Municipality of Strathroy- Caradoc. Attachments: Marc Bancroft 6

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1 Directed to: Municipality of Strathroy- Caradoc Mayor Vanderheyden and Members of Council Page 1 of 2 Staff Report Council Meeting Date: May Prepared by: Department: Subject: Attachments: Marc Bancroft 6 Senior Planner Investment in Affordable Housing (IAH) for Ontario Program Ontario Ltd. (Tim Zavitz), 534 Albert St., Strathroy Recommendation: That the Municipality of Strathroy-Caradoc support in principle the application of Ontario Ltd. for the construction of an apartment building at 534 Albert Street under the Investment in Affordable Housing (IAH) for Ontario Program and that property taxes be set at low density residential rate (or equivalent) rather than a multi-residential rate. Purpose: The purpose of this report is to respond to the attached request by Mr. Zavitz for a letter of support for his application under the IAH Program (the Program). His request also includes any available funding (e.g. waiving of DCs, planning and building fees; municipal capital funding, accessible unit modification grants) that the Municipality may be willing to provide. A mandatory requirement of the Program is that property taxes be set at low density residential rate (or equivalent) rather than a multi-residential rate; or alternatively, a grant in lieu of this property tax reduction be provided. Background: The Program is governed by the City of London which also has jurisdiction in the County of Middlesex in dealing with affordable housing initiatives. Through this Program, new homes are being constructed for low-income individuals and families, senior citizens and persons with disabilities. Mr. Zavitz has responded to a Request for Proposal (RFP) and applied to facilitate the development of affordable housing. Under the Program, funding in the order of $70,000 per unit would be available to successful proponents. According to the Strathroy-Caradoc Official Plan, the Municipality shall use its best efforts to ensure an adequate supply of housing is available for those in social and economic need, including affordable housing. Attached are the core housing need figures provided by the Canada Mortgage and Housing Corporation (CMHC) that specifically targets the Municipality. Page 1

2 Mr. Zavitz is proposing to construct a 3-storey 30 unit apartment building comprising: 7 affordable one bedroom units (at $619/mth including utilities); 14 affordable one bedroom units (at $540/mth including utilities); and, 9 two bedroom (at market rent value). Affordable housing market rents are set by the Program in conjunction with CMHC. The building is to be energy efficient and include an elevator, all brick exterior, central air conditioning and balconies for most units. The target group would include the low-income households including seniors and individuals with accessibility requirements. Under the Program, successful proponents would be required to enter into an agreement with the City of London, agree to establish and maintain affordable rent levels for the apartment units and to make the units available to households with income below the maximum household income limit for a period of at least 25 years from the project completion date. A mandatory requirement of the Program is that property taxes be set at low density residential rate (or equivalent) rather than a multi-residential rate; or alternatively, a grant in lieu of this property tax reduction be provided. It is estimated that the subject development would yield $20,425 in property taxes at the requested low density residential rate compared to $33,675 at the multi-residential rate. Mr. Zavitz is also requesting any available funding from the Municipality (e.g. waiving of DCs, planning and building fees; municipal capital funding, accessible unit modification grants). Specifically, he is requesting that Council consider making a contribution in the form of a capital grant to be used for the accessible unit modifications and to help cover the cost of the elevator in the amount of $140,000. Staff offers the following estimated fees required to facilitate the development of this project: $32,925 for the building permit; $184,585 for development charges; and $1,350 for site plan approval. Also attached are examples of affordable housing projects developed through public private partnerships in other areas of the Province. At the May meeting, Council granted a similar request by Mr. Zavitz to support the construction of a 12-unit apartment building under the same Program with the property being taxed at the single unit residential rate. No funding was provided by the Municipality. Consultation: Management Team Middlesex County Conclusion: That the Municipality of Strathroy-Caradoc support in principle the application of Ontario Ltd. for the construction of an apartment building at 534 Albert Street under the Investment in Affordable Housing (IAH) for Ontario Program and that property taxes be set at the low density residential rate (or equivalent) rather than a multi-residential rate. Prepared by: Marc Bancroft Senior Planner

