THE CORPORATION OF THE CITY OF WHITE ROCK BUENA VISTA AVENUE, WHITE ROCK, B.C. V4B 1Y6

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1 Mayor's Office (604) City Administrator's Office (604) City Clerk's Office (604) Fax (604) THE CORPORATION OF THE CITY OF WHITE ROCK BUENA VISTA AVENUE, WHITE ROCK, B.C. V4B 1Y6 June 22, 2010 A MEETING of the HEALTH & SOCIAL COMMITTEE will be held in the City Hall COUNCIL CHAMBERS TUESDAY June 29, 2010, at 4:00 p.m. for the transaction of business listed below. Tracey Arthur City Clerk AGENDA 1. CALL TO ORDER 2. AGENDA APPROVAL THAT the Agenda for the HEALTH AND SOCIAL COMMITTEE meeting scheduled for June 29, 2010 be adopted as circulated. 3. PREVIOUS MINUTES Page 2 THAT the Minutes of the HEALTH AND SOCIAL COMMITTEE meeting held May 25, 2010 be adopted as circulated. 4. OTHER BUSINESS 4.1 EARLY CHILDHOOD DEVELOPMENT 4.2 CALL TO ACTION ON HOMELESSNESS 4.3 AFFORDABLE HOUSING CLLR. SINCLAIR 4.4 LIVING WAGE FOR FAMILIES POLICY CLLR. SINCLAIR 4.5 GATEWAY SOCIETY SERVICES FOR PERSONS WITH AUTISM 4.6 CITY OF WHITE ROCK MAPPING OF SERVICES RHEA HUBBARD 4.7 SPARC BC THE ACCESSIBLE COMMUNITY BYLAWS Clerks Note: This item was provided for information only 5. EARLY CHILDHOOD DEVELOPMENT FORUM OCTOBER 22, NEXT MEETING The next meeting, of the Health and Social Committee, is scheduled for July 27, 2010 at 4:00 p.m. Page 1

2 Minutes of a Regular Meeting of the Page 1 Health and Social Committee Held in City s Boardroom May 25, 2010 PRESENT: NON-VOTING MEMBERS: ABSENT: GUESTS: STAFF: Mr. Moti Bali, Vice Chairperson Ms. Judi Donald Ms. June Barrens Ms. Denise Darrell Ms. Susan Brown Councillor Lynne Sinclair Ms. Rhea Hubbard, Manager, Family and Youth Programs, Alexandra Neighbourhood House Mr. David Young, Chairperson Ms. Luz Lopez Dee Ms. Karen Lai, Social Planning Research Council of British Columbia Chief Phil Lemire, Staff Liaison Ms. Lorraine Sym, Committee and Freedom of Information Clerk 1. CALL TO ORDER The meeting was called to order at 4:10 p.m. 2. INTRODUCTION AND WELCOME OF NEW MEMBERS The Vice-chairperson introduced new member Susan Brown, and liaison member Rhea Hubbard, Alexandra Neighbourhood House to the committee. 3. AGENDA APPROVAL It was MOVED and SECONDED; THAT the Agenda for the HEALTH AND SOCIAL COMMITTEE meeting scheduled for May 25, 2010 be adopted as circulated. CARRIED 4. PREVIOUS MINUTES It was MOVED and SECONDED; THAT the Minutes of the HEALTH AND SOCIAL COMMITTEE meeting held April 27, 2010 be adopted as circulated. CARRIED Page 2

3 Minutes of a Regular Meeting of the Page 2 Health and Social Committee Held in City s Boardroom May 25, DELEGATION 5.1 SPARC BC ACCESS AWARENESS DAY 2010: THE ACCESSIBLE COMMUNITY BYLAWS Ms. Karen Lai, Project Coordinator Ms. Lai gave an informative presentation on Accessible Community Bylaws that form a template for municipalities to adopt to assist people with disabilities. She noted that Access Awareness Day is June 5, 2010, and advised that some municipalities are hosting barbeques with accessibility agencies and showcasing simulations to outline hardships for people with disabilities. Ms. Lai discussed accessible planning, adaptable housing bylaws, density bylaws, density bonusing and accessible public facilities, outdoor spaces and accessible streets. She noted that TransLink and the Union of British Columbia Municipalities are working with the Social Planning And Research Council to promote Go All Inclusive. Ms. Lai advised that 1264 disabled parking permits were issued in the. Discussion ensued regarding the fact that White Rock handicapped parking still requires payment for parking, which could create hardship for some people with disabilities. The machine may be at the wrong height for some, or the screen may be at the wrong angle for viewing. Mayor Ferguson entered the meeting at 4:25 p.m. Ms. Lai advised that the Social Planning and Research Council of British Columbia performs accessible audits for municipalities to determine their accessibility. Mayor Ferguson requested information from the Social Planning and Research Council of British Columbia on what qualifies a City to be deemed accessible. This information will be shared with the Health and Social Committee. Mayor Ferguson advised that the Economic committee is reviewing parking in the City of White Rock, and the Health and Social Committee is welcome to make recommendations with regard to handicapped spaces. 6. OTHER BUSINESS It was noted that the s Poverty Reduction resolution was forwarded to the Union of British Columbia Municipalities. 6.1 EARLY CHILDHOOD DEVELOPMENT Ms. Hubbard advised that the South Surrey White Rock Early Childhood Development Committee is investigating an appropriate keynote speaker for the forum. It was agreed that Mayor Ferguson write the School Board to invite them to participate in this forum proposed for October 22, Page 3

4 Minutes of a Regular Meeting of the Page 3 Health and Social Committee Held in City s Boardroom May 25, 2010 Discussion ensued regarding programs that bring food to children before school, and staff advised that food is delivered to Peace Arch Elementary and possibly White Rock Elementary also. 6.2 CALL TO ACTION ON HOMELESSNESS 6.3 AFFORDABLE HOUSING Cllr. Sinclair advised that she attended a meeting on May 19, 2010 and the next meeting will be in early June Cllr. Sinclair will provide a report to the committee at the next Health and Social meeting. 6.4 LIVING WAGE FOR FAMILIES POLICY It was noted that the City of New Westminster was the first municipality to adopt a Living Wage Policy. The has submitted a resolution to the UBCM on the issue of minimum wage. Discussion ensued regarding youth and young adults living at home for longer periods of time if they are unable to afford their own homes. It was agreed to keep this item as a standing item. 6.5 GATEWAY SOCIETY SERVICES FOR PERSONS WITH AUTISM This item will be deferred to the next meeting. 7. NEXT MEETING The next meeting, of the Health and Social Committee, is scheduled for June 29, 2010 at 4:00 p.m. The meeting closed at 4:55 p.m. David Young, Chair Lorraine Sym Committee and Freedom of Information Clerk Page 4

