the measures have the financial effect of making the preservation or development of rental housing feasible. In some studies for the City of Vancouver, the effectiveness of potential measures was assessed by studying a number or scenarios in which the measure was applied, and then quantifying how much it would narrow the feasibility gap for rental housing. Effectiveness can also be considered from a qualitative perspective, i.e. successfully working within the community context. For example, municipal approval of a new rental housing building with density and form that does not meet the overall community vision and acceptance would not be considered successful, at least in part because it may jeopardize community support for expanding rental housing in the longer term. HC - 66 WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY

67 There is little published material demonstrating clear outcomes or effectiveness of specific municipal measures for purpose-built rental housing. It is likely that given varying local market conditions, no one tool or measure should be considered as so, and that instead, knowledge and assessment of local market conditions should prevail. However, effectiveness in a particular instance can be measured by tracking the number of rental housing units that were sustained or created over time, and relating these trends to the timeline associated with introducing and implementing a local policy, regulation, or incentive for rental housing, as well as the market conditions and any external economic factors. The Federation of Canadian Municipalities noted that Saskatoon experienced dramatic increases in rental starts in 2010 as a result of local government initiatives for new rental housing. Saskatoon introduced a $5000 per unit incentive grant, and a five year incremental tax rebate. 17 In Metro Vancouver, New Westminster has experienced a dramatic increase in rental housing projects since approving their Secured Market Rental Policy in 2012, with nine new secured market rental projects for a total of 1,265 units. 774 of these units (seven out of nine projects) are already approved with housing agreements in place, and others are in process WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY 2016 HC - 67

68 SUSTAINING PURPOSE-BUILT RENTAL HOUSING WHAT WORKS? As part of the 2012 Metro Vancouver Purpose-Built Rental Housing study, Coriolis was asked to suggest policies to lower the risk of redevelopment of the rental stock. The study authors recommended that municipalities first ask guiding questions to help frame their goals for retaining and sustaining purpose-built market rental: Is the concern about protecting the existing rental stock equal across all locations or are there specific neighbourhoods that should be targeted? What is the share of the existing rental stock that should be protected? In the long term, is it desirable/acceptable to protect all of the rental buildings that are at risk of redevelopment given that these sites are under-utilizing permitted density? Protecting these buildings from redevelopment in perpetuity will under-utilize the capacity to accommodate future multifamily residential development. 19 Coriolis consulted with apartment investors and real estate brokers knowledgeable about the Metro Vancouver market to identify a range of measures that could be effective to sustain the existing supply of rental housing, as summarized in Table 2 below. Several measures are within the jurisdiction of municipal governments, while others are targeted at provincial and federal governments. It has also been emphasized by rental sector representatives that in order to sustain the existing stock of rental housing, that it is also important for municipalities ensure that their regulations, policies, and development approvals process can be navigated by small owners/operators of rental buildings with limited experience with development. In terms of the types of tools that are proposed for sustaining rental housing, several of the suggested measures in Table 2 could be considered carrots : regulatory or fiscal incentives to make the operation of rental housing more economically viable and encourage them to continue. Some of these measures can also result in additional infill rental units, thereby also increasing the rental stock as well. One of the proposed measures (See #4 in Table 1 below) uses regulation to limit redevelopment of purpose-built rental buildings. Many Metro Vancouver municipalities are already implementing some of the measures and they are profiled in the Showcase (Section 3 of this report). None of the measures within federal and provincial jurisdiction in Table 2 are known to be underway. In addition to the possible municipal measures outlined in Table 2, municipalities play a key leadership and policy role in generating sustained support in the community to retain and regenerate/redevelop rental housing. For example, municipalities lead community and neighbourhood planning processes that engage residents in identifying areas for rental housing retention and areas/opportunities for future redevelopment of rental housing to meet growing needs, and through implementing tenant relocation policies they support tenants to find accommodation during renovation and redevelopment of rental housing. Municipal Housing Action Plans may also contain policies to help sustain existing purpose-built rental housing. HC - 68 WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY

69 TABLE 2. POSSIBLE STRATEGIES FOR SUSTAINING EXISTING RENTAL HOUSING SUPPLY Possible Measure to Retain Supply Possible Strategies to Achieve this Measure Considerations and Cautions Municipal Role Municipal Profiles 1. Increase revenue (to owners) from existing rental buildings. Relax or eliminate rent control legislation, so that building owners can achieve full market rents. This will increase the rental building value and encourage investment in existing buildings, and will provide owners an incentive to upgrade and reinvest in buildings. Reduce property taxes, and reduce government sales taxes on rental building operating costs. Offer tax incentives to rental building owners to encourage improvements to the energy efficiency of existing buildings. Introduction of government funded rent supplements is also presented as an option in the report, but it is suggested that rent supplements should instead be applied to stimulate construction of new rental housing. Reduced operating costs will have a temporary effect; rental properties value as a redevelopment site will continue to increase at a faster rate and the properties will become redevelopment candidates over a period of time. Municipal role could be advocacy. This is not within municipal government control. No profiles in this report. 2. Decrease operating costs of existing rental buildings. This would increase the property s value and make them more attractive to retain as rental buildings. Property taxes and tax incentives related to energy efficiency improvements are within the realm of local governments. Profile 7. City of Toronto Hi-RIS Energy Efficiency Program 3. Use underutilized properties to increase the housing stock. Density transfer: Allow the transfer of unused density from under-utilized rental sites to a neighbouring or nearby property that is up-zoned, in exchange for a housing agreement to retain and maintain the existing rental building. If using this approach, municipalities would need to be mindful of the location of the new density and rationalize that rental housing would most likely be the sole community amenity contribution from new development (additional community amenities would likely not be gained). Also density transfers from rental sites could potentially complete with density transfers for heritage protection. Density (transfer, increase, bonus), and land use regulations are in local government jurisdiction Profile 11. City of North Vancouver -Density Bonus and Density Transfer Profile 1. City of North Vancouver Zoning Bylaw Regulations for Infill Profile 2. City of Vancouver Laneways 2.0 Profile 3. City of Toronto Residential Apartment Commercial Zone 14 WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY 2016 HC - 69

70 Possible Measure to Retain Supply Possible Strategies to Achieve this Measure Considerations and Cautions Municipal Role Municipal Profiles 4. Limit the ability for an owner to redevelop or convert existing rental housing. 5. Implement tax incentives that encourage owners to keep rental buildings in the rental inventory. Strata conversion policies to limit the conditions in which a rental building can be converted to a strata building. (Many Metro Vancouver municipalities have this policy already.) Eliminate strata development as an option, i.e. zone for rental use only. This would require a change to the Local Government Act, since municipalities are not currently permitted to use zoning to specify tenure without the consent of the property owner. Impair the economics of redevelopment, e.g. levies, required replacement, required amenity contributions. (Many Metro Vancouver municipalities have this strategy already.) Manage the pace of redevelopment, e.g. through setting a maximum number of demolitions per year (could be zero). This approach is demonstrated by City of Vancouver s rate of change policy. FCM has proposed that a tax credit could be offered to rental building owners that sell their building to a nonprofit housing provider who agrees to hold and maintain affordable rents for a period of time. This would reduce capital gains tax that the owner would face upon sale of the property, and would encourage sale to a non-profit rental apartment provider instead of a developer that might demolish and redevelop. The source of information for columns 1, 2, and 3 is Coriolis Consulting Corp This approach results in underutilization of land in the long term. A share of the existing stock will be at risk of demolition in the long term anyway, due to declining building condition. Many strategies are within local government jurisdiction. Not necessarily a municipal government role Profile 9. Multiple Communities. Strata Conversion Policies Profile 4. City of New Westminster- Secured Market Rental Housing Policy Profile 6. District of North Vancouver Rental Replacement Policy Profile 8. City of Vancouver Rate of Change and Rezoning Policies No profiles in this report WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY HC - 70

71 EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING WHAT WORKS? While in some local markets within Metro Vancouver it appears feasible for new rental projects to proceed with or even without incentives, the limited literature (which tends to be dated by a few years), documents a general need for partnerships between municipal and senior governments to expand the supply of rental housing , in order to pool resources and share responsibility. Here is one conceptual example of possible roles: Municipal measures: in kind contributions such as relaxations, density bonus, alleviated permit fees; Federal government: grant or tax credit to help close the financial feasibility gap; and Provincial government: ongoing subsidy or assistance to ensure that a proportion of units are available at below market rent. The President of the Federation of Canadian Municipalities stated in 2012 that: Local governments can t get the rental housing market working by themselves 23 and a 2012 FCM report acknowledges that municipal governments are unlikely to be successful on their own and over a longer time horizon at creating sufficient incentives for sufficient new rental housing. The McClanaghan and Associates 2010 report concurred and emphasized that the City of Vancouver and this would apply to other municipalities as well should recognize its resource limitations and, whenever possible, use a partnership approach for a new [purpose-built market rental housing] supply program. 24 In addition, McLanaghan emphasized that standalone measures will not sufficiently reduce the feasibility gap, so a layering / packaging of measures is recommended. Municipalities are implementing an array of initiatives to increase the supply of purpose-built rental housing. 25 Many of these incentives are aimed at alleviating capital costs of developing rental housing. Fewer measures are aimed at reducing operating expenses. Further, there is a strong interest from developers to reduce the timeline for development approvals for rental projects. A goal for this report is to explore which municipal measures are the most effective at closing the financial feasibility gap for rental housing. Table 3 summarizes the range of municipal measures that have been recommended in the literature, and available evidence about their effectiveness. Much of the analysis is from McClanaghan and Associates work done in 2010 for the City of Vancouver and is not necessarily applicable for other municipalities or at different points in time. The results could be a starting point for general consideration, and expert advice on local market economics is recommended for municipalities prior to taking any action. The right column of Table 3 notes municipal measures that are showcased in profiles in Section 3 of this report. Readers can refer to the profiles for information about how effective the measures have been in the profiled municipalities. 16 WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY 2016 HC - 71

72 WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING HC - THE 72SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY

73 TABLE 3. POSSIBLE MUNICIPAL MEASURES FOR EXPANDING THE SUPPLY OF PURPOSE-BUILT MARKET RENTAL Possible Municipal Measure to Expand Supply Information about Effectiveness Relevant Municipal Profiles 1. Inclusionary housing models (i.e. including rental housing (and sometimes affordable rental housing) in development projects) 2. Combination / package of municipal measures, e.g. reduced parking, permit fees, development cost levy or fees, increased density. Toronto: Successful where costs and risks to developers can be offset with incentives like land grants, and if the rents are aimed at middle income households. Including 15% affordable rental units in new development can be economical with increased building density and exemption from fees and charges to offset costs. 26 Vancouver: The amount of additional value is limited without significant impact on land value or trade-off against other municipal requirements. But, could be effective if combined with density bonus. Also, amount of incremental rental supply [in inclusionary housing developments] tends to be small, and is relatively costly to regulate and operate. A combination of measures is needed to close the financial feasibility gap. To find out the portion of the gap that the measures effectively address, would need to add up the financial feasibility gap reductions of each measure in the package. Ability to overcome financial feasibility gap depends on the site, timing and other factors. Also, it is difficult for the city along to generate sufficient incentives to support a sustained supply response. 3. Reduce parking requirements A 50% reduction in parking requirements (for City of Vancouver) would close the feasibility gap by 15% (concrete construction) to 32% (wood construction). The cost of building parking (i.e. underground) is estimated t. be up to 10% of the project cost, and the average cost per parking stall in a structure is $20,000 to $45,000 (depending on whether it is above or below grade) Increased density When combined with other measures, an increase in density can reduce the financial feasibility gap. If a 58% increase in FSR for concrete, 44% of the feasibility gap would be closed. If a 38% increase for wood frame, 47% of the feasibility gap would be closed. Financial results of density bonusing vary significantly from site to site. 5. Waive Development Cost Charges and permit fees Municipality has limited alternatives to fund the community benefits that are funded by DCC and so must balance the public benefit of rental housing supply with public uses. Closes the financial feasibility gap by 10% to 18% (in a City of Vancouver scenario). 6. Property tax waiver The use of a waiver is workable but not necessarily affordable to the municipality. Would close the feasibility gap by 1.4 to 12% (City of Vancouver scenario). Profile 14. District of West Vancouver Inclusionary Policies for Purpose-Built Market Rental Profile 13. City of New Westminster Secured Market Rental Housing Policy Profile 12. Cities o. New Westminster and Coquitlam Parking Reductions and Relaxations Profile 11. City of North Vancouver Density Bonus and Density Transfer Profile 16. Reduction of development fees for new rental residential development. Profile 15. City of Winnipeg Tax Increment Financing Too. can be used to reduce property taxes paid over a period of time on properties with newly developed housing. Unless otherwise noted, the source of information in Column 2 of Table 2 Information about Effectiveness is McClanaghan and Associates for City of Vancouver. August City of Vancouver Rental Housing Strategy Research and Policy Development Synthesis Report. The figures for estimated closure of the financial feasibility gap are for City of Vancouver scenarios, and would vary for other local markets. 18 WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY 2016 HC - 73

74 3. SHOWCASE: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF RENTAL HOUSING INTRODUCTION The Showcase shares examples of measures to sustain and expand the supply of purpose-built rental housing that are being implemented in Metro Vancouver, as well as elsewhere in Canada. They are intended to demonstrate different approaches which may be replicable. The measures that are profiled draw on municipalities influence and regulatory authority. Profiles 1 to 9 include measures that aim to sustain the supply of purpose-built rental. A profile on the topic of tenant assistance policies is also included (Profile 10), in recognition of the impact of rental housing replacement and demolition on tenants. Profiles 11 to 16 include measures that aim to expand the supply of purpose-built rental housing. MEASURES TO SUSTAIN THE SUPPLY: Profile 1. Infill Rental Units in Existing Purpose- Built Rental Housing Buildings (City of North Vancouver) MEASURE TO SUPPORT TENANTS: Profile 10. Tenant Assistance Policy (City of Burnaby) Profile 2. Profile 3. Profile 4. Profile 5. Profile 6. Profile 7. Profile 8. Profile 9. Laneway Housing 2.0 Infill Housing Strategy in the West End (City of Vancouver) Mixed Uses in Existing Apartment Towers (City of Toronto, ON) Secured Market Rental Housing Policy - Retain and Renew Existing Stock (City of New Westminster) Rental Premises Standards of Maintenance Bylaws (City of Maple Ridge) Rental Replacement Policies and Practices (District of North Vancouver) High-rise Retrofit Improvement Support (Hi-RIS) Program (City of Toronto) Rate of Change Policy and Rezoning Strategies (City of Vancouver) Strata Conversion Policy (multiple municipalities) MEASURES TO EXPAND THE SUPPLY: Profile 11. Density Bonus and Community Amenity Policy (City of North Vancouver) Profile 12. Reduced Parking Requirements for Purpose-Built Market Rental Housing Near Transit (Cities of New Westminster and Coquitlam) Profile 13. Secured Market Rental Housing Policy Increase Supply (City of New Westminster) Profile 14. Inclusion of Market Rental Housing in Master-Planned Development (District of West Vancouver) Profile 15. Downtown Residential Development Grant Program - Tax Increment Financing Tool (City of Winnipeg, MB) Profile 16. Reduced Development Fees and Accelerated Application Processing for Rental Housing Projects (multiple municipalities) HC - 74 WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY

75 The showcase does not represent all possible measures, but it provides a cross-section of examples from a range of municipalities throughout the region, and two from elsewhere in the country. Also, the profiles in the showcase do not intend to represent all of the initiatives and measures for purpose-built market rental housing that a given municipality is implementing, rather each profile focuses on the implementation of a particular measure. The profiles were created by reviewing municipal policies, staff reports and documents, as well as through personal communication with relevant municipal staff. Metro Vancouver staff and the steering committee for the project (members of the Regional Planning Advisory Committee, Housing Subcommittee) provided guidance and direction in preparing the profiles. An overview of information is presented in each of the profiles, and further information and detail is available through the relevant municipal and/or Metro Vancouver staff. Table 3 provides an overview of the profiles in the Showcase by listing the relevant municipality, the example/type of measure that is being profiled, and a brief summary of the profile. Each of the profiles in the showcase includes the following: an overview, background and rationale for initiating the measure, description of how the measure was developed and an overview of how it works, outcomes, and reflections about transferability. Some of the profiles provide examples of measures from multiple municipalities. In addition, key links and a suggested general contact for further information is provided so that readers can follow up to get more detailed information. 20 WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY 2016 HC - 75

76 TABLE 4. SUMMARY OF PROFILES IN THE SHOWCASE OF MUNICIPAL MEASURES # Name and Municipality Measure Overview Outcomes So Far and Costs to Municipality MEASURES TO SUSTAIN THE SUPPLY (PROFILES 1 TO 9) 1 Infill Rental Units in Purpose-Built Market Rental Buildings City of North Vancouver 2 Laneway Housing 2.0 Housing Strategy in the West End City of Vancouver 3 Mixed Uses in Existing Apartment Towers City of Toronto, ON 4 Secured Market Rental Housing Policy City of New Westminster 5 Rental Premises Standards of Maintenance Bylaw City of Maple Ridge 6 Rental replacement policies and practices District of North Vancouver Zoning Bylaw regulations for infill units Infill and intensification of rental housing sites Neighbourhood Plan, Zoning, Design Guidelines Residential Apartment Commercial (RAC) zone in Zoning Bylaw Incentive package to renew and enhance existing purpose-built market rental housing (Policy also includes measures and policies to create new supply see Profile 13) Bylaw and enforcement Policy provisions in OCP and Town Centre/Village Plans Zoning bylaw regulations allow additional infill units within the existing area of a rental building. Strategy to infill existing residential properties with additional market rental buildings (3-6 storeys) that are oriented to the laneways. A new residential apartment commercial zone allows small commercial and community uses to be added to approximately 500 sites in existing apartment buildings. Policy includes multiple measures and policies to renew and enhance rental housing including: moratorium on strata conversion; stated lack of support for rezoning to higher density and height; requirement for relocation assistance; density bonus; fee reductions, etc. The bylaw allows the City to receive complaints from tenants about maintenance and living standards in rental buildings, follow up with the owner/building manager, and issue orders for repair as warranted. The profile also provides links and examples to a model bylaw, and municipalities standards of maintenance bylaws for additional municipalities. The District of North Vancouver s planning policies facilitate the replacement of existing older purpose-built rental units with new rental units, when buildings are demolished to create new housing. 58 new infill rental units have been created since No direct cost to municipality. Since 2015, 37 units have been approved (4 development applications). No cost to municipality. Implementation anticipated to begin in No direct cost to municipality. Policy applied since Cost to municipality includes foregone revenue from reduced building permit fees (50%), and foregone payment for density bonus and parking relaxations (payments not required for rental housing projects). Bylaw in effect since No direct cost to municipality. Replacement of market rental housing in several new housing developments. Cost to municipality includes foregone community amenity contributions, which are not typically required when secured market rental units are provided. HC - 76 WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY

77 # Name and Municipality Measure Overview Outcomes So Far and Costs to Municipality 7 High-Rise Retrofit Improvement Support (Hi-RIS) Program City of Toronto, ON 8 Rate of Change and Rezoning Policies City of Vancouver 9 Strata Conversion Policy Multiple municipalities Loans and staff support for energy efficiency upgrades in apartment buildings Policies and strategies to limit and regulate rental redevelopment Policy with conditions / limitations for converting existing rental buildings to strata title ownership MEASURES TO SUSTAIN THE SUPPLY (PROFILES 10) 10 Tenant Assistance Policy City of Burnaby Policy for relocation of tenant when rental buildings are rezoned and demolished Staff support and $10 million (over a 3-year period) allocated for loans to multi-residential property owners for energy efficiency upgrades. The loans are repaid through a Local Improvement Charge on the property tax bill. Hi-RIS program is part of the City of Toronto s Tower Renewal Program. The purpose of the policies is to retain the existing stock of rental housing in designated no change areas, and to ensure that the rental units are replaced with new (both market and affordable rental units) in designated change areas. Conversion policies protect existing rental buildings from conversion to strata titled units. Most but not all municipalities in Metro Vancouver have strata conversion policies, and a few examples are provided in this profile. The City of Burnaby adopted a Tenant Assistance Policy in May The purpose of the policy is to clarify the City s expectations for resources and considerations for existing tenants, when development applicants involve multi-family residential buildings (6 or more dwellings). Eight buildings are participating, and most projects are to replace windows and balcony doors. The committed projects represent 340 tonnes of GHG reductions. No net cost to the municipality and taxpayers. The West End Neighbourhood Plan provides and example of these policies and implementation. No direct cost to the municipality. No direct cost to the municipality. No direct cost to the municipality. 22 WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY 2016 HC - 77

78 # Name and Municipality Measure Overview Outcomes So Far and Costs to Municipality MEASURES TO SUSTAIN THE SUPPLY (PROFILES 11 TO 16) 11 Density Bonus and Community Amenity Policy City of North Vancouver 12 Reduced Parking Requirements for Purpose-Built Market Rental Housing Near Transit City of New Westminster, City of Coquitlam 13 Secured Market Rental Housing Policy City of New Westminster Density Bonus and Community Amenity Policy, OCP, Zoning Policies and regulations for parking Incentive package to encourage new purpose-built market rental housing. (Policy also includes measures and policies to renew and enhanc. existing purpose-built market rental housing see Profile 4) The City of North Vancouver developed a Density Bonus and Community Amenity Policy in 2015, which outlines 100% secured rental housing as an eligible use for bonus density. The maximum density for new rental housing projects depends on the OCP Land Use Designation. The City of North Vancouver OCP also has provision for density transfer. The Metro Vancouver 2012 Apartment Parking Study recommended that rental housing be encouraged in urban centres and FTDAs, and that municipalities should encourage rental apartments near transit by reducing or waiving parking requirements as a development incentive. The profile outlines the City of Coquitlam s and the City of New Westminster s approaches to parking for purposebuilt market rentals near transit. Policy includes multiple measures and policies to encourage new purpose-built market rental housin. including. parking reductions, density bonus, reduced building permit fees, relaxation of servicing requirement, concurrent processing of applications, payment of legal fees for housing agreements etc., and other financial benefits (such as reduced assessment value resulting in lower property taxes). Policy was approved in 2015 and projects are in development approvals process. No direct cost to the municipality. Rental developments are being constructed, which take advantage of the reduced parking requirements. Direct cost the municipality: in New Westminster parking variance payments are not received for rental projects. Six secured market rental projects for a total over 1000 units: nearly 700 of these units are already approved with housing agreements in place, and others are in process. Three of the 6 projects are under construction / renovation. Cost to municipality: reduced building permit fee revenue, and opportunity cost of density bonus and parking variance payments that are not received for rental projects. HC - 78 WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY

79 # Name and Municipality Measure Overview Outcomes So Far and Costs to Municipality 14 Inclusion of Market Rental Housing in Master-Planned Developments District of West Vancouver 15 Downtown Residential Development Grant Program City of Winnipeg, MB 16 Reduced Fees and Accelerated Application Processing for Rental Housing Projects Multiple municipalities OCP Policies, Master Development Agreements, Comprehensive Development Zoning Tax increment financing for new purpose-built market rental housing Policies and/or provisions within bylaws The District of West Vancouver has general policies in the OCP to include a diversity of housing including rental housing in new developments, and to provide bonuses for rental housing. The profile provides an example of the inclusion of rental units in the Evelyn development in West Vancouver. Other approaches to inclusionary market rental housing are also listed. Winnipeg has been using a Tax Increment Financing tool since 2002 to offer incentives for private developers to build new rental housing in various areas of the city, particularly downtown, as part of a downtown revitalization strategy. Several Metro Vancouver municipalities waive or reduce fees and costs associated with development, and optimize application processing time, as incentives for purpose-built rental housing applications. A few examples are provided in this profile. Example: 30 secure market rental units in a 349-unit development. Cost to municipality: provision of rental units is negotiated with a package of services and requirements for development. 750 to 900 rental units are being created in the city through this program. Cost to municipality: The City forgoes the incremental tax amount (and receives the base tax amount) during the grant period of 10 to 15 years. After the grant period the City receives all of the taxes. Cost to municipality. Reduced revenue from fees 24 WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY 2016 HC - 79

80 PROFILE 1 INFILL RENTAL UNITS IN EXISTING PURPOSE-BUILT RENTAL BUILDINGS Municipality: Measure: City of North Vancouver Zoning Bylaw Regulations for Infill Rental Units AT A GLANCE WHAT Infill units permissible through existing zoning. Zoning bylaw provision to permit additional infill rental units in existing rental buildings, by using existing space in the building. To sustain existing purpose-built market rental housing. WHY HOW COST To increase operating revenue of existing market rental buildings and viability of the operation of the building. To renew the existing rental housing stock. To provide more rental housing units in the community. Zoning Bylaw amendment to permit additional units in existing building area. Building permit only; no development permit required. No additional cost to the municipality. RESULTS 58 new infill rental units in existing buildings have been created since Overview/Synopsis This profile outlines zoning bylaw regulations that are intended to encourage infill rental units in existing purpose-built market rental buildings in the City of North Vancouver, through the Section 516 regulations in the Zoning Bylaw. Background Approximately 46% of households in the City of North Vancouver are renters. The majority of the City s market rental units can be found in purpose-built rental buildings. Most of this stock was constructed in the 1950s and 1960s, when senior government programs facilitated rental housing development. Today, these units continue to be the primary source of rental housing in the City, and offer some of the most affordable market rents. However, with many of these buildings now well over 50 years of age, the maintenance, retention, and continual replacement of these units will be critical to the City s supply of rental housing for the foreseeable future. The rental vacancy rate is very low, approximately 0.4% in In a municipality with a constrained land base, this is one way of adding new rental stock that does not require redevelopment of existing purpose-built market rental housing. HC - 80 WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY

81 How Does It Work? In 2007 the City of North Vancouver added Section 516 Special Provisions for Rental Apartment Residential Use to the Zoning Bylaw 28. Section 516 regulates the addition of rental units to existing rental apartment buildings that were built and originally permitted prior to Section 516 was added to encourage legalization of existing suites in apartment buildings that had been added after the original building permit approval, and to encourage additional supply of affordable rental apartments in the city. Section 516 also serves to support the continuation of rental buildings as viable investments, through enabling additional rental income to owners from the additional suites. Some provisions in Section 516 Special Provisions for Rental Apartment Residential Use include: The rental building must contain 3 or more apartment units. Infill rental units must be 400 square feet or larger. Infill rental units may be in basements, or areas that were not counted toward gross floor area in the building. Units in basements units require a window in bedroom (as per the building bylaw requirements). Also the units must meet building code, safety and fire requirements. Parking requirement is 0.75 per infill unit. (This is the parking requirement for all rental units in the City.) Only a building permit is required to add a suite (no development permit). Purpose-built market rental housing owners may wish to add multiple units to their rental building; however, in some cases the existing zoning does not accommodate their plans. In this situation, an application for rezoning can be submitted and considered. Since rental housing is considered a public benefit the City of North Vancouver considers a density bonus for rental units in the rezoning process, as specified in the Density Bonus and Community Amenity Policy and in the OCP. See Profile 11 in this report for more information. Outcomes and Reflections When this provision was implemented in 2007, it was estimated that approximately 1 or 2 additional units per existing rental apartment building would/ could potentially be added. To date, approximately 58 new rental units have been added under this provision in the Zoning Bylaw. There is no additional cost to the municipality, nor any loss of revenues, since Building Permit fees apply. Similar Measures in other Municipalities City of New Westminster s Secured Market Rental Housing Policy (2013) also contains provisions for infill units and additional density in existing purposebuilt market rental buildings. Refer to Profile 4 for more information. MORE INFORMATION City of North Vancouver Planning Department City of North Vancouver Zoning Bylaw: Section 516 was enabled by Section 482 of the Local Government Act for Density benefits for amenities, affordable housing and special needs housing, which allows the municipality to provide special zoning regulations for affordable housing. The infill rental units are likely to be located on the main floor or basements and smaller units, and market forces would result in lower-end rents in these building locations that are generally less preferable. 26 WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY 2016 HC - 81

82 PROFILE 2 LANEWAYS 2.0 INFILL HOUSING STRATEGY IN WEST END Municipality: Measure: City of Vancouver Infill and Intensification of Rental Housing Sites Neighbourhood Plan, Zoning, Design Guidelines AT A GLANCE WHAT WHY HOW COST RESULTS Residential infill with additional market rental housing (3 to 6 storeys depending on size of site) oriented to rear lanes of sites in the West End neighbourhood. Enhance viability of rental properties, and add new infill rental units. Particular focus on providing units for families with children. Strategy and guidelines have been created through a planning process with West End residents. Owners can apply for a conditional development permit. No municipal costs. Since 2015, 37 units have been approved in 4 applications. Overview/Synopsis The City of Vancouver has developed and is implementing a strategy within the West End Community Plan (2013) to infill existing residential sites with additional rental housing that is oriented to the laneways. The infill development is occurring on properties with existing mid- to high-rise rental buildings, as well as on properties with character houses. The infill rental housing is typically in 3 to 4 storey buildings. Background and Rationale The Laneways 2.0 Infill Housing Strategy intends to: Maintain neighbourhood character by focusing new development along laneways, ensuring that change to existing buildings and mature landscaping along the street is minimized. Protect heritage, by allowing character houses to be retained and renewed. Incentivize the retention and renewal of existing rental apartment buildings. Provide new secured market rental housing, particularly for families with children. Incrementally enhance laneways as greener, more walkable places. By permitting additional units and development potential for existing rental housing sites, the value of these properties increases. Also rental owners are able to sustain and fund improvements to the existing aging buildings on the site. The program intends to take advantage of the generous width of laneways in the West End, and makes use of underutilized parking and open space, while respecting the existing lot pattern and texture in the community. HC - 82 WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY

83 FIGURE: CITY OF VANCOUVER WEST END GUIDELINES. AMENDED JULY 2015 How Does it Work? The strategy was developed by City of Vancouver staff and was shaped by the community planning objectives and process with West End residents. This form of infill housing can be considered under existing zoning, through a conditional development permit application. Generally, 3 or 4 storeys infill buildings are permitted, with up to six storey buildings on some larger sites and adjacent commercial streets. The laneway building is separated from the existing building by at least 20 feet, and faces the lane. Additional parking requirements can be absorbed on site, as existing parking on rental residential sites is generally underutilized in the West End. Outcomes and Reflections Laneway multifamily housing in the West End is facilitated by wide rear lanes, which allow for emergency access. Most of the sites where infill will occur are 33 feet or 66 feet wide. The suitability of laneway housing is site specific. Some conditions may limit the potential for this type of infill, e.g. existing underground parking (may limit building footprint), and possible seismic and building code upgrades for existing buildings may be needed. The City of Vancouver West End Plan has a target to create 1,000 potential new units of secured market rental housing through laneway infill. To date a cumulative total of 37 units has been approved in 4 applications. 30 All of the approved projects involve protection of an existing heritage building. 28 WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY 2016 HC - 83

84 FIGURE: DEVELOPMENT PERMIT DRAWINGS FOR 1529 COMOX STREET, APPROVED INFILL DEVELOPMENT PROJECT. EXAMPLE: 1529 COMOX STREET The development site is 66 feet wide by 131 feet deep (8,646 square feet), and located in the West End neighbourhood of Vancouver. The approved project involves renovation of the existing heritage residential apartment building on the site, adding approximately 500 square feet, for a new building area of approximately 6,200 square feet and containing 10 rental units (mostly one-bedroom units). The new infill component of this project will be 4 storeys high, oriented to the laneway, approximately 9,600 square feet in area, and will contain 17 rental units. The infill building will contain 8 one-bedroom units, 7 two-bedroom units, and 2 three-bedroom units. There will be some shared laundry, and shared bike and vehicle parking for the two buildings on the site. More information is available in the City of Vancouver development permit board report (April 20, 2015) ca/files/cov/committees/report-developmentpermit-board-1529-comox-street-de pdf. HC - 84 WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY

85 Other Municipalities and Transferability While property sizes, neighbourhood contexts and situations are different in various communities, it is likely that infill principles similar to those in the City of Vancouver s Laneways 2.0 program could be applied elsewhere. For example, some larger sites with multi-storey residential buildings in suburban locations may have sufficient space on the site to accommodate infill rental units. In West Vancouver, Hollyburn Properties has applied to add infill rental housing to a property with an existing high rise building. Application information is available on the District of West Vancouver website: hollyburn-gardens st-street. MORE INFORMATION City of Vancouver West End Plan (refer to pages 41 to 46): West End Design Guidelines for Infill Housing (refer to pages 7 to 18): ca/commsvcs/guidelines/w002.pdf District Schedule for RM5 (refer to section 5.3) WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY 2016 HC - 85

86 PROFILE 3 MIXED USES IN EXISTING APARTMENT TOWER Municipality: City of Toronto Measure: Residential Apartment Commercial (RAC) Zone AT A GLANCE WHAT WHY HOW COST RESULTS Small scale commercial and community uses are permitted in existing rental housing towers. To create more accessible, inclusive and functioning communities, in aging purposebuilt market rental housing (mostly larger concrete buildings, 100+ units). Amend the zoning bylaw to create a Residential Apartment Commercial (RAC) zone and apply it to 500 pilot sites in Toronto neighbourhoods. No cost to the city. The Residential Apartment Commercial zone has been approved and is under review with Ontario Municipal Board. Implementation of the RAC zone on pilot sites is anticipated to begin in Overview/Synopsis The City of Toronto has introduced a Residential Apartment Commercial (RAC) zone, which allows small commercial and community uses to be added to approximately 500 sites in the city with existing condominium and rental apartments. The intent is to advance a vision of complete communities in tower neighbourhoods that were previously single residential use, with new commercial spaces and community services. Background and Rationale In Toronto there is a large stock of apartment buildings of eight or more storeys that were built prior to 1985, primarily in the 1960s and 1970s. Approximately 1200 buildings (70% privately owned) house a half-million residents, one-third of them with low incomes. The Tower Renewal program in Toronto is a permanent program that aims to drive broad environmental, social, economic, and cultural change by improving Toronto s concrete apartment towers and the neighbourhoods that surround them. The City of Toronto and non-profit agencies identified the need to transform apartment neighbourhoods into more accessible, inclusive and functional communities. RAC zoning is anticipated to come into effect in The City of Toronto began the Tower Renewal Program in 2009, and there are six components to the program: energy, waste, water, operations, safety and security, and community building. HC - 86 WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY

87 How Does it Work? The Residential Apartment Commercial (RAC) zone was adopted in The RAC zone permits a number of small-scale commercial and community uses on apartment (both rental and condominiums) building sites, providing opportunities for new ventures which will contribute to the vibrancy and diversity of apartment neighbourhoods. Some elements of the RAC zone include: Permitted uses include small shops, food markets, cafes, learning centres, barbershops, doctor s offices, community centres and places of worship. The apartment site must have at least 100 units in order to allow the commercial and community uses. All commercial uses permitted in the RAC zone are limited to a maximum of 200 square metres per shop and the maximum commercial use is related to the number of dwelling units in the building. The total maximum amount of floor area devoted to non-residential uses is restricted in order to ensure these uses remain oriented to the local area. The RAC zone was developed through a comprehensive update to the zoning bylaw, which is currently under review by the Ontario Municipal Board. The zone applies to some 500 apartment properties in Toronto. Some of the issues that arose during public consultation and were considered include: Outcomes and Reflections The Residential Apartment Commercial zoning is anticipated to work well in the context of apartment communities in Toronto that have limited access to services and need new amenities. Some of the main objectives are to increase neighbourhood revitalization and vibrancy and to create complete communities. Rental apartment owners were consulted and were receptive to the idea of increasing their rentable space and attracting tenants. The City is implementing this zoning in particular areas, and is developing a plan for how to evaluate the implementation and success. Since the program is just beginning, it is too soon to measure the uptake. The direct cost of this program to the City of Toronto is minimal. The program is administered by planning staff and staff with the Tower Renewal office. Other Municipalities and Transferability Residential Apartment Commercial or mixed uses could work well in several community contexts and types of residential buildings. The scale is important: a relatively large residential building and site, with a proportionately small commercial area ensures that the commercial use does not have an unintended overwhelming impact on the site and residents. In older residential buildings there may be some retrofits required to accommodate the new commercial uses, and this could be explored through some test sites as part of the process of developing the zoning for residential apartment commercial uses. Metro Vancouver s apartment stock is primarily older 3 or 4 story wood-frame buildings not concrete towers as in Toronto, and they are generally single use residential. There are several examples of mixed use zoning in Metro Vancouver municipalities and of condominium and apartment buildings with retail or office space on grade and/or lower floors. The need for an overall strategy as in Toronto is unclear. MORE INFORMATION City of Toronto Tower Renewal Program Staff City of Toronto Tower Renewal Program: www1.toronto.ca/wps/ 32 WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY 2016 HC - 87

88 PROFILE 4 SECURED MARKET RENTAL HOUSING POLICY - RETAIN AND RENEW EXISTING STOCK Municipality: City of New Westminster Measure: Incentive Package to Retain and Renew Existing Purpose-Built Rental Housing AT A GLANCE WHAT This profile focuses on the strategies to retain and renew existing rental housing, within the City of New Westminster s Secure Market Rental Housing Policy, which was approved in To sustain existing purpose-built rental housing. WHY To protect and if possible extend the lifespan of the existing secured market rental housing in New Westminster. Policy includes the following: Moratorium on conversion to strata title ownership. Lack of support for rezoning to higher density and height. HOW Requirement for relocation assistance when tenants are affected by demolition. Intent to explore density transfer options. Provisions for density bonus and parking relaxations for rental housing Reduced building permit fees for rental housing. Inclusion of rental buildings in the building energy efficiency retrofit program. Foregone revenue from reduced building permit fees (50%). COST Foregone payments for density bonus and parking relaxations (payments are not collected from rental housing projects). Overview/Synopsis The City of New Westminster s Secured Market Rental Housing Policy, approved in 2013, includes three strategies for purpose-built rental housing: retention, renewal and enhancement. This profile focuses on the retention and renewal strategies in the Policy, which pertain to existing purposebuilt rental housing. Profile 13 focuses on the enhancement strategy (new units) in the City of New Westminster s Secured Market Rental Housing Policy. Background and Rationale The existing stock of purpose-built rental housing in New Westminster includes approximately 8,068 units in 364 buildings. Over half of the units are in low-rise buildings and 73% of the units were built prior to The existing stock of purpose-built rental housing provides a significant portion of housing available for the City s low and moderate income households, and is a tremendous asset. The Policy states that the existing stock should be protected and its lifetime should be extended if it is possible. The policies for retention were inspired by the City s desire to demonstrate leadership, and to leverage the municipality s limited jurisdiction (e.g. rezoning) to prevent demolition of existing rental housing. HC - 88 WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY

89 How Does it Work? The Secured Market Rental Housing Policy was created by staff, presented to Council, and adopted in The Policy includes actions that draw on the City s regulatory authority (e.g. zoning bylaw). The Policy also affirms the City s position on various issues (e.g. strata conversion policy) and informs Council decisions about preserving rental housing stock. Actions in the Secured Market Rental Housing Policy to Retain the Stock The four actions in the Policy to retain existing rental housing are: 1. Continue the moratorium on conversion of rental buildings to strata title ownership. The City of New Westminster has a long-standing policy of denying approval for strata conversion applications, except in limited cases involving heritage revitalization. (Note: Strata conversion policies are discussed in Profile 9.) 2. Rezoning of properties containing purposebuilt rental housing to permit higher density development or increases in building heights through variances will generally not be supported, except to achieve strategic policy directions such as heritage conservation. It is through the discretion inherent in zoning powers where local governments can express a preference to preserve purpose-built rental housing. (Under the Local Government Act, the City is unable to use the withholding of a demolition permit as a method to require the replacement of rental housing.) 3. In cases where demolition of purpose-built rental housing occurs through a rezoning process, the developer must provide a plan to replace rental units and to provide appropriate relocation assistance to tenants. The replacement housing would be, as a first priority, secured rental housing on- or off-site and, as a second priority, payment into the City s Affordable Housing Reserve Fund. In December 2015, New Westminster s City Council adopted a Tenant Relocation Policy, which requires landlords and owners to provide tenants with at least three months notice (compared with two months notice in the Residential Tenancy Act) and compensation equal or greater to the equivalent of three months rent (compared with one months rent in the Residential Tenancy Act) for tenants who are being evicted due to the demolition of their building Explore the use of density transfer to preserve the existing stock. In New Westminster, density transfer (i.e., transferring development density from one site to another) is primarily used for the purpose of heritage preservation. As a secondary step in the development of the Secured Market Rental Housing Policy, the transfer of unused density from purposebuilt rental sites to development sites will be explored. The market rental building would be protected from redevelopment to a higher density, and its long term development density would be limited. 34 WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY 2016 HC - 89

90 Actions in the Secured Market Rental Housing Policy to Renew the Stock The Policy includes incentives to invest in the existing stock in order to increase its longevity. It is intended that extra income derived from additional units will assist owners in funding capital improvements to the stock. Four actions in the Policy to renew existing rental housing are: 1. Use the City s existing density bonus program to: Permit the construction of additional secured market rental units on site using the additional density offered by the density bonus program without having to pay for the additional density. The addition of units may happen in a separate building on site, or through an addition to the existing building. Permit the conversion of unused recreation or storage areas (even in cellar areas) to add additional units, subject to livability issues being addressed. 2. Eliminate the parking requirement for secured rental housing units created in existing buildings. This was informed by Metro Vancouver s parking study. 32 Outcomes and Reflections EXAMPLE: 845 ROYAL AVENUE An example of a rental housing infill project is an existing heritage building at 845 Royal Avenue. The building formerly contained 6 strata-titled apartment units, and it is currently being renovated to create 10 secure market rental bachelor units and one strata-titled three-bedroom condominium unit. The developer received the following rental housing incentives: reduced parking requirements, density bonus, and reduced building permit fees. To ensure that the rental units are secured for the lifetime of the building, the City used the following tools in the development process and to secure the rental housing: a heritage revitalization agreement, a Section 905 housing agreement and covenant with specific conditions, and a Section 219 covenant to prevent future individual stratification of the rental units. In this project, two strata lots were created: one strata lot for the three-bedroom unit, and one strata lot for the ten rental units. More information is available in a City of New Westminster December 19, 2013 staff report minutes/1209_13_cw/9. DS Housing Agreement 845 Royal.pdf. 3. Reduce Building Permit fees to add suites to existing rental buildings by 50%. 4. As part of the Community Energy & Emissions Plan (CEEP), consider including existing rental buildings in the Building Energy Efficiency Retrofit Program. This could include energy audits and business case assistance. HC - 90 WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY

91 Other Municipalities and Transferability The City of New Westminster is unique in its approach to encouraging the retention and renewal of rental housing with a comprehensive all in one Secured Market Rental Housing Policy, which is a package with strategies and actions for both existing and new market rental housing. Several other municipalities in the region have implemented similar policies (either singularly, or in combination) as demonstrated in the Profiles in this report; however, mostly not within a comprehensive package. MORE INFORMATION City of New Westminster Planning Staff Secured Market Rental Housing Policy (2013) development/housing.php 36 WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY 2016 HC - 91

92 PROFILE 5 RENTAL PREMISES STANDARDS OF MAINTENANCE BYLAW Municipality: Measure: City of Maple Ridge Bylaw and Enforcement AT A GLANCE WHAT WHY HOW COST Standards of Maintenance Bylaw for rental premises provides regulatory authority and a process for addressing maintenance and living standards in rental housing. Sustain rental buildings, and meet the needs of tenants. Municipality adopted bylaw and enforces it. Tenants directly request building owner/manager to fix problems, but if no satisfactory action, the tenant can submit documentation to the municipality for investigation and order for repair if needed. Staff time to enforce the bylaw. Overview/Synopsis The City of Maple Ridge adopted a Standards of Maintenance Bylaw in The bylaw allows the City to receive complaints from tenants about maintenance and living standards in the rental building they live in, then the City follows up with the owner/building manager and issues an order for repair as warranted. This profile also provides a link to a model bylaw (developed by the provincial government) and some other Metro Vancouver municipalities standards of maintenance bylaws. Background and Rationale Previous amendments to the Local Government Act allowed local governments to enact standards of maintenance bylaws to enforce basic levels of maintenance for rental accommodation. The purpose of a standards of maintenance bylaw is to provide local government with the ability to meet the needs of tenants who live in unsafe and unhealthy accommodation due to poor building maintenance. The bylaw offers one avenue for local governments to maintain the affordable housing stock in their community and protect it from premature demolition. Before the City s bylaw was approved in 2008, the City s building and bylaw enforcement officials were able to receive tenant complaints related to life safety only (due to jurisdictional and regulatory constraint). Building issues that were not related to life safety were referred to the provincial Residential Tenancy Branch. How Does it Work? The intent of the bylaw is to ensure that rental premises within the City of Maple Ridge are maintained in a safe and reasonable condition, and to require owners to complete repairs to rental premises in a timely manner. The process for complaints is for tenants to request the building owner/manager to fix a problem and provide them with sufficient time to do so. If unsatisfactory action and results occur, then the tenant is to submit documentation and a complaint form to the City. The City then contacts the building owner/manager, investigates, and may issue an order for repair if warranted. Outcomes and Reflections A challenge with the standards of maintenance bylaw is that complaints must be made by building tenants, and they may be reluctant to do so because of concern about repercussions from their landlord, e.g. security of tenancy. The bylaw and/or process could be strengthened to offer renters more protection. HC - 92 WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY

93 Other Municipalities and Transferability The Government of BC Ministry of Municipal Affairs and Housing, Housing Policy Branch has prepared a model bylaw htmldocs/pub_sample.htm and guide for htm municipal Standards of Maintenance. The Tenant Resources and Advisory Centre (TRAC) provides a list of links for municipalities in BC that have standards of maintenance bylaws.: tenants.bc.ca/standards-of-maintenance-bylaws/. In addition to Maple Ridge (profiled here) several of the municipalities on the list are in Metro Vancouver: Vancouver, City of North Vancouver, New Westminster, Richmond, and Delta. A 2015 a Housing Policy Alternatives Research Report (prepared for the City of North Vancouver by City Spaces) discusses several BC municipalities standards of maintenance bylaws and provides ideas for new or updated standards of maintenance bylaws Certified Rental Building Program (LandlordBC) In 2015 LandlordBC launched a Certified Rental Building (CRB) program ca/, which is a quality assurance certification program for multi-unit residential apartment buildings. The goal of the program is to promote professionalism in the rental housing industry while providing tenants with a quality assurance alternative when selecting a rental apartment home. Since this same program was launched in Ontario in 2008, 40 per cent of the province s multi unit residential buildings have become CRB certified. The goal for British Columbia is to achieve even greater outcomes within the next decade. The program includes five key areas: resident management, human rights management, building management, financial management and insurance, energy conservation and sustainability. This voluntary program could assist tenants with selecting well maintained buildings and enhancing communications with building owners/managers regarding issues that arise, and thus avoiding issues that arise that require redress through a standards of maintenance bylaw. MORE INFORMATION City of Maple Ridge Building Department City of Maple Ridge Standards of Maintenance Bylaw (6550, 2008) DocumentCenter/View/ WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY 2016 HC - 93

94 PROFILE 6 RENTAL REPLACEMENT POLICIES AND PRACTICES Municipality: Measure: District of North Vancouver Policy Provisions in Official Community Plan and Town Centre/Village Plans AT A GLANCE WHAT WHY HOW COST RESULTS Policies to guide and facilitate replacement of older purpose-built rental units, in redevelopment situations, with new market rental units. To provide housing choices and rental options for residents in the long term. High level policies in the District s OCP and more specific policies in Centre and Village Plans and Implementation plans are applied to each development/site. Community amenity contributions are often waived or reduced when rental housing is provided. One-for-one replacement or alternate approaches result in a proportion of secured market rental units in several new housing developments, in varying quantity/ proportions depending on the development. Overview/Synopsis Policies in the District of North Vancouver s OCP, Village and Town Centre Policies, and Implementation Plans help the municipality to facilitate the replacement of existing older purpose-built market rental units with new market rental units. For some projects it is feasible for new market rental units to replace the demolished units with a one-for-one ratio, and for other situations alternative replacement approaches are taken. Background and Rationale A 2012 study by Coriolis Consulting Corp. identified purpose-built market rental buildings that are at moderate to high risk of redevelopment in the District of North Vancouver: nearly 700 existing rental units in the centres of the District, and about 400 units outside of the centres. As redevelopment occurs, approaches for replacement are needed. The District wishes to provide residents with housing alternatives to homeownership. Rental housing can offer affordable options for many middle and lower income residents. Displacement of existing tenants and residents as a result of rental redevelopment is a key issue in the District of North Vancouver, and in many communities in the region. There are many associated challenges, for example: After an existing rental unit is demolished, the rent charged for a new replacement rental unit is typically up to twice as much as the unit it replaces, and the higher rent is likely not affordable to the existing tenant. There is no guarantee for the same types/sizes of new unit in new development. It is very challenging for displaced residents to find alternate rental accommodation due to limited vacancies. HC - 94 WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY

95 How Does it Work? The District of North Vancouver s approach to rental replacement is informed by general policy direction in the OCP, and more specific strategies in town and village centre plans and implementation plans. The OCP includes a general policy to facilitate rental replacement through redevelopment. The OCP also identifies Town Centres and Village Centres as key areas of growth and development, and provides policy to facilitate the replacement of existing older purpose-built market rental units (where they exist in the Centres) with new market rental units. Village/Centre Implementation Plans for Lynn Valley and Maplewood Centres will include more detailed policies to protect and expand the supply of rental housing that is specific to the stock and conditions in those areas. Application of these policies on a site/development basis includes the following approaches: One-for-one replacement: On residential strata development sites it may be feasible for the developer off-set the cost of providing new market rental units. In this situation, new market rental units may replace the quantity of demolished units within the range of new units that are constructed. Other replacement approaches: In some development scenarios it may not be feasible for the developer to construct the same number of market rental units to replace the number of existing market rental units that were demolished for redevelopment. The District may negotiate alternatives such as limited-time rental agreements on some of the new strata units, payment-in-lieu of constructing units, or provision of a lesser quantity of replacement units that have specific affordable rent criteria intended to make them affordable for moderate or less than median income households. 40 WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY 2016 HC - 95

96 When rental units are provided in a new residential development, Community Amenity Contributions (CACs) are typically not required because the provision of secure rental units is considered as a valued contribution to the community. Waived CACs `are an opportunity cost of gaining or retaining rental stock in the community. For example, a recently approved development in the Lynn Valley area resulted in 75 market rental units that were secured in perpetuity by a housing agreement. A CAC contribution valued at $3 million was waived for this development. 33 Outcomes and Reflections A rental replacement policy has been implemented in some growth centres of the District of North Vancouver, resulting in new rental units. For example, in the Lynn Valley Centre, 75 new rental units will be created to replace existing purpose-built market rental housing as part of a 321-unit project. The development has been approved. It is anticipated that rents in the new units will be at least 50 to 75% higher than the previous units. Additional policies that could be considered in the future, to strengthen and clarify the policy direction include: OCP: Provide specific rental housing replacement requirements to achieve maximum densities in OCP land use designations; this could guide re-development of market rental properties outside of the designated growth centres. More specific information would create greater certainty for the community, the District, and developers. Village and Town Centre Implementation Plans: Additional policy direction for maximum future densities of existing rental sites would be helpful. For town centres that do not have existing rental buildings to replace, town centre policies could require new rental housing. Other Municipalities and Transferability Several municipalities in Metro Vancouver have developed approaches for replacing market rental housing in redevelopment situations. Three examples below illustrate the range of tools and strategies. Density Bonus - The City of North Vancouver OCP Policy is to Prioritize the development and revitalization of affordable rental housing and use density bonusing and density transfers to incentivize the retention, renewal, and/or replacement of rental units as a public benefit. Rate of Change and Retaining Existing Zoning - The City of Vancouver rate of change policy, combined with other policies and regulations for preserving rental housing, intends to prevent net loss of rental and affordable housing resulting from development applications that involve demolition or change of use or occupancy. Refer to Profile 8 in this report for more information about City of Vancouver s approach to retaining existing zoning (and related policies). Not Net Loss and One-for-One Replacement Policy - The City of Richmond OCP policy on replacement is: Limit the demolition or strata conversion of existing rental units, (duplex strata conversions are acceptable), follow a no net loss rental policy and encourage a one-for-one replacement if a conversion of existing rental housing units in multiple family and mixed use developments is approved, with the one-forone replacement being secured as affordable housing by a housing agreement in appropriate circumstances. HC - 96 WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY

97 Examples of Implementation There are several ways that rental replacement policies can be implemented on a project/site basis, and these are highly dependent on local market conditions. The key differences among the examples below are: (a) the affordability and type of rental units that are created (i.e. market rental, rent controlled, etc.), and (b) who owns them and (c) how the units are managed (i.e. market, managed by municipality or non-profit, etc.). 1 for 1 replacement of market rental units, with no affordability requirement for the replacement units. This policy could be implemented in conjunction with low-density zoning that deters redevelopment. 1 for 1 replacement of market rental units, with rental rate restrictions for the first occupancy of new rental units (e.g. 80% of market rent for first occupant). Thereafter, the Residential Tenancy Act provisions would apply and market rent would be set. This model requires minimal administration, however the affordability of the unit is lost after the first tenancy. Further Examples and Discussion The feasibility of rental replacement varies by development site, location, and market variables and context (including other development requirements). In some development scenarios in the region it may even be possible to replace each existing market rental unit with two replacement units. MORE INFORMATION District of North Vancouver Planning Department District of North Vancouver Official Community Plan. District of North Vancouver Village Centre Implementation Plans property-and-development/town-and-villagecentres Replacement of existing market rental units with new rent-controlled affordable housing units, at perhaps less than a 1 for 1 replacement ratio. Depending on the negotiated agreement, the developer may be required to give the units (as strata units) to the municipality, or the developer is required to administer the tenancies, or the units are leased to a non-profit. Cash payment in lieu to an affordable housing fund, with housing to be constructed (possibly by the municipality) in the future. 42 WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY 2016 HC - 97

98 PROFILE 7 HIGH-RISE RETROFIT IMPROVEMENT SUPPORT (HI-RIS) PROGRAM Municipality: Measure: City of Toronto Loans and Staff Support for Energy Efficiency Upgrades in Apartment Buildings AT A GLANCE WHAT WHY HOW COST RESULTS Financing and support program for energy efficiency and water upgrades in aging residential apartment buildings. Increase the quality of rental housing stock, mitigate pressures on tenants rent increases due to rising utility costs, reduce greenhouse gas emissions, energy and water efficiency and conservation Program supports a building assessment, then owners enter into an agreement and borrowing terms, and upgrades are completed. The City places a charge on the property which is paid back over 5 to 20 years through the property tax bill. The City s financing is secured by a priority lien status. No net cost to the City and taxpayers. Property owners repay the total loan amount plus administration and financing costs. $4.5 million of the $10 million funding envelope is committed. Eight buildings are participating, and projects are window and balcony door replacements. The committed projects represent 28% in energy savings and 340 tonnes in GHG reductions Overview/Synopsis City of Toronto s Hi-RIS program supports rental building owners to make energy efficiency and water conservation improvements. Hi-RIS is part of the City of Toronto s Tower Renewal Program, providing staff support and $10 million allocated over a 3-year pilot period for loans to qualifying multi-residential property owners. The program utilizes an amendment to a provincial regulation that enables local improvement charges to be applied to private property. Loans are repaid through a charge on the property tax bill. Background and Rationale In Toronto there is a large stock of apartment buildings of eight or more storeys that were built prior to 1985, primarily in the 1960s and 1970s. Approximately 1200 buildings (70% privately owned) house a half-million residents, one-third of them with low incomes. The older rental buildings in Toronto offer value and benefits. Many Toronto families choose to live in older rental apartments because of the relative affordability, as well as larger floor plans and more bedrooms than many newer apartments.. The older buildings are structurally strong, and are profitable investments. However, the aging stock is in need of contemporary upgrades; many of the buildings were constructed prior to the introduction of energy saving measures in buildings. The City of Toronto began the Tower Renewal Program in 2009, and there are six components to the program: energy, waste, water, operations, safety and security, and community building. This profile focuses on an initiative that supports the energy and water components of the Tower Renewal program: a financing program called Hi-RIS (High-Rise Retrofit Improvement Support program). Hi-RIS works toward the City s objectives to increase the quality of rental housing stock, mitigate pressures on tenants rent increases due to rising utility costs (energy costs are estimated at 10% of rent), reduce greenhouse gas emissions, and achieve energy and water efficiency and conservation objectives. HC - 98 WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY

99 Toronto developed a financing option to support the upgrades, after some research about other potential options. The City and the utility companies are unable to afford to provide grants that would be sufficient to encourage property owners to invest in more substantial upgrades, to achieve deeper energy savings and a payback longer than 3 years. Feasibility studies and consultations found that without the financing option many owners would choose other investments with higher rates of return, instead of investing in building improvements. Property owners are generally attracted to the Hi-RIS program for the following reasons: their payments closely match the utility and operating cost savings they gain and may not impact net income; if the property is sold the benefits-and costs-of the retrofit measures stay with the property, not the owner; and the mortgage on the property is not increased. How Does it Work? The Hi-RIS program has a participation target of approximately 10 buildings, and currently eight buildings are participating. Process The phases of participation in the Hi-RIS program includes the following steps: 1. Assessment: Building improvement applications are reviewed by staff and program eligibility is determined. The maximum amount of financing that the building would be eligible to receive is also determined. Owners also have the option to having an assessment completed by Tower Renewal staff to inform owner s prioritization of retrofits and improvements. Owners then complete an energy audit that also identifies potential options for recommended improvements. 44 WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY 2016 HC - 99

100 2. Agreement: Property owners select from the improvements recommended in the energy audit then enter into an agreement with the City to undertake specific energy and water improvements and borrowing terms. Improvements that qualify for this program include building envelope, mechanical system (including lighting), and water fixtures. 3. Complete the work for energy and/or water efficiency upgrades. 4. Repayment: Once the work is completed, the City places a special charge on the property equal to the cost of the improvements, plus the cost of borrowing 34 and a charge reflecting the administrative costs incurred by the City. The property owner then pays the charge on the property tax bill over an agreed term (5 to 20 years). The payment obligation attaches to the property, not the owner, and if a property changes ownership, the new owner assumes the obligation. The City s financing is secured by the City s priority lien status, similar to property taxes. City Administration Hi-RIS is made possible through an amendment to the Ontario provincial regulation regarding Local improvement Charges (LICs). 35 The amendment allows municipalities to advance funding to consenting private property owners to cover the cost of undertaking energy and water improvements. The LIC has a priority lien status through addition to the tax roll. Funds for Hi-RIS come from a designated municipal reserve fund. Some partner funding and in-kind support for assessment, modeling and program administration came from Ontario Hydro Authority, Toronto Atmospheric Fund, Natural Resources Canada, Toronto Hydro, and Enbridge Gas. Property owners consent to providing the City with access to the property s utility usage data in order to monitor results and evaluate the Program s effectiveness for a period of 5 years after completion of the retrofit. The program began with pilot sites and then a citywide rollout. Outcomes and Reflections Outcomes Eight buildings have applied to date and received funding offers. $3.5 million of the $10 million envelope has been committed to date. The committed projects represent 28% in energy savings and 340 tonnes in GHG reductions. Hi-RIS agreements are in place for two properties (consisting of three buildings) benefitting residents of roughly 800 apartment units. Each building is undergoing a full replacement of windows and balcony doors in the units. For one of the projects, the building owner is anticipating a six-figure increase in operating income. Using a cap rate of 5%, the owner calculated that the building value will increase twice as much as their investment in the window replacement. The building s operations will be cash flow positive after the first year, because of the Hi-RIS fixed-rate longterm financing. 36 Reflections The City s in-stream reflections about the Hi-RIS program include the following: Many rental building owners are first attracted to the Hi-RIS program because of the low cost financing for energy upgrades. This involvement can open doors to other Tower Renewal initiatives as well, e.g. open space improvements, tenant engagement, etc. 37 Owners and property managers may also learn of Hi-RIS through their engagement with other Tower Renewal initiatives. Dedicated follow-up by Tower Renewal staff is key, including priority identification, action planning and on-going coaching. Technical studies show that the energy investment projects pay for themselves over time through positive returns from reduced utility costs, lower maintenance costs and improved property values. This program runs at no net cost to the City and taxpayers. Property owners repay the total amount plus administration and financing costs. HC WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY

101 Other Municipalities and Transferability The City of Toronto studied similar financing programs in other communities to inform their approach, specifically those in California, Colorado, Connecticut and Nova Scotia cities and regions. 38 The Province of BC provided information that an amendment to legislation and/or regulation would be required in order to enable local governments in BC to undertake programs that are similar to Toronto s Hi-RIS program. The amendments, if they were initiated and enacted, would represent an expanded scope to the general concept of a revitalization tax exemption program that encourages improvements to properties. Fortis BC Rental Apartment Efficiency Program The Fortis BC Rental Apartment Efficiency Program was launched in late The program offers eligible rental apartment building owners, or property managers acting on behalf of owners, the following at no charge: a water-efficient shower head and a kitchen and bathroom faucet aerator directly installed in each unit; a building energy assessment to identify energyefficiency improvements and upgrades; and ongoing professional assistance to guide owners/managers through the process of making larger energy upgrades. The energy savings from efficiency upgrades can be significant. A typical building where a waterefficient shower head and faucet aerators are installed in each unit (along with replacing its central non-condensing space heating boiler with a new condensing boiler) could save up to 27% of its natural gas usage. The water-efficient upgrades also reduce water consumption and costs. Within less than six months of launching the program, uptake is strong. Over 12,800 water-efficient devices have been installed in approximately 98 buildings (province-wide). Also, approximately 80 buildings have completed energy assessments to assess further assess energyefficiency upgrades and opportunities. The Fortis program is set up to provide rental building owners and managers with ongoing support to help building to help them make decisions and take action on energy efficiency upgrades in their buildings, including building assessment, technical advice, and implementation support and coordination. MORE INFORMATION City of Toronto Tower Renewal Program staff. City of Toronto website, Tower Renewal Program City of Toronto Tower Renewal Fortis BC Rental Apartment Efficiency Program Rebates/RebatesOffers/ RentalApartmentEfficiencyProgram/Pages/ default.aspx 46 WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY 2016 HC - 101

102 PROFILE 8 RATE OF CHANGE POLICY AND REZONING STRATEGY Municipality: Measure: City of Vancouver Policies and Strategies to Limit and Regulate Rental Redevelopment AT A GLANCE WHAT WHY HOW COST RESULTS When a site/building with existing rental housing is redeveloped, the new development must provide replacement rental units. To retain the existing stock of rental housing, or if existing rental housing is redeveloped, to ensure that the rental units are replaced with new and affordable rental units. The City has implemented a rate of change policy, rezoning policies, and neighbourhood plans to sustain the existing supply of housing. The City also identifies feasible areas and sites for new and replacement rental housing. These areas are zoned accordingly for redevelopment and one-for-one replacement is required. No cost to the municipality. An example is the creation and implementation of West End Neighbourhood Plan: corridor areas are change areas for redevelopment, and other neighbourhoods are no change areas. Overview/Synopsis The City has implemented a rate of change policy, rezoning policies, and neighbourhood plans to sustain the existing supply of housing. The City also identifies feasible areas and sites for new and replacement rental housing. These areas are zoned accordingly for redevelopment and one-for-one replacement is required. Background and Rationale The purpose of the policies is to retain the existing stock of rental housing, or if existing rental housing is redeveloped to ensure that the rental units are replaced with new and affordable rental units. Prior to implementing this policy, the City was losing purpose-built market rental housing at a rapid rate in some areas. How Does it Work? Rate of Change Policy Rate of change means the rate of change from rental apartments to condominiums. When the policy was introduced in the 1990s the rate of change was set at 5%; that is, a maximum of 5% of units could be demolished and/or change from rental to condo, and the the city was monitoring for the number of tenants impacted. The first neighbourhood in which the rate of change was set at 0% was in the West End. Now the rate of change is 0% on a city-wide basis. This means that to redevelop rental apartments in RM (residential multifamily) zones, each rental unit must be replaced on a one-for-one basis with a new rental unit. HC WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY

103 Zoning Strategy Existing Zoning: The density in multi-family (RM) zones is relatively low (e.g. sample FAR 1.45) and in some areas the permitted density on RM sites has been reduced (i.e. down-zoned). If an owner or developer is considering redevelopment on a RM site with an existing market rental building, they would first calculate annual revenue from rental and the value it generates in the property. Then, the owner or developer would calculate whether it would be more feasible and advantageous for them, when compared to their current scenario, to redevelop the property by replacing the existing rental units with new units and building additional condominium units as permitted by existing zoning. Since the density is relatively low in RM zones in Vancouver, usually the owner decides to retain and reinvest in the building instead of redeveloping the site. Redevelopment Possibilities: In order to allow some redevelopment to occur in an strategic fashion, the City of Vancouver has identified feasible areas and sites in the City for redevelopment of new and replacement rental housing. To accomplish this, the City works through a process that includes a neighbourhood planning and engagement process, urban design work, and land economics analysis. Urban design is one of the first steps and considerations include the context, width of street, pedestrian experience, and more. During a neighbourhood planning process, the City and neighbourhood work together to identify areas for potential change, and areas for no change, and work on the form and neighbourhood implications to be included in the neighbourhood plan. Simultaneously, the City of Vancouver retains consulting assistance to conduct a real estate land economics development study, to inform a feasible floor space ratio to enable/encourage private sector developers to redevelop particular areas and properties as envisioned. 48 WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY 2016 HC - 103

104 When design feasibility, development feasibility, and neighbourhood considerations are layered together, only some of the considered sites are selected as potential redevelopment sites and are zoned accordingly. The sites are zoned to permit a level of density that generates a moderate interest and uptake by the private sector for development applications. In some cases, depending on the results of the land economics studies and the potential densities identified through community planning and urban design work, zoning schedules or rezoning policies are set-up so that existing rental housing is only encouraged to redevelop on the condition that the new development is secured as 100% rental housing (thus achieving the objective of increasing the rental supply). In other cases, existing rental can be redeveloped if the demolished units are built back as social housing (thus allowing for redevelopment of older rental housing while retaining the affordability in the neighbourhood.) See West End neighbourhood example below. West End Neighbourhood Example The West End community planning process worked with the community (through charettes etc.) to explore areas of the neighbourhood where growth was most appropriate. In the West End Neighbourhood Plan, corridor areas in the neighbourhood (e.g. Burrard/Thurlow corridor) are designated as change areas. Other neighbourhood areas in the West End are designated as no change areas. In change areas, properties are zoned for considerably higher density, and can be redeveloped with condominiums, as long the demolished rental units are replaced with social housing units that are handed over to the city as an asset and operated by a non-profit agency. This requirement achieves the following objectives in terms of rental housing: (a) in change areas - aging market rental units are replaced with rental units that are affordable to people who meet income criteria, and (b) in no change areas - the existing market rental units are retained. Outcomes and Reflections Across the city 55,000 rental housing units are affected by the rate of change policy. Whenever an applicant inquires or proposes a development in an RM zone, Development Services staff advise them of the policies around rental housing redevelopment and the requirement for 1 for 1 replacement. HC WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY

105 Other Municipalities and Transferability Rental replacement may be workable in SkyTrain locations (e.g. Burnaby, Coquitlam) in which rental housing may be at risk of demolition, and importantly, on sites where a significant change in density would be contemplated (i.e. high-density condominium towers). A spectrum of rental replacement policies is implemented by various municipalities, either citywide or by neighbourhood/area. This spectrum of options results in a range of replacement units in terms of quantity (number of units), affordability (market rent, affordable), ownership, and municipal involvement in administration of the new units. A range of replacement policies is listed in Profile 6 Rental Replacement Policies and Practices. MORE INFORMATION City of Vancouver Housing Policy and Projects staff City of Vancouver Rate of Change Policy vancouver.ca/people-programs/creating-newmarket-rental-housing.aspx City of Vancouver West End Community Plan City of Vancouver West End Rezoning Policy 50 WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY 2016 HC - 105

