Affordable Housing Strategy

Transcription

1 Affordable Housing Strategy City of Fernie/West Fernie October 2017

2

3 This Affordable Housing Strategy Update has been made possible through the generous financial support of Columbia Basin Trust and the BC Healthy Communities Society Plan H Program. The strategy was developed with assistance from a volunteer Advisory Committee and through the participation of many citizens and stakeholders. AFFORDABLE HOUSING STRATEGY City of Fernie/West Fernie Prepared by CitySpaces Consulting October 2017

4 Table of Contents Introduction... 1 Five main challenges were identified through the consultation process Updated Affordable Housing Strategy... 3 The Legislative Context... 3 Overarching Values... 5 Goals... 5 Key Roles for the City of Fernie Setting Policy Establishing Regulations Using Resources Forming Partnerships Demonstrating Leadership Priority Setting Appendix Factory-built Housing AFFORDABLE HOUSING STRATEGY City of Fernie/West Fernie Prepared by CitySpaces Consulting October 2017

5 AFFORDABLE HOUSING STRATEGY City of Fernie/West Fernie Prepared by CitySpaces Consulting October 2017

6 Introduction This project, the 2017 Affordable Housing Strategy Update, involved three phases and deliverables: a Housing Indicators Report (March 2017); a Needs & Gaps Assessment (June 2017), which includes the results of community and stakeholder engagement; and, lastly, this report the updated Affordable Housing Strategy. The research findings from the first two phases were key to shaping the Strategy s priorities and directions. The first report Housing Indicators involved assembling and analyzing relevant and reliable data, including current housing mix, housing tenure, rental prices, housing sales prices, and household income. This information provides an indication on the level of affordability in the community, and particularly who in the community faces the greatest challenges participating in the housing market, such as seniors, lone-parents families, and low-income families. The second report Housing Needs & Gaps Assessment identifies the current and emerging housing needs in Fernie, and examines gaps and issues. This assessment involved two research approaches: a survey that had 260 respondents; interviews, two focus groups, an open house, and interviews with 19 key informants. AFFORDABLE HOUSING STRATEGY City of Fernie/West Fernie Prepared by CitySpaces Consulting October

7 Five main challenges were identified through the consultation process. 1. Single-parent families were identified as having the most difficulty in finding, suitable, adequate, and affordable housing; 2. There are limited housing choices for renters, whether affordable or at market rents. In particular, there is little available affordable rental housing for single parent families, low income single people, and people with disabilities. Rental housing conditions are variable and, in some cases unhealthy (e.g., mould, poor insulation, inadequate heating); 3. Home ownership is not attainable for many moderate income working families. As house prices rise, fewer family households are able to purchase a detached home, especially where one parent is home with young children. The size and layout of most townhouse and apartment condominiums are not well suited to families; 4. The lack of affordable housing impacts employee recruitment and retention. Several survey respondents indicated they would be leaving Fernie as rents and house prices are considerably lower in Cranbrook, Sparwood, and Elkford; and 5. Single people of all ages with low or fixed incomes have difficulty finding suitable, affordable housing. AFFORDABLE HOUSING STRATEGY City of Fernie/West Fernie Prepared by CitySpaces Consulting October

8 Updated Affordable Housing Strategy The majority of this update is founded on the values and actions outlined in the 2007 Strategy. Several of the proposed actions were undertaken, most notably, revisions to the Official Community Plan to incorporate robust housing policies, and becoming a resort municipality, allowing the City to charge DCCs for the capital costs of employee housing. THE LEGISLATIVE CONTEXT In order to understand how the City of Fernie might move forward on housing, it is helpful to confirm the legislative context for BC s local governments. By doing this, it is possible to identify both what Fernie is already doing, and what more it can do with the available legislative tools. The City s powers in relation to housing are derived from the Community Charter (Charter) and the Local Government Act (LGA). Neither the Charter nor the LGA define affordable housing and special needs housing," leaving it up to a local governments to determine what rent or purchase level is affordable," and who has special needs for housing. The Community Charter provides a municipality: Natural person powers, which gives municipalities with the flexibility to identify and provide any service that Council considers necessary or desirable; Ability to waive/reduce fees and charges when property is owned or held by a charitable, philanthropic, or other non-profit corporation; Authority to establish a tax exemption program for an area designated as a revitalization area. The program can stipulate the kinds of property eligible, the term of the exemption, and other conditions. AFFORDABLE HOUSING STRATEGY City of Fernie/West Fernie Prepared by CitySpaces Consulting October

