Creating a Model for Building Affordable Housing

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1 Alberta Rural Development Network (ARDN) Creating a Model for Building Affordable Housing October 18, 2017 Dee Ann Benard, Executive Director

2 Today s Presentation ABOUT THE ALBERTA RURAL DEVELOPMENT NETWORK BUILDING AFFORDABLE HOUSING IN RURAL ALBERTA THE ALBERTA RURAL COALITION ON HOUSING & HOMELESSNESS (ARCH 2 )

3 About the Alberta Rural Development Network (ARDN)

4 WHAT IS THE ARDN? Launched April 1, 2009 Created through a voluntary partnership of Alberta s public post-secondary institutions Arm s length, independent, not-for-profit society Originally funded through the Rural Alberta Development Fund as a 3 year project

5 ARDN Uses the combined expertise of Alberta s postsecondary institutions to support rural development in Alberta and help rural communities grow through research & learning Strives to be Alberta s premiere rural development organization Is a Provincial Connector & Solutions Generator Works to support and enhance the well-being of individuals and the vibrancy of rural communities

6 Building Affordable Housing in Rural Alberta

7 WHAT IS AFFORDABLE HOUSING? For this presentation, the term affordable housing includes: Emergency shelters Transitional housing Social housing Affordable rentals Affordable home ownership

8 DEFINITIONS Emergency shelter Overnight accommodation for those without permanent housing; can include wrap around support services. Transitional shelter Accommodation for 6 months to 3 years; can include wrap around services. Social housing Rent is geared to income; rent is 30% of before tax income. Usually receives subsidy assistance from government. Affordable rental and ownership Shelter costs are <30% of before-tax household income.

9 WHAT WE HAVE LEARNED It is a huge undertaking for a rural community or community based organization (CBO) to plan, fund and launch an affordable housing project

10 WHAT WE HAVE LEARNED There is a need for a multi-stakeholder approach to building innovative and costeffective affordable housing, especially in Alberta s rural communities ARDN wants to facilitate the sharing of knowledge and best practices amongst communities and CBOs

11

12 Sustainable Housing Initiative (SHI) Creating Titleinnovative and cost-effective affordable housing solutions Redefining how people create affordable housing Changing how people think and feel about affordable housing Promoting new partnerships, leveraging existing resources, and helping communities build innovative, cost-effective affordable housing

13 Sustainable Housing Initiative Project Team Vaughan Hoy Principal Kennedy Create Joshua Bénard Program Director Sustainable Housing ARDN Scott Koehn Senior Engineer & VP Arrow Engineering Caroline Hachem- Vermett e Faculty of Environment al Design U of C Rhys Kane Director of Business Development Ladacor Dr. Peter Silverstone Department of Psychiatry U of A

14 4 Pillars of Innovation Title Up to 467 Affordable Units in 8 Communities 1. Shipping Containers 2. Net Zero 3. Psychology of Aesthetics 4. A novel Toolkit that provides a turnkey solution to build innovative and costeffective affordable housing

15 Shipping Containers Summary of the key benefits of working with Title a steel modular approach: Turn-Key Project, Design-Build Non- Combustible, Durable Steel Building Schedule Savings Certified Quality Reduced Execution Risk Sustainability

16 Containers vs. Conventional Modular Features Title Shipping Container Wood Modular Steel Modular Cost $174/ft 2 ~$166/ft 2 ~$198/ft 2 Non-Combustible Maximum Recyclable Content Less Mold, Rot, and Insect Infestation Less Susceptible to High Winds or Earthquake Less Expansion and Contraction Due to Moisture

17 Net Zero Shipping Containers University of Calgary researcher identified these key components for cost effectively making shipping containers net zero Airtight Window Size Thermal Mass Solar Power Geothermal Shading Devices

18 Other Passive Energy Solutions Tesla Solar Shingles Ground Source Heat Pumps/ Geothermal Insulation and Building Envelope Heat Recovery Units

19 Psychology of Aesthetics University of Alberta researcher is reviewing ways to optimise design elements to enhance residents mental and physical health (Nature, Energising, Relaxing, Restorative)

20 The Toolkit Objective: To create a cost-effective, efficient, versatile, and evidence-based toolkit that will save money and provide a clear path to build affordable housing throughout Canada

21 The Toolkit A template & plan to efficiently & effectively conduct the necessary steps to build affordable housing: Title Analysis of need and demand Community consultations Analysis of financial viability Business plan Preliminary site analysis and selection criteria Wrap-around services check-list Management plans and protocols Standardized data collection forms and resources RFP template for prime consultant and design build services Generic schematic designs for a net zero-ready building

22 Cost Comparison: Using the Toolkit Pre-Development Activities Title Analysis of Need and Demand vs Do It Yourself Historical Cost Range Projected Toolkit $10,000 - $100,000 $1,000 - $2,000 Community Consultation $3,000 - $5,000 $250- $1,000 Analysis of Financial Viability & Business Plan Preliminary Site Analysis and Selection Criteria Generic Schematic for Net Zero-Ready Building $10,000 - $100,000 $1,000 - $4,500 $18,000 - $25,000 $ $12,000 $90,000 - $150,000 $67,500 - $112,500 Total: $131,000 - $380,000 $75,750 - $132,000

23 Project #1: The YWCA Banff Courtyard Project ~18,000 ft 2 3 stories Title 33 affordable units 12 studio apartments 9 one bedroom apartments 6 two bedroom apartments 6 four bedroom apartments Up to 78+ people housed

24 Title Summary Toolkit reduces pre-development costs by up to 65% Shipping containers reduce costs of building affordable housing by up to 15% Net zero reduces costs of owning/operating affordable housing by up to 35%

25 ARDN AFFORDABLE HOUSING SUCCESS TO DATE Working in several communities to do: Analyses of need and demand Analyses of financial viability Business plans Community consultations Site plans, development permit & building permit drawings Project management Help finding funding

26 WHERE ARE WE AT WITH OUR PROJECT? To validate the toolkit, ARDN is working with organizations in several rural Alberta communities to build affordable housing, following the tool kit. ARDN has secured more than $10 million in investment and is seeking more. Our first project (YWCA Banff) should break ground soon! Affordable housing proponents are invited to access ARDN services, including access to financial support, pre-development work and project management. Provided on a cost recovery basis.

27 The Alberta Rural Coalition on Housing & Homelessness (ARCH 2 )

28 ARCH 2 MISSION We speak with one united voice to increase information sharing, access to affordable housing and services to address rural homelessness VISION An affordable home for every rural Albertan PRINCIPLES Committed to improving the lives of rural Albertans Respectful of the person with lived experience Dedicated to speaking for those who cannot speak for themselves Providing rural solutions to solve rural issues

29 ARCH 2 GOALS Improve knowledge and education on the specific issues regarding rural homelessness. Create mechanisms to share information and resources amongst rural communities. Effectively champion for access to affordable housing in rural Alberta communities. Increase the capacity of rural communities to address affordable housing and homelessness. Collaborate with others to replicate success stories.

30 Become a member of ARCH 2 : Full memberships are for rural-based individuals, organisations and municipalities, outside the 7 cities. Affiliate memberships are available to everyone else. Annual membership fees: Individual: $20 (restricted to the individual) Organization: $50 (designate two representatives) Municipality: $100 (designate two representatives)

31 Contact me: Dee Ann Benard (780)

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