Affordable Housing. RECOMMENDATION: THAT Council receive the report for information, and

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1 Affordable Housing RECOMMENDATION: THAT Council receive the report for information, and THAT Council direct staff to investigate and make recommendations with respect to amending the Zoning Bylaw to allow Z240 standard manufactured homes in residential zones. Previous Council Action: On January 14, 2013, Council received the December 17, 2012 minutes of the Land Use and Environment Committee but no further action was taken at that time. Report: Staff provided the attached report on affordable housing to the Land Use and Environment Committee on December 17, 2012 outlining what the District had done to date with respect to affordable housing policies and making recommendations for moving forward. Recommendations included conducting a Housing Needs Assessment and forming a Sooke Housing Committee which were forwarded to Council at the January 14, 2013 regular meeting and the minutes were received for information. No further action on the recommendations was taken at that time. Since that time, the District has supported the M'akola Housing Project (Hope Centre) and the Knox Church Housing Projects by waiving development cost charges and other associated fees. Currently, the Building Department is in receipt of seven building permit applications for housing that are constructed to the Z240 standard with an A277 certification. These are trailer-style homes manufactured to meet local building codes but are constructed so they no longer represent the typical "mobile home trailer" often associated with the Z240 standard and look like a small home. They are considered to be much more affordable than customary on-site construction but under the District's Zoning bylaw are only permitted in a Manufactured Home Park zone. The seven applications are for varying residential zones. It is recommended Council direct staff to further investigate the possibility of a text amendment to permit such homes in some or all residential zones. Strategic Relevance: Community Planning Ensure our bylaws reflect community needs and values. Leadership Team Regular Council - December 11, RPT File No

2 Attached Documents: Affordable Housing Staff Report to LUEC Dec 2012 Land Use and Environment Committee - Dec minutes Leadership Team Regular Council - December 11, RPT File No

3 Q File No REPORT FOR INFORMATION Land Use and Environment Committee Meeting Date: December 17, 2012 To: From: Re: Dave Gawley, Acting Chief Administrative Officer Tara Johnson, Planner II Affordable Housing in Sooke Information Report SUGGESTED ACTION: THAT THE LAND USE AND ENVIRONMENT COMMITTEE RECOMMEND to COUNCIL that a Housing Needs Assessment be prepared for Sooke using funds from the Housing Reserve Fund, AND THAT a Sooke Housing Committee be established to help assist in the Housing Needs Assessment process 1. Executive Summary: The District of Sooke has recognized that the availability and affordability of housing plays a critical role in creating opportunities for all community members with varying income levels and lifestyles. The District of Sooke has been encouraging the provision of affordable housing through a number of initiatives outlined below: Housing Reserve Fund Establishment Bylaw adopted by Council in June 2006, Affordable Housing & Social Housing Policy adopted by Council in October 2007, Manufactured Home Park Redevelopment Policy No. 8.5 adopted by Council October 2008, Two Housing Agreement Bylaws, each securing one affordable housing unit for ownership in two developments adopted by Council in 2009, Community Amenity Contribution Policy adopted by Council in 2009 (amended in 2010), The Sooke Town Centre Revitalization Bylaw adopted by Council in 2009, A new Official Community Plan adopted in 2010 that provides stronger policy direction and action items towards achieving more affordable housing in Sooke, Housing Options Forum held on September 13, 2011 by the District of Sooke, Reduced parking requirements by 50% in Town Centre within Zoning Bylaw 500, The sale of one affordable housing unit at 2260 Maple Ave North to a qualified purchaser in January 2012,

4 Secondary suites and small suites allowed on all residentially zoned properties when Council adopted Bylaw 524 in May 2012 Cluster dwellings (detached townhouses) allowed on land zoned multi-family and town centre south zones adopted by Council October Background: Housing is generally considered affordable when the cost for shelter does not exceed 30% of a household income. Affordable non-market housing is when there are price restrictions to limit the resale or rent of housing to a price that is lower than market value. Affordable market housing is when housing prices or rents are determined by the market and there are no subsidies, rent restrictions or resale restrictions. An example of affordable market housing is suites. Suites increase the supply of affordable rental and increase the affordability of home ownership but tenants are charged market rates for rent. Social housing is housing that requires ongoing government subsidy. The District of Sooke has expressed its commitment to helping achieve a community with a wide range of housing choices as expressed in Bylaw No. 500, Official Community Plan, 2010 (OCP). There are many strong housing policies within section of the OCP that seek to achieve affordability and accessibility. A few of these policies are: Section (b) Section (f) Section (g) Require that a minimum of 10% of all new multi-family and condominium units are affordable residential housing as defined by the District of Sooke and implemented through housing agreements, phased development agreements or through the use of density bonusing. The option shall be given to developers to locate their required affordable housing in close proximity to the Town Centre. Require that a minimum of 10% of the total of any proposed bareland or strata single family residential subdivisions are affordable housing lots as defined by the District of Sooke. Affordable single family lots shall be sold at an affordable rate through tools such as covenants and housing agreements. Consider allowing developers the flexibility to provide their required affordable housing mix in new developments, e.g. secondary suites, condominium rental units, cash, or land in lieu to the District of Sooke towards on/off-site affordable housing. There are also action items listed within section of the OCP that the District could initiate including: 2