9 The Local Government Act contains a number of specific provisions related to housing: Requires an Official Community Plan (OCP) to include housing policies with respect to affordable housing, rental housing, and special needs housing (Section 473); Enables an OCP to include policies related to social needs, social well-being, and social development (Section 474); Provides flexibility to allow higher density (bonus zoning) in return for the provision of community amenities, including affordable and special needs housing (Section 482) 1; Enables a local government to enter into a housing agreement with a land owner regarding the occupancy of the housing units in terms of tenure, classes of person, administration and management of the housing units, rents and lease, and sale or share price. This housing agreement is registered on title, and is binding on future owners (Section 483); Provides authority to impose development cost charges (DCCs) to raise funds to assist in paying capital costs for employee housing related to the operation of resort activities in a resort region. Provides authority to waive or reduce a DCC for not-for-profit rental housing, including supportive living housing, as well as for-profit affordable housing. The Local Government Act also stipulates that the BC Building Code applies to all municipalities. Part 9.36 of the BC Building Code applies to Secondary Suites," which establishes floor area and ceiling heights, fire safety provisions, safe exiting, mechanical systems, and plumbing. The amended code, however, does not apply to existing suites. To deal with this gap in the Code, some municipalities, such as the City of North Vancouver, have opted to establish their own framework of equivalent requirements for existing suites in the interests of facilitating their legalization. These equivalent requirements are considered on a case-by-case basis, but do not apply to life and fire safety provisions of the Code. The Strata Property Act also comes into play in relation to rental housing. In order for an owner to convert an existing rental building into strata lots, s/he requires approval of the approving authority. In Fernie, this is City Council. In reviewing a proposed conversion, the Act specifically allows the approving authority to consider, among other things, The priority of rental accommodation over privately owned housing in the community. 1 Fernie s OCP policy 4-A.10 is derived from this authority, but to date, to date there has been no take-up. AFFORDABLE HOUSING STRATEGY City of Fernie/West Fernie Prepared by CitySpaces Consulting October

10 OVERARCHING VALUES Fernie residents and prospective residents should be able to secure safe, appropriate housing that is affordable for their income levels. Affordable housing is essential for a community to be socially sustainable. Within its jurisdiction, the City of Fernie will work towards an inclusive community that facilitates housing opportunities for people of all ages, abilities, and incomes. GOALS To facilitate and encourage the development of additional affordable market rental housing for families, single people of all ages, and seniors. To facilitate and, potentially partner with other entities, to develop additional non-market rental housing that is suitable for lower income singles, single parent families, and people with disabilities. To facilitate the development and infill of affordable homeownership opportunities, particularly suitable for young families. To facilitate the development of additional independent living units, as well as the potential redevelopment of older facilities for seniors, particularly those on fixed incomes. AFFORDABLE HOUSING STRATEGY City of Fernie/West Fernie Prepared by CitySpaces Consulting October

