COUNCIL REPORT. Executive Committee. Report No. CM Date: January 15, 2018 File No: 5050

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1 COUNCIL REPORT Report No. CM Executive Committee Date: January 15, 2018 File No: 5050 To: From: Subject: Mayor and Council Dena Kae Beno, Housing and Homelessness Coordinator Housing Fund Contribution Request and Abbotsford Housing Agreement Authorization No. 2101, Bylaw 2018, to secure affordable housing units located at Old Yale Road and 2714, 2728 and 2738 Fuller Street RECOMMENDATION 1. THAT Council approve an Affordable Housing Opportunities Reserve Fund contribution, of a maximum of $187,500, to the Mamele awt Qweesome Housing Society affordable housing project for the properties located at Old Yale Road, 2714, 2728 and 2738 Fuller Street, subject to the following conditions: a The rent of 45 units of affordable housing is affordable to households that qualify at or below the core need income threshold (CNIT developed by Canada Mortgage and Housing Corporation (CMHC; and b The rent of 15 units of core need housing is at or below rates that are affordable to low income households with incomes of $40,000 and below or at or below the Low Income Cut-off level defined by Statistics Canada for urban areas greater than 100,000 people, based on household size; 2. THAT Bylaw No , Abbotsford Housing Agreement Authorization No. 2101, Bylaw 2018, proceed for three readings at the next Regular Meeting of Council; and 3. THAT the Mayor and Corporate Officer be authorized to execute all documents related to this matter. REPORT CONCURRENCE Deputy City Manager The Deputy City Manager concurs with the recommendation of this report. City Manager The City Manager concurs with the recommendation of this report.

2 Report No. CM Page 2 of 6 SUMMARY OF THE ISSUE The purpose of this report is to: 1. Seek Council approval for a request for funds, from the City s Affordable Housing Opportunities Reserve Fund, for a capital contribution of $187,500, towards the proposed Mamele awt Qweesome Housing Society (MQHS 60-unit affordable housing project. The proposed site is located at the following properties: Old Yale Road, and 2714, 2728 and 2738 Fuller Street (Attachment A; and 2. Seek Council approval of Abbotsford Housing Agreement Authorization Bylaw No. 2101, Bylaw No , which provides authority for the City to enter into a Housing Agreement for the proposed operation of the facility. The proposed Bylaw is referenced as (Attachment B. The rezoning application is highlighted in Council Report No. PDS , which Council considered at its Executive Committee meeting, held on November 6, The rezoning application, and Bylaw, was the subject of a Public Hearing held on November 20, 2017, after which time the subject rezoning Bylaw received Third Reading at the Regular Council meeting of November 20, One of the conditions noted in the report was for the applicant to enter into a Housing Agreement with the City. Also noted in Report No. PDS , in Sections 5 and 6, an application for funding was to proceed to the City s Development Advisory Committee, on December 7, 2017, for its review and subsequent recommendation to Council. At the Committee meeting the following resolution was carried: BACKGROUND THAT the Development Advisory Committee recommends to Abbotsford City Council that the application by the Mamele awt Qweesome and To o Housing Society for $187, from the City s Affordable Housing Opportunities Reserve Fund, for its affordable housing development project, located at Old Yale Road and 2714, 2728 and 2738 Fuller Street, be approved. One of the conditions of rezoning, as noted in Report No. PDS , was that the applicant must enter into a Housing Agreement to ensure minimum rents, standards of operation and residency are achieved. The applicant has agreed to enter into the Housing Agreement and to register notice of the Housing Agreement on title to secure the 60 rental units. The Housing Agreement restricts the annual household incomes for eligible occupants and specifies that the units must be made available to low to moderate income households, whose annual incomes fall below or at the Housing Income Limits (HIL established by BC Housing. The HIL rates will be adjusted periodically by BC Housing with the utilization of Canada Mortgage and Housing Corporation and Census Canada data, to reflect current income and housing market factors. In 2010 Council established the Affordable Housing Reserve Fund and Affordable Housing Capital Reserve Fund (Housing Funds. The Affordable Housing Opportunities Reserve Fund ( Opportunities Fund enables the City to provide assistance for developing affordable home