3 Marc Bancroft Subject: Attachments: FW: SC 534 Albert Street Core Housing Need - Strathroy Caradoc.pdf From: Tim Zavitz [mailto:timz@akubilt.ca] Sent: April :14 PM To: Marc Bancroft Subject: SC 534 Albert Street Marc, Thanks for your I am excited to share more information with you about our proposal, about affordable housing and about the need in Strathroy Caradoc for additional affordable Housing. As a program requirement proponents are required to approach their local council to request additional support for projects, items that municipalities are encouraged to consider include municipal capital funding, accessible unit modifications grants, land, development charges, building permit fees and planning approval fees. Additionally property taxes for the project will need to be set at the single residential rate or a grant in lieu of this property tax reduction is to be given (mandatory requirement). We have proposed the construction of a 3 Storey 30 unit building. The building would house thirty selfcontained units. Currently we are proposing 7 affordable standard one bedrooms, and 14 affordable 1 bedroom accessible units under this RFP. We will be incorporating 9 two bedroom units as market units. The affordable 1 bedroom apartment units will target the working poor both singles and couples, with the accessible units targeting seniors and people with accessibility requirements. The affordable units will be approximately 650 sq. /ft. 750sq./ft. in size. 7 of the affordable units would rent at $ and 14 of the units would rent at $ per month. The 9 2 bedrooms units would be larger and not governed by the program. We have found that the efficiency of the buildings is very important to the success of the projects. We are committed to building as energy efficient building as we can. In the construction of our project we are going to use advance framing techniques to eliminate unneeded lumber and increase insulation cavities, we will insulate above the building code requirements use energy star rated tripled glazed windows and doors. We are also planning on installing a high efficiency gas boiler system for the heat and domestic hot water. We will install all LED lights throughout significantly reducing Hydro costs and also install central air conditioners. Using these methods we have been able to Heat our current building in 2014 for $14.15 per unit per month. The Building will include an Elevator, an all brick exterior, Central Air Conditioning and balconies on most units, to my knowledge not one apartment building in Strathroy currently offers all these features making this not only affordable housing but also one of the nicest apartment buildings in Strathroy. As mentioned above we have identified our target group to be the working poor, both singles and couples as well as low income seniors and people with accessibility issues. As for local need, attached is The core housing need specifically targeting Strathroy Caradoc as documented by CMHC. Some Highlights of the Report 625 households below affordability standards 695 below one or more housing standard 85 households below adequacy (repair)standard 60 households below suitability (crowding)standard 25% of all renters in Strathroy Caradoc are living below the affordability standards 27.5% of all renters in Strathroy Caradoc are living below one or more housing standards 3% of renters in Strathroy Caradoc are living below adequacy (repair) standards 1

4 2.4% of renters in Strathroy Caradoc are living below suitability (crowding) standards With one in four rental households living below affordable standards and one or more housing standard, I look forward to council s support and contribution to additional Affordable Housing within the municipality. Alone we can do so li le; together we can do so much Helen Keller Sincerly, Tim Tim Zavitz Akubilt Construction Partners Ltd Work Fax Mobile Glendon Drive RR#4 Mount Brydges, Ontario N0L 1W0 timz@akubilt.ca 2