5 DRAFT Affordable Housing Strategy DRAFT Report By Cooper Planning & Development Consultants May Page 5

6 DRAFT Affordable Housing Strategy EXECUTIVE SUMMARY (TO BE COMPLETED) 2 Page 6

7 Affordable Housing Strategy Table of Contents EXECUTIVE SUMMARY 1.0 BACKGROUND 2.0 WHITE ROCK OBJECTIVES 3.0 HOUSING SITUATION IN WHITE ROCK 4.0 INVENTORY OF NON MARKET HOUSING 5.0 HOUSING POLICY CONTEXT IN WHITE ROCK 6.0 HOUSING ISSUES 7.0 MUNICIPAL ROLES & TOOLS TO ADDRESS AFFORDABLE HOUSING 8.0 CONCLUSIONS & RECOMMENDATIONS REFERENCES APPENDICES Appendix 1: May 19, 2010 Community Workshop Minutes Appendix 2: Workshop Presentation Appendix 3: Case Studies 3 Page 7

8 1.0 BACKGROUND The is concerned about the provision of affordable housing for residents with low incomes, the elderly and people with special needs, including the homeless and the disabled. White Rock has an active Health and Social Committee whose work has been hampered by the lack of clear policies and programs intended to encourage affordable housing for these residents. In order to become more effective the City desires to develop a comprehensive strategy that: Reviews current policies, Identifies opportunities, and Integrates these policies and opportunities with new ones based on current programs and resources available from the region, the province, the federal government and private organizations. A six member committee guided the development of the strategy. Members included: Councillor Lynne Sinclair Angelo Tsakumis Vice President and Director for EPTA Properties David Young Executive Director, Sources Reverend Joan McMurtry First United Church of White Rock Paul Stanton Director of Planning & Development Services, Connie Halbert Planner, Community consultation, through a Community Workshop held on May 19, 2010, also provided valuable input into the development of the strategy. A list of Workshop participants and notes from the meeting are included as Appendix 1 to this report. The Workshop Presentation is included as Appendix 2 to this report. 2.0 WHITE ROCK OBJECTIVES White Rock has a specific interest in assessing the housing needs of residents with low incomes, the elderly, and people with special needs, including the homeless as well as the disabled. White Rock has requested direction for developing legislation using the BC Local Government Act, including: Section 904 (Zoning for amenities and affordable housing), Section 905 (Housing agreements for affordable and special needs housing), Section 226 (Revitalization tax exemptions) and Section 227 (Notice of permissive tax exemptions). White Rock also seeks a review of city policy and programs and direction for new policies. In addressing these objectives the consultants have reviewed demographic and other relevant data provided by the White Rock Planning Department, researched Affordable Housing Strategies and housing policies, conducted public consultation through a community workshop and prepared a draft report. 4 Page 8

9 3.0 HOUSING SITUATION IN WHITE ROCK 3.1 Affordable Housing Defined Generally affordable housing is defined as a dwelling that does not cost more than 30 percent of the gross household income. The housing unit may be private, public, or not for profit. 3.2 Location White Rock was incorporated in 1957 and encompasses a land area of 5.16 square km. It is located in the Metro Vancouver District, approximately 48 kilometers from the City of Vancouver. White Rock is bounded on three sides by the City of Surrey and to the south by Semiahmoo Bay. 3.3 Population The 2009 population of White Rock was 19,102. Significantly the population in White Rock in 2006 had a higher proportion of seniors at 27.8% compared to the Province at 14.6% and a lower proportion of children under age 14 at 10.3% compared to the Province at 16.5%. There has been a 9% increase in single person households, an 11% increase in single family households and a 13% increase in divorced households between 2001 and 2006 in White Rock. There has also been a 14% increase in 3 person non family households. 3.4 Housing Data In 2006 there were approximately 9,525 dwelling units in White Rock. 28% of dwellings are single detached, and 72% are multi unit. In % of units were single detached houses and this proportion has declined consistently as multi unit forms of housing have increased. The housing stock is distinguished by relatively few apartments (720 units) in buildings over 5 storeys in height and many apartments (4270 units) in buildings under 5 storeys in height. 66% homeowners 34% renters. This ratio as remained relatively constant since Rental stock: 80 buildings, 1,700 units rental vacancy rate in White Rock was 0.5% a decline from the previous 1.3 per cent in A healthy vacancy rate is approximately 3% which would allows renters some choice in accommodation. Estimated 800 secondary suites 65% of units are built before 1986 indicating a fairly old housing stock. Average house value reported in 2006: $466,010 an 85.7% increase over the $250,942 cost in A representative house value in 2009 is $763,343. Average rent in 2006: $816 for 1 bed, $1,045 for 2 bed a 14% and a 22.4% increase over rents charged in Income 5 Page 9

10 Households have a higher median income at $30,197 compared to Provincial median income at $24,867. Family Households also have a higher median income at $75,327 compared to Provincial median income at $54,840. However the prevalence of low income families increased from 6.5% in 2001 to 8.8 % in The prevalence of low income individuals increased from 25.3% in 2001 to 27.5 % in As would be expected with a high proportion of seniors making up the population in White Rock there is also a higher proportion of income derived from pensions (17.8%) and investments (14.8%) compared to the Province at 11.9% and 11.4% respectively. Accordingly as well source of income due to employment is lower at 55.2% compared to the Province at 63.5%. 2,385 owners and 3,065 renters in White Rock spent 30% or more of income on housing in Spending more than 30% of income is often viewed as an indicator of affordability problems. 3.6 Future Growth The has determined that based upon current trends the 2011 population is forecasted to reach 19,705 and that 179 additional private dwellings would be required to meet this increase in population, assuming a household size of 1.9 persons per household. Also based on current trends, the 2031 population is forecast to reach 23,505. This would require 2, 179 additional private dwelling units to be provided, assuming a household size of 1.9 persons per household. The majority of growth is expected to occur in the White Rock Town Centre, along with some growth in the North Bluff Areas and smaller amounts elsewhere in White Rock. 4.0 INVENTORY OF NON MARKET HOUSING White Rock has very little housing for residents with low incomes, the frail elderly and other people with special needs, including the homeless and the disabled. Residents generally have to access affordable housing located in Surrey. 4.1 Evergreen Baptist Campus of Care The Evergreen Campus of Care offers 110 units of subsidized supportive housing, 84 onebedroom units of assisted living and 157 units of complex care in a long term residential care facility. The six acre site is owned and operated by the Evergreen Baptist Housing Society. The Society is a contracted service provider for the Fraser Health Authority. Evergreen Manor the 110 rental unit building offers a Seniors Supportive Housing (SSH) Program. The SSH program supports an ability to live independently by providing light housekeeping, flat linen laundry services, one meal per day, social and recreational opportunities, and a 24 hour emergency response system. One person studio suites or 1 bedroom couple suites are available. BC Housing subsidy is available for both the rent and SSH portion for eligible individuals. Evergreen Heights, an assisted living development for seniors, is an eight storey 86 unit 6 Page 10

