affordable housing update 2010

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1 affordable housing update 2010

2 OFFICE OF LAND SERVICING & HOUSING Affordable Housing Update 2010 Introduction This report provides a review of The City of Calgary s affordable housing initiatives, activities and achievements with an emphasis on The review highlights the continuing need for affordable housing; describes The City s approach to affordable housing; identifies the results achieved; and provides a framework for future direction. The Continuing Need for Affordable Housing The demand for adequate, suitable and affordable housing in Calgary continues to grow. Calgary Housing Company s (CHC) wait list is an effective benchmark to identify the need for affordable housing. As evidenced below, the number of applicants has more than doubled in the last 5 years. On average, the wait list increases approximately 14% annually. Calgary Housing Company Wait List (Annual Average, as of April 2010) According to federal census data, the percentage of Calgary households in need of affordable housing (renters and owners) has remained relatively consistent, averaging 18.1% of all households, over the past four federal census cycles. The need for affordable housing in Calgary has persisted throughout periods of economic prosperity and decline. (Research Brief #24, The City of Calgary, Community & Neighbourhood Services, 2009).

3 affordable housing Defining the Affordability Gap In 2009, Administration identified and defined the Affordability Gap as shown on the Housing Continuum graphic. The affordability gap exists between actual household income and the necessary income required to rent or own a home. By defining the affordability gap, Administration can proactively develop and deliver programs that address the spectrum of housing needs, ranging from deep and shallow non-market housing to entry level rental and home ownership. No Shelter Emergency & Transitional Shelter Housing Continuum non-market Affordable Housing Mixed Income Approach (Calgary Housing Company) market Entry Level Housing Affordability Gap Enterprise Housing Program (Buy Build Partner Create Incentives) City Attainable Home Ownership Program Market Housing Prevention & Care (Facility Support vs. Operation) The City s Approach to Affordable Housing By applying a comprehensive approach to developing non-market housing units, programs and policy, Administration has successfully achieved Council s affordable housing objectives. The Enterprise Housing Program (EHP), an umbrella capital program established by Council, is made of two components: Buy-Build-Partner-Incent and the Policy component of Municipal Policy-Research- Advocacy. Examples of the Enterprise Housing Program include: the acquisition (Buy) of existing units; the construction (Build) of new units by the private sector; the construction (Partner) of new units by the non-profit community on City lands; and offering rebates and grants (Incent) to stimulate the development of affordable housing by the private sector and the non-profit community. Examples of Policy include: lobbying (Advocacy) for amendments to legislation; establishing internal systems (Municipal Policy) to expedite developments that include affordable housing components; and analyzing the requirements (Research) of those in need of affordable housing. Administration s activities are part of The City of Calgary s response to the goals identified in Calgary s 10 Year Plan to End Homelessness, which includes working collaboratively with external stakeholders. How do we get there? A Comprehensive Approach Enterprise Housing Program Buy Build Partner Incent Policy Municipal Policy Research Advocacy calgary.ca/olsh

4 OFFICE OF LAND SERVICING & HOUSING Successful Achievements: Unit Commitments The table below summarizes the number of units approved for funding by Council since The unit count table highlights how The City, along with support from other levels of government, seeks to create affordable housing and rental subsidies. Where possible, The City maximizes the use of affordable housing funding by seeking partnerships and leveraging funding. The City s contributions include administrative resources, land and funding. Unit Count TOTAL Enterprise Housing Program: BUY Enterprise Housing Program: BUILD Enterprise Housing Program: PARTNER Enterprise Housing Program: INCENT - 50* - 750* 800 Total Approved Direct Funding Grants New Start Rent Supplement Program Attainable Homes Calgary Corp *Secondary Suites and Financial Incentive Pilot Programs In 2009, Council approved the commitment funding for a total of 2,998 units: 214 affordable housing units using the Buy and Partner models in short term and longer term projects (129 units acquisitions and 85 units new construction); 750 affordable housing units using the Incent model for the Financial Incentives Pilot Program; 1034 rental subsidies using The New Start Rent Supplement Program; a collaboration between the Calgary Apartment Association and the Calgary Housing Company; 1000 home ownership units using the Attainable Home Ownership Program administered by the Attainable Homes Calgary Corporation. The Unit Count table also indicates that of the 1601 units committed under the Enterprise Housing Program over the past four years, half (801) use the Buy-Build-Partner model, and the other half (800) used the Incent model.