11 KEY ROLES FOR THE CITY OF FERNIE 1. Setting Policy Clear, consistently applied policies express the City s commitment to affordable housing. The updated OCP provides a very good platform for prospective developers, funders, partners, and Provincial government agencies. While the take-up of some of these policies has been modest, particularly following the post-2008 recession, when development does accelerate, these policies will provide considerable guidance for City staff and Council when applications are being considered. There have not been amendments to Part 14 (Planning and Land Use Management) since 2007 that would have a consequential effect on the housing polices of the OCP. Action 1.1 Factory-built Housing Policy It is recommended that an additional policy be introduced into the OCP to encourage factory-built housing in all low density residential areas. Factory-built housing is the umbrella term used to describe homes that are substantially constructed in a factory, and are often referred to as off-site construction in contrast to homes constructed on-site. These homes are of high quality, and are built to last as long as other forms of groundoriented housing. The industry has come a very long way from the days of mobile homes when they were constructed under much less stringent standards than the manufactured and modular homes of today 2. They are generally more affordable than site-built housing, in the order of 7% to 10%. Alternatively, rather than designating all low density areas for factory-built housing, the City could designate part of a developing area exclusively for factory-built homes either as bare land stratas or as freehold lots. 2. Establishing Regulations Effective use of regulatory authority creates housing choice, and can facilitate affordable homeownership and rental housing for year-round Fernie residents. Action 2.1 Development Cost Charges As recommended in the 2007 Strategy, the City should reconsider its approach to assessing Development Cost Charges for residential development from a parcel size to a gross floor area basis. This could have the effect of encouraging developers to build smaller size units, and, potentially, incentivize more compact, affordable housing. Action 2.2 Factory-built Housing In order to implement the factory-built housing referenced in Policy 1.1, it is recommended that the Zoning Bylaw be revised to either permit manufactured and modular homes in an R1 zone, or establish a specific factory-built zone and identify this zone on the Bylaw map. 2 Refer to Appendix A for a more detailed description of factory-built housing. AFFORDABLE HOUSING STRATEGY City of Fernie/West Fernie Prepared by CitySpaces Consulting October

12 Action 2.3 Parking Requirements Reduce the parking requirements for new detached housing (with no suite) on small lots in Maintown and the Annex from two to one spaces and for new multiple unit buildings. Action 2.4 Compact Housing Continue to encourage developer/builder initiated compact housing proposals (e.g., lot splitting, backyard infill, freehold townhouses, sprout housing). Note: backyard infill, such as laneway housing or coach homes would not be subdividable Action 2.5 Fees Reduction Consider reducing the application fees for rezoning, development permits, and building permits for nonprofit housing, as well as affordable, innovative market housing proposals. Action 2.6 Secondary Suites Although there is no reliable tally of secondary suites in Fernie, through the Indicators Report, it was evident that suites (compliant or not) provide a substantial amount of ground-oriented rental housing in Fernie. While new suites must comply with Section 9.36 of the BC Building Code, there may be other equivalent standards or interpretations for existing suites to assist owners in being able to continue renting their suites with no or only minor modifications. Each application would be reviewed on a caseby-case basis, and an alternative standard could not be used in relation to life or fire safety. As earlier referenced, some municipalities, including the City of North Vancouver, use this approach. Require all new single detached homes to be suite ready. This means that in order to receive a Building Permit for new home construction, the plumbing and electrical requirements for a suite must be included. This prevents costly retrofitting should a suite be installed in the future. The philosophy underlying this approach is that a new house will have several owners during its lifetime, and the households that will occupy this house will have different needs over time. Set an amnesty period for homeowners with existing non-compliant suites to disclose and upgrade. Further encourage their participation by reducing City fees for application, inspection, and licensing. Action 2.7 Strata Conversion of Rental Buildings In the interests of preventing the loss of long-term rental accommodation at a time when very little purpose-built rental has been built or is expected to be built, as the approving authority, the City should apply the following conditions to an application for strata conversion: For multi-unit buildings with five units or more, 25% of the units will remain as rental for a period of 10 years and registered on the land title via a Housing Agreement. Alternatively, the applicant could pay a conversion fee of $25,000 per unit equivalent to the number of units that would be required to be maintained as rental (e.g., a 20-unit building would be required to maintain five units as rental for 10 years, or pay $125,000 to be added to the City s Housing Reserve Fund [referenced as Action 3.1]). AFFORDABLE HOUSING STRATEGY City of Fernie/West Fernie Prepared by CitySpaces Consulting October