5 In consultation with local service groups and non-profit organizations establish a Sooke Housing Committee or Corporation in order to create a governing body for affordable housing; Acquire or designate municipal land for affordable housing in order to create an affordable housing land bank in which to enter into partnership for the creation of affordable housing and seniors housing; Initiate partnerships with BC Housing, CMHC and the private sector to create affordable housing developments; Create a $50,000 affordable housing reserve fund that may be used for operational funds for a new Sooke Housing Committee or Corporation and/or acquiring public or private lands for the establishment of affordable housing or seniors housing. The Sooke Affordable and Social Housing Policy was adopted in October 2007 and identifies key housing goals and priorities for the District as well as recommending a number of short and long term actions. Although it is labelled as a policy, it is more of an affordable housing strategy as it provides a strategic framework, a how-to approach, on how affordable and social housing can be achieved through a number of mechanisms. There are four main goals in this policy, which include: 1. Provide a policy framework that creates affordable and social housing in Sooke. 2. Improve housing options for community members of all income levels by increasing the supply of safe, accessible affordable housing in Sooke. 3. Reduce costs associated with developing affordable housing. 4. Provide up-to-date and accurate information to the community. Goal # 1 Provide a policy framework that creates affordable and social housing in Sooke Sooke Council has been working on achieving goal # 1. The District of Sooke has an adopted Affordable and Social Housing Policy and has incorporated stronger policies in the OCP for Sooke s commitment to providing affordable housing. Official Community Plan 2010 Sooke s OCP supports different forms of affordable housing such as rental units, suites, assisted living needs, special needs housing, and entry level housing for first time purchasers as well as various incentives for the creation of affordable housing units such as bonus density incentives and amenity contributions. The OCP also requires that a minimum of 10% of all new multi-family and condominium units, as well as bareland, fee simple and strata single family residential subdivisions are designated as affordable residential housing. Affordable housing can be implemented through housing agreements, phased development agreements or through the use of density bonusing at time of a rezoning application. 3

6 Goal # 2 Increasing the supply of safe and accessible affordable housing Sooke Council has been working towards achieving goal #2 and has accomplished the following: Sooke Town Centre Revitalization Bylaw & Town Centre Plan Supporting housing intensification and revitalization in the Town Centre supports the creation of affordable housing. The Town Centre Revitalization Bylaw should also consider giving fee reductions to units that are for affordable homeownership, not just for rental units. Housing Reserve Fund A Housing Reserve Fund was established in June 2006 for the purpose of developing or assisting in developing affordable housing in Sooke. This reserve fund can be used to provide grants and incentives for non-profit and co-operative providers to build and manage affordable housing in Sooke and/or fund a Housing Needs Assessment for the community. At this point in time, this reserve fund holds $50, Community Amenity Contribution Policy The adoption of the Community Amenity Contribution Policy by Council in 2009 helps achieve goal # 2 by allowing Council to ask for contributions from developers at time of rezoning when base densities of a zone are exceeded. This is a considered a density bonus system. This can be done either in the form of built housing units or as cash in lieu to the affordable housing reserve fund. With the Spiritwood Estates CD9 Zone Council requested the developer to provide 23 affordable (rental and/or owned) housing units. To provide flexibility Council of the day also provided an option where if circumstances proved undesirable, a contribution of $15,000 per outstanding affordable housing unit not constructed to be made to the Sooke Housing Reserve Fund. Housing Agreement for Affordable Home Ownership Section 905 of the Local Government Act provides a tool for securing affordable housing units called a Housing Agreement. The District of Sooke has used the Housing Agreement tool twice. We have an affordable housing unit (detached single family dwelling) in 2260 Maple Avenue North that was sold to a qualified purchaser in January 2012 and there will be another affordable housing unit (townhouse unit) at 2044 Gatewood Road to be built during phase 3 of a multi-family project (phase 1 was recently completed). A Housing Agreement includes details of ownership, the size of the units, the maximum sales price of the unit(s), how long the unit will remain affordable for, eligibility criteria and other pertinent details. Each Housing Agreement is negotiated separately with the developer and is required to be adopted by bylaw. 4

7 The District has not had experience with Housing Agreements for affordable rental units. Assist Non-profits and Co-ops to Build Affordable Housing Sooke Council has in the past reduced or waived development cost charges for specified forms of affordable housing. Sooke has also supported and applied for grants for developments such as Ayre Manor which includes subsidized assisted living units. Manufactured Home Park Redevelopment Policy Manufactured home parks are also an important source and supply of affordable housing and add to the diversity of housing options for residents in Sooke. Council s adoption of this policy in 2008 allows Staff and Council to consider the impact that a rezoning of an existing manufactured home park may have on land use and provide tenants with the opportunity for greater notification and assistance from development proponents. The policy provides consistency to Landowners as to how the District of Sooke considers rezoning applications for existing manufactured home parks. These policy items are in addition to the legislated requirements of the Manufactured Home Park Tenancy Act. Secondary Suites & Small Suites A minimum lot size is no longer required to have a suite on a single family zoned residential lot. Suites provide more rental options within Sooke, provide homeowners with additional income to help ensure their ability to afford their home and helps families provide affordable housing options to relatives or children. Cluster Dwelling Units (Detached Townhouses) Now allowed on land zoned multi-family and land zoned town centre south. Cluster dwellings provide a different form of housing type to meet the diverse needs of individuals and families of varying income levels and demographics. Goal # 3 Reduce costs associated with developing affordable housing. Sooke Council has been working towards achieving goal # 3 and has accomplished the following: Sooke Town Centre Revitalization Bylaw All affordable rentals, market and non-market housing units constructed within the Town Centre receive a 100% reduction in both Building Permit fees and Development Cost Charges. This bylaw should also consider giving fee reductions to units that are for affordable homeownership, not just for rental. Community Amenity Contribution Policy When calculating density on a property to determine the amenity contribution amount, units that are to be constructed as affordable housing units are exempt. 5