5 affordable housing Funding Commitments The graph below illustrates the Council approved funding commitments for In 2009, the $63,559,465 in funding comprised of a provincial contribution of $44,593,465 and a municipal contribution of $18,966,000. Affordable Housing Funding Commitments 50 Millions of Dollars (Committed) Provincial Contributions Municipal Contributions Notes: Funds are displayed by the year in which Council approved their use for affordable housing; Provincial figures are a combination of the Affordable Housing Program Initiative and Block Funding programs; Municipal figures are a combination of cash and lands (including Municipal Sustainabilty Initiative funds). Next Steps Key objectives for Administration include: Continue to apply a comprehensive approach to developing affordable housing; Work to secure long-term funding arrangements; and Develop a sustainable operating and real estate program. calgary.ca/olsh

6 OFFICE OF LAND SERVICING & HOUSING 2009 Project Highlights BUY Parkhill Acquisitions The City took advantage of real estate market conditions and through the leveraging of Provincial and City funding, acquired 129 units in four buildings located in the communities of Mayland Heights, Parkhill, Highland Park and Crescent Heights. PARTNER Lumino Lumino a three tower project in Manchester to be constructed in partnership with Kanas Corporation, will offer deep subsidy, shallow subsidy, and market rental and ownership units in a socially integrated mixed market development. Construction on The City s portion of the project (88 units) commenced in spring Alice Bissett Place Alice Bissett Place opened in June 2009, the 114 unit apartment/townhouse project in Inglewood was constructed in partnership with The Calgary Homeless Foundation, Calgary Regional Home Builders Association and Horizon Housing. The City provided a long term, nominal cost lease for the land to the non-profit coalition that constructed the building, which Horizon Housing now operates. The Bridges Site 15 - the Request For Proposals (RFP) for the development of up to 40 affordable housing units on Site 15 of the award-winning Bridges project was released in Negotiations with the successful proponent are ongoing. The Bridges Louise Station the 11 storey, 88 unit affordable housing tower officially opened in February Constructed in partnership with The LaCaille Group, the affordable housing tower is part of a multi-purpose comprehensive development that includes a Fire/EMS station, affordable rental housing, market ownership housing, office and small commercial retail units. Louise Station

7 affordable housing INCENT Secondary Suites Grant Pilot Program & Public Consultation a series of open houses were held for the Secondary Suites Grant Pilot Program. Successful grant applicants received up to $25,000 to upgrade, legalize or create new suites. Program funding is almost fully committed, with the potential to generate 63 secondary suites (13 more than originally projected). Financial Incentives Pilot Program (FIPP) - FIPP was created to assist the non-profit and private sectors with the development of affordable housing by providing fee rebates and startup grants of up to $10,000 per project. Launched in November 2009, the program has successfully awarded a $10,000 pre-development grant. The 3 year pilot program will continue to be marketed in 2010 to developers of affordable housing. POLICY, RESEARCH and ADVOCACY Attainable Home Ownership Program The Office of Land Servicing & Housing provided transitional administrative support to the program prior to its official launch. The program is administered by Attainable Homes Calgary Corporation, a wholly-owned subsidiary of The City of Calgary, created in The Attainable Home Ownership Program has a target for the development of 1000 home ownership units. Affordable Home Ownership Program (AHOP) Research into the development of a Terms of Reference (TOR) for a City-initiated affordable home ownership program continued in As a start, the TOR identified three models; Mixed Market, Rent-to-Own and Long-Term Land Lease. The work program elements include: best practices research; the identification of demand and existing supply; a marketability study to identify the most suitable of the three ownership models; and a legal and financial review of the programs. MGA Amendments Administration led on-going consultations with stakeholders re: strengthening and sustaining the development of affordable housing in Calgary. Workshops with industry and agencies helped to scope the project. Concepts for consideration include: inclusionary zoning, density bonusing, a replacement housing levy and housing agreements. The recommendations have been referred to Intergovernmental Affairs to develop a strategy on a go-forward basis. National Housing Day Administration shared a leadership role in the organization of the fifth annual National Housing Day breakfast in November 2009 with the theme of encouraging private sector participation in creating affordable housing. Best Practices Guide to the Design and Development of Affordable Housing Research on best practices for the development of affordable housing, along with internal and external stakeholder consultations, were conducted in The drafting of the Guide continues to evolve and once approved, will serve as a resource to developers of affordable housing. calgary.ca/olsh

8 calgary.ca/olsh

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