106 PROFILE 9 STRATA CONVERSION POLICY Municipality: Measure: Multiple municipalities Policy with Conditions / Limitations for Converting Existing Rental Buildings to Strata Title Ownership AT A GLANCE WHAT WHY HOW COST RESULTS Municipal policies that specify the conditions under which they will / will not consider conversions of purpose-built market rental buildings to stratified (individual ownership) housing units. To protect the existing and limited stock of purpose-built rental housing as a valuable source of affordable market housing that meets the needs of residents. Municipalities determine a vacancy threshold at which they will consider strata applications, and any other conditions. Some municipalities create standalone policies and others include it in existing policies. No cost to the municipality. Number of estimated number of rental units that are retained owing to strata conversion policies is not regularly tracked by municipalities. Overview/Synopsis Fourteen municipalities in Metro Vancouver have strata conversion policies and one is pending. Several examples are provided in this profile. Conversion policies often protect existing rental buildings from conversion to strata provided that vacancy rates are below a certain threshold (e.g. below a vacancy of 2% to 4%, varies by municipality) that is not often reached. That is, most municipalities vacancy rates are lower than the threshold and thus conversion to strata is not supported. Background and Rationale The purpose of these policies is to limit the conversion of existing purpose-built rental buildings to strata units that can be individually owned, and to instead ensure that market rental units are available for rent for the lifespan of the building. How Does it Work? Five municipal examples of strata conversion policies in Metro Vancouver municipalities are outlined below. City of Langley: Since the late 1970 s the City has had restrictive policies governing the conversion of rental housing units to condominium tenure. The current policy requires written evidence that at least 60% of all suites within the building are in favor of the proposed strata conversion. The City will not approve strata conversions from rental buildings to strata title units unless Langley s vacancy rate reaches or exceeds 4%, as determined by the Canada Mortgage and Housing Corporation. According to the City s records, these policies have prevented the conversion of any rental housing units for a few decades. City of Maple Ridge: The policy and procedure for considering strata conversions outlines that Council must consider the priority of rental accommodation over privately owned housing in the area, and that a vacancy rate less than 3% is considered unhealthy for the City. Any proposals that are submitted for strata conversion must include a proposed plan for the relocation of persons occupying a residential building. City of North Vancouver: Unless the rental apartment vacancy rate determined by Canada Mortgage and Housing Corporation is equal to or greater than 4% for a minimum 12-month consecutive period, the City will HC WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY

107 not approve applications for the conversion of rental apartments of three or more units to strata units. City of Coquitlam: The policy is that Council will not normally give favourable consideration to applications of existing rental residential premises with three or more units when the apartment vacancy rate in the Tri-Cities (Coquitlam/Port Moody/Port Coquitlam) and the region (Metro Vancouver) or either of them is less than 4.0%. Where the proposed conversion is for three or more units, the applicant needs to submit written evidence that existing tenants representing at least 60% of all units are in favour of the proposed conversion, and will exclude any owners with an interest in the land. City of New Westminster: The Secured Market Rental Housing Policy (2013) affirms the City s long standing policy of denying approval for strata conversion applications, except in limited cases involving heritage revitalization. MORE INFORMATION Strata conversion policies: City of Langley (Affordable Housing Strategy) uploads/services/affordable_housing_strategy.pdf City of Maple Ridge (Official Community Plan, refer to policy 3-31) DocumentCenter/View/2415 City of North Vancouver (Strata Conversion Policy Update 2008) Planning-and-Policies/Housing/Market-Rental- Housing City of Coquitlam (Strata Title Conversion Guidelines) licenses-and-permits/development/subdivision. aspx City of New Westminster (Policy in Secured Market Rental Housing Policy) business/planning_development/housing.php Outcomes and Reflections The City of New Westminster estimates that due in part to the moratorium on strata conversion of older purpose-built rental buildings, the City has experienced a loss of no more than 2.9%, or 244 units, in the past five years due to redevelopment. 39 Estimated retention of rental units owing to strata conversion policies was not available for other municipalities. Housing Agreements and Covenants for Rental Units The rental tenure of new dwelling units obtained through rezoning negotiations is commonly secured by Housing Agreements and Section 219 covenants. The purpose is to ensure that the rental units remain as rental in perpetuity (or for the duration of the agreement), and are prevented from being converted to strata units. Municipalities have noted that careful legal work is key to ensuring that the municipality s intent and interest is met, for the units to remain as rental units over the life of the building. Some municipalities offer to handle the legal costs of ensuring that the securing rental units are finalized and registered on the development properties. Strata Rental Protection Policy for New Strata Units For newly constructed strata titled condominium projects (5 or more units) the District of North Vancouver requires, through its corporate Strata Protection Rental Policy, that unrestricted opportunity be provided for any owner to offer their unit for rent at anytime in the future. This requirement prevents strata councils from passing bylaws prohibiting rental of units. The requirement is enacted through a bylaw pursuant to Section 905 of the Land Title Act to authorize a housing agreement. 52 WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY 2016 HC - 107

108 PROFILE 10 TENANT ASSISTANCE POLICY Municipality: Measure: AT A GLANCE WHAT WHY HOW COST RESULTS City of Burnaby Policy for Relocation of Tenants When Rental Buildings are Rezoned and Demolished A policy that clarifies expectations for resources and considerations for existing tenants, when rezoning applications involve demolition of multi-family residential buildings. To provide a minimum standard of expectations and practice for additional notice, rent compensation, moving cost assistance, relocation information, and opportunity for rental or purchase of an available unit in the new development. Rezoning applications that involve demolition must submit a Tenant Assistant Plan (prior to demolition) that addresses the expectations in the City s policy. No cost to the municipality. Policy was approved in 2015, and development applicants are working to meet the expectations in the policy. Overview/Synopsis The City of Burnaby has a significant stock of purpose-built rental housing located in rapidly redeveloping town centres with good transit access. Developers are purchasing existing stock and applying for redevelopment, necessitating the relocation of tenants. The City of Burnaby adopted a Tenant Assistance Policy in May Previously, the City requested but did not require applicants to prepare tenant assistance plans. The purpose of the policy is to clarify the City s expectations for resources and considerations for existing tenants, when rezoning applications involve demolition of multi-family residential buildings (6 or more dwellings units). Background and Rationale When older multi-family buildings are proposed for demolition, the Provincial Residential Tenancy Act (RTA) addresses requirements of notice and assistance to be provided to relocating tenants. An aim of tenant relocation and assistance policies is generally to exceed the RTA requirements. The purpose of Burnaby s Tenant Assistance Policy is to provide information to applicants and tenants on the City s expectations, and to ensure that a suitable range of resources and considerations are provided for tenants needing to relocate. Prior to the adoption of the Tenant Assistance Policy in May 2015, the City s practice was to request that the development applicant prepare a plan to assist the existing tenants in their relocation efforts. Although the preparation of tenant assistance plans is voluntary under the current policy, applicants have recognized the plans as standard practice to support the City s rezoning process while also addressing the requirements of the Residential Tenancy Act. The policy was prepared in order to provide a minimum standard of expectations and practice. HC WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY

109 How Does it Work? The policy builds on the base provisions of the Residential Tenancy Act, including: additional notice, rent compensation, moving cost assistance, relocation information, and an opportunity for rental or purchase of an available unit in the new development. The policy applies to rezoning applications that involve demolition of buildings with 6 or more tenanted dwellings. The submitted Tenant Assistance Plan must include: A written commitment to exceed the minimum requirements of the Provincial Residential Tenancy Act; Documentation of the on-site applicable units including the number and size of units, rental rates, and existing vacancy rates; A plan to guide communications between the applicant and the tenants; A minimum of three months rental payment compensation payable to each tenant relocating to compensate for moving expenses, utility reconnection fees, and relocation costs; and, A minimum of three months notice provided to each tenant. The applicant through the Tenant Assistance Plan is to provide assistance to tenants seeking alternate accommodation, by way of: An offer to interested tenants to secure any available rental housing unit in the new development, or in an off-site rental housing unit managed by the same applicant; An offer to interested tenants to purchase an available housing unit in the new development; and Information on other accommodation options for tenants to re-locate in the same area and/or other areas. The tenant assistance plan must be submitted and implemented prior to demolition. However, a rezoning application may be approved prior to demolition and some owners may allow tenants to stay in building after rezoning approval, especially if construction timelines are delayed. Thus a plan may not be fully implemented prior to rezoning approval. The City would require that it be implemented to its satisfaction given the timelines of specific projects. Outcomes and Reflections The City has received several rezoning applications since the adoption of the policy that trigger the requirement for a tenant assistance plan, and applicants are working to meet the expectations in the policy. Other Municipalities and Transferability Several municipalities in Metro Vancouver have tenant relocation and tenant assistance policies. Three examples are: City of Vancouver Tenant Relocation and Protection Guidelines, effective February 6, vancouver.ca/ctyclerk/cclerk/ /documents/ ptec4.pdf The City of New Westminster Tenant Relocation Policy, effective January 1, newwestcity.ca/council_minutes/1207_15/public_ Meeting_CityCouncil-RegularMeeting_REG pdf The City of North Vancouver Residential Tenant Displacement Policy, adopted in November Policies/Housing/Market-Rental-Housing. MORE INFORMATION City of Burnaby Planning Department Information for this brief is from City of Burnaby Council report dated April 23, Tenant+Assistance+Policy+Report.pdf City of Burnaby Tenant Assistance Policy Planning/Housing.html 54 WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY 2016 HC - 109

110 PROFILE 11 DENSITY BONUS AND COMMUNITY AMENITY POLICY Municipality: Measure: City of North Vancouver Density bonus policy, OCP, and Zoning AT A GLANCE WHAT WHY HOW COST RESULTS The Density Bonus and Community Amenity Policy works with the Official Community Plan and Zoning Bylaw to provide density bonus incentives for the development of 100% secured market rental projects. There is also provision for density transfer for rental housing. The City acknowledged that new rental units need to be developed to meet community needs, and that they require incentives to occur. The policy was introduced to provide clarity for the community and developers. The Density Bonus and Community Amenity Policy establishes that Council may approve additional floor area with a secured commitment to provide market rental (or non-market) rental housing. The OCP Land Use Plan clearly specifies the maximum densities that can be achieved with base density and maximum densities (bonus density level) for each land use designations. No cost to the municipality. The policy came into effect in Rental projects are being constructed using the density bonus provisions. Overview/Synopsis The City of North Vancouver developed a Density Bonus and Community Amenity Policy in % secured market rental housing is an eligible use for bonus density. The City s Density Bonus Policy has provisions for non-market secured rental housing as well. The maximum density for new rental housing projects depends on the OCP Land Use Designation. The City of North Vancouver OCP and Density Bonus and Community Amenity Policy also provide for density transfer for rental retention. Background and Rationale 46% of households in the City of North Vancouver are renters. Rental housing is an important part of the City s housing stock. With an aging rental stock and impending redevelopment, the City developed the policy to support the long term sustainability of the rental stock, by providing an incentive that makes rental projects viable, and to avoid losing rental stock to new strata developments. The amount of density bonus is intended to be commensurate with the public benefit achieved. The policy was introduced to provide clarity for the community, developers, community members, etc. The policy is formulaic and provides a predictable process that reduces the amount of time that needs to be spent on negotiations on a case by case basis. How Does it Work? Density Bonus In the OCP (adopted in 2015) and the Density Bonus and Community Amenity Policy (adopted in 2015), it is stated that Council may approve additional floor area if there is a secured commitment to provide market rental or non-market rental housing. The OCP Land Use Plan specifies the maximum densities that can be achieved with base density and maximum densities (bonus density level) for each of the land use designations. HC WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY

111 Category B Bonus: Up to OCP Schedule A Max. Bonus An increase in density that exceeds the OCP Schedule A Density up to the maximum bonus amount set out in the OCP. This type of bonus requires a rezoning, which may include a Town Hall meeting as well as a Public Hearing. Category A Bonus: Up to OCP Schedule A Density An increase in density that does not exceed the OCP Schedule A Density. This can include lands that are pre-zoned with a density bonus, as well as lands that are rezoned through a site specific rezoning process with a density bonus. Outright Zoning: The amount of density permitted on an outright basisin the Zoning Bylaw. OCP Schedule A Max. bonus OCP Schedule A Density Limit Outright Zoning Density Transfer The OCP also makes provision for Density Transfer. As written in the OCP Section 2.3: A transfer of density is the relocation of anticipated density from one parcel of land to another. To achieve the goals and objectives outlined in this Plan and/or achieve a preferable form of development, City Council may authorize transfers of density between properties. Such transfers do not involve an increase in the total development potential, but rather the relocation of a density allowance. As such there is no increase in the overall OCP capacity as a result of density transfers. Outcomes and Reflections EXAMPLE: 1549 ST. GEORGE S An example of the application of City of North Vancouver bonus density provisions is a 2015 development application for a 100% market rental housing building at 1549 St. George s Avenue. The project involved renovation of an existing rental residential building and addition of additional floors for new units, resulting in a net gain of 16 units and a new total of 29 units. The applicant requested a bonus of.46 FSR, which was within the maximum allowable additional density of 1.0 FSR for rental housing for the property. The rental housing was secured through a housing agreement and a Comprehensive Development zone. Another example of a development that is consistent with the density bonus policy is East 21st Street; however, this development project was approved prior to the adoption of the density bonus policy. There are no examples of a density transfer to preserve or create rental housing at this time. FIGURE: ILLUSTRATION OF DENSITY BONUS CONCEPT. SOURCE: CITY OF NORTH VANCOUVER. MAY DENSITY BONUS AND COMMUNITY AMENITY POLICY. CNV.ORG/CITY SERVICES/PLANNING AND POLICIES/LAND USE/DENSITY BONUSING 56 WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY 2016 HC - 111

112 Estimated Value of Density Bonus To estimate the dollar value of density bonus for rental, here is a hypothetical example in the City of North Vancouver that provided a bonus valued at approximately $4.2 million: Site: 30,000 square feet Zoning: RM-1 (Medium Density Residential Apartment Use) OCP Designation: Level 5 Base density: 1.6 FSR Maximum bonus: 1.0 FSR Location: Lonsdale Regional City Centre (CACs differ depending on location) Value of density bonus for rental: The 1.0 FSR bonus provides a bonus of 30,000 sq. ft., which at $140 per sq. ft. ($ per sq. ft. of residential floor area increase beyond existing zoning) which would be valued at $4.2 million. Notes: This is a simple and hypothetical calculation. The City does have conditions, such as sites with existing rental units are not eligible for a bonus except for Secured Rental Housing. CACs may also be negotiated in unique circumstances. Additional projects compliant with the policy are still in the development approvals process. Other Municipalities and Transferability Community Amenity Policies Guide for Local Governments The BC Ministry of Community, Sport, and Cultural Development provides publications to guide local governments on density bonus and community amenity contribution policies bc.ca/lgd/planning/community_amenity.htm Density Transfer Other Municipalities The City of New Westminster s Secured Market Rental Housing Policy includes a provision to Explore the use of density transfer to preserve the existing purpose-built rental housing stock. In New Westminster, density transfer (i.e. transferring development density from one site to another) is primarily achieved for the purpose of heritage preservation. As a secondary step in the development of the Secured Market Rental Housing Policy in New Westminster, the transfer of unused density from market rental sites to development sites will be explored. The market rental building would be protected from redevelopment to a higher density, and its long term development density would be limited. It was noted that this program must be carefully evaluated to ensure that it does not compete with current heritage protection policies, and ensure that good planning principles in terms of density, form and character are respected for the receiving site. MORE INFORMATION City of North Vancouver Planning Department City of North Vancouver OCP: org/your-government/official-community-plan City of North Vancouver Density Bonus and Community Amenity Policy. City-Services/Planning-and-Policies/Land-Use/ Density-Bonusing HC WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY

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114 PROFILE 12 REDUCED PARKING REQUIREMENTS FOR PURPOSE-BUILT RENTAL HOUSING NEAR TRANSIT Municipality: Cities of New Westminster and Coquitlam Measure: Policies and Regulations for Parking AT A GLANCE WHAT WHY HOW COST RESULTS Reduced parking requirements for market rental housing located near transit stations or nodes. Constructing parking is costly. Residential parking demand for rental housing is lower than in owned units, particularly in transit accessible locations. Lower parking requirements make development of rental housing more cost effective, and are an important incentive to build market rental housing Parking standard reductions in municipal policies and regulatory bylaws, tied to location. There is no cost to the municipality. In New Westminster new developments are being constructed, taking advantage of parking reductions for rental housing (layered with density bonus incentives). Overview/Synopsis The Metro Vancouver 2012 Apartment Parking Study found that parking supply exceeds demand for apartments generally and that parking demand is lower for renters than owners. It suggested that rental housing be encouraged in urban centres and Frequent Transit Development Areas, and that municipalities could encourage rental apartments near transit by reducing or waiving parking requirements as a development incentive. The profile outlines the City of New Westminster s and the City of Coquitlam s approaches to reduced parking requirement for purpose-built rental housing near transit. Background and Rationale By reducing the required number of parking spaces in new rental housing developments, the development and construction cost is reduced and this can enhance economic viability of purpose-built rental housing, encouraging rental housing development (instead of condominiums or other types of development) to occur. The Metro Vancouver 2012 Apartment Parking Study noted that in metropolitan Vancouver, the cost of constructing on-site structured parking on average ranges from $20,000 to $45,000 per stall. This study pointed out that purpose-built market rental parking demand is lower than other apartment parking demand: Parking demand range is 0.58 to 0.72 vehicles per rental apartment unit. For comparison, parking demand for owned apartments is 0.89 to 1.06 vehicles per apartment when close to a FTN, and 1.10 to 1.25 when further away from a FTN. Market and non-market renters have lower vehicle ownership rates than apartment owners. The study recommended that in order to maximize affordability and efficiency in apartment buildings, municipalities should encourage rental housing in Urban Centres and Frequent Transit Development Areas, by reducing or waiving parking requirements as part of an incentive package as appropriate. HC WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY

115 How Does it Work? City of New Westminster Reduced Parking Requirements near Transit In order to provide a meaningful incentive to create long term secured rental housing located within 400 metres of the Frequent Transit Network (FTN) and SkyTrain Stations (outside the downtown), the City of New Westminster s parking regulations for secured rental buildings are 1.0 spaces per dwelling unit and 0.1 visitor parking spaces per dwelling unit. For new secured rental buildings within the Downtown, the zoning bylaw requirements are 0.6 spaces for each bachelor or one-bedroom dwelling unit and 0.8 spaces for each dwelling unit with two or more bedrooms, as well as 0.1 visitor parking spaces per dwelling unit. In comparison, in cases where the long-term rental housing is located outside of the Downtown or more than 400 metres from the City s FTN or SkyTrain Stations, then the normal parking regulations would apply which vary from 1 to 1.5 spaces per unit depending on size of unit and location in the city. If a developer wishes to pursue parking variances to the Zoning Bylaw, then it is possible to apply for a DVP so that the requested variance can be evaluated in relation to the merits of the proposal. In such instances, it is recommended that the payment in lieu for parking policy not apply to the reduced parking approved through the DVP. City of Coquitlam Policies for Burquitlam TOD Area Significant redevelopment potential in Coquitlam is expected in association with the upcoming Evergreen SkyTrain project. In light of these new transit infrastructure investments, the city is planning to re-evaluate its parking requirements in these transit oriented locations. It is important that these reductions be considered in light of available evidence from similarly structured suburban areas. The Burquitlam-Lougheed Neighbourhood Plan update is in process, and the city has committed to develop more detailed policy on rental housing for this area. consideration to reduce parking requirements based on review of ownership data and best practices. The City of Coquitlam s Affordable Housing Strategy Policy also commits to review the Zoning Bylaw for possible off-street parking reductions, based on local neighbourhood and market context, vehicle ownership data and transit service levels. Outcomes and Reflections City of New Westminster In the City of New Westminster, there were 1,450 new rental units in the development review process, approved (but not yet under construction) or under construction as of April The majority of these developments are taking advantage of the reduced parking standard in combination with the density bonus provisions for rental housing, which are included in the Secured Market Rental Housing Policy. The majority of these developments utilized or will utilize the Secured Market Rental Housing Policy incentives. The City of New Westminster uses the following indicators that support lower parking standards, particularly for rental housing: High walk score. The walk score in transitproximate neighbourhoods in New Westminster is 70%. New_Westminster High proportion of people commuting to work by transit. Information available through 2011 national household survey statcan.gc.ca Ample supply of carshare services. Car share is encouraged in new developments, and car share locations and services are listed on City of New Westminster website. ca/residents/residents_services/transportation/ articles/3875.php The City of Coquitlam s Transit Oriented Development Strategy (Section 2.1.3) includes policies to incent rental housing near the Burquitlam Station Area, in advance of preparing some more specific policies. The TOD Strategy includes 60 WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY 2016 HC - 115

116 Similar indicators that could be used to consider suitability for parking reductions for rental housing (and other forms of housing as well) near transit would be transferrable to other communities. Metro Vancouver Housing and Transportation Cost Burden Study (2015) This study points out that lower income households, which include many rental households, shoulder a heavy housing and transportation cost burden that is beyond their financial capacity. Improving access and expanding the reach of frequent transit in the region will help households in rapidly growing communities be less auto-dependent and reduce their transportation expenditures. The study recommends that each new transitoriented location provides an opportunity to make the transit and affordable housing connection. Parking reductions for rental housing in transit-oriented locations can provide incentives for a new affordable development opportunity to occur. MORE INFORMATION City of New Westminster Secured Market Rental Housing Policy business/planning_development/housing.php City of New Westminster Zoning Bylaw (Refer to Introduction - Secured Rental Residential Units Parking (Articles and )) php City of Coquitlam Transit Oriented Development Policy transit-oriented-development-strategy.aspx Other Municipalities The City of North Vancouver has reduced parking for all rental apartment apartments to 0.75 parking stalls per unit. The City further allows for reduction of parking stalls by providing secure bicycle parking so the actual parking requirement is closer to 0.5 stalls per unit. HC WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY

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118 PROFILE 13 SECURED MARKET RENTAL HOUSING POLICY (ENHANCE SUPPLY) Municipality: Measure: City of New Westminster Incentive Package to Increase Supply of Purpose-Built Market Rental Housing AT A GLANCE WHAT WHY HOW COST RESULTS A comprehensive municipal policy with several commitments and incentives to encourage the development of new market rental housing. To provide a clear package of incentives for market rental housing that enhances the financial viability of purpose-built market rental housing without the need for complex negotiations, and is easily understood by developers, staff, Council and the community. Includes parking reductions, density bonus, reduced building permit fees, relaxation of servicing requirement, concurrent processing of applications, payment of legal fees for housing agreements etc., and other financial benefits (such as reduced assessment value resulting in lower property taxes). Reduced building permit fee revenue, and opportunity cost of density bonus and parking variance payments that are not received for rental projects. Nine secured market rental projects for a total of 1,265 units. 774 of these units (seven out of nine projects) are already approved with housing agreements in place, and others are in process. Six of the nine projects are under construction/renovation. Overview/Synopsis The City of New Westminster s Secured Market Rental Housing Policy, approved in 2013, includes three strategies: retention, renewal and enhancement of the rental housing supply. This profile focuses on the strategy to create new secured market rental housing. See Profile 4 for information about the retain and renew strategies in New Westminster s Secured Market Rental Housing Policy. Background and Rationale The intent of the enhance supply strategy in New Westminster s Policy is to provide incentives to encourage the development of secured market rental housing projects by the private sector. The objective is to increase the supply of market rental housing and ensure security of tenure over time. Rental units created under the policy are secured by Housing Agreements and no-separate sales (no stratification) covenants. In order for affordable (including non-market) rental housing to be achieved, other additional incentives or initiatives would need to be considered. The incentives and relaxations in the Policy are designed to reduce the financial gap between rental housing development and market ownership development, thereby improving the economics of new market rental housing. The policy contains a number of restrictions on the rental housing stock created to ensure that it remains part of the rental inventory in the longer term. The policy actions are aimed at long term rental properties, which would be protected from demolition or repurposing as ownership housing. A guiding principle for the policy is that the most generous incentives and bylaw relaxations be reserved for proposals offering a higher degree of rental housing security of tenure. To develop the policy, the City reviewed North American examples (and especially City of Vancouver s Rental 100 policy) and talked with developers focused on rental development. HC WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY

119 How Does it Work? Range of Models for Rental Housing Short, Medium, Long-Term The Policy recognizes that a range of rental housing models will be proposed and presented to Council. Some of the proposed models will offer a higher level of tenure security and in some cases, affordability considerations, while other models will offer shorter term rental housing security. An important factor in determining the level of incentive offered by the City is the length of the commitment to provide secured market rental housing. Models that are closer to the traditional long-term purposebuilt market rental buildings (long-term and medium term models outlined below) will provide the greatest level of security of tenure for tenants as well as the greatest likelihood of increasing affordability over time. Similarly, models where the City has a higher level of assurance that ongoing compliance with the rental housing obligation is administratively possible, without the dedication of significant staff resources, are preferred. The following is an overview of the models contemplated in the Policy: Secured Market Rental Housing (Long-Term): Secured market rental housing for 60 years or the life of the building, with restrictions on stratification of the units. The units are managed by one entity. Secured Market Rental Housing (Medium Term): Secured market rental housing for years or the life of the building, with restrictions on stratification of the units. The units are managed by one entity. Incentives in the Policy The following incentives to enhance the supply of secured rental housing are included in the Policy: 1. Relaxation of Parking Requirements The construction costs of structured parking are estimated to be in the order of $25,000 - $35,000 per stall. In order to provide a meaningful incentive to create long term secured rental housing located within 400 metres of the Frequent Transit Network (FTN) and SkyTrain Stations (outside the downtown), the City of New Westminster s parking regulations for secured rental buildings are 1.0 spaces per dwelling unit and 0.1 visitor parking spaces per dwelling unit. For new secured rental buildings within the Downtown, the zoning bylaw requirements are 0.6 spaces for each bachelor or one-bedroom dwelling unit and 0.8 spaces for each dwelling unit with two or more bedrooms, as well as 0.1 visitor parking spaces per dwelling unit. In comparison, in cases where the long-term rental housing is located outside of the Downtown or more than 400 metres from the City s FTN or SkyTrain Stations, then the normal parking regulations would apply which vary from 1 to 1.5 spaces per unit depending on size of unit and location in the city. If a developer wishes to pursue parking variances to the Zoning Bylaw, then it is possible to apply for a DVP so that the requested variance can be evaluated in relation to the merits of the proposal. In such instances, it is recommended that the payment in lieu for parking policy not apply to the reduced parking approved through the DVP. Short Term Market Rental Housing (Short Term): Secured market rental housing for 10 years, with restrictions on stratification of the units. The units are managed by one entity. Rental proposals that involve individually strata-titled units that are held by individual owners are not be considered for rental housing incentives. 64 WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY 2016 HC - 119

120 2. Density Bonus Program for New Secured Market Rental Housing in Existing Rental and New Rental Buildings The Policy commits that staff will prepare a Zoning Bylaw amendment for Council s consideration that will extend the opportunity to use bonus density without payment (already available for non-profit housing) to add new secured, non-strata titled units in existing rental buildings, and to new secured market rental buildings that are guaranteeing rental tenure for the long term. The Zoning Bylaw would have a base density for all development, and if a developer wished to build long term secured market rental building, the bonus density would be allowed without payment. 3. Reduced Building Permit Fees A 50% reduction in building permit fees for the construction of new units in existing purpose-built rental housing and new medium-term and longterm secured rental housing has been implemented in the City of New Westminster. A 50% permit fee reduction is estimated to provide a $30,000-$50,000 per project benefit for new buildings and a $5,000 benefit for small additions. 4. Relaxation of Servicing Requirements The servicing requirements for new long-term secured market rental buildings may be relaxed to provide services and infrastructure to a more modest level compared to market housing (e.g. re-surfacing of adjacent streets). In all instances, servicing will be required for items that are essential to support the development, or are health and safety related, such as water, sewer, electrical connections and safe access to the site. 5. Concurrent Processing of Rezoning and Development Permit Applications In order to expedite the development approvals process, if rezoning of a site is required, the rezoning application and development permit application can be processed concurrently. This action could reduce the development approvals timeframe by reducing trips to the Design Panel and Council. As well, secured market rental applications will be managed through a multi-departmental team approach for development review and approvals; similar to nonprofit housing applications. 6. City Pays Legal Fees for the Preparation of Housing Agreements and Related Documents The City will pay for the costs related to the preparation and registration of Housing Agreements and related detailed documents that are required to secure the rental housing. 7. Other Financial Benefits Secured market rental will have its BCAA property assessment based on its income producing value and will benefit from lower property tax rates as compared to strata-titled development. The Assessment Authority has taken into account no separate sales covenants on strata titled secured market projects as being equivalent to non-stratatitled market rental developments, and therefore, such projects have received a reduced assessment value and are subject to less taxation. The Homeowner Protection Office also provides reduced fees for secured market rental developments. Outcomes and Reflections Progress As of April 2016, there were nine development projects that have utilized/will utilize the Secured Market Rental Housing Policy to create new rental housing in New Westminster. Six of the projects are under construction/renovation in April 2016, and none of the projects are complete yet. There are a total of 1,265 units in these nine projects, including 774 units in the seven projects that have already been approved by City Council with housing agreements in place. For context, the existing stock of purpose-built rental housing in New Westminster includes approximately 8,000 units. Within these new rental housing projects, the City has also gained some family-friendly rental housing; i.e. units with two or more bedrooms. 26% of all units in the new rental projects have two bedrooms and 9% of all units in the nine projects have three or more bedrooms. HC WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY

121 EXAMPLE: 404 ASH STREET In 2014 a 29-unit condominium building was destroyed by fire. Existing zoning would have allowed the owner to rebuild the building as stratatitled condominiums. However, the owner took advantage of parking reductions and density bonus for rental housing offered through the Secured Market Rental Housing Policy. Thirty-eight secured market rental units are being constructed. Reflections Political will is an essential ingredient for retaining existing rental housing stock: Council s leadership is required to initiate, approve, and stand by the City s clear and written policy. The policy has been very successful, as the City has seen a major increase in the number of rental housing developments. The Secure Market Rental Housing Policy makes it easy and clear for the development community to understand what the benefits of rental housing are (in terms of the incentives being offered by the City) and the written policy increases certainty in the development process. The process also makes the City s process efficient, e.g. with a defined policy staff do not need to go to Council for clarification and sign off on multiple items.. The municipality s cost of providing the incentives include: fees that would have otherwise been received for density bonus and parking (these fees are paid only if the project is not rental) and building permit fees (50% discount for rental projects). The City has not included reduced DCCs and property tax reductions in the incentives as it would not be affordable to the municipality. The City has intentionally focused the rental housing policy on market rental housing, and not on non-market and affordable housing. Although new market units are more expensive in comparison to the existing stock, they provide a valuable contribution to the rental housing stock and will become more affordable over time. In order to create a policy and incentives for affordable rental units, the City would need a more complex set of agreements and administrative infrastructure. can be complicated (especially when air space parcels are involved) and expertise is needed. If the legal agreements are not secure, then the rental units can be lost over time through conversions. Looking to the future, the City will consider changes to the Policy on an as needed basis, e.g. whether building permit fee reductions are required, etc. Depending on market conditions, in some parts of the city (e.g. close to transit) it is possible that in the future a sufficient rental housing may be able to be delivered without incentives, but incentives would likely still be required in other parts of the city. The City will continue to offer the policy for rental housing into the future, in order to gain supply of market rental housing to catch up with a lack of new supply in recent decades and to meet new demand. Other Municipalities and Transferability City of Vancouver - Rental 100 Program and Rental Incentive Guidelines MORE INFORMATION City of New Westminster Planning Staff Secured Market Rental Housing Policy (2013). development/housing.php City of New Westminster. Zoning Bylaw. Introduction. Secured Rental Residential Units Parking (Articles and ) articles250.php The City has learned about the legal aspects (e.g. housing agreements, no-stratification covenants etc.) of securing rental housing, both in terms of the importance and complexities. The arrangements 66 WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY 2016 HC - 121

122 PROFILE 14 INCLUSION OF MARKET RENTAL HOUSING IN MASTER-PLANNED DEVELOPMENTS Municipality: District of West Vancouver Measure: OCP Policies, Master Development Agreements, Comprehensive Development Zoning AT A GLANCE WHAT WHY HOW COST RESULTS Rental housing is included in master-planned developments/neighbourhoods, through the development process and/or planning process. To ensure that residents needs for rental housing are met. Policy that supports inclusion of a diversity of housing and rental housing specifically. Inclusion of market rental housing in Master Development Agreement and density bonus provision within a Comprehensive Development zone No direct cost to the municipality; negotiated with a package of services and requirements for development In this example, 30 market rental units are to be provided in a 349-unit development. Overview/Synopsis The District of West Vancouver has general policies in the Official Community Plan to include a diversity of housing including rental housing in new developments, and to provide density bonuses for rental housing. The profile provides an example of the inclusion of rental units in the Evelyn development in West Vancouver. Background and Rationale The District of West Vancouver OCP encourages new purpose-built market rental housing in the community. OCP Policy H9 is to provide amenity zoning (bonuses) for rental housing. The OCP also provides site specific policy direction for the Evelyn development site (21 acres) that is located on a site north of Park Royal Shopping Centre, South of Keith Road, and West of Taylor Way: the site will include a diversity of housing... and will include rental housing. The development application for this site began over 10 years ago, and the master-planned housing development is currently being constructed in phases. How Does it Work? The OCP policies provided high-level policy guidance on the Master Development Agreement (MDA) and the rezoning process for the Evelyn residential development. The agreement was for 30 units of market rental apartments as part of the 349-unit residential development, or just under 10%. The working components include: Master Development Agreement: Thirty units of market rental apartments will be secured via a Housing Agreement in the future when they are developed (per the MDA). Design of these units will be considered through a Development Permit process. Rezoning: The zoning bylaw amendment (a Comprehensive Development zone) for the Evelyn residential development was written to include a density bonus provision, which allowed a higher residential density if 30 rental housing units were provided at no cost. (The provision of rental housing was required in addition to requirements related to site servicing etc.). HC WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY

123 ESQUIMALT AVENUE KEITH ROAD Parcel 11 Duplex (4) Parcel 10 SFD (8) area to submit a Rental Housing Strategy that covers options for tenant relocation, replacement and other measures for managing the change. Title: N Parcel 1 Cluster (12) VILLAGE EVELYN BY ONNI KEITH ROAD WALK Parcel 2 Cluster (28) ARTHUR Parcel 5 Apartment (71) Area A Area B # of units per Master Plan Outcomes and Reflections The delivery of the rental units is set out in the MDA, and will be included as part of Phase 2 development of the site. Other Municipalities and Transferability Inclusionary housing policies can work in various ways, and most policies are focused on creating affordable rental housing not market rental housing. Municipalities can pursue various opportunities and approaches for ensuring that affordable non-market housing and rental housing are included in redeveloping and newly-developing neighbourhoods. In recent years, many of these policies or incentives are tied to good transit locations, for example: The City of Coquitlam s Transit-Oriented Development Strategy includes Interim Rental Housing Strategies for the Burquitlam area and includes consideration of incentives for rental housing: waiving community amenity contributions; exempting rental floorspace from density maximums subject to servicing, traffic and design review; reducing parking requirements based on review of ownership data and best practices; and encouraging partnerships to maximize the range of rental housing opportunities. Policies in the TOD Strategy include requiring developers in this EVELYN WALK Parcel 3 Cluster (23) EVELYN WALK ERICKSON Parcel 9 SFD and Duplex (16) Parcel 6 Amenity Parcel 7 Apartment (71) PLACE PARK ROYAL NORTH = 349 units Parcel 8 Apartment (118) JULY 2014 EVELYN BY ONNI UNIT DISTRIBUTION AND DEVELOPMENT AREA. SOURCE: DISTRICT OF WEST VANCOUVER. Date: TAYLOR WAY The City of Vancouver s Cambie Corridor Plan requires rental housing to be included within the various neighbourhoods along the Cambie corridor as part of a community amenity contribution. (Section of the plan): Provide 20% affordable market rental housing units on target rental areas in the Cambie Corridor, as a requirement of rezoning. The Metropolitan Atlanta Rapid Transit Authority s (Georgia USA) transit-oriented development policy includes a target of having 20% affordable housing for any project proposed on the authority s property. The City of Chicago s 2015 TOD Ordinance (Illinois USA) increased incentives for quality development near transit stations. It provides a number of benefits specifically to encourage affordable housing units on-site in new developments near transit. Any project benefiting from increased FAR or additional building heights must increase its share of affordable housing units on site. MORE INFORMATION District of West Vancouver Planning Department District of West Vancouver OCP westvancouver.ca/government/bylaws-strategiesreports/strategies-plans/official-community-plan District of West Vancouver, Development Information about Evelyn by Onni: westvancouver.ca/home-building-property/ planning/major-applications/evelyn-onni 68 WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY 2016 HC - 123

124 PROFILE 15 DOWNTOWN RESIDENTIAL DEVELOPMENT GRANT PROGRAM USING TAX INCREMENT FINANCING Municipality: Winnipeg, Manitoba Measure: Tax Increment Financing used for Rental Housing Development AT A GLANCE WHAT WHY HOW Tax Increment Financing (TIF) uses incremental tax revenue that will be generated as a result of investment in a property as a funding source for multi-year grants. These grants serve as incentive for specified capital investment in this case housing development. Incentive for development of housing to aid in revitalization of the downtown area. In Winnipeg programs, the TIF tool is used as a development incentive for both market rental and ownership housing. Grants are provided to developers in the amount of incremental taxes (provincial portion is from applicable incremental education-related taxes, municipal portion is from municipal taxes) that are generated from redeveloped properties, over a period of 10 to 15 years. During the grant period participating taxation authorities (e.g. municipality, province) receive the base amount of tax, and offer grants equal to the incremental tax amount over the grant period (10 to 15 years) to developer/owner. COST After the grant period taxation authorities receive the full amount of tax (base plus incremental amounts). The program requires administrative, staff and legal resources to administer the program. RESULTS In Winnipeg 750 to 900 rental units are being developed through the Downtown Residential Development Grant Program. Overview/Synopsis The City of Winnipeg Manitoba has been using a Tax Increment Financing (TIF) tool since 2002 to offer incentives for private developers to build new rental housing in various areas of the city, particularly downtown. TIF is used as a tool to implement a significant downtown revitalization strategy and initiative. Background and Rationale The Provincial TIF and Municipal TIF are separate, albeit complementary, instruments. Municipalities may, under the Municipal Act and The City of Winnipeg Charter, establish their own autonomous programs without provincial partnership. While the Province prefers a municipal/provincial partnership for TIF-supported initiatives, they are able to provide TIF grants autonomously provided the municipality agrees to the purpose of the grant. In Manitoba, the Province and the City of Winnipeg are using TIF as a tool to encourage various investments and development in specific areas. In addition, the Province is using TIF as a tool for redevelopment in municipalities outside of Winnipeg. HC WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY

125 Enabling legislation Municipal TIF: In 2002, the Winnipeg City Charter was amended to enable the City to establish Tax Increment Financing (TIF) programs in designated areas of the city for the purpose of encouraging investment or development in those areas. In 2004, the Municipal Act was amended to allow all municipalities in Manitoba to establish TIF programs. Provincial TIF: In 2009 the Province enacted The Community Revitalization Tax Increment Financing Act, which gives the Province authority to levy a Community Revitalization Levy in lieu of incremental applicable school taxes on designated properties and place them into a Community Revitalization Fund to be used for specific purposes outlined in law. How Does it Work? TIF is a financial tool used by governments to support and encourage revitalization and redevelopment. The TIF is used to fund multi-year grants to developers/property owners,equal to the amount of incremental taxes that generated as a result of investment. Taxation authorities still receive the base tax amount during the grant years, and then they receive whole tax amount after the grant commitment ends. TIF complements a range of planning and financial tools that aim to encourage redevelopment, revitalization and economic development. Since 2001 the TIF programs have been tuned to target the desired types (e.g. market rental, affordable rental, etc.) and locations (e.g. downtown) of new housing development. Examples of TIF programs to incent the development of multiple family housing: Downtown Residential Development Grant (DRDG) Joint program by the Province of Manitoba and the City of Winnipeg, that offers grants to qualifying developers constructing new rental or ownership housing in Downtown Winnipeg. Developers can offset a proportion of their capital investment through a grant equal to the applicable incremental municipal and education taxes over 10 or 15 years. The grant program provides a total of $40 million ($20 million by the Province and $20 million by the City). The provincial portion of the grant is funded from applicable incremental education-related taxes, and the municipal portion is funded from municipal taxes. 70 WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY 2016 HC - 125

126 Live Downtown Rental Development Grant Program The program requires that at least 10% of units constructed must rent for an amount equal to or less than the affordable/median market rent in Winnipeg for the first 5 years of occupancy, and 80% of the total usable square footage of the proposed development must be residential. Developers can receive a base grant, in addition to up to three bonus grants for construction in an identified strategic location downtown, construction on a surface parking lot, and/or the inclusion of structured parking within the project. The program will create 750 to 900 new rental units through a TIF program, that provides grants equal to the incremental tax amount for up to 20 years. Outcomes and Reflections As incremental taxes are calculated using the growth in assessment from what was to what is now, the TIF tool works best for large brownfield development and re-development of depreciated and underdeveloped properties. The key criterion is an opportunity for significant increase in projected value and taxes as a result of redevelopment, and thereby an attractive incentive for developers. In order to determine whether or not to use the TIF tool in this context, the City and the Province needed to determine whether the project(s) would go ahead without the tool and incentive. In the above-noted examples, the desired housing development would not have otherwise occurred in the downtown and the private sector required an incentive. In Winnipeg the TIF has been used in addition to other planning tools to contribute to an overall strategy for revitalization. The community benefit from the TIF program is significant in terms of downtown revitalization. Using TIF as a tool requires staff and legal resources. In Manitoba, both the City and the Province have managed their respective TIF funds through existing resources. As requests for TIF support for programs and projects have increased, staff have been reprioritized to focus primarily on TIF. As TIF is a financing tool that can be used for various purposes it is important to note that other government departments are often involved in program and project development in a team approach. For example, in the housing programs noted above two departments from the Province were involved: Municipal Government, as the department responsible for the Act, and Housing and Community Development, as the department responsible for housing, providing expertise. HC WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY

127 Other Municipalities and Transferability The TIF tool (different models) has also been used in Ontario, Nova Scotia and Saskatchewan The Province of BC provided information that the use of Tax Increment Financing is not available to local governments and developers in British Columbia. Somewhat related, Section 226 of the Community Charter permits a municipal council to create revitalization tax exemptions for types of development that increase housing affordability. This is probably the provision that most closely resembles tax increment financing. The authority under this section is quite broad, and is introduced in this guide: library/community_charter_revital_tax_exemptions. pdf MORE INFORMATION City of Winnipeg Planning, Property and Development Department City of Winnipeg Strategic Services and Housing Division Province of Manitoba - Planning Policy and Programs Branch, Manitoba Municipal Government bldgcomm/index.html Province of Manitoba Strategic Initiatives Branch, Manitoba Housing and Community Development Downtown Residential Development Grant Program Province of Manitoba Rental Housing Construction Tax Credit Program This program (since 2013) stimulates the construction of rental housing (5 or more units) and increases the quantity of new affordable rental housing units (10% affordable housing units). Eligible landlords who develop rental housing receive a tax credit certificate worth up to eight percent (8%) of the capital cost of new rental housing construction in Manitoba, to a maximum credit of $12,000 per eligible rental unit. rental_housing_tax_credit.html 72 WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY 2016 HC - 127

128 PROFILE 16 REDUCED DEVELOPMENT FEES AND ACCELERATED APPLICATION PROCESSING FOR RENTAL HOUSING PROJECTS Municipality: Multiple Municipalities Measure: Policies and/or provisions within bylaws AT A GLANCE WHAT WHY HOW Waiving or reducing fees, and reducing processing time for rental housing development applications. Provides an incentive for rental development through reduced costs for developers. Policies to reduce, for rental housing only, various types of fees (e.g. DCCs, Building Permit fees, servicing costs, amenity contributions) associated with development, to make it more feasible and to encourage new rental housing units. Policies to process rental housing development applications more quickly. COST RESULTS Reduced revenue from fees. Variable depending on fee/time reduction provided, and development context. Overview/Synopsis Several municipalities in Metro Vancouver waive or reduce fees and costs associated with development, and optimize application processing time, to incentivize purpose-built rental housing applications. A few examples are provided in this profile. Background and Rationale Feedback from developers is that an efficient and clear development process can be even more important to a decision to pursue a rental development project than financial incentives and fee waivers. The desire for an efficient and clear development process points to the importance of clear policies and development processing priority for rental projects. Application, processing, and development fees vary considerably across the region and contribute to the cost of construction. Fee waivers and reductions are another tool intended to reduce the financial gap between rental housing development and market ownership development, thereby improving the economics of new market rental housing. How Does it Work? The following are examples of different approaches to fee waivers or cost reductions for rental housing projects in various municipalities, which are intended to reduce the cost of development and create an incentive for rental housing development: Development Cost Charges (DCC)/Development Cost Levies (DCL) The City of Vancouver Rental 100: Secured Market Rental Housing Policy states that the DCL is waived for projects in which 100% of the residential development is rental. For 100% rental projects that were approved through the previous City of Vancouver rental incentive STIR program, the primary financial incentive was the waiving of DCLs. In these projects, $1.8 million in waived DCLs enabled 372 rental units. The overall financial incentive to create these units was just under $5,000 per unit. 41 HC WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY

129 The City of North Vancouver reduces DCCs by 50% for market rental projects. Waived Community Amenity Contributions The City of North Vancouver Density Bonus and Community Amenity Policy states that no amenity fund contribution is required for 100% secured rental housing projects. Legal Fees Cities of New Westminster and Coquitlam pay legal fees for preparation of housing agreements for rental housing. Reduced Building Permit Fees In New Westminster the Secured Market Rental Housing Policy provides a 50% reduction in Building Permit fees for the construction of new units in existing purpose-built rental housing and new medium-term and long-term secured rental housing. A 50% permit fee reduction would provide a $30,000- $50,000 per project benefit for new buildings and a $5,000 benefit for small additions. Relaxations to Servicing Requirements In New Westminster, the Secured Market Rental Housing Policy states that: Consideration will be given to relaxing the City s servicing requirements for potential additions to existing purpose-built rental housing buildings and the creation of long-term secured market rental housing. As secured market rental housing is considered to be a City strategic priority, the Director of Engineering would take into account the scope and nature of a project in determining appropriate servicing requirements. For example, a small addition to an existing purposebuilt rental housing project may not be required to bring infrastructure up to the level expected of new development considering that the building already exists. Further, the servicing requirements for new long-term secured market rental buildings may be relaxed to provide services and infrastructure to a more modest level compared to market housing (e.g. re-surfacing of adjacent streets). In all instances, servicing will be required for items which are essential to support the development, or are health 74 WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY 2016 HC - 129

130 and safety related, such as water, sewer, electrical connections and safe access to the site. Application Processing Times/Concurrent Processing City of Vancouver Rental Housing Incentive Guidelines state that for applications in which 100% of the residential development is rental, concurrent processing of rezoning and development permits is offered if the form of development at rezoning is known and supportable. New Westminster Secured Market Rental Housing Policy also offers concurrent processing of rezoning and development permits for applications that are 100% secured market rental. Outcomes and Reflections Some municipalities do not want to waive fees that are collected to fund community-wide projects and services. DCCs are required to fund required community infrastructure projects, and if funds are not collected from development, the municipality must source the funds from elsewhere in the municipal budget. The Getting to Groundbreaking initiative (2016) examined what it takes to get four-storey woodframe apartment building projects off the ground in Metro Vancouver municipalities, noting variations in approval times and fees charged. bc.ca/news-central/news/getting-groundbreakingreport-year-2-focus-woodframe-apartments Municipal Understanding of Rental Development Needs From the perspective of some in the rental housing owner/developer community, municipalities indicate a priority for rental housing; however this is not always reflected in practice. Ideas for improvement include: Municipalities could meet regularly with rental housing owners and rental housing developers to get an understanding of their plans and needs for rental housing. This knowledge could inform the policies and process. Municipalities could assign a staff contact /ombudsman role within the existing administrative structure to encourage and facilitate the municipal role in rental housing. City of Regina Capital Grant and Tax Exemption Incentives The City of Regina Saskatchewan provides capital grant and tax exemption incentives through the Housing Incentives Policy (HIP) to stimulate new rental and ownership units that address current housing needs. The HIP was revised in October 2015 and amendments included increased incentives for developers of below market rental units in order to increase the supply of below market rental housing, focusing on infill development and areas of core housing need and aging housing stock. 41 HC WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY

131 ENDNOTES 1 McClanaghan and Associates for City of Vancouver. August City of Vancouver Rental Housing Strategy Research and Policy Development Synthesis Report. 2 Starr Group as cited in McClanaghan and Associates for City of Vancouver. August City of Vancouver Rental Housing Strategy Research and Policy Development Synthesis Report. Page 7. In this report McClanaghan also notes that rented condos tend to be smaller, have higher rents and be inherently less likely to remain in the rental pool than purpose-built market rental (page 85). 3 Canadian Mortgage and Housing Corporation Rental Housing Market Report. 4 Coriolis Consulting Corp. for Metro Vancouver. 8 May Metro Vancouver Purpose-Built Market Rental Housing: Inventory and Risk Analysis. 5 McClanaghan and Associates for City of Vancouver. August City of Vancouver Rental Housing Strategy - Research and Policy Development Synthesis Report. 6 McClanaghan and Associates for City of Vancouver. August City of Vancouver Rental Housing Strategy - Research and Policy Development Synthesis Report. 7 André Coté, Institute on Municipal Finance and Governance and Howard Tam, ThinkFresh Group Affordable Housing in Ontario: Mobilizing Private Capital in an Era of Public Constraint. 8 Canadian Federation of Apartment Associations Pre-Budget Submission to the Federal Finance Committee. 9 Urban Development Institute Pacific Region. March 1, Breakfast Seminar: The Realities of Realizing Rental Development. Vancouver, BC. Proceedings available at udi-breakfast-seminar-the-realities-of-realizing-rental-development André Coté, Institute on Municipal Finance and Governance and Howard Tam, ThinkFresh Group Affordable Housing in Ontario: Mobilizing Private Capital in an Era of Public Constraint. 11 Canadian Federation of Apartment Associations. August Rental Housing in the 2015 Federal Budget. 12 Economic and political factors affecting purpose-built market rental construction are documented in McClanaghan and Associates. August City of Vancouver Rental Housing Strategy Research and Policy Development Synthesis Report. 13 André Coté, Institute on Municipal Finance and Governance and Howard Tam, ThinkFresh Group Affordable Housing in Ontario: Mobilizing Private Capital in an Era of Public Constraint. 14 Marion Steele and Peter Tomlinson. September Increasing the Affordability of Rental Housing in Canada: An Assessment of Alternative Supply-Side Measures. Vol.2 Issue 2 in SPP Research Papers, University of Calgary. 76 WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY 2016 HC - 131

132 15 Federation of Canadian Municipalities No Vacancy: Trends in Rental Housing in Canada. 16 McClanaghan and Associates for City of Vancouver. August City of Vancouver Rental Housing Strategy - Research and Policy Development Synthesis Report. 17 Federation of Canadian Municipalities No Vacancy: Trends in Rental Housing in Canada.(page 2) 18 City of New Westminster. February 19, Rental Projects Developed Under Secured Market Rental Policy as of February 19, Coriolis Consulting Corp. for Metro Vancouver. 8 May Metro Vancouver Purpose-Built Market Rental Housing: Inventory and Risk. Pages McClanaghan and Associates for City of Vancouver. August City of Vancouver Rental Housing Strategy - Research and Policy Development Synthesis Report. 21 Federation of Canadian Municipalities No Vacancy: Trends in Rental Housing in Canada. 22 André Coté, Institute on Municipal Finance and Governance and Howard Tam, ThinkFresh Group Affordable Housing in Ontario: Mobilizing Private Capital in an Era of Public Constraint. 23 Federation of Canadian Municipalities No Vacancy: Trends in Rental Housing in Canada. (page 2) 24 McClanaghan and Associates for City of Vancouver. August City of Vancouver Rental Housing Strategy - Research and Policy Development Synthesis Report. (page 103) 25 Federation of Canadian Municipalities No Vacancy: Trends in Rental Housing in Canada. 26 André Coté, Institute on Municipal Finance and Governance and Howard Tam, ThinkFresh Group Affordable Housing in Ontario: Mobilizing Private Capital in an Era of Public Constraint. 27 Metro Vancouver Metropolitan Planning, Environment and Parks. September The Metro Vancouver Apartment Parking Study, Revised Technical Report. 28 Section 516 was added by an amending bylaw to Zoning Bylaw 6700: Bylaw 7830, For more information refer to City of North Vancouver Density Bonus and Community Amenity Policy HC WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY

133 30 City of Vancouver Development Permit Board reports for the first four Laneway 2.0 projects approved can be found on the City of Vancouver Development Permit Board page Search by date of meeting and address of project, to obtain relevant documents (minutes, reports from staff) for each project: 1071 Cardero Street - October 20, Nelson Street October 20, Comox Street April 20, 2015 (Summary information about of this project is included above in this profile.) 1427 Haro Street July 27, Refer to Profile 10 for more discussion about Tenant Assistance Policies 32 Metro Vancouver, Metro Vancouver Apartment Parking Study. Summary and Technical Report: More information refer to the District of North Vancouver website and public hearing report and materials on June 16, 2015 for East 27th Street - Mountain Court, Bylaws 8101, 8102, councilsearchnew/ 34 Interest rates reflect the City s current return on its investment portfolio with terms to maturity of up to 20 years (multi-residential buildings) for the purpose of recovering the City s foregone investment income on the funds used by the Residential Energy Retrofit Pilot Program. As part of the overall cost of the Program, the interest rate will be applied to the cost of each retrofit project and used to determine the local improvement charges imposed by the City on participating properties. 35 A LIC (local improvement charge) is a municipal financing tool traditionally used to help cover the costs of local infrastructure improvements (e.g. street lights, sidewalks for a particular street). 36 Rental Housing Business. January/February The Dollars and Sense of Capex projects 37 More information about Toronto s Tower Renewal Program is available here: 38 Summary information about programs in other cities is available in City of Toronto report: ca/legdocs/mmis/2013/ex/bgrd/backgroundfile pdf 39 City of New Westminster 40 City of Vancouver. Secured Market Rental Housing information More information about Regina HIP 78 WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY 2016 HC - 133

134 WHAT WORKS: MUNICIPAL MEASURES FOR SUSTAINING AND EXPANDING HC THE SUPPLY OF PURPOSE-BUILT RENTAL HOUSING MAY

135 metrovancouver.org HC - 135

136 6.3 DELEGATION EXECUTIVE SUMMARY Name of Speaker/Organization: Dr. Paul Kershaw, Founder, Generation Squeeze Presented to: Regional Planning Committee Date Presented: September 9, 2016 Subject: Sponsorship Request Homes First: Building Housing Common Ground Event, October 25, 2016 To Whom It May Concern, The first item on the agenda for the Regional Planning Committee on September 9th will be the request from Generation Squeeze to Metro Vancouver to co-sponsor our Homes First: Building Housing Common Ground event on October 25th. I would like to request time to speak briefly about this sponsorship request at the meeting, and to take questions from the Committee. My contact information is below. Specific action requested: Approve the sponsorship application. Summary: Request: $7,000 from Metro Vancouver to contribute to a $32,000 event. The other $25,000 are secured from Manulife Bank, the Co-Operators and LandlordsBC. What is the event? A multi-stakeholder housing workshop in Metro Vancouver focused on themes that impact regional, provincial and federal policy. The workshop aims to identify common ground at the level of basic housing principles, to discuss specific aspects of the problem and search for coherence among the range of housing policy recommendations proposed by various stakeholders in recent months/years. A public report will be distributed summarizing the results and guiding further conversation. Why this event? Our research at the University of British Columbia has shown younger Canadians are being subjected to a 360 degree squeeze, including high costs for things like housing and child care, stagnant incomes and precarious work, and mounting debts, all of which make it difficult to save for retirement. In hotspot areas like Metro Vancouver, the cost of housing has become a specific financial tipping point. So much so that Generation Squeeze is treating housing as a gateway issue to a larger conversation about affordability and financial security for Canadians in their 20s, 30s and 40s. That said, while our organizational focus is on younger Canadians, we believe housing is a multi-generational issue and treat it as such. Solutions to the housing affordability crisis are complex, interrelated and in some cases interdependent. Unfortunately, public conversation has tended to focus on isolated policy ideas. In contrast, we believe the public conversation would benefit from taking a step back, to explore whether there is any multi-stakeholder common ground at the level of basic housing principles. For example, a common-ground principle could be: Homes First. BC's housing market should be regulated primarily to provide an efficient supply of affordable, suitable homes for community members and families to live in. HC - 136

137 While this may sound like an obvious principle, if clearly stated and acted upon, we believe public trust in our regulatory framework could be regained, and our housing markets would come to function significantly better. Without being prescriptive, we imagine the Homes First principle lending momentum and coherence to specific policies that increase supply, including rental; tax housing wealth in fair and innovative ways, and intersect with nonhousing market policies that ensure things like child care and transportation don't add up to second and third mortgages. We believe identifying basic principles for which there is a broad base of support is a critical first step to addressing affordability crises in Canada s major metropolitan centres. Proposal Organize a full-day multi-stakeholder workshop in Metro Vancouver to (a) explore whether common ground can be established at the level of basic housing policy principles, and (b) provide a safe opportunity to explore specific aspects of the problem, and to brainstorm about how to bring to coherence to the range of proposals in public dialogue, as well as identify what may still be missing stakeholders will be invited, including, municipal leaders, real estate professionals, home builders, developers, academics and other experts, non-profits, business, labour and a representative group of residents who can speak to their lived experience. The workshop will be designed and facilitated as a safe space to openly discuss the issues (i.e. invite-only, limited space, no media present). The workshop will produce a public report (perhaps with multimedia components), highlighting identified areas of common ground upon which specific housing solutions can be built. Workshop follow-up The purpose of the event is NOT to establish a formal network with ongoing coordination. However, all participants will be encouraged to build on the relationships formed at the workshop. If the event is a success, a similar event will be considered for the Greater Toronto Area, where the housing affordability crisis is of similar proportions to Metro Vancouver. The Gen Squeeze mission is to revitalize non-partisan democratic engagement among Canadians in their 20s, 30s and 40s to incentivize the world of politics to work for all generations. To this end, we will canvass our own network for feedback on the public report in order to assess whether any of the principles or ideas coming out of the workshop have traction around which allies wish to organize. Dr. Paul Kershaw University of British Columbia, School of Population & Public Health paul.kershaw@ubc.ca; ph: ; fax: Founder, Generation Squeeze Follow us on: twitter facebook gensqueeze.ca In your 20s, 30s and 40s and feeling squeezed by stagnant incomes, high costs, less time, or mounting government and environmental debts? Know that you're not alone, and it's not that you're doing something wrong. Something bigger is going on, and governments are slow to adapt. So we're squeezing back by building a national, nonpartisan, science-based political voice for citizens, not shareholders. Join us today. HC - 137

138 - 6.4 metrovancouver SERVICES AND SOLUTIONS FOR A LIVABLE REGION Tel Office of the Chair Fax File: CR Ref: RD 2016 May27 JUN 29 2U16 The Honourable Jean Yves Duclos Minister of Families, Children and Social Development and Minister responsible for the Canada Mortgage and Housing Corporation House of Commons Ottawa, Ontario K1A 0A6 Dear Minister Duclos: Re: Regional Affordable Housing Strategy At its May 27, 2016 regular meeting, the Board of Directors of the Greater Vancouver Regional District ( Metro Vancouver ) adopted the following resolution: That the GVRD Board: a) Adopt the Regional Affordable Housing Strategy attached to the report dated May 13, 2016, titled Regional Affordable Housing Strategy ; and b) Convey the Regional Affordable Housing Strategy to member municipalities with a request to endorse the Strategy as a collaborative approach through which stake holders can advance its vision, within their authority; c) Transmit the Regional Affordable Housing Strategy to the BC Minister Responsible for Housing, The Honourable Rich Coleman; The Minister of Families, Children, and Social Development, and the Minister responsible for Housing and Canada Mortgage and Housing Corporation, The Honourable Jean Yves Duclos, and other stake holders with an interest in regional housing affordability; and d) Direct staff to develop an implementation plan for Metro Vancouver actions. - We are pleased to provide a copy of the Regional Affordable Housing Strategy for your reference. The high cost of housing in Metro Vancouver is a major concern for residents and local governments. First adopted in 2007, the Regional Affordable Housing Strategy (2016) aims to provide leadership on regional housing needs, in collaboration with our member municipalities. The Strategy highlights that a diverse and affordable housing supply is essential if the Metro Vancouver region is to remain livable and prosperous. The new Strategy focuses on increasing rental housing supply, particularly for those households with incomes under $50,000 per year. New housing is encouraged at locations near current and future transit nodes to improve affordability Kingsway, Burnaby, BC Canada V5H 4GB Greater Vancouver Regional District Greater Vancouver Water District Greater Vancouver Sewerage and Drainage District HC Metro Vancouver Housing Corporation

139 The Honourable Jean Yves Duclos, Minister of Families, Children & Social Development and Minister responsible for the Canada Mortgage & Housing Corporation Regional Affordable Housing Strategy Page 2 of 2 We welcome the federal government s commitment to investments in affordable housing announced in Budget 2016, and look forward to working with CMHC and the province in ensuring these investments assist us to meet our region s rental and affordable rental housing needs. Yours truly, Greg Moore Chair, Metro Vancouver Board GM/DL/me End: Regional Affordable Housing Strategy dated June 20, 2016 (Doe # ) HC - 139

140 metrovancouver 6.5 SERVICES AND SOLUTIONS FOR A LIVABLE REGION Tel Office of the Chair Fax File: CR Ref: RD 2016 May27 JUN The Honourable Rich Coleman Minister of Natural Gas Development and Minister Responsible for Housing and Deputy Premier Room 128, Parliament Buildings Victoria, BC V8V 1X4 Dear Minister Coleman: Re: Regional Affordable Housing Strategy At its May 27, 2016 regular meeting, the Board of Directors of the Greater Vancouver Regional District ( Metro Vancouver ) adopted the following resolution: That the GVRD Board: a) Adopt the Regional Affordable Housing Strategy attached to the report dated May 13, 2016, titled Regional Affordable Housing Strategy ; and b) Convey the Regional Affordable Housing Strategy to member municipalities with a request to endorse the Strategy as a collaborative approach through which stakeholders can advance its vision, within their authority; c) Transmit the Regional Affordable Housing Strategy to the BC Minister Responsible for Housing, The Honourable Rich Coleman; The Minister of Families, Children, and Sociol Development, and the Minister responsible for Housing and Canada Mortgage and Housing Corporation, The Honourable Jean Yves Duclos, and other stakeholders with an interest in regional housing affordability; and d) Direct staff to develop an implementation plan for Metro Vancouver actions. We are pleased to provide a copy of the Regional Affordable Housing Strategy for your reference. The high cost of housing in Metro Vancouver is a major concern for residents and local governments. First adopted in 2007, the Regional Affordable Housing Strategy (2016) aims to provide leadership on regional housing needs in collaboration with member municipalities. Having a diverse and affordable housing supply is essential if the Metro Vancouver region is to remain livable and prosperous. The new Strategy focuses on increasing the rental housing supply, particularly for those households with incomes under $50,000 per year, and in locations near current and future transit nodes. We welcome the Provincial Investment in Affordable Housing and transit funding assistance towards the goal of meeting the region s affordable housing needs and look forward to collaborating with the Province on other measures to assist with implementing the Regional Affordable Housing Strategy D Kingsway, Burnaby,BC, Canada V5H 4GB Greater Vancouver Regional District Greater Vancouver Water District Greater Vancouver Sewerage and Drainage District Metro Vancouver Housing Corporation HC - 140

141 The Honourable Rich Coleman, Minister of Natural Gas Development and Minister Responsible for Housing and Deputy Premier Regional Affordable Housing Strategy Page 2 of 2 Yours truly, Greg Moore Chair, Metro Vancouver Board GM/DL/me End: Regional Affordable Housing Strategy dated June 20, 2016 (Doc# ) HC - 141

142 ~~ metrovancouver 6.6 ~ SERVICES AND SOLUTIONS FOR A LIVABLE REGION Office of the Chair Tel Fax File: CR~ Ref: RD 2016 May 27 JUN Mayor Clay and Council City of Port Moody 100 Newport Drive P.O. Box 36 Port Moody, BC V3H 3El Dear Mayor Clay and Council: Re: Regional A/fordable Housing Strategy At its May 27, 2016 regular meeting, the Board of Directors of the Greater Vancouver Regional District ('Metro Vancouver') adopted the following resolution: That the GVRD Board: a) Adopt the Regional Affordable Housing Strategy attached to the report dated May 13, 2016, titled "Regional Affordable Housing Strategy"; and b) Convey the Regional Affordable Housing Strategy to member municipalities with a request to endorse the Strategy as a collaborative approach through which stakeholders can advance its vision, within their authority; c) Transmit the Regional Affordable Housing Strategy to the BC Minister Responsible for Housing, The Honourable Rich Colemon; The Minister of Families, Children, and Social Development, and the Minister responsible for Housing and Canada Mortgage and Housing Corporation, The Honourable Jeon Yves Duclos, and other stakeholders with an interest in regional housing affordability; and d) Direct staff to develop on implementation pion for Metro Vancouver actions. We are pleased to provide a copy of the Regional A/fordable Housing Strategy for your reference. The high cost of housing in Metro Vancouver is a major concern for residents and local governments. First adopted in 2007, the new Regional A/fordable Housing Strategy (2016) aims to provide leadership and a collaborative approach for meeting the region's pressing housing issues. Our vision is to have a diverse and affordable housing supply so Metro Vancouver region can remain livable and prosperous. In November 2015, the GVRD Board conveyed to Municipal Councils the Draft Regional A/fordable Housing Strategy for review and comment. Some Councils endorsed the Draft Strategy at that time, or provided support in principle and offered suggestions for improvement. Others received it for information on ly. The final Regional A/fordable Housing Strategy (RAHS) that was adopted by the GVRD Board took these comments into consideration Kingsway, Burnaby, BC, Canada VSH 4G Greater Vancouver Regional District Greater Vancouver Water District Greater Vancouver Sewerage and Drainage District Metro Vancouver Housing Corporafon HC - 142

143 Mayor Clay and Council, City of Port Moody Regional Affordable Housing Strategy Page 2 of 2 The GVRD Board requests that your Council endorse the Regional Affordable Housing Strategy as a Collaborative approach to addressing regional housing needs. We request that you inform the GVRD Board of your Council s decision by November 30, The next step will be for the GVRD Board to write to the federal and provincial governments and other key stakeholders, such as Health Authorities, urging that they take the recommended actions in the Strategy. Yours truly, Greg Moore Chair, Metro Vancouver Board GM/DL/me End: Regional Affordable Housing Strategy dated June 20, 2016 (Dcc # ) HC - 143

144 B.C. makes largest housing investment ever in province s history BC Gov News Page 1 of British Columbia News B.C. makes largest housing investment ever in province s history Monday, September 19, :40 PM Burnaby - The Government of B.C. is committing $500 million to ensure more British Columbian families have access to affordable rental housing, the largest housing investment in a single year by any province in Canada. A total of 2,900 rental units will be created, in partnership with non-profit societies, local governments, government agencies, community organizations and the private sector. This is in addition to $355 million announced earlier this year in February to create 2,000 additional new units of affordable rental housing throughout B.C., bringing the Province s total investment announced this year to $855 million. This is another significant step towards helping more people find an affordable place to live, said Premier Christy Clark. Thanks to our growing, diverse economy, we re able to make the largest affordable housing investment in one year by any province in Canadian history, and we will continue to work with community partners and all levels of government to keep putting British Columbians first. (flickr.com) A mix of new housing will be developed to meet the needs of a wide variety of people in communities throughout the province, including low-to moderate-income renters, seniors, youth, students, adults with developmental disabilities, Aboriginal people and women and children. Funding for these projects will be provided from the government s newly-created Housing Priority Initiatives Special Account, and projects will include a combination of acquisition of existing units from the private market as well as new construction. We are taking meaningful steps to address housing affordability challenges in B.C., said Rich Coleman, Minister of Natural Gas Development and Responsible for Housing. The purchase of existing units from the private market helps provide an immediate housing solution while the construction of new housing will ensure that the developments are predesigned to meet the specific needs of individuals and families. Funding allocations will be determined on a project specific basis. The Province has already identified several projects and announcements will be made upon approval in the coming months. All projects will be identified and approved by March Newly constructed housing will be completed over the next 24 to 36 months. (flickr.com) Today s announcement builds on the other housing affordability actions recently taken by the Province, including: HC /20/2016