5 Core Housing Need Strathroy-Caradoc 1 of 1 Households tested for core housing need Households tested for core housing need Households tested for core housing need, Average household income before taxes ($) Households tested for core housing need, Average monthly shelter costs ($) Households tested for core housing need, Average STIR before taxes (%) All households Owners Renters 7,220 5,810 1,415 69,847 78,035 36, Households below one or more housing standards Households below affordability standard Households below adequacy (repair) standard Households below suitability (crowding) standard Households below housing standards All households Owners Renters Households in core housing need Households in core housing need, Average household income before taxes ($) Households in core housing need, Average monthly shelter costs ($) Households in core housing need, Average STIR before taxes (%) Households in core housing need All households Owners Renters ,828 22,402 17, Sources: CMHC (census-based housing indicators and data, Starts and Completions Survey, Rental Market Survey), Statistics Canada (Census of Canada) Notes: Data include all non-farm, non-band, non-reserve private households reporting positive incomes and shelter cost-to-income ratios less than 100 per cent. For renters, shelter costs include rent and any payments for electricity, fuel, water and other municipal services. For owners, shelter costs include mortgage payments (principal and interest), property taxes, and any condominium fees, along with with payments for electricity, fuel, water and other municipal services. STIR: Shelter-cost-to-income ratio (based on annual shelter costs and household income before taxes). Affordable housing costs less than 30 per cent of before-tax household income. Includes households below more than one standard (in addition to the affordability standard). Accordingly, the sum of the number of households below each standard will be larger than the total number of households below standards. Adequate housing does not require any major repairs, according to residents. Includes households below more than one standard (in addition to the adequacy standard). Accordingly, the sum of the number of households below each standard will be larger than the total number of households below standards. Suitable housing has enough bedrooms for the size and make-up of resident households. Includes households below more than one standard (in addition to the suitability standard). Accordingly, the sum of the number of households below each standard will be larger than the total number of households below standards. A household is in core housing need if its housing does not meet one or more standards for housing adequacy (repair), suitability (crowding), or affordability and if it would have to spend 30 per cent or more of its before-tax income to pay the median rent (including utilities) of appropriately sized alternative local market housing. Adequate housing does not require any major repairs, according to residents. Suitable housing has enough bedrooms for the size and make-up of resident households. Affordable housing costs less than 30 per cent of before-tax household income. For more detailed definitions, please see refer to: The information contained in this document is a printable version of information originally contained on CMHC website application CMHC makes considerable effort to ensure that the information and analysis on this application is reliable, but cannot guarantee that it is accurate or complete. The content of the application is general in nature and is not intended as a substitute for professional advice when making significant financial decisions. You understand and agree that by using this document and the information it contains, you will be bound by the terms of use of the CMHC website ( and in particular, you agree that you may not hold CMHC liable for any consequences that arise if you choose to rely on this information and analysis to make a financial decision CMHC-SCHL

6 Marc Bancroft From: Sent: To: Cc: Subject: Attachments: Tim Zavitz April :48 AM Marc Bancroft Ralph Coe Similar Projects that received Collingwood - 30 Unit.pdf; Collingwood - Census.pdf; Dutton - 30 Unit.pdf; Dutton Dunwich - Population.pdf; Huntsville - 6 Unit.pdf; Strathroy-Caradoc - Population.pdf; Town of Huntsville - Population.pdf Marc, Some additional Information, In the town of Collingwood a private developer built a project which seems closest to our proposed project, a 30 unit project with a mix of 23 affordable units and 7 market unit received similar funding as we have applied for. In addition to the federal and provincial funding the county and municipality contributed $620, in grants and waived levies. This project did not include an elevator. In the town of Huntsville a private developer built a 6 unit project receiving similar funding from the federal and provincial governments. In addition to the federal and provincial funding the municipality contributed at least $75, in fees including development, building, planning. In the municipality of Dutton Dunwich with a population under 4000 people the Lions club built a 30 unit project receiving similar funding from the federal and provincial governments. In addition the municipality contributed $200, in capital funding towards the project. In addition to the mandatory property tax adjustment required for this project, we would ask that the council consider making a contribution to our proposed project in the form of a capital grant to be used for the accessible unit modifications and to help cover the cost of the elevator in the amount of $140, Tim Zavitz Akubilt Construction Partners Ltd Work Fax Mobile Glendon Drive RR#4 Mount Brydges, Ontario N0L 1W0 timz@akubilt.ca 1

7 CANADA MORTGAGE AND HOUSING CORPORATION PROJECT PROFILE 145 High Street Collingwood, Ontario Highlights A 30-unit apartment building offers a mix of affordable rents for people with low to moderate incomes. The Tornat Group, a private developer, completed the project with support from four levels of government Collingwood residents have more affordable rental housing choices thanks to a partnership between a private developer and four levels of government. The 145 High Street building has 23 affordable and 7 market rent apartments. Tornat Group Inc., a development company based in Richmond Hill, Ontario, owns and manages the property, which opened in John Fogolin, founder and principal of Tornat Group Inc., has specialized in building affordable housing in Ontario since the 1970s. As a private sector Client group: People with low to moderate incomes Developer: Tornat Group Inc. Number of units: 30 Tenure: Rental Who was involved? Government of Canada (CMHC), Province of Ontario (Ministry of Municipal Affairs and Housing), Simcoe County, City of Collingwood developer, he was interested in the social aspect of doing some good in the community. The Affordable Housing Solution A 0.4-hectare (1-acre) parcel of vacant land in Collingwood was offered as a power of sale in Fogolin purchased it for a good price, intending to build affordable townhouses, but for various reasons, the project did not proceed. In 2008, the City of Collingwood applied under the request for proposals issued by the County of Simcoe for funding from the Canada-Ontario Affordable Housing Program. The City proposed to redevelop a downtown property but couldn t follow through because of neighbourhood opposition. The City then approached Fogolin to determine if he would be interested in developing the vacant site he had purchased several years earlier.