3 Report No. CM Page 3 of 6 ownership, market and non-market housing projects in Abbotsford. The mandate of the Opportunities Fund is to address homelessness and affordable housing related issues in Abbotsford by: a raising monies and investing it wisely; b providing a mechanism for business and community members to make charitable donations; c leveraging private, senior government and other monies; d facilitating collaborative partnerships; e distributing funds to projects and programs that assist or enable individuals to exit or avoid homelessness; and f developing affordable housing demonstration projects. Contributions into the Opportunities Fund may be received from various sources, including: property taxes, donations to the City for the purpose of the Opportunities Fund, or voluntary developer contributions generated through density bonusing, strata conversion, and other development related processes. As of December 5, 2017, the cash-in-lieu contribution balance in the City s Affordable Housing Opportunities Reserve Fund was approximately $854,060. DISCUSSION As noted above the rezoning application currently sits at Third Reading. In order to achieve one of the conditions the applicant must enter into a Housing Agreement. The Housing Agreement is attached to this report. During the application process, MQHS requested the City to consider approval of an affordable housing contribution towards the capital costs related to this project. As noted above, on December 7, 2017, the City s Development Advisory Committee reviewed the application for funding and recommended that the request be approved. The request complies with the City s Affordable Housing Opportunity Reserve Fund Policy C The following Affordable Housing Opportunities Reserve Fund criteria were used to review the Mamele awt Qweesome Housing Society s application for a City contribution: Criteria Y/N Project Application Project must benefit Yes The project will deliver 45 units of rental housing for low to housing at-risk moderate income households and 15 units of core need populations rental housing for low-income youth.

4 Report No. CM Page 4 of 6 Project must demonstrate financial viability Yes BC Housing has approved capital funding through its Provincial Aboriginal Housing Initiative. The project has achieved operating funding viability through a housing and service delivery partnership with MQHS and Abbotsford Community Services. Canada Mortgage and Housing Corporation (CMHC has approved $40,000 in capital project development funding towards the project. Project must receive Development approvals Municipal contribution must not represent 100% of the project s budget. Project should promote sustainable development The project budget has experienced cost escalation due to delays. BC Housing will review these costs as part of its Final Project Approval. Pending Rezoning Bylaw No has received 3 rd reading. Yes Yes Project has received BC Housing s Preliminary Project Approval (PPA to secure the capital funding grant. Final Project Approval (FPA is pending issuance upon receipt of the City s Building Permit and final budget for construction tendering. As of April 5, 2017, the estimated project budget was approximately $17.9M. The recommended City Affordable Housing Opportunities Reserve Fund contribution of $187,500 represents 1% or less of the final budget. The project utilizes an urban village concept to ensure that future tenants have access to services, close proximity to transit and amenities, provides a range of rental options for low to moderate income renter households, shows clear evidence of partnership, and meets the City s Official Community Plan requirements.

5 Report No. CM Page 5 of 6 Staff recommends supporting the requested Affordable Housing Opportunities Reserve Fund contribution of $187,500 towards the project located at Old Yale Road and 2714, 2728 and 2738 Fuller Street, which has been calculated as follows: Affordable Housing Opportunities Reserve Fund formula No. of Units TOTAL Affordable housing up to a maximum of $2,500 per unit 45 units $112,500 Core Needs Housing up to a maximum of $5,000 per unit 15 units $ 75,000 TOTAL CONTRIBUTION 60 UNITS $187,500 Tenants will pay no more than 30 percent of their Housing Income Limit for rent through a mix of one to three bedroom units for low to moderate income households, which includes nine programmed units for youth, 19 years or younger. The core need housing contribution towards 15 units allows for financial support to allocate deeper subsidies for lower income households. Staff recommends the funding be provided in accordance with BC Housing s Final Project Approval and Quantity Survey reports that will track the progress and completion of the project and the City s Final Building Permit issuing occupancy. HOUSING AGREEMENT The proposed rental development will house a diverse tenant population and deliver a mix of affordable and core need housing options within the project. The housing facility will be programmed to include nine units for the Autumn House Youth Program, operated through a partnership with Abbotsford Community Services, for youth ages 19 years of age or younger that is funded through the Ministry of Children and Family Development; and fifty-one units for low to moderate income households to be rented at or below the Housing Income Limits (HIL s established by BC Housing and updated periodically to reflect current income and housing market conditions. Mamele awt Qweesome Housing Society is the assigned operator of the proposed housing development and will work closely in partnership with Abbotsford Community Services to deliver the housing and services to the tenant population to meet the conditions of residency and operator obligations outlined in the Housing Agreement. FINANCIAL PLAN IMPLICATION If approved, a maximum of $187,500 will be provided from the Housing Funds to assist Mamale awt Qweesome Housing Society with ensuring affordability for their intended tenant population. The Housing Funds are reserves collected through developer contributions and do not impact general revenue. As of December 31, 2017 the balance in the Affordable Housing Opportunties Reserve Fund is $854,000. Rajat Sharma General Manager, Finance and Corporate Services Signed 1/3/ :02 PM