8 Assist Non-profits and Co-ops to Build Affordable Housing Sooke Council has in the past reduced or waived development cost charges for specified forms of affordable housing. Reduced Parking Requirements within the Town Centre Sooke allows the number of parking spaces to be reduced by 50% in the Sooke Town Centre. This can save construction costs and can lower the cost of a unit to the consumer. Goal # 4 Provide up-to-date and accurate information to the community. Although Sooke s Affordable Housing & Social Housing Policy provides a lot of important context to understanding the population, household income, rental rates and vacancies within Sooke, this information should be updated to reflect 2011 Census data. The 2011 household income data will not be released until after May The data comparing housing prices from 2006 to 2011 should also be updated and this information is attainable from the Victoria Real Estate Board. Two housing studies have been completed for Sooke. The Sooke Elderly Citizens Housing Society (SECHS) commissioned a seniors housing market study in January 2010 and the Society of Saint Vincent de Paul in partnership with M akola Group of Societies commissioned a housing need and demand analysis for Sooke in October Both of these studies were part of feasibility assessments for an affordable housing development and for master planning. These studies provide valuable information towards the affordable housing situation in Sooke. A Housing Options Forum was held on September 13, 2011 by the District of Sooke to bring together local groups to get input on existing deficiencies in housing stocks, determine what the need for affordable housing is in Sooke and to strategize on what next steps should be initiated. 3. Analysis: At the Housing Options Forum held on September 13, 2011, staff asked the participants what types of housing does Sooke need. The responses included a need for more government subsidized housing in the form of group homes, emergency shelters, low cost rental ($300 - $500 per month), youth shelter, transition housing for families, rooming houses and drop in centres that have a bathroom, shower, phone and laundry facilities. The attendees also felt that there is a need for more non-market housing such as affordable small lot single family dwellings for single parent families, seniors housing, and rental apartments that all have resale price restrictions and rent restrictions to maintain affordability. The need to meet the full continuum of housing needs in Sooke, including special needs housing for the environmentally sensitive, was also expressed. 6

9 The Capital Regional District Regional Housing Affordability Strategy explains that the housing continuum is an important concept for housing policy and housing development because the level of financial and social supports required to construct the units and support the households change dramatically as one moves through the continuum. The private market may be able to deliver housing at the right side of the continuum, but funding subsidies are required as one moves to the left side of the continuum. Housing Continuum Absolute Homelessn ess Emergency Shelters Transitional Housing/ Social Housing Affordable Rental Housing rent restrictions Affordable Home Ownership resale restrictions Affordable Rental Housing suites, small lots, multi-family Affordable Home Ownership small lots, multifamily, cluster dwelling units Government Subsidized Housing (Social Housing) Affordable Non-Market Housing Affordable Market Housing On average, housing prices have increased since 2006 in Sooke. In comparison to the rest of the Greater Victoria Area, Sooke in 2011 had marginally lower housing prices. After taking into consideration the rising cost of gas and the fact that many residents in Sooke are weekly commuters, it s no surprise that more residential type units like townhouses and single family dwellings are sold in Langford and Colwood than in Sooke. More jobs and services are available in Langford and Colwood and it is possible to live without the need to own a vehicle thereby providing additional disposable income towards gaining access to suitable housing or owning a housing unit. According to the Victoria Real Estate Board, the following presents the annual average market prices in the year 2011 for different types of dwelling units in Sooke: Single Family Dwelling - $411,370, the lowest in the Greater Victoria Area; Townhouse - $325,533, the lowest in the Greater Victoria Area; Manufactured Homes - $150,167, the 3 rd lowest after Metchosin and Langford; Lots and Acreages - $280,077, the 3 rd lowest after Langford and Saanich West; Apartment/Condominiums only 4 sold. Annual average at $38, 850. The Victoria Real Estate Board also provides data on the total units sold in each of the Greater Victoria Area municipalities in each calendar year. 7