13 For multi-unit buildings with four or fewer units, 50% of the units will remain as rental for a 10 year period, and registered on the land title via a Housing Agreement. Alternatively, the applicant will pay a conversion fee of $25,000 per unit, equivalent to the number of units that would be required to be maintained as rental (e.g., a four-unit building would be required to maintain two units as rental for 10 years, or pay $50,000 to be added to the City s Housing Reserve Fund [referenced as Action 3.1]). Existing tenants will be given six months notice; and The applicant for strata conversion, or decommissioning of a secondary suite, will file a statement with the City as to what assistance will be made for existing tenants in relocating. 3. Using Resources The strategic use of City resources (land, revenues) has the potential to leverage an increased supply of affordable housing. Action 3.1 Affordable Housing Reserve Fund A number of BC municipalities have established reserve funds for affordable housing (legislative authority is Section 188 of the Community Charter). Sources of revenue for these funds include annual amounts approved by Councils during the budget process, and cash contributions from developers /builders seeking rezoning for a change in use or density (Community Amenity Contribution). To the extent that the rezoning would increase the value of the land in question, local governments view this as a reasonable opportunity to help fund community amenities, in this case, to provide a capital grant to a non-profit housing provider that is renovating, or renewing existing housing, or building new units. It is recognized AFFORDABLE HOUSING STRATEGY City of Fernie/West Fernie Prepared by CitySpaces Consulting October

14 that the amount of money in a reserve fund is likely to be modest, and will take at least five years to be used, but it is a tangible way for the City to demonstrate its commitment to affordable housing. Action 3.2 Land Banking Continue to acquire land as opportunities become available, including newly developing areas of Fernie. Bank this land for future use for affordable and special needs housing. Action 3.3 City-owned Properties As recommended in the 2007 Strategy, consideration should be given to strategically using the City s land holdings to help meet affordable and special housing needs. In that Strategy, six sites were identified as having potential for housing development. Of these six, two contiguous parcels at 3rd Avenue and 4th Street in Maintown are the most attractive. Currently, these parcels are a parking lot with a total area of m 2. The lot is well located relative to shops, services, and the College of the Rockies. The properties are ideal for studios and one-bedroom affordable housing suitable for single residents and college students (potentially, units). It is understood that there is currently a potential purchaser who would develop a one-storey, single use building. That said, if this purchaser was open to a mixed-use development, the City could issue an RFP for a developer to purchase the property, and design-build for both the ground floor and the upper storey affordable market rental. Subsequently, there would be a lease-back to the ground floor tenant. A housing agreement would be required to ensure that rents remain affordable (e.g., 12-15% below market rents for equivalent units). Another potential site is located in Maintown on 1st Avenue. Currently,this 557 m 2 serviced site is a gravel parking lot, and zoned for Retail Commercial. It is recommended that the City call a Request for Proposals for developers to build employee-type accommodation, or a mixed-use project with micro-unit or small unit housing above grade. The City would sell the land at a discounted price, conditional on a housing agreement being registered on the land title. The approximate number of units to be created would be A third parcel is located east of the railroad and north of Ridgemont Dr. A portion of this site has been developed as the New Horizons social housing complex, lands to the west and north may offer an opportunity for additional development as affordable or special needs housing. Action 3.4 Tax Exemptions (Revitalization Area) Use the tax exemptions provisions of the Community Charter (Section 226) to designate an area as a Revitalization Area for the purpose of creating additional affordable housing. Geographically, this would include Maintown and the Annex. All new ownership units that are affordable for Fernie residents at or below the Annual Median Income would be entitled to a tax exemption of 75% for the first five years, reducing to 50% for the second five years. AFFORDABLE HOUSING STRATEGY City of Fernie/West Fernie Prepared by CitySpaces Consulting October