6 Report No. CM Page 6 of 6 COMMUNICATION PLAN If approved, Housing and Homelessness Unit staff will work with Communications staff, BC Housing, MQHS and Abbotsford Community Services to complete a press release about the funding contributions towards this project. IMPACTS ON COUNCIL POLICIES, STRATEGIC PLAN AND/OR COUNCIL DIRECTION The leveraging of City resources in partnership with Senior Government, shelter providers and local service agencies supports Council s Cornerstone of developing a Complete Community and specifically supports Principle 5 We facilitate action to mitigate social issues that impact or community. SUBSTANTIATION OF RECOMMENDATION In accordance with the Local Government Act (Section 905, adoption of Abbotsford Housing Agreement Authorization Bylaw No. 2101, Bylaw No , and the City Contribution of $187,500 from its Affordable Housing Opportunities Reserve Fund, will provide financial support to the Society to secure sixty (60 units of rental housing that are proposed in association with Rezoning Application PDS , which will contribute towards providing much needed affordable housing stock in Abbotsford. Jake Rudolph Deputy City Manager Signed 1/4/2018 2:06 PM ATTACHMENTS: Attachment A - Map of proposed development (33309 Old Yale Road, 2714, 2728 and 2738 Fuller Street Attachment B - Abbotsford Housing Agreement Authorization Bylaw No. 2101, Bylaw No

7 BABICH ST SILVERTREE CT ALLEN AVE GEORGE FERGUSON WAY FULLER ST WARE ST OLD YALE RD Subject Property SOUTH FRASER WAY WALSH LANE WALSH AVE ALLIANCE ST BOURQUIN CR E Old Yale Rd, 2714, 2728, & 2738 Fuller St. Figure 1 - Location Plan File No.: PRJ Meters ± Date 9/25/2017

8 Bylaw No PRJ The Council of the City of Abbotsford, in open meeting assembled, ENACTS AS FOLLOWS: 1. CITATION Bylaw No may be cited as Abbotsford Housing Agreement Authorization No Bylaw, ENTER INTO HOUSING AGREEMENT It shall be lawful for The City of Abbotsford to enter into the Housing Agreement between the City of Abbotsford, Mamele;awt Qweesome Housing Society and the Autumn House Program, substantially in the form set out in Schedule A, attached to and forming part of this bylaw. READ A FIRST TIME this day of, 2018 READ A SECOND TIME this day of, 2018 READ A THIRD TIME this day of, 2018 ADOPTED this day of, 2018 I hereby certify this to be a true copy of the original bylaw Henry Braun Mayor Katie Karn Deputy City Clerk William Flitton Corporate Officer

9 Bylaw No Page 2 SCHEDULE A HOUSING AGREEMENT No THIS AGREEMENT is dated for reference the day of, 2018; BETWEEN: City Hall South Fraser Way Abbotsford, British Columbia V2T 1W7 AND: AND (the "City" Mamele awt Qweesome Housing Society Lougheed Hwy PO BOX 3563 Mission, BC V2V 4L1 Autumn House Program Operator Abbotsford Community Services 2420 Montrose Avenue Abbotsford BC V2S 3S9 Canada (the Operator Mamele awt Qweesome Housing Society Lougheed Hwy PO BOX 3563 Mission, BC V2V 4L1 (the Owner OF THE FIRST PART OF THE SECOND PART OF THE THIRD PART WHEREAS: A. The Operator proposes to provide an Apartment Use for residents with nine (9 units of the sixty (60 units for youth housing, all as defined herein, within the Housing Facility, as defined herein, in accordance with the requirements of this Agreement, the City s