10 Does Sooke have any Non-Market Housing Units Secured? Sooke has been securing non-market affordable housing units through covenant at time of rezoning. When the developer is ready to develop, a Housing Agreement is then required. Sooke has secured the following: Location of Development 2260 Maple Ave North Number of Affordable Non-market units 1 detached single family dwelling (strata) Affordable Home Ownership SOLD Jan 2012 via terms of Housing Agreement for $160,000 Rental N/A Location of Affordable Housing Unit Strata Unit # 113, 2260 Maple Ave North 2044 Gatewood Road 1 townhouse unit (strata) Unit not built yet N/A Strata Unit # 306, 2044 Gatewood Road 7044 Maple Park Terrace 23 units Owner has option to pay cash in lieu of $15, for each unit that is not built 11 Units not built yet 12 units not built yet 3 units - Phase 1 3 units Phase 3 3 units - Phase 4 3 units - Phase 5 3 units - Phase 6 3 units - Phase 7 or 8 or combo 3 units - Phase 9 or 10 or combo 2 units - Phase 12 or 13 or combo Currently affordable housing contributions are negotiated on a case by case basis at time of rezoning application and secured through a covenant. By using the affordable housing policies within the OCP and the Community Amenity Contribution Policy, Council has the ability to ask for a percentage of units or specified number of units within that project to be designated as either affordable housing units for rental or ownership or a combination of the two. At time of development permit or subdivision, whichever comes first, a Housing Agreement Bylaw is presented to Council for discussion and consideration of adoption. The Housing Agreement determines the housing unit price, the eligibility criteria, the location of the affordable units within the development etc. Council also has the ability to ask that a developer contribute into the Housing Reserve Fund at time of rezoning application. For example, Council can ask for a percentage of the amenity contribution to be contributed cash-in-lieu through a Phased Development Agreement (PDA) into the Housing Reserve Fund. 8

11 Discussion of Next Steps The District of Sooke is heading in the right direction but as the population grows in Sooke, there will be more demand for Sooke to accommodate the different needs of housing, particularly accessible affordable housing. Taking action to achieve affordable housing can be immediate as Council can continue to ask for affordable housing contributions at time of rezoning on a case by case basis using Sooke s existing policies within the OCP and the Community Amenity Contribution Policy. By doing this, there is an opportunity to get more non-market housing units, as shown within the housing continuum constructed in Sooke. Council can also ask for cash-in-lieu of affordable housing units and the money within the Housing Reserve Fund could be used for example, to assist in the development of social housing through partnerships. Council could work towards initiating policy changes to achieve a policy similar to the City of Langford s Affordable Housing, Park and Amenity Contribution Policy which is an example of a stronger policy that requires developers of new subdivisions to build one affordable home for every 10 single family lots subdivided. The homes are then priced at 60% of market value. As incentives to build affordable units, there are potential density bonuses and streamlined development approval processes available to developers. The policy also addresses both market and non-market subsidized rental housing through pursuing partnerships with industry and other groups to provide rental units and mandating secondary suites in minimum 50% of all single family dwellings, except small lots. Partnerships with credit unions, mortgage brokers and insurers have also been established with the City of Langford to streamline mortgage pre-approvals and save extra fees charged by realtors. A stronger affordable housing policy would help create a more level playing field for providing affordable housing units and would help Council to be more consistent in obtaining contributions toward affordable housing as part of a rezoning process. The contribution could be cash-in-lieu of units that reflects a realistic cost of providing a unit, or land, built units or a mix of these. It should, require developers to build affordable units in exchange for development rights, fee reductions, density bonuses and/or fasttracking their application. It can also be voluntary where the developer can choose to contribute and if the choice is made to not contribute then the potential density given to the applicant would be reduced. Understanding Sooke s housing needs would be beneficial prior to developing a stronger policy. It would be beneficial to have a thorough Housing Needs Assessment completed for Sooke before making further policy changes on affordable housing contributions in order to determine the parameters of our housing challenges. Frequently, affordable housing project funders require a housing needs assessment to confirm that a need is genuine and quantifiable before funding affordable housing projects. Some potential funders of housing needs assessments include BC Housing and Canada Mortgage and Housing Corporation. A needs assessment will also be able to address the social side of the housing situation (i.e. shelter/emergency beds) in 9

12 Sooke. In the interim, Council can continue to ask for affordable housing contributions at time of rezoning using Sooke s existing policies within the OCP and the existing Community Amenity Contribution Policy. Management of Non-Market Affordable Housing Units It is critical that Council also give significant thought to how affordable non-market housing units built in the community will be managed and implemented in Sooke. These are housing units that have resale price restrictions and rent restrictions and will typically be tied into a Housing Agreement. The establishment of a housing committee or a housing corporation would be beneficial to ensure there is a consistent and fair process in place for selecting qualified purchasers. A committee or corporation would help lead a needs assessment as well as help draft eligibility criteria for Qualified Purchasers, make recommendations on affordable housing initiatives, affordable housing agreements, and housing design approvals for affordable housing. A committee or corporation would help determine the design of the selection process for affordable housing units, help develop application forms and help develop partnerships with local realtors, banks and Canada Mortgage and Housing Corporation. Large and small municipalities on Vancouver Island and elsewhere use a Housing Committee structure to assist in decision making for affordable housing. 4. Strategic Relevance: Council has directed staff to bring forward an affordable housing policy and have identified in the strategic plan that the provision of affordable, safe housing is important. 5. Summary: The District of Sooke has an Affordable Housing & Social Housing strategy in place and we can use this strategy to improve the housing situation in Sooke. For example, providing more up-to-date information to the community on affordable housing needs improvement. The policy also explains the distinction between social housing and affordable housing and the separate approaches necessary to provide solutions to housing challenges. Does Sooke need a Housing Needs Assessment? Various sources of information provide basic information on housing and affordability in Sooke. A Housing Needs Assessment would undoubtedly help in guiding Council to make more informed decisions regarding affordable housing. Council could use all or part of the $50,000 reserve in the Housing Reserve Fund to complete a housing need assessment specific to Sooke and subsequently develop a proactive strategy to provide accessible affordable housing in the community, with the help of a housing committee. How can the District better reduce costs to encourage affordable housing? Different incentives ranging from having developers provide for smaller residential units and different forms of housing through OCP and zoning requirements are one means of 10