15 4. Forming Partnerships Action 4.1 City to Enter into Partnerships Collaboration among the business and non-profit communities, the City of Fernie, the Columbia Basin Trust, and federal and provincial agencies can lead to creative solutions for meeting existing and emerging housing needs. As with the 2007 Affordable Housing Strategy, it is recommended that the City continue to partner with private market developers, the Columbia Basin Trust, CMHC, and BC Housing to create affordable rental and homeownership options. As in 2007, although the prospect was raised by some during the consultations for this update, the consultant does not recommend that the City of Fernie establish its own municipal non-profit housing AFFORDABLE HOUSING STRATEGY City of Fernie/West Fernie Prepared by CitySpaces Consulting October

16 corporation. The set-up and ongoing administration of such an entity is a major commitment. As an alternative, the consultants recommend that the City remain open to participating as a project partner with existing non-profit groups and, potentially, local businesses and major employers. For a relatively small community, Fernie is fortunate to have existing non-profit organizations that have demonstrated capacity to build and manage non-market housing, and to deliver support services, in particular, the Chrysalis Society and the Fernie Family Housing Society (FFHS). FFHS has a strong track record with BC Housing and other funders. The Society was formed in September 2000 to construct and manage New Horizon Village, a 32-unit social housing development for families, seniors, and people with disabilities. FFHS was also the sponsor society for the 2006 redevelopment of Tom Uphill Manor, which was formally owned and operated by the Interior Health Authority. This aging facility has 31 one-bedroom supportive units for seniors and people with disabilities. Other partners included Canada Mortgage and Housing Corporation (CMHC), the Columbia Basin Trust Fund, the Real Estate Foundation of BC, the Interior Health Authority, and the Federal National Homelessness Initiative. The City participated with $96,000 in reductions of municipal levies and taxes. Additionally, FFHS was involved in the Veneto Place Project, comprising three multi-storey buildings, each with 15 units. Completed in 2012, grants and subsidies provided by the project s partners allowed the units to be sold or rented at 15% to 20% below market value. BC Housing purchased 12 units for use as affordable rental housing, and federal and provincial funding supported the construction of those 12 units. FFHS manages these units for BC Housing. As well, the Columbia Basin Trust contributed $4.5 million, and the City of Fernie provided more than $338,000 in rezoning and variance fee exemptions for the 45 units. Staff time was also gratis. FFHS is currently exploring options to develop affordable rental housing at its vacant property on 13th Street. This 4,738 m 2 (51,000 sf) site is bordered by the Tom Uphill Manor on the West, and the Isabella Dicken Elementary School on the East. Once an option is selected, FFHS will approach potential partners to assist with capital funding. The area s largest employers (e.g., Fernie Alpine Resort, College of the Rockies, and Teck) are also potential partners for the City of Fernie in connection with the building of housing suitable for short-term employees or seasonal residents. If the City were to partner with a private business or institution in the form of land, capital or reduced fees, it would be important that the City and its partners enter into a formal housing agreement that would be registered on title. The terms of these housing agreements would vary, but would typically establish requirements regarding tenures and rents. AFFORDABLE HOUSING STRATEGY City of Fernie/West Fernie Prepared by CitySpaces Consulting October

17 5. Demonstrating Leadership The City has already demonstrated its commitment to affordable housing through the OCP policies, the development of the 2007 housing strategy, and its update in Action 5.1 Take a Leadership Role Continue to take a leadership role on housing issues. This involves advocacy and capacity building within the community. Advocacy could be directed towards: BC Housing regarding local needs, including low income households, and young families; Regional District of East Kootenay and the Columbia Basin Trust re: common housing interests; and Federal government through the Federation of Canadian Municipalities and other advocate groups re: tax barriers that inhibit new purpose-built rental housing. Capacity building could be directed towards: Educating the business community through presentations, and distribution of materials; Promoting existing BC housing programs: The Rental Assistance Program provides cash assistance to eligible low-income, working families to help them with their monthly rent payments. Among the eligibility criteria, an applicant must have a gross household income of $35,000 or less, have at least one dependent child living at home, and have been employed at some point over the previous year; AFFORDABLE HOUSING STRATEGY City of Fernie/West Fernie Prepared by CitySpaces Consulting October