10 Bylaw No Page 3 Zoning Bylaw and all other applicable Provincial statute, regulation or bylaw governing the Operator s use and development of the Lands. B. Under Section 483 of the Local Government Act a local Government may by Bylaw enter into a Housing Agreement. C. The parties have reached agreement as to certain reasonable and necessary measures to be undertaken by the Operator in the management and operation of the Housing Facility and now wish to enter into this Agreement in order to ensure compatibility between the use of the Housing Facility and that of the immediately adjoining neighbourhood. D. The Owner is the registered owner of those Lands defined herein. E. The City adopted Bylaw No authorizing the City to enter into this Housing Agreement on the terms and conditions contained herein. THIS AGREEMENT is evidence that in consideration of the mutual promises contained in it, and in consideration of the payment of $10.00 (TEN DOLLARS by each of the parties to the other (the receipt and sufficiency of which is acknowledged by each party, the parties covenant and agree with each other as follows, as a housing agreement under Section 483 of the Local Government Act and as a contract and a deed under seal between the parties: 1. Interpretation 1.1 In this Agreement the following definitions apply: Agreement means this Housing Agreement. Apartment Use means a residential use consisting of three or more dwelling units on a lot, where each dwelling unit has its principal access from a common entrance or hallway. Ground level dwelling units may have direct ground level access to the lot, street or lane. Housing Facility means the Lands and the improvements located on the Lands wherein the Operator intends to carry out an Apartment Use, under the terms and conditions of this Housing Agreement and the City s Zoning Bylaw. Lands means: 2714 Fuller Street: Parcel 1 District Lot 48 Group 2 New Westminster District Plan BCP Fuller Street: Lot 77 District Lot 48 Group 2 New Westminster District Plan Fuller Street: Lot 189 District Lot 48 Group 2 New Westminster District Plan 58993

11 Bylaw No Page Old Yale Road: Lot 5 Except: Parcel A (Explanatory Plan District Lot 48 Group 2 New Westminster District Plan 8574 Resident means a person who inhabits a dwelling unit as his or her principal place of residence. 2. Obligations of the Owner 2.1 The Owner covenants and agrees with the City: (a that the Lands and the Housing Facility shall only be used for an Apartment Use, in compliance with the terms, conditions, requirements and restrictions of this Agreement and with any other applicable provincial statute, regulation or bylaw governing the Operator s use and development of the Lands. (b (c to take all reasonable measures to require the Operator to operate the Housing Facility in compliance with the terms, conditions, requirements and restrictions of this Agreement; and that the obligations and responsibilities of the Operator under this Agreement relating to the operation of the Housing Facility also bind the Owner in the operation of the Housing Facility. 3. Requirements of the Housing Facility 3.1 CPTED. The design and construction of the Housing Facility shall implement the Crime Prevention through Environmental Design (CPTED criteria for all uses on the lands to the satisfaction of the City and, for this purpose, the Operator shall, at the design stage and from time to time thereafter, consult with officials of the City regarding the implementation of such criteria. At a minimum, exterior security lighting is required. 3.2 Maintenance. The Operator shall, at all times, ensure that both the interior and exterior of the Housing Facility are well maintained in a neat, tidy and clean condition. 3.3 Storage. The Operator shall ensure that all personal belongings, furniture, goods, materials, supplies or other things are only stored within properly designated storage areas located within the interior of the Housing Facility or within a storage shed, approved by Planning Services and the Building Permits and Licensing Divisions of the City of Abbotsford. For greater certainty, nothing may be stored or allowed to accumulate around the exterior of the Housing Facility. 3.4 Outdoor Activities. The Operator shall ensure that barbecues and other outdoor activities are carried out in a safe and considerate manner and that the exterior of the Housing Facility is maintained in a neat and tidy condition. Barbecues shall be kept a minimum of 0.6 metres away from any building when in use.