13 doing this. Council could also establish development threshold that requires developers to actually build affordable units as part of their development. Another is by establishing a proactive approach to having the community, those in need of affordable housing and developers help resolve the problems at hand by participating in a housing committee or corporation that administers an affordable housing policy that deals with inventory issues, accessibility, managing affordable units and linking potential occupants with willing developers are a few examples. Council could also consider affordable homeownership units as eligible housing for the purposes of the Town Centre Revitalization Bylaw No. 408 because currently, only rental units are considered for fee reductions. Attachments: 1. Table: Summary of Affordable Housing Tools used in other Municipalities 2. Housing section 4.7 in Sooke OCP 3. Affordable Housing & Social Housing Policy, Housing Options Forum September 13, 2011 Respectfully, Tara Johnson, MCIP Planner II Approved for Council Agenda Engineering Planning Corp. Services Finance CAO 11

14 Table: Summary of Affordable Housing Tools used in other Municipalities Jurisdiction City of Langford Pop. (approx.) Summary of Affordable Housing Tools 22,229 Provide 10% of single detached & multi-family subdivisions as affordable housing (AH) at a maximum sale price of $160,000, with a housing agreement attached to control the resale price for 25 years. Housing Committee Housing Fund Eligibility Criteria Results As of January 2008, 51 homes have either been built and sold, are in development or in the planning stage. Planning staff pick qualified purchasers/renters using a points system and eligibility criteria created by the housing committee and endorsed by Council. Lessons Learned Not to link price of affordable home to a fixed price. Link to a rate of inflation like the Consumer Price Index would be better. Ucluelet 1,487 Through OCP, require 15%-20% AH units in multifamily develop. In 2007, formed first Affordable Housing Committee to begin managing the AH units. Since 2004, have secured 253 AH units. Can obtain AH units just through strong staff leadership and Council direction in the OCP. No cash in lieu option Housing Agreements Density Bonusing Eligibility Criteria Boulder, Colorado 103,650 New residential development must contribute 20% of total units as permanent AH. Cash in lieu is an A total of 2,797 AH units in place by end of ,079 of which were built since Currently, developers buy out most of required AH units as cash in lieu. Are reviewing the cash in lieu option and amounts. 12

15 District of Sechelt City of Burnaby 200,000 option. The affordability gap formula is used where the fee is based on the amount needed to make an average market-rate unit affordable to a family at the target income level. Eligibility Criteria Housing Planners in a Housing Division section within the municipal office 9,157 Housing Agreement Eligibility Criteria (Points System) Cash in lieu ask for $206,000 per affordable unit/lot not provided Density bonusing Community Benefit Bonus (CBB) program to increase amenities & AH Community Development Committee density bonusing on-site, off-site contribution options Cash in lieu option for all rezoning generating less than $800,000 in bonused value. Has resale price restrictions to keep The establishment of a regional Housing Corporation is under investigation by a working group of the District of Sechelt, Town of Gibsons, Sunshine Coast Regional District and the volunteer Social Planning Council. Such an organization can possibly help create more affordable housing on the Sunshine Coast. CBB program has contributed 19 rental units, over $8 million to amenities fund, $1.75 million for AH. Verdant Project, Simon Fraser Univ. 60 AH units Formula for amenity contributions = bonus floor area (in square feet) x market land value (in $ per buildable square feet) City maintains all titles to affordable units, but leases the units to a nonprofit organization Has learned that developers will usually choose the cash-in-lieu option and the District wishes to see units being built so purposely fixed their cash in lieu fee high. Density bonusing works well with high density, high growth neighbourhoods. The program could be strengthened by partnering with a housing organization to manage the housing portfolio as it expands The effect of the price restriction at the Verdont Project, SFU is that as long as market value of the AH units does not climb at a rate that is greater than faculty & staff salaries, they will 13

16 housing affordable for future purchasers (20% below market reappriasal required of home prior to resale) remain affordable. Town of Canmore 17,000 The Canmore Community Housing Corporation (CCHC) is an arm s length organization funded by the Town. Land banking Resale Price Restrictions used Housing Fund Density Bonus Eligibility Criteria n/a The only way to provide perpetual affordability relative to the purchaser s ability to pay was to use a formula attached to the Consumer Price Index (CPI) for Canada Dockside Green, Victoria Partnered with City of Victoria in a Master Development Agreement. Resale Price Restriction and Housing Agreement. Limit future resale to the same 25% below appraised market value. Partnered with BC Housing Provided 13% of development as affordable housing. 26 ownership and rental units in a project of 100 residential units. Affordable ownership units sold for 25% below market value. Has found from other examples that it works best when the resale prices of affordable units are pegged to the same percent of the market price as the original sale. For example: if affordable unit sold at 75% of the market value, all subsequent sales will be pegged to the same percentage. 14