11 apartment building with elevators and underground parking completed in Two of the units are guest suites, and the remaining 84 units were funded under the Independent Living BC (ILBC) program. The Evergreen Heights Baptist Housing Society owns and operates the facility. Tenants in the ILBC units receive two meals a day, personal care services, a 24 hour response service, social and recreational opportunities, and weekly housekeeping and linen services. Housing and services are provided at fixed rates based on tenants' after tax income. BC Housing will provide $11.2 million in operating subsidies over 35 years. Fraser Health provides approximately $1.1 million annually for personal care services. The project cost approximately $17 million to build. The Society provided over $3 million in land equity and cash to contribute to the project. The federal government, through CMHC, provided a $2.1 million capital grant. Financing of the balance of the project capital cost was facilitated through a loan insurance agreement between CMHC and BC Housing. Complex Care is provided to those who can no longer be supported at home safely. This may be due to physical limitations or issues such as dementia or Alzheimer's disease. Residents living in complex care receive 24 hour nursing care. Access to this service is through The Fraser Health Home Health Care Program. 4.2 Somerset Gardens Somerset Gardens has 3 developments that provide 148 two bedroom family housing units and 8 three bedroom units. It also has 10 one bedroom housing units for persons who require a wheel chair accessible unit. 4.3 Semiahmoo Peninsula Affordable Housing Society The White Rock Society purchased land and a duplex and in 1976 Fir Acres Estates opened as a home to 8 adults with disabilities. In 1978, the White Rock Society approached the Semiahmoo House Association about the possibility of amalgamation. Together the two societies formed the Semiahmoo House Society providing "one stop" services to people with mental disabilities. The Society has expanded its service provision and provides a variety of supportive living environments, including group homes Group Homes Semiahmoo House Society offers a variety of residential group homes. Each individual living in these homes is encouraged to plan and live their own lives with encouragement from family, friends and their support team. The twenty four hour a day professional support team are all taught the philosophy of self determination. Life Skills Support/Semi independent Living support provided to individuals in this model is very individualized. Individuals live in their own homes but have support from a trained support team to help them in developing daily life skills such as cooking, cleaning, budgeting and socializing. The goal in this program is for the individuals to develop their skills further to allow them to live independently. The Roommate model is for individuals who want to live in their own home with a roommate who can assist in providing some support. Apartment Living provides Individuals have the option of living in their own apartment with 7 Page 11

12 other supported individuals living in their own apartments in the same complex. There is a support team who also resides in the same complex. This model allows for independent living with support as needed. Family Support When an individual does not want to live in a group home, but wants/needs the support of a family environment, Family Support may be the answer. Family providers are sub contracted by Semiahmoo House Society and provide 24 hr support to the individuals in their home. In the Family Support program, individuals may also live in a separate suite within the support family s home. 4.4 Kiwanis Park Place Members of the Kiwanis Club of White Rock established the society in 1957 to build the original Kiwanis Village development now renamed Kiwanis Park Place. The Kiwanis Park Place complex was built in a series of phases, beginning in Further phases were added in 1964 and The series of structures amounted to 172 self contained apartments: a 146 unit building and three buildings with 26 units. The three smaller buildings were torn down in 2003 and replaced with new 111 unit building in There are in total of 257 apartments with support services for moderate income seniors and people with disabilities. All the new units are wheelchair accessible. Common areas include a fully equipped kitchen for events, a recreation room, meeting room, an exercise room with a wheelchair access shower, a ceramics room with kiln, a multi purpose room and lounges throughout the complex. Crescent Housing Society manages Kiwanis Park Place. An elected volunteer board governs this nonprofit organization to develop affordable housing for low income seniors. Crescent Housing Society provided the land, valued at over $4.8 million for the 2004 development. The federal government provided mortgage insurance as well as an interest free loan of $74,600 for proposal development funding. The provincial government contributed a $600,000 grant. The Real Estate Foundation of British Columbia provided a $75,000 grant to assist with creating and developing new, supportive, affordable seniors housing in the community. 4.5 Peninsula Estates Peninsula Estates is a non profit housing provider that has 40 two bedroom units and 12 threebedroom units. 4.6 Peace Arch Manor Peace Arch Manor is operated by the Peace Arch Senior Citizens Housing Society and has 79 one bedroom units available to tenants aged 55 and older. 5.0 HOUSING POLICY CONTEXT IN WHITE ROCK Council has already adopted several measures to address affordable housing issues in White Rock. These include: Official Community Plan Provisions Density Bonus Policy Municipal Property Tax Exemptions Accessory Registered Secondary Suites Registration Program 8 Page 12

13 5.1 Official Community Plan (OCP) Provisions Section 1.4 Community Vision states: Residential neighbourhoods contain a diversity of housing suitable for people of all ages, lifestyles and incomes Section 1.5 Community Principles states: Complete communities provide a range of housing, employment and transportation options, public and community services, and support a variety of cultural and recreational opportunities for all of its citizens. The City has identified several objectives in accordance to this principal, including the provision of a variety of housing types to meet the affordability and lifestyle needs of residents. Policy 6D of the 2001 Official Community Plan states: That White Rock will encourage provisions for affordable housing. Affordable housing options, in particular those related to seniors and special needs groups, will be investigated. The OCP further states in Policy 6E that: The City will monitor housing production and work with other levels of government or non profit organizations so that adequate capacity is retained for non market housing that will meet the needs of the community. Specific OCP housing goals are: To provide affordable and special needs housing opportunities in the community in particular those related to seniors and special needs groups (5.2.2) To be supportive of proposals to construct new rental housing units and to preserve the existing supply of rental housing (5.2.5) To recognize the needs of White Rock s aging population and provide appropriate housing options (5.2.10) The plan clearly expresses the community interest in developing senior housing, special needs housing, as well as child friendly housing for the emerging families. It supports initiatives for infill housing and solutions like flex housing. 5.2 Density Bonus Policy (Planning No. 804) White Rock s Density Bonus Policy allows developers to increase density in exchange for providing a community amenity or affordable housing. All rezoning that is granted greater density or height is permitted through Comprehensive Development (CD) zoning. Community 9 Page 13

14 amenity or affordable housing is determined through negotiation between the City and the developer. The resulting amenity or housing is secured by a development agreement, covenant, letter of credit and/or other necessary documentation, prior to rezoning amendment. Unless otherwise decided by City Council, all amenity contributions will be in form of paymentin lieu, which is in value of $20 per square meter. 5.3 Municipal Property Tax Exemptions (Council Policy No. 317) White Rock exempts non profit uses from paying property taxes. Applicants must submit an application by June 30 for the subsequent tax year for consideration; required attachments include audited financial statements for three years, site plan of property, legal proof of nonprofit status, written confirmation that all revenue generated from the property is used for nonprofit purposes. Eligibility: a) The land surrounding the buildings of places of worship b) BNSF City Leased property c) City properties leased to not for profit organizations that i) are providing a community service not currently available through the City; and ii) have not previously paid property taxes on the City property in question. d) Property owned by organizations whose principal purpose is to directly support Peace Arch Hospital s provision of health and wellness services to citizens of White Rock. e) Property owned by a charitable, philanthropic or other not for profit organizations whose principal purpose is delivery of social services to citizens of White Rock, provided that Council is comfortable the property is being used for that purpose and it provides a beneficial service to the Community. Ineligible: a) Organizations providing, or associated with, housing b) Service clubs 5.4 Accessory Registered Secondary Suites Registration Program White Rock recently approved accessory secondary suites as permitted uses in one unit single detached residential zones. Only one accessory suite is allowed per lot and one additional onsite parking space must be provided. All suites are inspected by the City and must conform to the BC Building Code. The suite cannot be more than 40% of the habitable floor space of the entire building, and cannot exceed 968 ft HOUSING ISSUES White Rock has had a long interest in addressing housing issues. The City established the Housing Diversity Task Force in 2006 to examine opportunities for maintaining a diverse and balanced housing stock in White Rock. In 2008 the Task Force recommended that Council consider the following to help provide alternative housing tenures in White Rock: a) Consider implementing inclusionary zoning. Inclusionary zoning can be used to require developers to include a modest percentage of affordable housing in new market housing; 10 Page 14