145 B.C. makes largest housing investment ever in province s history BC Gov News Page 2 of 3 9/20/2016 Implementing a 15% additional property transfer tax that applies to foreign purchasers of residential real estate in Metro Vancouver; Strengthening consumer protection in B.C. s real estate market through increased oversight and accountability of real estate licensees; Introducing a new luxury tax on properties that sell for more than $2 million; and Introducing a Newly Built Homes exemption, which has helped nearly 5,500 families save an average of $7,600 on their newly built homes. The Province will continue to work on additional measures in the coming months to address housing affordability and supply challenges. These actions will align with our 6 Principles of Housing Affordability: 1. Ensuring the dream of home ownership remains within the reach of the middle class 2. Increasing housing supply 3. Smart transit expansion 4. Supporting first-time home buyers 5. Ensuring consumer protection 6. Increasing rental supply Press play again to access content from youtube.com. For more information, please read our Privacy statement. Always allow content from youtube.com Your preference will be saved using cookies. Learn More: To learn more about the Province's actions on housing affordability, visit: For information on housing affordability programs and services in B.C., visit: A backgrounder follows. Media Contacts Stephen Smart Press Secretary Office of the Premier Lindsay Byers Ministry of Natural Gas Development and Responsible for Housing Laura Mathews BC Housing HC - 145

146 B.C. makes largest housing investment ever in province s history BC Gov News Page 3 of 3 9/20/2016 Backgrounders Projects to be funded from $500 million investment The Province will fund a wide range of affordable housing projects throughout B.C. Below are some examples of the types of housing that will be created. Affordable Rental Projects Purchase of existing units from the private market or in new developments for low-to moderateincome renters. Specialty Housing Purchase and construction of units that can be designed for high functioning adults with developmental disabilities and youth aging out of care (18+). Rural Seniors Housing Modular construction of affordable seniors rental housing developments in rural areas of the province. Non-Rural Seniors Housing Purchase and construction of units for affordable senior s rental housing in non-rural areas of the province. Student Housing Through partnerships with post secondary institutions, construction of new student housing. Youth Transition Housing Purchase and renovation of homes across the province that can be repurposed into youth transition housing. Aboriginal People Through partnerships with the Aboriginal housing sector as well as First Nations, construction of new rental housing both on and off reserve. Women and Children Construction of new housing targeted to low-to moderate-income single women and children who are fleeing abuse. Acquisitions Strategic acquisitions of sites to protect the supply of affordable rental housing. Media Assets affordablehousing_broll.mp4 billosborne_podium.mp4 christyclark_podium.mp4 HC - 146

147 Service Canada Ottawa ON KIA 019 Mr. Greg Moore Chair Metro Vancouver Board 4330 Kingsway Burnaby BC V5H 4G8 Ac11on:...~...~~=n::::::c::=-~::::...n;; iii on toh n ~''' ~~., _,..,,, ~1''''"'""--~c. " - - lnlocopy:...\l 't. :zj::.o:;:;"(j~ Rll No.:...C..ft~q:z~ Doc. No.:...,_.._l!fif:J~'L CN:J Tracker No.:.:1J2.{r.::..::::::::...Z.... Cvo.U 1ft,~ : 175'b8?6' Dear Mr. Moore: ~tfo//~ On behalf of the Honourable Jean-Yves Duclos, Minister. of Families, Children and Social Development, I am responding to your letter of April 15,2016, concerning the Homelessness Partnering Strategy (HPS) and the challenges facing Vancouver regarding implementation of the Housing First approach and investment of the program budget. I regret the delay in replying. I appreciate the concerns that prompted you to write. The Government of Canada is concerned about homelessness. Addressing homelessness requires a cooperative approach because of the many factors that contribute to this issue, including poverty, housing afford ability, mental and physical health, labour market vulnerabilities, education and literacy levels, as well as other obstacles faced by homeless individuals. The HPS is aimed at preventing and reducing homelessness in Canada. Recognizing that homelessness is a shared responsibility, the HPS works to enhance partnerships with provincial and territorial governments and a wide range of community stakeholders to find longer-term solutions to homelessness, strengthen community capacity and build sustainability. As you are aware, Housing First under the HPS is being phased in, with graduated investment targets, taking into account varying capacity and resources among communities. This approach was designed to ensure that communities adopt Housing First as a cornerstone of their plan to address homelessness, yet continue to have the opportunity and flexibility to invest in other proven approaches and priority areas. Service Canada is committed to working with the Community Entity and the Community Advisory Board to optimize the investment of HPS funds and to support the implementation of an effective Housing First approach in Vancouver Canada HC - 147

148 It is my understanding that Metro Vancouver's HPS-designated communities' funding allocation for was fully invested. If you have further questions, I encourage you to communicate with Jamie Leclerc, Service Canada's Service Manager for Vancouver, by telephone at or by at jamie.leclerc@servicecanada.gc.ca. Thank you for writing. Yours sincerely, Lorri Biesenthal Director General Program and Services Oversight Program Operations Branch HC - 148

149 6.9 Ministry of Finance Tax Information Sheet ISSUED: July 2016 REVISED: July 27, 2016 Information Sheet gov.bc.ca/propertytransfertax Additional Property Transfer Tax on Residential Property Transfers to Foreign Entities in the Greater Vancouver Regional District Property Transfer Tax Act Latest Revision: The revision bar ( ) identifies changes to the previous version of this information sheet dated July For a summary of the changes, see Latest Revision on Page 4. Effective August 2, 2016, an additional property transfer tax applies to residential property transfers to foreign entities in the Greater Vancouver Regional District. The Greater Vancouver Regional District includes Anmore, Belcarra, Bowen Island, Burnaby, Coquitlam, Delta, Langley City and Township, Lion s Bay, Maple Ridge, New Westminster, North Vancouver City and District, Pitt Meadows, Port Coquitlam, Port Moody, Richmond, Surrey, Vancouver, West Vancouver, White Rock and Electoral Area A. The additional tax does not apply to properties located on Tsawwassen First Nation lands. The additional tax applies on all applicable transfers registered with the Land Title Office on or after August 2, 2016, regardless of when the contract of purchase and sale was entered into. Foreign Entities Foreign entities are transferees that are foreign nationals, foreign corporations or taxable trustees. Foreign nationals are transferees who are not Canadian citizens or permanent residents, including stateless persons. PO Box 9427 Stn Prov Gov Victoria BC V8W 9V1 HC - 149

150 Foreign corporations are transferees that are corporations: not incorporated in Canada or incorporated in Canada, but controlled in whole or in part by a foreign national or other foreign corporation, unless the shares of the corporation are listed on a Canadian stock exchange Taxable trustees are trustees that are a foreign national or foreign corporation, or a beneficiary of a trust that is a foreign national or foreign corporation. Applying the Additional Tax The additional tax on property transfers to foreign entities is 15% of the fair market value of the foreign entity s proportionate share of a residential property located in whole or in part in the Greater Vancouver Regional District, excluding Tsawwassen First Nation lands. This tax applies in addition to the general property transfer tax. The additional tax does not apply to non-residential property. The value of the residential portion of a transfer is calculated in the same way as for the property transfer tax. The additional tax applies on the foreign entity s proportionate share of any applicable residential property transfer, even when the transaction may normally be exempt from property transfer tax. This includes transactions such as: a transfer between related individuals a transfer resulting from an amalgamation a transfer to a surviving joint tenant a transfer where the transferee is or becomes a trustee in relation to the property, even if the trust does not change The additional tax does not apply to trusts that are mutual fund trusts, real estate investment trusts or specified investment flow-through trusts. Filing and Paying the Additional Tax Filing the Return Foreign entities registering a transfer, or their legal representative, must file an Additional Property Transfer Tax Return (FIN 532). The return must be filed at the time the property transfer is registered with the Land Title Office. Filing instruction can be found on the return, or at gov.bc.ca/propertytransfertax on the File Your Taxes page. Additional Property Transfer Tax on Residential HC Property Transfers to Foreign Entities Page 2 of 4

151 Paying the Additional Tax The additional tax must be paid with the general property transfer tax at the time the property transfer is registered with the Land Title Office. Each transferee is jointly and severally liable for the additional tax payable. If one transferee does not pay the required additional tax, the other transferees, including Canadians, must pay that transferee s share of the additional tax payable. Tax Avoidance All property transfer transactions are subject to audit and all additional property transfer tax returns will be reviewed and verified. The audit period is six years from the date the transfer is registered at the Land Title Office. Where transactions involve Canadian citizens and permanent residents their identity must be verified using official government issued identification. The social insurance number (SIN) must be collected and verified to be that of the transferee by viewing the SIN card and comparing the name or by viewing one of the following: T4 Statement of Remuneration Paid (slip) Canada Revenue Agency Notice of Assessment Invalid social insurance numbers or other discrepancies on a return will lead to an audit and investigation of the transaction. Anti-avoidance provisions exist and will be enforced to ensure all foreign entities report and pay the additional tax as required, including examining circumstances where Canadians hold property in trust for a foreign entity or are trustees where a beneficiary may be a foreign entity. Failure to pay the additional tax as required or purposely completing the general or additional property transfer tax return with incorrect or misleading information may result in a penalty of the unpaid tax plus interest and a fine of $200,000 for corporations or $100,000 for individuals and/or up to two years in prison. The penalties apply to anyone who participates in tax avoidance. Property transfers will be monitored for compliance and the province will follow up with those businesses or individuals filing incomplete or incorrect general or additional property transfer tax returns. Additional Property Transfer Tax on Residential HC Property Transfers to Foreign Entities Page 3 of 4

152 Further Information Online: gov.bc.ca/propertytransfertax Toll free in BC: pttenq@gov.bc.ca Subscribe to our What's New page to receive updates when information changes. The information in this notice is for your convenience and guidance and is not a replacement for the legislation. Latest Revision July 27, 2016 Clarified that the identity of Canadian citizens and permanent residents must be verified using official government issued identification. Clarified the social insurance number (SIN) must be collected and verified to be that of the transferee by viewing the SIN card and comparing the name or by viewing one of the following: o T4 Statement of Remuneration Paid (slip) o Canada Revenue Agency Notice of Assessment Additional Property Transfer Tax on Residential HC Property Transfers to Foreign Entities Page 4 of 4

153 6.10 Submission to the House of Commons Finance Committee 2017 Pre- Budget Consultations Submitted by: Canadian Housing and Renewal Association August 2016 HC - 153

154 The Canadian Housing and Renewal Association (CHRA) is the voice of the affordable housing sector in Canada. Our members include social housing providers, homelessness organizations, provincial and territorial housing departments, and supportive municipalities, individuals, businesses, and non profit associations. CHRA s mission is to ensure that all Canadians have an affordable, secure and decent place to call home. Scope of the Challenge There are over 600,000 social and affordable housing units in Canada, which provides housing needs to over a million Canadians. These social housing units provide an opportunity for these individuals and families to live, work, and play in homes that they may not otherwise be able to afford. However, an ongoing lack of federal investment in and support for social housing has led to concern over whether the sector can meet the growing needs for its services. A snapshot of some of the relevant data points include: Over the past 25 years, Canada s population has increased by 30% while annual federal investment in affordable housing decreased by 46%. Operating Agreements have already begun to expire; by 2040, federal investment in affordable housing will be zero. Nearly 235,000 Canadians will experience homelessness this year. Nearly 25% of Canadian households cannot afford their housing costs. Recent developments CHRA has been a strong advocate for federal leadership in the affordable housing sector. In February 2016, CHRA, in partnership with six other housing stakeholders, released a position paper entitled Affordable housing: A Foundation for Social Inclusion, which contained funding recommendations in 3 key areas: Protect and new existing social housing assets by renewing funding for units whose Operating Agreements are set to expire, and target grants for capital repairs and retrofits Build 100,000 new units of affordable and social housing to address waiting lists Support community transformation and innovation by allowing housing providers to diversify their operations. In the 2016 federal Budget, the Government of Canada announced $2.3 billion in new funding for affordable housing, spread out over a number of programs. For the most part, these funding announcements were 2 years in duration. CHRA welcomed these announcements, calling them a positive down payment in addressing a number of the strains facing the housing sector. Although these budgetary announcements were welcome, there remain many ongoing challenges and barriers facing social and affordable housing providers in being able to deliver on the objective of providing safe and affordable housing for all Canadians. National Housing Strategy Consultation In the 2016 Budget, the federal government made the following commitment: To ensure that these investments are most effective and to help the social housing sector achieve self- reliance, the Government will consult with provinces and territories, Indigenous and other communities, and key stakeholders in the coming year to develop a National Housing Strategy. On June 28, 2016, the Minister of Families, Children, and Social Development announced a formal consultation process with HC - 154

155 Canadians to develop a National Housing Strategy, with a report expected to be released in late November CHRA welcomed this announcement, and since the announcement of the consultation process in June 2016, CHRA has actively engaged with its members and other stakeholders to develop a tangible policy framework containing specific recommendations for presentation to the government. CHRA expects to finalize these recommendations by October 2016, and will be pleased to share a copy of our recommendations with the Finance Committee at that time. Among the areas of focus for those recommendations will include measures to address homelessness, protection of rent geared to income units, and provision of alternative financing solutions that can use the equity contained in housing properties to provide capital for housing providers. In addition, within those recommendations, CHRA will identify the need for an urban Aboriginal housing strategy that would require a unique policy framework for implementation. Once the Minister releases the consultation report s findings, the federal government will need to work in partnership with provinces, territories, municipalities, and key stakeholders such as CHRA to design an implementation and action plan. This will be an ambitious initiative on a complex file. CHRA is therefore recommending that given the complexities involved, the House of Commons Finance Committee hold hearings into the proposed National Housing Strategy in advance of presentation of the 2017 Budget, so as to provide the Minister with advice and insight into how an action plan could be properly implemented and funded. Immediate ecommendations Whereas the National Housing Strategy consultation process will drive much of the policy discussion on affordable housing policy over the coming months, there are a number of immediate measures that the federal government could take that would align with pre- existing policies and commitments that the federal government has already made with regard to housing policy. These include: a) Implement the mandate letter commitment regarding federal surplus lands through expansion of the Surplus Federal Real Property for Homelessness Initiative (SFRPHI): In the mandate letter to the Minister of Families, Children, and Social Development, the Prime Minister asked the Minister to undertake the following initiative: Work with the Minister of Public Services and Procurement to conduct an inventory of all available federal lands and buildings that could be repurposed, and making some of these lands available at low cost, or no cost, for affordable housing. The Government of Canada already has in place the Surplus Federal Real Property for Homelessness Initiative (SFRPHI), which makes surplus federal real properties available for transitional, permanent supportive, longer- term housing and related support and emergency services for the nominal rate of $1 dollar. The program then pays fair market value to the custodian department for the property. Funding for this program is in place until March 31, However, funding under the program is only $2 million per year, and some lands, such as surplus military lands, may be transferred to the Canada Lands Corporation for purposes other than those contained in the SFRPHI program, including commercial purposes. Given the directive in the mandate letter, CHRA recommends that the federal government expand the SRPHI program. Additional funds should be allocated to permit a greater number of surplus federal HC - 155

156 properties to be used for transitional, social, and affordable housing purposes. SFRPHI should also be expanded so that a greater proportion of federal lands, including surplus military lands, fall under the program s mandate and goals. The SFRPHI program should also be made permanent, so that federal surplus lands that become available after 2019 would become available under the program, allowing both the government and housing providers to make longer- term planning decisions. b) Remove the funding cap for the mortgage pre- payment program, and introduce greater application flexibility: In the 2015 federal Budget, the government announced $150 million over four years to allow eligible co- operative and non- profit housing providers with long- term, non- renewable CMHC mortgages to pre- pay their mortgages without penalty. Upon prepayment, housing providers would be able to access financing from the private market at current interest rates, which will lower mortgage expenses and help to keep rents affordable. Given that many housing providers were locked into long- term mortgages with rates exceeding 8 or 9%, this announcement was welcome, as it would allow providers to renew mortgages at much lower interest rates, resulting in immediate savings to the housing providers. The Minister of Families, Children, and Social Development confirmed in an announcement in June 2016 that this program was moving forward for eligible co- op and affordable housing providers. However, in announcing the program guidelines, the program set forth annual fixed deadlines for applications, even though the negotiation process for securing new financing arrangements by housing providers is variable, and in some cases time sensitive, and therefore may not align with the program s application deadlines and wait times. In addition, although the $150 million is welcome, it may not ultimately meet the needs of all housing providers who wish to take advantage of the pre- payment. CHRA is therefore recommending that a) the federal government remove the $150 million cap and extend the program to all housing providers in need, and b) replace annual deadlines with an open ended intake of applications. Applications should be reviewed in a timely manner with approval/rejection taking no more than 6 weeks. c) Implement removal of GST off new rental housing: Among the measures contained in the Ministerial mandate letters was the following directive to the Minister of Families, Children, and Social Development: Work with the Minister of Finance to encourage the construction of new affordable rental housing by removing all GST on new capital investments in affordable rental housing. CHRA recommends that the federal government move immediately to implement this directive, which would serve as a positive incentive to create additional rental units at a time when rental units are required due to soaring housing prices in many urban areas in Canada. CHRA furthermore recommends that eligibility for this policy be extended to mixed market units, whereby individual housing projects would not be required to be 100% rental in scope, but could involve a mix of both rental and subsidized (eg, rent geared to income) units. With the of End of Operating Agreements, social and affordable housing providers are looking at mixed income models as one potential option towards viability; for those providers looking to pursue this option, such a policy could help in the transition. HC - 156

157 Conclusion CHRA appreciates this opportunity to share its recommendations with the Standing Committee on Finance. CHRA welcomes and applauds the federal government s interest in strengthening the social housing sector in Canada. CHRA believes that a number of immediate measures can and should be taken to address the challenges facing the social housing sector, and that align with previous commitments and policy choices made by the federal government. However, it is clear that the enactment of a National Housing Strategy has the potential to address a number of longer- term and structural concerns facing housing providers. As such, CHRA looks forward to sharing and discussing with the Committee those longer- term strategies once finalized, and that the Committee has the opportunity to review and provide feedback to the government on those measures in advance of their implementation. SUMMARY OF RECOMMENDATIONS 1. CHRA recommends that the House of Commons Finance Committee hold hearings into the National Housing Strategy implementation and action plan in advance of the 2017 Budget. 2. CHRA recommends that the government implement the mandate letter commitment to create an inventory of available federal lands by expanding the existing Surplus Federal Real Property for Homelessness Initiative (SFRPHI). Expansion of the program would include an increase unding o ermit reater umbers f urplus ederal roperties o e ade available for transitional, social and affordable housing purposes, and to divert federal surplus properties that may be used for other purposes to fall under the SFRPHI. CHRA also recommends that the program be made permanent so as to allow for long term planning. 3. Remove the funding cap for the mortgage pre payment program, and introduce greater application flexibility. 4. CHRA recommends that the federal government implement s andate tter ommitment o remove the GST off new affordable rental housing units, and that eligibility for this policy be extended to mixed market unit projects. HC - 157

158 metrovancouver 6.11 SERVICES AND SOLUTIONS FOR A LIVABLE REGION Office of the Chair Tel Fox SEP File: CR The Honourable Jean Yves Duclos Minister of Families, Children and Social Development and Minister responsible for the Canada Mortgage and Housing Corporation House of Commons Ottawa, Ontario K1A 0A6 Dear Minister Duclos: Proposed Federal Government Actions Strategy Re: Metro Vancouver Regional Affordable Housing On May 27, 2016, the Board of Directors of the Greater Vancouver Regional District ( Metro Vancouver ) adopted the Regional Affordable Housing Strategy and on June 29, 2016, forwarded that Strategy to the Government of Canada. We applaud the federal government s renewed commitment to affordable housing, specifically the $2.3 billion investment in housing over two years nationally, as well as the promise to develop a National Housing Strategy. The Metro Vancouver region faces unprecedented challenges affecting the non-market housing supply as well as the rental and ownership housing markets that require further federal action. The Metro Vancouver Regional Affordable Housing Strategy demonstrates that between 2011 and 2014, demand for units affordable to renters with household incomes under $50,000 per year exceeded supply by almost 6,800 units throughout the region. Looking ahead over the next 10 years, the annual housing demand in the region will be approximately 18,000 new units per year. Of this amount, rental housing demand is estimated at 5,500 new units, 3,500 units of which will be needed for households making less than $50,000 annually. According to the 2011 National Household Survey, 106,000 working renter households in the region made less than $50,000, which represents 50% of working renter households. To help alleviate this critical situation, the Metro Vancouver Board urges the federal government to take the actions articulated in the five broad goals of the Regional Affordable Housing Strategy, as listed below. (See enclosed for more details). Goal 1 Expand the Supply and Diversity of Housing to Meet a Variety of Needs - le. Collect and report reliable data about the sources and nature of regional housing demand. If warranted, request measures to counteract adverse impacts of external demand, i. vacant units and/or speculation Kingsway, Burnaby,BC,Canada VSH 4GB Greater Vancouver Regional District Greater Vancouver Water District Greater Vancouver Sewerage and Drainage District HC Metro Vancouver Housing Corporation

159 The Honourable Jean Yves Duclos, Minister of Families, Children & Social Development and Minister responsible for the Canada Mortgage & Housing Corporation Proposed Federal Government Actions Regional Affordable Housing Strategy Page 2 of 3 ii. If appropriate, identify ways that foreign investment Could be directed to enhance housing supply and affordability in Metro Vancouver, for example through investment in purpose- built rental housing, or by directing additional fees or taxes towards affordable housing. Goal 2- Expand the Rental Supply and Balance Preservation of Existing Stock with Redevelopment while Supporting Existing Tenants 2p. Reinstate federal tax incentives to stimulate new purpose-built market rental supply. Zq. Institute a new direct lending program with affordable rates for new purpose-built rental housing as advocated by the Federation of Canadian Municipalities (FCM). 2r. Offer an Eco-energy Tax Credit to encourage small apartment building owners to invest in retrofits as advocated by Federation of Canadian Municipalities (FCM). Goal 3-Meet Housing Demand Estimates For Very Low and Low Income Earners 3a. Renew expiring non-profit and cooperative housing operating agreements, including ongoing subsidy for low-income households. 3f. Address funding gaps for very low and low income housing (i.e. capital funding or subsidies for new non-profit and cooperative housing, rent supplements for single persons, and tax incentives for sale of purpose built rental housing to non-profit housing organizations). 3y. Provide rent supplements or ongoing subsidies for low-income tenants in existing cooperative and non-profit housing projects with expiring operating agreements. 3z. Institute a rental housing protection tax credit to preserve existing purpose built rental units through their sale to non-profit housing organizations as advocated by the Federation of Canadian Municipalities. Goal 4-Increase the Rental Housing Supply along the Frequent Transit Network 4f. Expand the Frequent Transit Network as a means of improving affordable access and overall household affordability in the region. 4i. Review opportunities to leverage surplus or underutilized public properties in frequent transit locations for rental housing for very low to moderate income households. 4n. Ensure that future investments in affordable housing give priority to locations that are proximate to the Frequent Transit Network. HC - 159