12 Bylaw No Page Building and Fire Codes. The Operator shall ensure that the Housing Facility is, at all times, in compliance with the health, life safety and fire protection requirements of the British Columbia Building Code and Fire Code and the City s Fire Services Bylaw. 3.6 Parking. The Operator shall ensure that adequate on-site parking for staff, residents and visitors is provided and that there are no uninsured vehicles on the Housing Facility property. 4. Conditions of Residency 4.1 The Operator shall ensure that, prior to occupying an Apartment Use within the Housing Facility, each resident within the Autumn House Program with the exception of the live in supervisor shall be nineteen (19 years of age or younger. 4.2 Rental rates at the Housing Facility will be charged as follows: (a (b Nine (9 units will be rented to participants of the Autumn House Program, a youth program funded through the Ministry of Children & Family Development; and Fifty-one (51 units will be rented at below the Housing Income Limits establish BC Housing for corresponding unit size rental rates The tenant will pay no more than 30% of HIL for rent (HIL = max rent. 5. Obligations of the Operator 5.1 The Operator shall, at all times, be responsible for the proper management and operation of the Housing Facility. 5.2 The Operator covenants and agrees with the City that: (a (b (c the Operator is a non-profit organization and a business license is required; the maximum number of residents and staff personnel that shall be permitted to reside within the Housing Facility at any one time shall be the number of persons permitted by the British Columbia Building Code for the corresponding land use; and the composition of the residents of the Housing Facility, by gender and age group, shall be residents under nineteen (19 years of age or younger within the Autumn House Program with the exception of the live in supervisor and the balance shall be residents with no age restrictions. 5.3 The Operator shall be responsible for enforcing the conditions of residency outlined in Section 4 and shall discharge any resident who violates the conditions of residency. 5.4 Neither this Agreement nor any right hereunder to provide an Apartment Use within the Housing Facility may be assigned or transferred by the Operator to any other person or party, in whole or in part. If the Operator makes any such assignment, or transfers, sells

13 Bylaw No Page 6 or otherwise disposes of the Operator s company, business or non-profit organization to another party, or ceases to operate the Housing Facility for an Apartment Use, this Agreement shall immediately terminate. 5.5 The Operator shall prepare, obtain approval by the City of Abbotsford Fire Rescue Services and implement a fire safety plan, that in addition to the requirements of the BC Building Code and the Fire Code, includes, at a minimum: that fire alarm system is installed in accordance to UCL requirements; sprinkler system to be installed in accordance with NFPA 13; emergency lighting be installed; and location of fire Hydrants within 75m of all building sites. 5.6 The Operator shall stand and participate in all neighbourhood meetings scheduled by the City. 6. Termination 6.1 The City may, on 30 days prior written notice to the Operator and the Owner, terminate this Agreement where: (a (b (c the Operator fails to comply with, satisfactorily perform or meet any of the terms, conditions or requirements of this Housing Agreement and fails to remedy such non-compliance or unsatisfactory performance when and as requested to do so by the City; the Operator, at any time, ceases to provide Apartment Use within the Housing Facility, or carries out, permits or causes to be carried out, any activities or uses that are not permitted within the Housing Facility and is not authorized by the City s Zoning Bylaw, this Agreement and applicable provincial statutes or regulations; the goods and chattels of the Operator are at any time seized or taken in execution or attachment or the Operator makes an assignment for the benefit of creditors or becomes bankrupt or insolvent or makes a proposal to creditors. 6.2 Any party may terminate this Agreement on 30 days written notice to the other party. 6.3 This Agreement may be terminated at any time by mutual agreement of the parties. 6.4 Upon the expiry or earlier termination of this Agreement, Apartment Use shall no longer constitute permitted uses within the Housing Facility under the provisions of the City s Zoning Bylaw and shall thereupon cease. 6.5 Should the Lands cease being used as an Apartment Use, the City, will execute a registrable discharge of this Agreement or file the appropriate notice in the Land Title Office, upon: (a receipt of same from the Owner; and