18 The Shelter Aid for Elderly Renters (SAFER) program provides cash payments to subsidize rents to residents who are 60 or over; The Home Adaptations for Independence (HAFI) is a grant program for people with diminished physical abilities. It helps low-income households pay for modifications to their home. Qualifying applicants receive up to $20,000 in financial assistance; and The BC HOME Partnership (BC Home Owner Mortgage and Equity Partnership), introduced in 2016, assists BC residents who are eligible first-time homebuyers by providing repayable down payment assistance loans. The loan is registered on title as a second mortgage. Action 5.2 Emergency Shelter Consider approaching the Columbia Basin Trust and the Chamber of Commerce to fund research into the need and demand for an emergency, short-term shelter, particularly for single men who gravitate to town looking for employment. Some have few financial resources, poor credit history, and few or no rental references. During the needs and gaps research, the consultants learned that there is a small, but invisible homeless population. During the warm seasons, they camp in the bush, and in the winter they find their way to Cranbrook where there is a shelter. If this need becomes persistent, there may be times when homeless people are more visible in Maintown. In anticipation of this, it would be advisable to understand the magnitude of potential homelessness. Action 5.3 Rent Bank Initiate the prospect of setting up a rent bank in Fernie, or, possibly, all Elk Valley communities. This could be initiated by contacting existing rent banks to learn more about their programs, successes, and challenges, then hosting a meeting of potential funders and operators to explore the possibility of setting up a Fernie (Elk Valley) Rent Bank. Ideally, a program operator would be video-conferenced into the meeting as a resource to the group. During the needs and gaps assessment, the consultants learned from several sources that there are lowerwage earners in Fernie and the Elk Valley who are just getting by. If they experienced a short-term setback, they could be at-risk of becoming homeless. Rent banks are a source of emergency loans for families or individuals at risk of being evicted from their homes, or cut-off from essential utilities due to a short-term financial crisis caused by a sudden medical condition, job layoff or loss, or changes in one s domestic situation. The loans are at a no or low interest rate," and intended for low-income wage earners. Eligibility requirements, loan details, loan processes, and pay-back provisions vary among BC s existing rent banks 3. 3 For details, refer to: AFFORDABLE HOUSING STRATEGY City of Fernie/West Fernie Prepared by CitySpaces Consulting October

19 Usually, there are several sources that provide start-up and ongoing annual funding to rent banks (e.g., provincial and local philanthropic organizations, credit unions, municipalities, large employers, realtors, the Real Estate Foundation). Typically, non-profit societies operate rent banks for example, the Elizabeth Fry Society in Kamloops, the Sources Community Resource Centre in Surrey and White Rock, and the Network of Inner City Community Services Society in Vancouver. In Ontario, many communities have rent banks, the earliest of which was setup in Toronto in PRIORITY SETTING The City has already taken significant steps towards housing choice and affordability through the inclusion of statements in its OCP, making a financial contribution towards the construction of Veneto Place, and updating the 2007 Strategy. Implementing the proposed actions of this Strategy, in part or in whole, requires financial and administrative of resources. Recognizing that the City has many other responsibilities and competing priorities, the consultants have provided a list of action recommendations as set out in the accompanying table that indicates how each proposed action should be implemented, i.e., on an ongoing basis, in the short term, or in the medium term. AFFORDABLE HOUSING STRATEGY City of Fernie/West Fernie Prepared by CitySpaces Consulting October