8 Project Profile 145 High Street My site could accommodate 30 units, and the funding allocation was for 18 affordable units, Fogolin explained. I would build the other units without a subsidy. Then the funding subsidy increased to 23 units. It took time to coordinate the funding arrangements between the four levels of government and to obtain private financing. Construction began in 2008 and was completed in The threeand-a-half-storey apartment building was designed to blend in with its neighbourhood and larger community. While mixed-rent buildings are now more common, when it first opened, the building was unique. There was a lot of interest in the 23 affordable units, but initially, it was challenging to fill the 7 market rent apartments. We had to get over the perception that this was a building where poor people live, Fogolin said, so we over-designed it to look good. With a total cost of approximately $4 million, the project received combined federal and provincial funding of almost $1.6 million through the Canada-Ontario Affordable Housing Program Agreement. The project also CMHC Contact Contact a representative of CMHC s Affordable Housing Centre received Seed Funding from CMHC to help cover the costs of carrying out the initial activities required to develop a housing proposal. Municipal and county grants and waived levies, valued at $620,000, were also provided. The funding helped lower the capital cost, so that we can keep the housing affordable, Fogolin explained. We made the market rents as low as possible. The County of Simcoe provides rent subsidies to low-income tenants who need assistance. Windows are double-glazed and insulation values exceed the Ontario Building Code requirements to enhance energy efficiency and long-term affordability. Each apartment has individual meters for hydro and natural gas and low-flow plumbing fixtures. Tenants pay for utilities. Seeing a monthly bill encourages energy conservation, Fogolin explained. This is the first affordable housing project where Tornat is responsible for property management. It s a win-win for everybody, because it takes a big headache away from the City. The building filled quickly. Residents who live in the affordable apartments include victims of domestic violence, seniors, and persons with physical or intellectual disabilities. Support services are provided by the community. The building has video cameras for tenants safety. There is no elevator in the building, but entrance ramps make the ground-floor units accessible to people with limited mobility. Fogolin notes that the building is fulfilling a community need for affordable rental housing. Many of the tenants were previously living in inadequate rental housing, he explained. The other option is condo sublets, with much higher rental rates.

9 CANADA MORTGAGE AND HOUSING CORPORATION PROJECT PROFILE 16 Veterans Way Huntsville, Ontario Highlights A private developer has created affordable housing for seniors after rehabilitating an old industrial site. Client group: Low-income seniors Developer: Brunel Road Management Number of units: 6 Tenure: Rental Who was involved? Government of Canada (CMHC), Government of Ontario (Ministry of Municipal Affairs and Housing), Municipality of Huntsville, District Municipality of Muskoka, Brunel Road Management A former industrial site has been cleaned up and transformed into six affordable townhouses for seniors in downtown Huntsville. Located near the city s main street, the development offers large energy-efficient, split-level units that are designed to allow seniors to age in place. The developer had already built several market-rent units in the town, but the housing at 16 Veterans Way, built in 2009, was his first foray into affordable housing. For every 100 people looking for a market-rent apartment, there are 500 looking for affordable housing. That s why we decided to try building affordable housing. With this project, we have added rental units and rehabilitated an industrial site, which I believe will increase the property values in the neighbourhood. Our senior tenants love it here. Not only are the units affordable, they re energy-efficient and were built specifically to meet their needs, said Steve Hernen of Brunel Road Management. The Affordable Housing Solution Developer Steve Hernen and his partners at Brunel Road Management have been in the rental business for 30 years, managing multiple-family units at market rents and also building new units for the same market. The housing at 16 Veterans Way is one of three affordable housing projects that the company built in Huntsville between 2009 and About 20,000 permanent residents live in the municipality, which is located in the heart of Muskoka.