15 b) Conduct an inventory to determine the different types of persons living in White Rock with special needs and determine the number of units required to house those persons; c) Explore the use of housing agreements to achieve the recommendations in this report; d) Develop a mechanism to protect White Rock s rental housing stock; e) Establish a standard of maintenance bylaw which includes the requirement for an annual inspection; f) Promote partnerships with other agencies to ensure a mechanism is in place for the creation of housing units or other community amenities when opportunities arise; g) Revisit the City s density bonus policy with respect to its trigger for implementation and making affordable housing units a priority; h) Explore the possibility of working with strata councils to allow for unrestricted rentals, and; i) Ensure that there are no impediments to permitting several unrelated persons to cohabit a dwelling. Council established the Health and Social Issues Committee to consider, evaluate and provide advice to Council on health and social issues referred to it by the Mayor or Council. The Committee s activities are to align with Council s vision and strategic goals, thus enabling Council to bring practical action to their vision, and the Committee to focus their energies on prioritized tasks. The Health and Social Issues Committee has a wide range of objectives including items related to housing diversity, services for persons with disabilities, and homelessness. has endorsed Metro Vancouver s Affordable Housing Strategy. It has the following goals and strategies which will influence and provides some direction for the development of the Affordable Housing Strategy for White Rock. Goal 1: Goal 2: Goal 3: Strategy 1: Strategy 2: Strategy 3: Provide adequate housing to meet the needs of low income renters. Eliminate homelessness across the region. Increase the supply and diversity of modest cost housing. Make better use of existing & available government & housing industry resources. Secure additional stable funding to meet affordable housing needs. Establish partnerships and secure sufficient and stable funding. The is concerned about the provision of affordable housing for residents with low incomes, the elderly and people with special needs, including the homeless and the disabled. Without adequate housing and supports the needs of people on income assistance, employment insurance, minimum wage, with mental health and/or addiction issues, or with disabilities, women fleeing domestic violence, and young people not living at home will increase and more visible signs of homelessness could appear in the community. Vulnerable individuals and families have difficulty accessing appropriates and affordable housing. They need housing that is safe (free from violence, abuse, exploitation), accessible if they are mobility challenged, somewhere they can afford and somebody who will rent to them. Much of the housing available to the vulnerable is in poor condition. Many of them cannot afford basement suites, rooms, and hotels. Many share housing which leads to overcrowding and lack of privacy; if they are single they may live alone in isolation. Vulnerable people often require supportive services such as counseling and treatment, transportation, budgeting, 11 Page 15

16 nutrition and cooking assistance. Housing costs, both rental and purchase, have generally outpaced income for the groups most in need and for an increasingly larger portion of residents. The poor condition of much of the lowest priced housing stock compounds the problem. Affordability is the number one issue and it crosses all socio demographic groups in the community. Housing stock has limited diversity in White Rock. It is heavily dominated by condos in low to medium rise buildings. Lack of choice in housing type is compounded by lack of tenure choice, particularly a lack of rental units as evident in the.5 vacancy rate. People who are aging, have limited incomes and who have health related issues require housing close to services and where it is viable to build various types of multiple housing. In summary the key issues facing White Rock include: Quantifying Need Addressing Homelessness How to provide housing for people with low income How to provide housing for people with moderate income How to protect and increase the supply of rental housing Diversity of housing forms 7.0 MUNICIPAL ROLES AND TOOLS IN ADDRESSING AFFORDABLE HOUSING 7.1 Roles With the decline in funding from senior levels of government, communities and housing providers seek creative solutions for the provision of affordable housing. This does not mean the municipality must take on paying the entire cost of meeting the affordable housing needs of the community senior levels of government, the private sector and others have roles to play too. Municipalities have choices in the roles they can play to address local affordable housing needs. These roles include: Research, Monitoring and Reporting Community Education Advocacy Policy Development Administrative Changes Regulatory Changes Financial and Tax Incentives Direct Provision Public/Private Partnerships 12 Page 16

17 White Rock has chosen to focus on the Policy Development, Regulatory Changes and Financial and Tax Incentives roles in the development of their Affordable Housing Strategy. 7.1 Affordable Housing Tools Within each of the municipal roles, various tools can be used to help meet affordable housing needs in a community. The following tools are being considered in developing the Affordable Housing Strategy for White Rock: Zoning/Inclusionary Zoning Incentives Density Bonus Fee Reductions Expedited Approval Process Zoning Variances Housing Agreements Housing Fund Land Banking Revitalization Tax Exemptions Permissive Tax Exemptions Acquisition and Renovation (Adaptive Reuse) DCC Exemption or Reduction Rental Conversion By laws Adaptable Design Guidelines Infill housing Secondary Suites Zoning /Inclusionary Zoning Policy Objective To designate areas that would provide affordable and special needs housing, and/or amenities that may be beneficial to but currently lacking in the community. Relevant legislation The Local Government Act permits zoning for amenities and affordable housing; however only if the owner of the property consents as stated in S. 904 (3). Local Government Act Zoning 904 (1) A zoning bylaw may (a) Establish different density regulations for a zone, one generally applicable for the zone and the other or others to apply if the applicable conditions under paragraph (b) are met, and (b) Establish conditions in accordance with subsection (2) that will entitle an owner to a higher density under paragraph (a). (2) The following are conditions that may be included under subsection (1) (b): (a) Conditions relating to the conservation or provision of amenities, including the number, kind and extent of amenities; 13 Page 17