160 scattered site units with rent supplements in the private market, over the next 10 years. homeless through a Combination of purpose-built, dedicated subsidized buildings and 5b. Provide 6,200 additional housing units with support (as needed) for people who are Goal 5-End Homelessness in the Region Metro Vancouver Housing Committee Stéphan Corriveau, President, Canadian Housing and Renewal Association Metro Vancouver Mayor and Councils Thank you for your attention. actions to help address serious and longstanding who otherwise meet the criteria, such as youth, women with children and families. populations who do not meet all the criteria for chronic and episodic homelessness, but 5q. Broaden eligibility for Homelessness Partnering Strategy Housing First funds to include residents to maintain their existing housing, locate new housing in crisis situations and address issues which may contribute to homelessness. 5p. Increase funding for housing outreach, referral and advocacy programs, which enable homelessness. 50. Provide capital/and or operating funding for transitional and supportive housing, including low-barrier housing and shelters for the homeless and those at risk of The Honourable Jean Yves Duclos, Minister of Families, Children & Social Development and Minister responsible for the Canada Mortgage & Housing Corporation Proposed Federal Government Actions Regional Affordable Housing Strategy Page 3 of 3 We ask that you and your federal counterparts Yours truly, Chair, Metro Vancouver Board GMfoLJme cc. Clark Somerville, President, Federation of Canadian Municipalites (FCM) BC Rental Housing Coalition, c/o Kishone Roy, BC Non Profit Housing Association End: Metro Vancouver Regional Affordable Housing Strategy 2016 (Dcc # ) HC Greg Moore housing issues in the Metro Vancouver region. consider and implement the foregoing proposed

161 metrovancouver 6.12 SERVICES AND SOLUTIONS FOR A LIVABLE REGION Office of the Chair TeL Fax File: CR SEP The Honourable Richard Coleman Minister of Natural Gas Development and Minister Responsible for Housing and Deputy Premier Room 128, Parliament Buildings Victoria, BC V8V 1X4 Dear Minister Coleman: Re: Proposed Provincial Government Actions Strategy Metro Vancouver Regional Affordable Housing On May 27, 2016 the Board of Directors of the Greater Vancouver Regional District ( Metro Vancouver ) adopted the Regional Affordable Housing Strategy and on June 29, 2016, forwarded that Strategy to the Province of British Columbia. The provincial government s recent investment in affordable housing through the Provincial Investment in Affordable Housing program is welcomed. However, as you know, Metro Vancouver is experiencing high and rising home prices and very low rental vacancy rates that are threatening the future livability and prosperity of the region. The Metro Vancouver Regional Affordable Housing Strategy demonstrated that between 2011 and 2014 in Metro Vancouver, rental demand affordable to those with household incomes under $50,000 per year exceeded supply by almost 6,800 units. Looking ahead over the next 10 years, the annual housing demand in the region will be approximately 18,000 new units per year. Of this amount, rental housing demand is estimated at 5,500 new units, 3,500 units of which will be needed each year for households making less than $50,000 annually. According to the 2011 National Household Survey, 106,000 households in the region made less than $50,000, which represents 50% of renter households. To help alleviate this critical situation, the Metro Vancouver Board urges the Province to take the actions articulated under the five broad goals of the Regional Affordable Housing Strategy, as below (See enclosed for more details). Goal 1- Expand the Supply and Diversity of Housing to Meet a Variety of Needs le. Collect and report reliable data about the sources and nature of regional housing demand. i. If warranted, request measures to counteract adverse impacts of external demand, vacant units and/or speculation. ii. If appropriate, identify ways that foreign investment could be directed to enhance housing supply and affordability in Metro Vancouver, for example through Kingsway, Burnaby,BC,Canada V5H 4GB Greater Vancouver Regional District Greater Vancouver Water District Greater Vancouver Sewerage and Drainage District Metro Vancouver Housing Corporation HC - 161

162 The Honourable Richard Coleman, Minister of Natural Gas Development and Minister Responsible for Housing and Deputy Premier Proposed Provincial Government Actions Regional Affordable Housing Strategy Page 2 of 4 investment in purpose- built rental housing, or by directing additional fees or taxes towards affordable housing. ip. Provide a cost effective and timely process for considering changes to the Building Code that would promote innovation in affordable housing. Goal 2- Expand the Rental Supply and Balance Preservation of Existing Stock with Redevelopment while Supporting Existing Tenants 2n. Review all provincial taxes and assessment practices, including property transfer tax, to ensure they do not impede the delivery of rental housing. 20. Review Residential Tenancy Act provisions for relocating tenants in a redevelopment situation with a view to enhancing provisions (i.e. moving expenses, notification, reduced rent, free month s rent) to mitigate the impact of relocation and to enable tenants to find suitable alternative accommodation. Goal 3- Meet Housing Demand Estimates For Very Low and Low Income Earners 3a. Renew expiring non-profit and cooperative housing operating agreements, including ongoing subsidy for low-income households. 3t. Work with residential development industry stakeholders to improve the administration of air space parcels. 3u. Expand the eligibility of provincial rent supplements to other populations, including single persons. 3v. Increase Rental Assistance Program (RAP) and Shelter Aid for Elderly Renters (SAFER) rent and! or income threshold levels in Metro Vancouver, to account for rising rent levels. 3w. Create new capital funding options to increase the supply of non-profit and cooperative housing, particularly in transit-oriented locations. 3x. Provide support for non-profit housing societies wishing to build their capacity to develop new non-profit housing. Goal 4-Increase the Rental Housing Supply along the Frequent Transit Network 4f. Expand the Frequent Transit Network as a means of improving affordable access and overall household affordability in the region. HC - 162

163 The Honourable Richard Coleman, Minister of Natural Gas Development and Minister Responsible for Housing and Deputy Premier Proposed Provincial Government Actions Regional Affordable Housing Strategy Page 3 of 4 4i. Review opportunities to leverage surplus or underutilized public properties in frequent transit locations for rental housing for very low to moderate income households, where appropriate, to achieve long-term housing, transit and financial objectives. 4n. Ensure that future investments in affordable housing give priority to locations that are proximate to the Frequent Transit Network. Goal S End Homelessness in the Region Sb. SI. Provide 6,200 additional housing units with support (as needed) for people who are homeless through a combination of purpose-built, dedicated subsidized buildings and scattered site units with rent supplements in the private market, over the next 10 years. Increase the shelter component of income assistance on a regular basis to reflect the cost of living in Metro Vancouver. Sm. Provide a provincially funded rent bank, which can provide short-term financing to families and individuals at risk of eviction and homelessness. Sn. Provide funding to local homeless planning tables, to enable them to coordinate a response to local area service needs, conduct outreach and promote public awareness. 5. Provide capital/and or operating funding for transitional and supportive housing, including low-barrier housing and shelters for the homeless and those at risk of homelessness. Sp. Increase funding for housing outreach, referral and advocacy programs, which enable residents to maintain their existing housing, locate new housing in crisis situations and address issues which may contribute to homelessness. We ask that you consider and implement the foregoing proposed actions to address serious and longstanding housing affordability issues in Metro Vancouver. Thank you for your attention. Yours truly, Greg Moore Chair, Metro Vancouver Board C M/D L/me HC - 163

164 The Honourable Richard Coleman, Minister of Natural Gas Development and Minister Responsible for Housing and Deputy Premier Proposed Provincial Government Actions Regional Affordable Housing Strategy Page 4 of 4 cc: End: Honourable Michael de Jong, BC Minister of Finance Honourable Todd Stone, BC Minister of Transportation and Infrastructure Metro Vancouver Housing Committee Metro Vancouver Mayor and Councils BC Rental Housing Coalition, do Kishone Roy, BC Non Profit Housing Association Al Richmond, President, Union of British Columbia Municipalities (UBCM) Metro Vancouver Regional Affordable Housing Strategy 2016 (Doc# ) 11S2371 HC - 164

165 6.13 metrovancouver SERVICES AND SOLUTIONS FOR A LIVABLE REGION Office of the Chair Tel Fax File: CR SEP Karen Matty, Chair, Board of Directors Fraser Health Suite 400, Central City Tower nd Avenue Surrey, BC V3T OH1 Dear Ms. Matty: Re: Proposed Fraser Health Authority Actions Strategy Metro Vancouver Regional Affordable Housing On May 27, 2016, the Board of Directors of the Greater Vancouver Regional District ( Metro Vancouver ) adopted the Regional Affordable Housing Strategy (enclosed). The Metro Vancouver region faces unprecedented housing affordability and homelessness issues, including continued growth of the number of people homeless, a lack of new non-market housing supply, low rental vacancy rates, and rising rents. Mental health and addiction issues make finding adequate housing with suitable supports critical for addressing the needs of the homeless. The Health Authority plays a key role in providing mental health and addiction services, as well as providing operating funding for support services in supportive housing for the homeless. Ensuring well-functioning preventive mental health and addiction services is key to preventing future homelessness from occurring. To help alleviate this critical situation, the Metro Vancouver Board urges Fraser Health to take the actions laid out in the Metro Vancouver Regional Affordable Housing Strategy, specifically under Goal 5 as listed below. Goal 5 End Homelessness in the Region - Proposed Health Authority Actions: Sb. Provide 6,200 additional housing units with support (as needed) for people who are homeless through a combination of purpose-built, dedicated subsidized buildings and scattered site units with rent supplements in the private market, over the next 10 years. Sc. Provide housing and support throughout the region that meets the needs of specific priority populations, such as housing specific to homeless youth, seniors, women, families, Aboriginal Peoples, people with mental health, addictions and/or other health issues, people with disabilities, francophones, the LGBT2Q population, newcomers and refugees Kingsway, Burnaby,BC, Canada V5H 4GB Greater Vancouver Regional District Greater Vancouver Water District Greater Vancouver Sewerage and Drainage District Metro Vancouver Housing Corporation HC - 165

166 Karen Matty, Chair, Board of Directors, Fraser Health Proposed Fraser Health Authority Actions Metro Vancouver Regional Affordable Housing Strategy Page 2 of 2 Sr. Ss. St. Su. Provide operating funding for transitional and supportive housing for persons who are homeless and at risk of homelessness. Develop and implement mental health and addictions services with a goal of preventing homelessness. Develop an integrated pest management strategy to deal with bed bugs and other infestations which can compromise livability and, in severe situations, result in homelessness. Enhance coordination related to ho5pital discharge for patients that do not have access to adequate housing and develop temporary housing and support options to enable them to stabilize their health and regain their independence. 5v. Ensure that the Assertive Community Treatment (ACT) Teams work closely with municipalities to address the needs of people with severe and persistent mental illness and addictions and that they target the needs of and work with the street entrenched homeless population. 5w. Fund municipal Hoarding Action Response Teams, which can intervene in situations of severe hoarding and support individuals to manage their hoard and maintain their existing housing. We are asking that you consider and implement the foregoing proposed actions to help address serious and longstanding homelessness issues in the Metro Vancouver region. Thank you for your attention. Yours truly, Greg Moore Chair, Metro Vancouver Board GM/DL/me cc: Metro Vancouver Housing Committee Metro Vancouver Mayor and Councils Chair of the Board, Vancouver Coastal Health Authority BC Rental Housing Coalition do Kishone Roy, BC Non Profit Hou5ing Association End: Metro Vancouver Regional Affordable Housing Strategy 2016 (Dcc # ) HC - 166

167 : 6.14 metrovancouver SERVICES AND SOLUTIONS FOR A LIVABLE REGION Office of the Chair Tel FoxGO File: CR SEP Kip Woodward, Chair, Board of Directors Vancouver Coastal Health 11th Floor, 601 West Broadway Vancouver, BC V5Z4C2 Dear Mr. Woodward: Proposed Vancouver Coastal Health Authority Actions Affordable Housing Strategy Re: Metro Vancouver Regional On May 27, 2016, the Board of Directors of the Greater Vancouver Regional District ( Metro Vancouver ) adopted the Regional Affordable Housing Strategy (enclosed). The Metro Vancouver region faces unprecedented housing affordability and homelessness issues, including continued growth of the number of people homeless, a lack of new non-market housing supply, low rental vacancy rates, and rising rents. Mental health and addiction issues make finding adequate housing with suitable supports critical for addressing the needs of the homeless. Ensuring well-functioning preventive mental health and addiction services is key to preventing future homelessness from occurring. The Health Authority plays a key role in providing mental health and addiction services, as well as providing operating funding for support services in supportive housing for the homeless. To help alleviate this situation, the Metro Vancouver Board urges Vancouver Coastal Health to take the actions laid out in the Metro Vancouver Regional Affordable Housing Strategy, specifically under Goal 5 as listed below. Goal S End Homelessness in the Region - Proposed Health Authority Actions: Sb. Provide 6,200 additional housing units with support (as needed) for people who are homeless through a combination of purpose-built, dedicated subsidized buildings and scattered site units with rent supplements in the private market over the next 10 years. Sc. Provide housing and support throughout the region that meets the needs of specific priority populations, such as housing specific to homeless youth, seniors, women, families, Aboriginal Peoples, people with mental health, addictions and/or other health issues, people with disabilities, francophones, the LGBT2Q population, newcomers and refugees Kingsway, Burnaby, BC, Canada V5H 4G Greater Vancouver Regional District Greater Vancouver Water District Greater Vancouver Sewerage and Drainage District HC Metro Vancouver Housing Corporation

168 Kip Woodward, Chair, Board of Directors, Vancouver Coastal Health Proposed Vancouver Coastal Health Authority Actions Metro Vancouver Regional Affordable Housing Strategy Page 2 of 2 Sr. Provide operating funding for transitional and supportive housing for persons who are homeless and at risk of homelessness. 55. Develop and implement mental health and addictions services with a goal of preventing homelessness. St. Su. Develop an integrated pest management strategy to deal with bed bugs and other infestations which can compromise livability and, in severe situations, result in homelessness. Enhance coordination related to hospital discharge for patients that do not have access to adequate housing and develop temporary housing and support options to enable them to stabilize their health and regain their independence. 5v. Ensure that the Assertive Community Treatment (ACT) Teams work closely with municipalities to address the needs of people with severe and persistent mental illness and addictions and that they target the needs of and work with the street entrenched homeless population. 5w. Fund municipal Hoarding Action Response Teams, which can intervene in situations of severe hoarding and support individuals to manage their hoard and maintain their existing housing. We are asking that you consider and implement the foregoing proposed actions to help address serious and longstanding homelessness issues in the Metro Vancouver region. Thank you for your attention. Yours truly, Greg Moore Chair, Metro Vancouver Board GM/DLIme cc. Metro Vancouver Housing Committee Metro Vancouver Mayor and Councils Chair of the Board, Fraser Health Authority BC Rental Housing Coalition do Kishone Roy, BC Non Profit Housing Association End: Metro Vancouver Regional Affordable Housing Strategy 2016 (Doe # ) HC - 168

169 6.15 metrovancouver SERVICES AND SOLUTIONS FOR A LIVABLE REGION Office of the Chair Tel Fox SEP File: CR-12-o1 Don Rose, Chair, Board of Directors TransLink Kingsway Burnaby, BC V5H 4N2 Dear Mr. Rose: Re: Proposed TransLink Actions Metro Vancouver Regional Affordable Housing Strategy On May 27, 2016 the Board of Directors of the Greater Vancouver Regional District ( Metro Vancouver ) adopted the Regional Affordable Housing Strategy (Attachment 1). During consultation, TransLink staff made substantial contributions to the preparation of the Metro Vancouver Regional Affordable Housing Strategy. As the region s transportation authority, TransLink is uniquely positioned to be a leader in the integration of housing and transit. The Metro Vancouver Housing and Transportation Cost Burden Study (Attachment 2) showed that tackling housing and transportation costs concurrently is a strategic approach for addressing the region s affordability challenges. A stable workforce that can afford to live and travel regionally is critical to the economic prosperity of the region, the province, and the country. Metro Vancouver is experiencing high and rising home prices and low rental vacancy rates that are threatening the future livability and prosperity of the region. The Metro Vancouver Regional Affordable Housing Strategy demonstrates that it has not been possible to achieve needed new affordable rental supply in recent years due to lack of senior government funding. Between 2011 and 2014 in Metro Vancouver, demand for rental units affordable to households with incomes under $50,000 per year exceeded supply by almost 6,800 units. Looking ahead over the next 10 years, the annual housing demand in the region will be approximately 18,000 new units per year. Of this amount, the rental housing demand is estimated at 5,500 new units, of which 3,500 additional units will be needed each year for households making less than $50,000 annually. According to the 2011 National Household Survey, 1 in 2 working renter households in the region made less than $50,000 (106,000 households). To help alleviate this critical situation, the Metro Vancouver Board urges TransLink to take the actions laid out in the Regional Affordable Housing Strategy, as listed below. Goal 4- Increase the Rental Housing Supply along the Frequent Transit Network Proposed TransLink Actions: Kingsway, Burnaby,BC, canada V5H Greater Vancouver Regional District Greatervancouver Water District Greater Vancouver Sewerage and Drainage District-Metro Vancouver Housing Corporation HC - 169

170 Don Rose, Chair, Board of Directors, TransLink Proposed TransLink Actions Metro Vancouver Regional Affordable Housing Strategy Page 2 of 3 4f. Expand the Frequent Transit Network as a means of improving affordable access and overall household affordability in the region. 4i. Review opportunities to leverage surplus or underutilized public properties in frequent transit locations for rental housing for very low to moderate income households, where appropriate, to achieve long-term housing, transit and financial objectives. 4j. Collaborate with key stakeholders including municipalities, the private sector, Metro Vancouver, BC Housing, the provincial and federal government and others, to identify opportunities to create rental housing for low and moderate income households near existing and future FTN nodes and corridors, such as during the preparation of Area Transport Plans or other local area planning initiatives. 4k. Acknowledge the potential destabilizing effects on the existing more affordable purpose built rental housing stock and displacement of tenants when planning for new rapid transit corridors, and where unavoidable, consider working with project partners to support tenant relocation options, replacement policies and incentives for new purpose built market rental development. 41. Seek opportunities with partners to reduce household transportation expenditures in new developments in good transit locations through transportation demand management measures such as reducing parking requirements and the provision of cycling infrastructure /storage, walking paths, vehicle and ride sharing options, and transit fare incentives. 4m. Develop, implement and monitor a regional transit fare policy, and future regional mobility pricing policy that considers household incomes and financial burden, and seeks to provide appropriate relief in particular for transit customers with the least financial means and mobility options. We are asking that TransLink consider and implement the foregoing proposed actions to address serious and longstanding affordability issues in Metro Vancouver. Thank you for your attention. Yours truly, Greg Moore Chair, Metro Vancouver Board GM/DL/me HC - 170

171 Don Rose, Chair, Board of Directors, TransLink Proposed TransLink Actions Metro Vancouver Regional Affordable Housing Strategy Page 3 of 3 cc. Metro Vancouver Housing Committee Metro Vancouver Mayor and Councils Mayors Council on Regional Transportation BC Rental Housing Coalition do BC Non Profit Housing Association Attachments: 1. Metro Vancouver Regional Affordable Housing Strategy 2016 (Dcc # ) 2. Metro Vancouver Housing and Transportation Cost Burden Study 2015 (Doe # ) HC - 171

172 6.16 VILLAGE OF ANMORE 2697 Sunnyside Road AnmorflC GMU Acow August 9, 2016 Greg l 1oore Chair, Metro Vancouver Board 4330 Kingsway Burnaby, BC V5H 4GB CtEP OJ1DIG.4 FoNo CQ.irQ(1 Doe. No, (.ri33r CAOTrackerNo.:..2QLa:%a I Dear Mr. Moore: Re: Regional Affordable Housing Strategy I am writing to inform you that your letter dated June 29, 2016 regarding the Regional Affordable Housing Strategy was considered by Village of Anmore Council at the Regular Council Meeting held on July 26, At which time, the following recommendation was adopted. THAT THE LETTER FROM METRO VANCOUVER DATED JUNE 29, 2016 REGARDING REGIONAL AFFORDABLE HOUSING STRATEGY BE RECEIVED FOR INFORMATION; AND THAT VILLAGE OF ANMORE COUNCIL SUPPORTS THE METRO VANCOUVER REGIONAL AFFORDABLE HOUSING STRATEGY, REVISED JUNE 20, 2016, AS A COLLABORATIVE APPROACH TO ADDRESSING REGIONAL HOUSING NEEDS. Please contact me if you have any questions in this regard. Sincerely, Christine Milloy Manager of Corporate Services Phone: Fax: village.hall@anmore.com Web: HC - 172

173 6.17 VILLAGE OF BELCARRA "Between Forest and Sea" 4084 BEDWELL BAY ROAD, BELCARRA, B.C. V3H 4P8 TELEPHONE FAX GM~ ~Ul"l l7'1 July 26, 2016 Aclloir...a;::;; ~:T*""~" :.~~ ~!;?-~ l5..c'""'<""c' lnlo Copy: k.~ Fils No.:...,.. Doc. No.:...,,..."''' CAO Tracker No.:... Greg Moore, Chair Metro Vancouver Board 4330 Kingsway Burnaby, BC V5H 408 Dear Mr. Moore: Re: Regional Affordable housing Strategy Please be advised that at a regular meeting of the Village of Belcarra Council held July 25, 2016, the following motion was passed: "That Council endorse the Metro Vancouver Regional Affordable Housing Strategy as a collaborative approach to addressing regional housing needs." We wish you the most success in your recommended actions with the federal and provincial governments and other key stakeholders. Sincerely, ~ Lorna Dysart Chief Administrative Officer J:\Files LD\Administration\Correspondence\ Greg Moore, MV Board Regional Affordable Housing Strategy.docx HC - 173

174 GM 0 :::Vt44 File No,..C Doc.No: I.. CAOTra&&1o.: Jonathan X. Coté.SQL,.NJM.ZQI&t4 Mayor September Greg Moore Chair. Metro Vancouver Board Metro Vancouver 4330 Kingsway Burnaby, BC V5H 4G8 Dear Chair Moore, Re: Metro Vancouver Regional Affordable Housing Strategy At a Regular Meeting on Monday. September 12. New Westminster City Council passed the following resolution: THA T Council endorse the at/ached Metro 1fJbrdable Housing Strategy (2016,); and Vancouver s Regional THA Ta letter be sent to Metro Vancouver requesting a/itt/her analysis of the iwderlving causes of rising regional housing prices, fbcirsing on the issues ofspeculation and housing being purchased as a conunodiw. If you have any questions regarding this matter, or would like more information, please contact me at jcoteqnewwestcity.ca or Yours truly. X. Coté Mayor Doc Office of the Mayor Corporation of the City of New Westminster 511 Royal Avenue, New Westminster, C Canada V3L 1F19 T (604)527 HC F (604) Page 1

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