10 Project Profile 16 Veterans Way Seniors, aged 65 to 85 and older, account for nearly 19 per cent of the entire Muskoka region population. The housing at 16 Veterans Way consists of six affordable two-bedroom units in a split-level, single-row construction (it looks like a large bungalow with six doors). Located about three blocks from Main Street, the infill project rehabilitated industrial land where a well-drilling company once stood. Each unit has its own ground-floor entrance, with four steps going into the lower level where the bedrooms and a bathroom are located along with storage. Four other stairs lead up to the kitchen, living room, dining room and another bath. The design helps seniors with mobility problems, noted resident Lyle Payne. Most apartments are two floors with a lot of steps, which I can t manage, and a ground-floor apartment is usually more expensive. I can manage the few steps here, and the rent is affordable. I don t know where my wife and I would live if not for here, he said. CMHC Contact Contact a representative of CMHC s Affordable Housing Centre Because seniors were the target market, the units were built with their needs in mind. Features include lowered light switches, higher toilets, lever-style faucets, a low-step tub with a 40-centimetre (16-inch) height, and grab handles everywhere. The extra wide stairs also have low-pile carpet on them for better gripping. To help with affordability, the builder used insulated concrete forms in the floor and the walls. This not only keeps the heating bills lower, with the insulation having a very high RSI-value (R-value) of RSI-9.5 (R-54), it also makes the building fireproof and soundproof. Our experience with our market-rent units is that there are usually two issues that tenants complain about a common hallway and noise. Each unit at 16 Veterans Way has a separate entrance there s no common hallway and you can t hear the neighbour s television through the concrete walls, even if it s cranked up loud, said Hernen. The project received combined federal and provincial funding of $420,000 through the Canada-Ontario Affordable Housing Program. In addition to waiving the development fees and municipal building permit fees, the Municipality and District refunded the planning application fees, a value of at least $75,000, said Hernen. Brunel provided the land. Following the success at 16 Veterans Way, which opened in 2009, Brunel has developed two additional affordable housing projects. We have great tenants and a very low turnover. In addition, we also have a great working relationship with all levels of government. It s a good deal for everyone, added Hernen.

11 CANADA MORTGAGE AND HOUSING CORPORATION Project Profile Caledonia Two Dutton, Ontario Like all Lions Clubs, the one in Dutton, Ontario, is dedicated to community service. In fact, when the Dutton Lions Club noticed that the waiting list for its existing seniors housing development was exceeding its capacity to meet the demand, it went to work on a second phase. The strong volunteer ethic of one member in particular was key to getting the 30 new units on stream. The Affordable Housing Solution Highlights A Lions Club took the opportunity to leverage its fundraising efforts to create 30 units of new affordable seniors housing. Client Group: Low-income seniors Developer: Dutton and District Lions Non-Profit Housing Tenure: Rental Number of Units: 30 Who was involved? Dutton and District Lions Non-Profit Housing; Governments of Canada and Ontario; Municipality of Dutton-Dunwich; private donors Dutton is a small Ontario community of about 1,400 people near St. Thomas. Its Lions Club has been operating the 25-unit Caledonia Gardens since 1993, and the design of Caledonia Two reflects that experience. Residents comment on both the comfort of the units and the quality of the construction. The building s wide halls and doorways, large closets, laminate flooring and convenient amenities demonstrate an understanding of the needs of seniors living alone. Residents who need additional support or medical care can access the services of a care home located on the same campus. The development is viable at affordable rents thanks to a $2-million capital contribution from the Canada-Ontario Affordable Housing Program, $200,000 from the Municipality of Dutton- Dunwich and $325,000 raised through the Dutton Lions own campaign a piece that was critical to bringing the other partners on board. Affordable housing development especially in small communities like Dutton simply can t happen without exemplary volunteer efforts by extraordinary individuals. The hours they put in, and their value, are often immeasurable, and that was the case with the Caledonia Two. Unfortunately, one Lion named Claire Oldham, who was particularly passionate about the need for seniors housing, didn t live to see the results of his work completed. However, at the opening of the new residence, his daughter spoke eloquently about her father s volunteer work and the role model he provided for his grandchildren. It is this kind of dedication, as much as good design and government dollars, that ensures a project s success.

12 P r o j e c t P r o f i l e C a l e d o n i a T w o Significant resources from a variety of contributors, including CMHC, the Government of Ontario and the Municipality of Dutton-Dunwich, along with community fundraising, complemented the successful community-based partnerships initiated by the Dutton Lions Club. CMHC Contact Judith Binder, , jbinder@cmhc-schl.gc.ca