18 (b) Conditions relating to the provision of affordable and special needs housing, as such housing is defined in the bylaw, including the number, kind and extent of the housing; (c) A condition that the owner enter into a housing agreement under section 905 before a building permit is issued in relation to property to which the condition applies. (3) A zoning bylaw may designate an area within a zone for affordable or special needs housing, as such housing is defined in the bylaw, if the owners of the property covered by the designation consent to the designation. Consent can be obtained through a housing agreement. Local government can also require the developer to enter into a housing agreement before issuing a building permit. Section 905 of the Act prescribes that the housing agreements have terms and conditions regarding the occupancy, including but not limited to: Form of tenure; Number of units available to target groups set in the agreement or bylaw; Administration and management of the units; Rents and lease, sale or share prices that may be charged, as well as the permitted increase over time. Usually, the developer will donate the land or units to a non profit society or an organization at arm s length of the government. As the owner of the land, the society or organization may negotiate a housing agreement with the City and set the terms and conditions. While the legislation enables municipalities to negotiate for affordable housing with the developers, some may simply require it without an agreement. Likewise, the Local Government Act does not in a sense empower local governments to sell density. Section 903(Zoning Bylaws) of the Act does not allow local governments to require amenities as part of regular rezoning. Density bonus regulations can be set out in the zoning bylaw or can be crafted for site specific situations. Components of the Policy A zoning bylaw must define what is meant by affordable or special needs housing. The bylaw may designate areas applicable under this zoning or each rezoning and development application may be considered on a case by case basis. It may have a guideline on the type of development (in size, use and scale) that may require affordable and special needs housing or other amenity contribution. Inclusionary zoning is a commonly adopted model of this policy. Inclusionary Zoning is a regulation that requires a rezoning applicant to contribute to affordable housing in the proposed development. The overall goals of inclusionary zoning are: To ensure that a proportion of housing units in new developments is made affordable to low to moderate income households Creation of mixed income communities and preventing exclusionary zoning practices 14 Page 18

19 Inclusionary zoning is a benefit that secures a city s commitment to build affordable housing at the time of rezoning, before development begins. It also integrates affordable housing in new projects and throughout the community, if built on site or within close proximity of the principle project. The components of inclusionary zoning are: Target proportion or number of units to be affordable Minimum project size policy trigger Target household: income eligibility ceiling, household type Maintaining affordability: deed restrictions or covenants may be placed on the housing units to ensure they will be affordable in the future Depending on the local real estate market and the capacity of the municipality to apply inclusionary zoning without adverse affect to local development, the cities may choose to adopt a variation of inclusionary policy. The policy may be voluntary or mandatory. The developer may choose to include affordable units however defined by the city in their project; or it may choose to forgo and develop all market units. Several studies have shown that mandatory policies produced more affordable units than voluntary policies. The development community may prefer a voluntary policy as it is seen to be more flexible. Housing advocates prefer a mandatory policy because it is seen to provide more certainty on what will be achieved. To ease the transition to a mandatory policy, the City of San Francisco initially adopted a voluntary policy. After about 10 years, a mandatory policy was adopted with an escalation over time for the unit requirement for affordable housing in new projects. The city may give an option to the developer to make a payment in lieu of delivering affordable units through the project. Some municipalities have adopted this option in recognition that some projects face unique challenges to developing affordable housing. For example, it may be more economically efficient for small projects on small lots to pay cash rather than include affordable units. The inclusionary policy may prescribe the conditions for payment in lieu and determine a formula for the payment. The municipality may also carefully evaluate each project and offer the option for payment in lieu as a last resort. The payment may be deposited into a municipal housing fund that can be accessed for various affordable housing initiatives. The city may also give the option to the developer to build the affordable units off site, if there are challenges to building units in the project site. In addition, in order to protect the integrity of the policy for mixed income neighbourhood, the city may require that the affordable units be build within close proximity of the principal project. This option may generate opportunities to increase the number of affordable units through lower land cost, partnership and other possibilities. However, it may also result in more complex project planning and delivery. Project viability and developer profit need to considered in developing an inclusionary housing policy. Some projects may have difficulty meeting an inclusionary requirement, which may result in no units being built at all. 15 Page 19

20 Inclusionary zoning may be more successful in producing affordable housing if it does not erode developer s profit. David Rusk, a U.S. based advocate for the policy, argues that minimally the builder s profit from the overall development should not be reduced by the inclusionary requirement; preferably the builder s profit should be enhanced by density bonus that can accompany the inclusionary requirement; and optimally the builder s profit should be further enhanced by the density bonus and sale of both market and inclusionary non market units. The greater the affordability of inclusionary units, the greater the subsidy required for the units and for the overall projects. White Rock needs to identify its optimal inclusionary requirement that would meet the policy objectives with and without committing public subsidies for the project. The level of subsidy required will in part be determined by the target income of the people to be accommodated in the inclusionary units Incentives The municipality may also offer a set of incentives to encourage affordable housing to be provided or to offset the cost of building affordable housing in private developments. These may include: Density bonus Reduction or deferment of municipal fees Expedited approval process Incentives are commonly used in voluntary inclusionary policies. However, CMHC s review of Inclusionary Zoning programs concluded that incentive based programs produce significantly less affordable housing than mandatory ones. (#46, 1999) Density Bonus A Density Bonus is an incentive tool in which the developer receives a greater amount of buildable space (density) in return for providing community amenities and/or affordable housing. Where local governments do not have authority to enact inclusionary zoning, they may have density bonus provisions instead. Density Bonus is an Incentive program, while inclusionary zoning is a regulative policy. The benefits of a density bonus are twofold: through increased density the city is able to achieve more efficient use of land, and affordable units can be delivered through no direct cost or at a reduced cost to the city. Density bonusing can be flexible and negotiated for each project, or it may be based on a set formula. In the latter case, the city would develop a clear formula to calculate the value of the land uplift and the value of the amenities that the project is to deliver. The city may maintain a shortlist of priority amenities for each site or communities. It may also prescribe a ceiling or maximum bonus for each site, zone or type of development. Issues & considerations The use of zoning for amenities and affordable housing in British Columbia commonly takes the form of density bonus. As mentioned, the Local Government Act does not permit municipalities 16 Page 20

21 to require amenities; however municipalities through the provision of density bonus can acquire amenity contributions including affordable housing contributions from developers. Many municipalities in BC have some form of density bonus scheme to encourage the development of affordable housing. However only a few have a mandatory inclusionary policy. These include Langford, Whistler and Vancouver. The City of Langford requires that one out of every ten single family houses in a new subdivision be subsidized and constructed by the developer, and sold under the Affordable Housing Program to eligible families. The City of Vancouver s 20% affordable housing in rezoning of new neighbourhoods is often cited as an example of inclusionary zoning. Although the City is governed by the Vancouver Charter, its charter provisions for density bonusing and housing agreements in respect to the provision of affordable housing are essentially the same as the Local Government Act. Without a direct authority to impose inclusionary zoning, all municipalities in BC including Vancouver use a more flexible and negotiated approach to developing affordable housing via the private market. Expedited Municipal Approval Process Affordable housing projects could be designated as priority project and all related municipal approvals (rezoning, development permit, building permit, etc) could be fast tracked through the process, resulting in savings in development costs. This is a significant benefit to developers because a reduced processing time means less costs are incurred. These savings can be used to offer housing at a lower price Zoning Variances OCP policies and its sub plans should clearly express the support of zoning variance for affordable and supportive housing. The municipality can encourage the private development of affordable housing, through zoning variances. Some of the options for variances are: 1) Accommodate smaller lot sizes, thereby reducing the cost of the land, increasing density which enables cost efficiency in city infrastructure 2) Reduce set backs or increase lot coverage to maximize use of land for housing 3) Allow multi family use, such as co housing on single family zones without changing the scale of the buildings in the neighbourhood 4) Reduce requirement for parking to free up more land for dwelling areas 5) Allow adaptive reuse of building for affordable housing Housing Agreements A municipality can negotiate with the land owner for the provision of affordable housing on a development site. The terms and conditions are then specified in a housing agreement, which is registered on the title of the property. A housing agreement has the same effect as a covenant that stipulates specific limitations to the use of that property. Housing agreements are used to 17 Page 21