17 District of Sooke Bylaw No. 400 Official Community Plan, 2010 Page 45 of HOUSING The District of Sooke will focus in its Community Growth Area: Highest density, mixed use residential developments within the Town Centre and comprehensive development areas; Medium to low density residential development in the community residential area; and Low density infill development in the gateway residential area GOALS Provide a variety of housing options and densities for a diverse population; Create a population that supports a range of businesses and cultural activities in the Town Centre; Ensure residential development reflects the small town character of Sooke; and Develop housing that has a minimal environmental footprint OBJECTIVES a. Support the CRD s Regional Housing Affordability Strategy (RHAS), which calls for local governments, community, industry and interested stakeholder groups to work together to secure increased funding for affordable housing, while reducing policy and regulatory obstacles and streamlining the development process; b. Ensure provision of a range of housing types, tenures and densities, which meet the diverse needs of individuals and families of varying income levels and demographics; c. Provide affordable and attainable housing opportunities; d. Provide adequate housing resources, which take into account seasonal fluctuations; e. Secure and promote options for seniors housing, including independent living and special needs; and f. Accommodate a population growth rate of 6% between 2010 and 2020 and an overall 4% average growth rate between 2010 and i. e. estimated 2020 population projection of 18,800 residents; estimated 2030 population of 23,000, and estimated 2035 population projection of 28,000 residents POLICIES a. Implement the recommendations in the Sooke Affordable Housing & Social Housing Policy, 2007; b. Require that a minimum of 10% of all new multi-family and condominium units are affordable residential housing as defined by the District of Sooke, and implemented through housing agreements, phased development agreements or through the use of density bonusing. The option shall be given to developers to locate their required affordable housing in close proximity to the Town Centre;

18 District of Sooke Bylaw No. 400 Official Community Plan, 2010 Page 46 of 212 c. Amend the District s Community Amenity Contribution Policy to create base densities for each OCP designation above which a rezoning to a higher density requires amenity contributions; d. Require housing agreements to be registered at the time of development permit or occupancy permit as determined by the District of Sooke; e. Consider a minimum of 5% of any proposed hotel and resort condominium units as staff housing units as defined by the District of Sooke. Staff housing shall be enforced through housing agreements; f. Require that a minimum of 10% of the total of any proposed bare land or strata single family residential subdivisions are affordable housing lots as defined by the District of Sooke. Affordable single family lots shall be sold at an affordable rate through tools such as covenants and housing agreements; g. Consider allowing developers the flexibility to provide their required affordable housing in different forms thus creating an affordable housing mix in new developments, e.g. secondary suites, condominium rental units, cash, or land in lieu to the District of Sooke towards on/off-site affordable housing; h. Require that, within large residential developments, at least 25% of the total dwelling units proposed should take the form of equivalent multi-family residential units; i. Support incentives for multi-family residential developments in the Town Centre; j. Support incentives for affordable housing throughout the community; k. Support the creation of rental housing in a variety of forms in the community; l. Promote and preserve the development of rental accommodations and manufactured home parks in appropriate areas; m. Encourage multi-family residential development in the Town Centre; n. Discourage the stratification of existing multi-family rental properties and manufactured home parks if the available rental housing stock is insufficient for meeting current rental needs; o. Single family urban density sprawl is not supported; p. Support the development of tourism accommodations, such as hotels, motels, hostels, resorts, etc. in order to fill the growing need to house a variety of tourists; q. Support residential use above commercial in commercial areas including Comprehensive Development (CD) designated areas, Town Centre and in Commercial Nodes; r. Support Sooke Smart Growth principles throughout the District of Sooke; s. Support the recommendations of the provincial Fire Smart program which includes guidelines in regards to building materials, fire separation, vegetation management, and fire safety; t. Support development incentives for in-place fire prevention features; u. Support the use of shared (private/municipal) building schemes or use District of Sooke enforced building schemes to ensure long term quality of design and character; v. Support proposed multi-family and affordable housing units containing a diversified mix of floor sizes;