20 IMPLEMENTATION TABLE 1. SETTING POLICY PROPOSED ACTION ONGOING SHORT TERM MEDIUM TERM Official Community Plan Monitor if and when legislative changes are made 1.1 Factory-built Housing 2. ESTABLISHING REGULATIONS 2.1 Development Cost Charges 2.2 Factory-built Housing 2.3 Parking Requirements 2.4 Compact Housing 2.5 Fees Reduction 2.6 Secondary Suites 3. USING RESOURCES 3.1 Affordable Housing Reserve Fund 3.2 Land Banking 3.3 City-owned Properties 3.4 Tax Exemptions 4. FORMING PARTNERSHIPS 4.1 City to Enter into Partnerships 5. DEMONSTRATING LEADERSHIP 5.1 Take a Leadership Role 5.2 Emergency Shelter 5.3 Rent Bank AFFORDABLE HOUSING STRATEGY City of Fernie/West Fernie Prepared by CitySpaces Consulting October

21 Image courtesy: Windfield Home Systems APPENDIX Factory-Built Housing is the umbrella term used to describe homes that are substantially constructed in a factory, and are often referred to as off-site construction in contrast to homes Factory-built Housing constructed on-site. These homes are of high quality, and are built to last as long as other forms of ground-oriented housing. Mobile, Manufactured or Modular? The term MOBILE HOME dates from an earlier era. In 2003, the Province of BC changed the name of the Mobile Home Act to the Manufactured Home Act. While there remain hundreds of mobile homes in BC, they were constructed under very different standards than the manufactured and modular homes of today. A MANUFACTURED HOME is generally defined as a home built to the Canadian Standards Association s CSA Z240 standard, and constructed on a rigid steel frame. These homes can be placed on almost every type of foundation, including full basements. While, technically, they are able to be relocated, in reality, they seldom are. u FACTORY-BUILT HOUSING AFFORDABLE HOUSING STRATEGY City of Fernie/West Fernie Prepared by CitySpaces Consulting October

22 Images courtesy: l) SRI Homes & r) Windfield Home Systems u A MODULAR HOME is generally described as a home built to the CSA A277 standard, and competes for the same market as a site-built home. Modular homes are normally constructed on full foundations, and not intended for future transport. The CSA A277 standard certifies that the manufacturer builds homes that meet the BC Building Code. Produced in a factory as three-dimensional modules, modular homes may be combined on-site to make one-, twoor three-storey homes. Insulation, air/vapour barrier, plumbing, wiring, and exterior siding are largely completed in the factory. Interior work is usually well advanced, including drywall, trim, flooring, cabinets, and kitchen and bathroom fixtures. Finishing the home on-site generally takes a couple weeks, depending on the size, style, and features of the home. Manufacturing plants are required to be certified by a third party inspection agency to ensure they have the knowledge and experience to build homes that conform with the Building Code. Many local government bylaws have restrictions that only allow Z240 or A277 homes to be located within their boundaries, and most have zoning regulations similar to size restrictions for site-built homes. In the case of financing a new A277 home intended for permanent placement, a financial institution will approach factory-built housing just as they would a mortgage on a home built on-site. A typical A277 home in a manufactured home park, where the land is leased, lending will be via a chattel basis, rather than a mortgage. However, if the land is owned by the homeowner, it is likely that it will be financed through a conventional mortgage. The standard home warranty on factory-built homes in BC provides coverage on all components of the home during the first year, and anything structural over the subsequent 10 years. The appraised value of a manufactured home floats with the local marketplace. Property taxes are paid on 100% of the appraised value. Pinnacle Homes and EagleHomes (Cranbrook), and Crowsnest Developments (Sparwood) build manufactured and modular homes. Image courtesy: Windfield Home Systems AFFORDABLE HOUSING STRATEGY City of Fernie/West Fernie Prepared by CitySpaces Consulting October

23 AFFORDABLE HOUSING STRATEGY City of Fernie/West Fernie Prepared by CitySpaces Consulting October

24 AFFORDABLE HOUSING STRATEGY City of Fernie/West Fernie Prepared by CitySpaces Consulting October

25

26 West Hastings Street, Vancouver BC V6E 2J Courtney Street, Victoria BC V8W 1C