22 restrict the unit occupancy to tenants who are low income and/or living with addiction or disability or have other special housing needs. It may also be limited to seniors. Housing agreements are also used to preserve the affordability of the housing units over time. Policy Objectives To ensure that developers build non market housing units and that the units remain affordable to a target group (e.g. low income households, key workers, persons with mental illness, physical disability or addiction, who have housing challenges). Relevant Legislation A housing agreement can be registered on title as a covenant under Section 219 of the Land Title Act, which permits the registration of a covenant of a negative or positive nature in favour of a municipality in respect of the use of land. A housing agreement is also enforceable by a bylaw under Section 905 of the Local Government Act. Local Government Act Housing agreements for Affordable and Special Needs Housing 905 (1) A local government may, by bylaw, enter into a housing agreement under this section. (2) A housing agreement may include terms and conditions agreed to by the local government and the owner regarding the occupancy of the housing units identified in the agreement, including but not limited to terms and conditions respecting one or more of the following: (a) the form of tenure of the housing units; (b) the availability of the housing units to classes of persons identified in the agreement or the bylaw under subsection (1) for the agreement; (c) the administration and management of the housing units, including the manner in which the housing units will be made available to persons within a class referred to in paragraph (b); (d) rents and lease, sale or share prices that may be charged, and the rates at which these may be increased over time, as specified in the agreement or as determined in accordance with a formula specified in the agreement. (3) A housing agreement may not vary the use or density from that permitted in the applicable zoning bylaw. (4) A housing agreement may only be amended by bylaw adopted with the consent of the owner. (5) If a housing agreement is entered into or amended, the local government must file in the land title office a notice that the land described in the notice is subject to the housing agreement. Components The housing agreement may specify the following: a) The number of affordable units available b) Form of tenure 18 Page 22

23 c) Tenant qualifications & selection process d) Administration and management of the housing units e) Rents to be charged, allowable rent increase over time (tied to consumer price index or set as a percentage below comparable market rate) f) Ownership units should include a formula for determining price restriction When the municipality signs a housing agreement with a non profit housing society, the society will typically select the tenants and administer/manage the units. The society will also determine the value of lease or rent, and allowable annual increases. If the affordable units are for ownership, then the onus may be on the city to screen eligible owners and to enforce the housing agreements and relevant covenants on title. The housing agreement is registered on title using Form C to have effect through the Land Titles Act. The housing agreement may also be passed as a bylaw through council approval. Issues & Considerations Some restrictive covenants may impede the owner s ability to attain financing for the project. For example, restriction on stratifying the units in multi family housing may disqualify a nonprofit housing owner from getting a development loan or mortgage. Likewise, a covenant that requires the property to remain as low income housing in perpetuity impairs the owner s ability to gain full value for its property in the future. This can be a challenge for a non profit housing society or co op who may wish to maintain some level of flexibility for future needs. In addition, when a funding partner like BC Housing is involved, there may be additional requirements and caveats to consider in negotiating an agreement. In many cases, the city permits higher density for residential development in return for affordable housing on site through the housing agreement. The municipality may offer other incentives to the developers when negotiating for a housing agreement. The city may need to amend the Official Community Plan to recognize the use of housing agreements and to support price restricted housing. In addition to the housing agreement which stipulates the occupancy and use, the Right of First Refusal/Option to Purchase can also be registered on title set the terms and conditions of resale. This ensures that if the owner chooses to sell the property, the city has the option to purchase the property and consider options for affordability Revitalization tax exemptions and permissive tax exemptions Council may exempt taxes on certain projects or sites to encourage a development that achieves a range of environmental, economic or social objectives. A revitalization program may be area specific or target a certain type of properties or land use in the municipality. The program may be enacted by a local bylaw. Policy objectives Pertaining to affordable housing, objectives may to stimulate residential development that includes affordable housing create mixed income neighbourhoods 19 Page 23

24 rehabilitate or redevelop housing stock that are substandard or in disrepair Relevant Legislation Part 7, Division 7 [Permissive Exemptions] of the Community Charter provides the general authority for permissive exemptions. Section 226 requires municipalities to develop a detailed program bylaw outlining the criteria and requirements for a revitalization tax exemption program. All municipalities are required to develop objectives and policies within their 5 year financial plans in relation to the use of permissive tax exemptions (s.165(3.1)(c) of the Community Charter). The 5 year plan is a disclosure requirement meant to enhance municipal accountability. Exemption only applies to municipal property taxes, not to school tax, parcel tax, utility fees or other taxes. It is not subject to Section 25 of the Community Charter (prohibition against assistance to business). Components A permissive tax exemption program should include the following content: 1. Description of the reasons for, and the objectives of, the program; 2. Description of how the program is intended to accomplish the objectives; 3. Description of the kinds of property, or activities or circumstances related to the property that create eligibility for exemptions; 4. Extent of the exemptions available (i.e. entire properties or portions of properties); 5. Amounts of exemptions, or formulas to determine the amounts, or both; and 6. Maximum term of the exemption, which may not be longer than 10 years (s. 226 (4) (f) Community Charter) Prior to the adoption on an exemption bylaw, council must give public notice of the proposed bylaw. Council may enter into an agreement with the owner of a property any requirement that must be met before an exemption certificate is issued. Once all of the requirements established in the bylaw and in the agreement have been met, a revitalization tax exemption certificate for the subject property must be issued and forwarded to BC Assessment to ensure exemption is taken into account in property valuation. Issues and Considerations Affordable housing may be one of the requirements in the exemption agreement. The quantity and quality of the housing may be negotiated and specified as in a housing agreement. A restrictive covenant on title of the property can ensure that the property remains affordable for a period of time or in perpetuity. The municipality may also add provisions to the exemption agreement for a recapture amount (or penalties) that must be paid if the conditions specified in the certificate are not met Housing Fund 20 Page 24