19 District of Sooke Bylaw No. 400 Official Community Plan, 2010 Page 47 of 212 w. Encourage a diversity of housing types and densities through the creation of flexible zones ( flexi-zones ) and incentives in the zoning bylaw; and x. Support DCC s incentives for small lot subdivisions (as defined by District of Sooke) that are designed to result in lower greenhouse gas emissions and greater green space ACTION ITEMS a. Amend the Sooke Zoning Bylaw as follows: i. Include use of ancillary/accessory agriculture on single family residential lots and a minimum percentage of lot area allocated for the same; ii. Create a small lot residential zone and a vacation rental zone (consider required full-time resident); iii. Create density bonusing provisions in the zoning bylaw for additional affordable housing units beyond the minimum 10% of total units to be proposed within the Sooke Zoning Bylaw; iv. Create land use zones in the Sooke Zoning Bylaw that offer a variety of density and types of housing; v. Allow secondary suites in all single family residential areas. Minimum lot sizes for homes with secondary suites need to be able to accommodate parking and provision of private or shared open space for suite tenants. Creation of ratios in the Sooke Zoning Bylaw for land size/open space/home size/parking should be considered in determining appropriate minimum unit size for suite or duplex development; vi. Allow the highest density residential in the Town Centre and comprehensive development zones; vii. Allow medium to low density residential in the Community Residential area; and viii. Allow low density residential in the Gateway Residential area. b. Conduct an affordable and accessible housing needs assessment to determine the type and parameters of new affordable, attainable, seasonal, special needs and local housing; c. Create affordable housing and accessible housing definitions and parameters associated with Sooke s local income levels; d. In consultation with local service groups and non-profit organizations establish a Sooke Housing Committee or Corporation in order to create a governing body for affordable housing; e. Create a $50,000 affordable housing reserve fund that may be used for: i. operational funds for a new Sooke Housing Committee or Corporation; or, ii. acquiring public or private lands for the establishment of affordable housing or seniors housing. f. Acquire or designate municipal land for affordable housing in order to create an affordable housing land bank in which to enter into partnership for the creation of affordable housing and seniors housing;

20 District of Sooke Bylaw No. 400 Official Community Plan, 2010 Page 48 of 212 g. Research the need for staff housing being made a development requirement of all new resort developments; h. Require affordable housing for residential developments; i. Initiate partnerships with BC Housing, CMHC and the private sector to create affordable housing developments; j. Require 10% (rounded up) of the total number of any single-family residential proposed subdivision (lots) and spec-built subdivisions as affordable residential lots and/or affordable single family homes respectively as defined by the District of Sooke; k. Require 10% of multi-family residential developments to be affordable housing units as defined by the District of Sooke; l. Require secure ground floor storage for bicycles and mobility scooters on all multifamily, condominium and townhouse developments; m. Create a Sooke Build Green Program and checklist in order to implement energy efficiency and sustainable initiatives into single family home and townhouse construction; and n. Support single family dwellings with suites and duplexes on tent lots as defined by the District of Sooke.

21 Policy No Adopted: October 9, 2007 Affordable Housing & Social Housing Policy,

22 Table of Contents TABLE OF CONTENTS INTRODUCTION THE NEED FOR AN AFFORDABLE HOUSING POLICY AFFORDABLE HOUSING & SOCIAL HOUSING SOOKE CONTEXT POPULATION HOUSING PRICES INCOMES HOME OWNERSHIP RENTAL RATES AND VACANCIES BROADER CONTEXT THE SOCIAL COSTS OF HOMELESSNESS THE REGIONAL HOUSING AFFORDABILITY STRATEGY PROVINCIAL GOVERNMENT FEDERAL GOVERNMENT PARTNERSHIPS IN HOUSING NON-TRADITIONAL FUNDING FOCUS ON HOME OWNERSHIP THE HOUSING CONTINUUM HOUSING ISSUES AND PRIORITIES SUPPORTIVE HOUSING FOR PEOPLE WITH SPECIAL NEEDS ENTRY-LEVEL OWNERSHIP RENTAL HOUSING SENIORS HOUSING SOCIAL HOUSING QUALITY OF LOW INCOME HOUSING LOCATION OF AFFORDABLE & SOCIAL HOUSING GOALS AND STRATEGIC PLAN GOAL # 1 - PROVIDE A POLICY FRAMEWORK FOR AFFORDABLE AND SOCIAL HOUSING ADOPT AN AFFORDABLE AND SOCIAL HOUSING POLICY UPDATE AND AMEND THE OFFICIAL COMMUNITY PLAN 13 2

23 5.2 GOAL # 2 INCREASING THE SUPPLY OF SAFE & ACCESSIBLE AFFORDABLE HOUSING INCLUSIONARY POLICY DENSITY BONUSING HOUSING RESERVE FUND PRE-ZONE LANDS CREATE A LAND BANK DEVELOP PARTNERSHIPS ASSIST NON-PROFITS AND CO-OPS TO BUILD AFFORDABLE & SOCIAL HOUSING DEVELOP ACCESSIBLE UNITS CONSIDER THE POTENTIAL LOSS OF EXISTING AFFORDABLE HOUSING DEVELOP A MUNICIPAL HOUSING CORPORATION GOAL # 3 REDUCE COSTS OF DEVELOPING AFFORDABLE HOUSING ADOPT ALTERNATIVE DEVELOPMENT STANDARDS EXPEDITE DEVELOPMENT PROCESS HOUSING INTENSIFICATION AND DOWNTOWN REVITALIZATION UPDATE THE TRANSPORTATION PLAN FOR SOOKE GOAL # 4 - PROVIDE INFORMATION MAKE INFORMATION AVAILABLE COMMUNITY PARTNERSHIPS MONITORING CONCLUSION 21 3