14 Bylaw No Page 7 (b confirmation, to the satisfaction of the City that the Lands are no longer being used as an Apartment Use with dwelling units less than 42 sq.m in size. 7. Indemnity 7.1 The Owner and the Operator, each on their own behalf, releases, indemnifies and saves harmless the City, its elected officials, officers, employees, servants, agents and assigns from and against any and all liabilities, actions, causes of action whether in contract or in tort, claims, damages, expenses, costs, debts, demands, or losses suffered or incurred or be put to, at any time, either before or after the expiration or termination of this Agreement by the City, arising or resulting from the performance or non-performance of the terms and conditions of this Agreement by the Operator, its employees, volunteers or agents. 8. Miscellaneous 8.1 Time - Time will be of the essence of this Agreement and will remain of the essence notwithstanding the extension of any of the dates under this Agreement. 8.2 Waiver - No failure or delay on the part of either party in exercising any right, power or privilege under this Agreement shall operate as a waiver thereof, nor will any single or partial exercise of any right, power or privilege preclude any other or further exercise thereof or the exercise of any other right, power or privilege. Except as may be limited in this Agreement, any party may, in its sole discretion, exercise any and all rights, powers, remedies and recourses available to it under this Agreement or any other remedy available to it and such rights, powers, remedies and recourses may be exercised concurrently or individually without the necessity of making any election. 8.3 Entire Agreement - This Agreement and the agreements, instruments and other documents entered into under this Agreement set forth the entire agreement and understanding of the parties with respect to the subject matter of this Agreement and supersede all prior agreements and understandings among the parties with respect to the matters herein and there are no oral or written agreements, promises, warranties, terms, conditions, representations or collateral agreements, express or implied, other than those contained in this Agreement. 8.4 No Severability It is the intent of the parties that in case any one or more of the provisions contained in this Agreement shall be held to be invalid or unenforceable in any respect, such invalidity or unenforceability shall affect the other provisions of this Agreement and this Agreement shall thereupon terminate. 8.5 Amendment - This Agreement may be altered or amended only by an agreement in writing signed by the parties. 8.6 Further Assurances - Each of the parties shall at all times and from time to time and upon reasonable request do, execute and deliver all further assurances, acts and documents for the purpose of evidencing and giving full force and effect to the covenants, agreements and provisions in this Agreement.

15 Bylaw No Page Notices - Any demand or notice which may be given under this Agreement shall be in writing and delivered or faxed addressed to the parties as follows: The City: City of Abbotsford City Hall South Fraser Way Abbotsford, British Columbia V2T 1W7 Attention: City Clerk The Operator: Mamele awt Qweesome Housing Society Lougheed Hwy PO BOX 3563 Mission, BC V2V 4L1 Autumn House Abbotsford Community Services 2420 Montrose Avenue Abbotsford BC V2S 3S9 Attention: Executive Director The Owner: Mamele awt Qweesome Housing Society Lougheed Hwy PO BOX 3563 Mission, BC V2V 4L1 Attention: Executive Director or at such other address as any party may specify in writing to the other. The time of giving and receiving any such notice shall be deemed to be on the day of delivery or transmittal. 8.8 This Agreement shall be governed and construed in accordance with the laws of the Province of British Columbia. 9. Specific Performance 9.1 The Owner agrees that because of the public interest in ensuring that all of the matters described in this agreement are complied with, the public interest strongly favours the

16 Bylaw No Page 9 award of a prohibitory or mandatory injunction, or an order for specific performance or other specific relief, by the Supreme Court of British Columbia at the instance of the City, in the event of an actual or threatened breach of this agreement. 10. Notice of Housing Agreement 10.1 For clarity, the Owner acknowledges and agrees that: (a this Agreement constitutes a housing agreement entered into under Section 483 of the Local Government Act; (b (c the City is required to file a notice of housing agreement in the Land Titles Office (LTO against title to the Land; and once such a notice is filed, this agreement binds all persons who acquire an interest in the Land as a housing agreement under Section 483 of the Local Government Act AUTHORIZING BYLAW PASSED by Abbotsford City Council on the day of, THE TERMS AND CONDITIONS UPON WHICH THIS HOUSING AGREEMENT IS ISSUED ARE HEREBY ACKNOWLEDGED. The OPERATOR, Mamele awt Qweesome Housing Society, by its authorized signatory: Signature Print Name The OPERATOR, Autumn House, by its authorized signatory: Signature Print Name

17 Bylaw No Page 10 The OWNER, Mamele awt Qweesome Housing Society, by its authorized signatory: Signature Print Name THIS HOUSING AGREEMENT IS ISSUED this day of, by its authorized signatories: Henry Braun, Mayor William Flitton, Corporate Officer