25 A dedicated trust account for the development and maintenance of affordable housing can transform policy into deliverables. It can also be a means to separate affordable housing from a bundle of community amenities that the municipality strives to deliver. The fund must have a secure and reliable source: i. Public Development fees (e.g. amenity charge or cash in lieu of inclusionary housing units) Real estate tax or fees Interest earned from government held accounts Revenue from other government sources ii. Private Grants Donations A housing fund is allowable though s. 188 of the Community Charter. The fund can be used in many ways, including pre development funding, seed funding for non profits, construction loan, homebuyer down payment or mortgage assistance, rental subsidy, counseling, research and program administration. Council must specify what it can and cannot fund in a housing fund bylaw Acquisition and Renovation (adaptive reuse) Adaptive reuse means adapting an existing, economically obsolete building for a new, more productive purpose. Cities can acquire existing buildings and renovate them into affordable housing. For example, the City of Winnipeg has acquired abandoned or dilapidated houses in the inner city and turned them into modest homes for singles and families. The City of Vancouver has over the years purchased single room occupancy hotels that were often made unsuitable for habitation due to lack of maintenance and repair. Once renovated the city is able to preserve it as rental housing for single residents. Building can be renovated one floor at a time to minimize the dislocation of residents. Surplus or outmoded buildings such as schools, inns, churches, and warehouses may be good candidates for conversion into affordable housing. It can preserve the heritage aspect of the architecture and stimulate economic investment in areas. In some cases, land may need to be remediated to clean potential environmental contamination, which would add significant cost to development. Therefore, due diligence on the history of use on the land should be completed before consideration DCC Exemption or Reduction for non market housing Under Section in Local Government Act, the following developments are eligible for DCC to be waived or reduced under a by law or regulation: a) Not for profit rental housing, including supportive housing b) For profit affordable rental housing c) A subdivision of small lots that is designed to result in low greenhouse gas emissions d) A development that is designed to result in a low environmental impact A municipality must establish the exemption amount or rates of reduction, and it may be different for different categories of eligible developments. 21 Page 25

26 7.2.9 Protection of Rental Properties A municipality may adopt a Rental Conversion Policy if the vacancy rate is well below a set target for a number of years. For example, the City of Vancouver has a 1:1 replacement policy for conversion or rezoning of existing rental housing units. The policy may apply city wide or in specific areas such as multi family zones and town centres. An operations plan for ongoing monitoring & reporting should accompany the policy Others To be discussed at Workshop TBC 22 Page 26

27 CONCLUSIONS & RECOMMENDATIONS In developing its Affordable Housing Strategy, the recognizes that all residents of the municipality should have access to suitable and appropriate housing with necessary supports to serve the needs of a diverse population. To meet the housing needs of its current and future residents, the desires to manage its resources effectively and lever its resources with those of the private sector, housing societies, service groups, agencies and other levels of government. In summary the issues the of specific relevance to White Rock include: Quantifying Need Addressing Homelessness How to Provide Housing for People with Low Incomes How to Provide Housing for People with Moderate Incomes How to Protect and Increase the Supply of Rental Housing Diversity of Housing Forms 23 Page 27

28 The following table summarizes the recommended tools to address these issues: Suggested Tools for Development & Preservation of Affordable Housing (Summary Matrix) Tools s Recommendation Notes current position Official Community Plan Provisions City has some policies Additional policies needed Inclusionary zoning City has interest Draft strategy and time frame for implementation Density bonus 2004 policy introduced Report on effect to date and draft strategy and time frame for implementation of revisions Housing agreements Under review Draft agreement Permissive tax Policy approved 2007 Review exemptions Housing fund City has interest Develop policy and parameters Zoning variances Develop OCP policies Acquisition and Renovation (adaptive reuse) Undertake study Expedited Municipal Approval Process Develop policy and implement DCC Exemption or Follow up with Region Reduction Rental conversion No by law but Develop by laws bylaws mention in OCP Adaptable Design City has interest Develop guidelines Guidelines Infill housing City has interest Undertake study Secondary Suites Accessory Registered Promote program Secondary Suites Registration Program Land Banking Develop inventory of potential municipal, community and development sites Housing Fund Develop policy and implementation plan 24 Page 28

29 REFERENCES CMHC Affordable Housing Ideas schl.gc.ca/en/inpr/afhoce/tore/afhoid/ Central Florida Workforce Housing Tool Kit. Housing Tools (accessed April 16, 2010).. Policy: Municipal Property Tax Exemptions. FINANCE NO. 317 Approved by Council Resolution No September Services/Policy_317.pdf (accessed April 12, 2010). City of Victoria. Permissive Property Tax Exemptions. April 6, tax permissive exemption.pdf (accessed April 12, 2010). Ministry of Community and Rural Development. Permissive Tax Exemptions. ptions.htm (accessed April 12, 2010). Ministry of Community Services. January Permissive Tax Exemptions: A Primer on the Provisions in the Community Charter. tions.pdf (accessed April 12, 2010). Ministry of Forests and Range, Housing Department. (2005) Local Government Guide for Improving Market Housing Affordability. Smart Growth BC (2008), Creating Market and Non market Affordable Housing: A Smart Growth Toolkit for BC Municipalities Smart Growth BC (2007), Review of Best Practices in Affordable Housing Ed Starr and Christine Pacini, (2001) The Municipal Role in Meeting Ontario s Affordable Housing Needs A Handbook for Preparing a Community Strategy For Affordable Housing Richmond Affordable Housing Strategy BC Housing website White Rock Official Community Plan 25 Page 29

30 Appendix 1: May 19, 2010 Community Workshop Minutes 26 Page 30

31 Appendix 2: Workshop Presentation 27 Page 31

32 APPENDIX 3: CASE STUDIES Case Study 1 Inclusionary Zoning Bowen Island Gates Hill, a large market housing development in the village centre produced 26 rental units. Rents are set at 15% below average Vancouver Census Metropolitan Area (CMA) rents as determined by CMHC. A covenant on title and a housing agreement ensure that the units remain rental for 25 years, as a condition for rezoning. Initially the Island Trust negotiated for the rental units with the developer. When the Bowen Island municipality was established in 1999, it endorsed the plan and approved the housing agreement. The Official Community Plan has a policy that allows rezoning when amenities including affordable housing are provided. 28 Page 32

33 Case Study 2 Community Amenity Contribution (CAC) City of Vancouver Since 1989 Vancouver has required CACs on privately initiated residential rezoning applications. Both CACs and Development Cost Levys (DCLs) address grow related costs, but DCL revenue is restricted to specific uses such as parks, daycares, replacement housing and engineering infrastructure. Also DCLs can only address new growth, not existing deficiencies, while CACs can address broader needs and impacts. CACs apply to rezoning of new and more intense use of land that seeks an increase in density. CACs cannot be paid in lieu of DCLs, even if CAC is used for projects that can be funded by DCL. However, it can be used to fill the gap between what DCL pays for and full cost recovery of the community project. Long term operating and maintenance costs of the project are supported by the City or benefiting organization. CACs may be a cash payment or provision of an amenity in kind. It is determined through a flat rate or negotiated in the case of large sites rezoned to residential from other uses. Unallocated CACs are deposited to a CAC reserve account. CACs are prior to conditions to rezoning enactment, which means that agreement to it does not guarantee rezoning. The developer still must go through a standard rezoning procedure, which may or may not be successful upon public hearing. Exemptions to CACs may apply to the following cases and sites: Rezoning where there is no increase in floor space or no residential use Low density (1.35 FSR), small site (less than a city block) Social housing, where at least 30% of the units are subsidized, or the site is secured by covenant and City Housing Agreement, Co op, non profit housing Heritage sites Public schools, city related community facilities, and places of worship that are taxexempt CACs are used to achieve a variety of community benefits as well as to secure affordable housing. The City of Vancouver also uses its 20% policy to acquire land or payment in lieu for affordable housing in rezoning of large sites to residential use to help create non market housing. 29 Page 33