24 1.0 Introduction Owning or renting a home can be an overwhelming task, especially in one of British Columbia s fastest growing regions, where housing costs are rising faster than incomes. As growth and change continue in Sooke, Council and Staff have become increasingly aware of emerging housing trends and community concerns. Rather than wait for opportunities to pass by, Council has chosen to address the topic of affordable housing proactively. In order to develop an effective model for affordable and social housing, it is crucial that a combination of options are incorporated into the policy. An adequate supply of serviced land should to be made available at a reasonable cost for residential development, and high quality affordable and social housing should be located in close proximity to community services and infrastructure. The intensification of residential land uses addresses issues in relation to smart growth, minimizing costs of transportation and provision of infrastructure, and improves accessibility of residents to important community services and supports. 1.1 The need for an affordable housing policy Currently the District of Sooke does not have an affordable housing policy. While the Official Community Plan (OCP) has general statements related to provision of housing, there is no Council-adopted policy to provide guidance on affordable housing priorities. Over the last five years the housing market in Sooke, and the entire Capital Regional District, has seen remarkable changes; home ownership prices have increased radically, and availability of rental housing is very low. Rising housing costs, for both renters and owners, are displacing long-time community members, essential service workers, people with disabilities, young people and seniors from the housing market. Where and how people live affects the well-being and character of the entire community. It is important that the housing market reflect an adequate mix of housing types and affordability levels in locations that are accessible to community amenities. Sooke has great potential for development, and there are increasing pressures for further growth in the community. There are a number of development applications and rezoning applications underway, and if growth is to occur without considering housing affordability, an opportunity to incorporate affordable housing in the community will be missed. 1.2 Affordable Housing & Social Housing Canada Mortgage and Housing Corporation (CMHC) defines affordable housing as adequate shelter that does not exceed 30% of household income; housing related costs that are less than this are considered affordable. For homeowners, 4

25 CMHC uses a slightly higher gross debt service ratio of 32%, which includes the cost of servicing the mortgage, property taxes and heating costs. For tenants, housing costs include rent and the cost of utilities such as heating, electricity and water. Affordable housing allows all community members, of varying income levels and lifestyles, to find adequate and secure places to live. Issues related to community sustainability, and the overall social cost of unaffordable and inadequate housing is immense. People who are in core housing need include those who do not live in, and are unable to access, housing which is affordable, in adequate condition and of a suitable size. Approximately 36% of renter households in the District of Sooke were defined by CMHC as being in core housing need in Social Housing is geared to about 30% of a household s income and is typically subsidized by more senior levels of government. Social housing plays a major role in providing housing stability, and helps reduce the incidence of people in core housing need. 2.0 Sooke Context There is no universal measure of affordable housing, but there are a number of indicators that help identify and describe a community s housing circumstances. Housing costs are heavily influenced by supply of housing available, and demand for that housing. When housing supply is high and demand is low, prices will tend to drop. When supply of housing is scarce, and demand for that housing is higher, prices tend to increase. It is, however, important to note that even in periods where housing is readily available, the lowest income households are unlikely to afford home-ownership, and some may be unable to afford market rental housing without some level of assistance. 2.1 Population The Table 1 illustrates the changes of Sooke s population over the past 10 years. There was approximately 11% growth between 2001 and Using this growth rate, it is predicted that by 2026, there could be approximately 14,730 residents in Sooke. Table 1 - Population Year Projected 2026 Population of Sooke 8,436 8,735 9,704 14,730 Source: Statistics Canada 2.2 Housing Prices The price of housing is one of the easiest measures to track over a period of time. The primary source for this information is the Victoria Real Estate Board. Construction costs, land prices and housing demand are on the rise, which has consequently increased house prices. Real estate prices have climbed significantly over the last five years. Table 2 indicates that townhouse prices between 2003 and 2006 have increased by 115%, apartments by 75% and single-family dwellings by nearly 63%. 5

26 Table 2 - Housing Prices in Sooke Housing Type Price Increase Single Family Dwellings $237,50 7 $301,89 3 $348,59 9 $386,42 8 $148,921 or 62.7% Townhouses $137,13 6 $169,71 1 $254,36 8 $295,25 7 $158,121 or 115.9% Apartment Condos $96,429 $122,13 8 $139,98 9 $169,08 5 $72,656 or 75.3% Source: Victoria Real Estate Board 2.3 Incomes The ability to purchase or rent housing is directly related to household income. The relationship between housing prices and incomes is a very important measure in describing housing affordability. Table 3 indicates median household incomes for the District of Sooke in The table also identifies estimated median incomes for 2006 Table 3 - Median Household Incomes 2001 for Sooke Household Type All households in Sooke One-person households Two-or-more person households Number of 3, (23%) 2,675 (77%) Households Median Household $44,921 $21,559 $52,717 Income 2001 Estimated 2006 $50,824 $24,392 $59,645 Median Incomes * (based on a 2.5% inflation and cost of living adjustment) Monthly Housing $1270 $610 $1490 Costs should not exceed: (30% of estimated 2006 median incomes) Source: Statistics Canada * 2006 Census data related to household income will not be released until May British Columbia has set a general minimum wage of $8.00 per hour. Based on a 40-hour workweek, a minimum wage earner will gross approximately $16,600 per year or $1390 per month. Using the CMHC formula for affordable housing, a minimum wage earner can spend no more than $415 on housing related costs per month. 6