34 Case Study 3 Housing Agreement, 219 Covenant, Rent Charge and Indemnity Whistler The Employee Housing Service Charge by law, enacted by Whistler in 1990, requires all developers of commercial, industrial and tourist accommodation in Whistler to contribute to the affordable housing stock. Developers can fulfill their obligations either through the construction of affordable housing for employees or through the contribution of cash in lieu of development to an employee restricted housing fund. The Whistler Housing Authority (WHA), formed in October 1997, was created to oversee the development of resident restricted housing in Whistler through the use of the Employee Housing Fund. Whistler s housing agreement provides affordable ownership and rent to residents who work in the resort municipality, through an Employee Restricted Housing policy/program, administered by the Whistler Housing Authority. Whistler s Standard Housing Agreement has the following items covered: 1) Definitions to terms applied in the document 2) Obligations by the parties 3) Use and occupancy of the units 4) Disposition and acquisition to specify what happens when the land or the individual units are sold 5) Demolition 6) Default and remedies In addition to the Housing Agreements, Whistler uses two other housing covenants: option to purchase (OTP) and right of first refusal (RFR); housing agreement for auxillary suite OTP gives the municipality the right to purchase the employee units if the owner is found to be in breach of the housing agreement. RFR gives the municipality the first right to purchase if a bona fide offer is made on the property by a third party. The developer must build self contained auxillary suite(s) that accommodates local workers. As part of the housing agreement, property owner agree to regular monitoring and reporting to the city specifing the tenants, their employment and rent. Since its inception, the by law and the housing fund have resulted in the development of approximately 1,000 affordable housing units. As a benchmark figure, the WHA charges $1 for every 1.25 square feet of the employee rental unit. For example, a 1,000 square foot apartment would rent for $1,250 per month. This may seem high, but it is significantly less than the $1,800+ a similarly sized unit would rent for in the private sector. A covenant is placed on the sale of the dwelling ensuring that the housing always remains employee restricted housing. Eligibility for the employee assisted housing is determined using a point system. Those who have lived and worked in Whistler the longest are given priority. 30 Page 34

35 Case Study 4 Permissive Property Tax Exemptions Policy City of Victoria The City of Victoria has one of the lowest rental vacancy rates 1.5% in 2009 (CMHC, Rental Market Report). With a severe lack of purpose built rental housing, the City decided to provide 100% exemption for new multi unit rental housing (3 or more units) that are made affordable. Affordable rental housing is defined as housing with rent equal to 30% or less of a household s gross annual income currently $30,000 $60,000 income range. Special needs and supportive housing short term emergency housing, transitional homes, halfway houses, group homes with supportive staff and programs also receives 100% exemption. As the legislation dictates, the exemption is provided for up to 10 years. Exemptions are based on the principal use of the property. Exemptions are considered on an annual basis, and must meet the following guidelines: Services and organizations are complementary extensions of municipal services, and for which the burden resulting from the exemption is a justifiable expense to the taxpayers; Organization must justify the need for the service Organization must clearly demonstrate a financial need Organization must be seen to be working towards self sufficiency by seeking funding from other sources The facility to be exempt must be operated by a charitable, philanthropic or other not for profit society or organization Exemption will not be granted for land held for future development Because this is a relatively new policy, it is too early to evaluate the result of this policy on the development of affordable housing in Victoria. 31 Page 35

36 Case Study 5 Adaptable Design Guidelines, City of North Vancouver The guideline is created in 1996 to allow flexible housing that accommodates the changing needs of residents, including seniors and persons with physical challenges. There are three levels of accessibility & adaptability with increasing level for higher requirements. Guidelines contain two checklists: Design Elements Checklist which relates to initial design and construction, and Fixtures and Finishes Checklist. In 2003 Adaptable Design Policy was adopted to move all levels of the guidelines from voluntary to mandatory basis. Developments in city owned sites must meet minimum 15% level two and 5% level three adaptable units. The Adaptable Design Working Group provided policy guidance throughout the planning process. Also, rather than implement the guidelines city wide, only multi unit buildings were targeted. However, some developers also apply the guidelines to townhouses. Since 1997, about 400 adaptable units have been built and over 900 units were in construction as of The City does not have a target for number of adaptable units to be developed, but given the active real estate market in the City and increasing demand by the aging population, many more adaptable units may enter the housing market. The majority of the units are market units with some affordable units developed by non profit groups. The City is exploring ways to reflect adaptable design elements into the Building Code, which would broaden its application and increase the number of adaptable units. Significant amount of staff time went into the development of the guidelines. However, other municipalities may benefit from this process and use the Adaptable Design Guidelines as a blueprint. The City of Vancouver, the District of West Vancouver and the City of Burnaby have all used North Vancouver s framework for their own policy. Ongoing costs are dedicated for building inspection to ensure that the Guidelines are being met. 32 Page 36

37 Case Study 6 Density Bonusing on Rezoning Applications Richmond, BC Townhouse & Smaller Multi-Unit Rezoning Applications The City of Richmond has adopted a density bonusing program. For townhouse developments and smaller apartment developments, a cash-in-lieu contribution towards the City s Affordable Housing Reserve is required in exchange for the increased density proposed as part of a rezoning application. This cash contribution is based on the following amounts: - $2 per square foot from townhouse developments; or - $4 per square foot from apartment and mixed-use developments involving 80 or less residential units. Multi-Unit Rezoning Applications Each multi-family or mixed-use development containing more than 80 residential units are asked to: - Build at least 5% of the total residential building area (based on the residential Floor Area Ratio), with a minimum 4 units, as low end market rental units. - Affordable housing unit types and location within the proposed development will be determined in consultation with the City s Affordable Housing Coordinator. - To ensure that these units are secured for low end market rental purposes a Housing Agreement will be registered on title through the rezoning process. Single Family Rezoning Applications All single family lots being rezoned in order to facilitate a subdivision are required: to ensure at least half (50%) of the new lots being created through the subdivision will include a single family dwelling with a secondary suite or a single family dwelling with a coach house unit; or A cash-in-lieu contribution of $1.00 per total buildable square foot on all new houses to be constructed is to be provided towards the Affordable Housing Reserves. How are affordable housing cash-in-lieu contributions used? The City uses these cash-in-lieu contributions, deposited into the Affordable Housing Reserve Fund, to work with senior levels of government and community-based groups to provide affordable subsidized housing units in the City. 33 Page 37

38 Case Study 7 Rental Conversion Policy Abbotsford, BC Conversion of rental apartment buildings to strata ownership are only permitted when the local vacancy rate is 2% or higher as determined by two successive Canada Mortgage and Housing Corporation (CMHC) rental surveys. All strata conversions approved by Council are required include a contribution to the City s Affordable Housing Fund at a rate based on a 3% of the average apartment value for sales in Abbotsford, as established by the Fraser Valley Real Estate Board sales statistics. 34 Page 38

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