The City of Saskatoon Housing Business Plan November 2007
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1 The City of Saskatoon Business Plan 2008 November 2007
2 A. Preface Sets out City of Saskatoon s role in housing. Response to: Council s Target of 500 affordable housing units per year; Update to the Saskatoon Community Plan for Homelessness &. Continuum: (risk of homelessness) Rental (Low Income) (Moderate Income) (Medium to High Income)
3 B. Situation in Saskatoon CURRENT TRENDS: Deficit of 3,500 Affordable Units Highest Need = Families, Lone Parent Families & Aboriginal people Rapid Rise in Prices % (July 06 July 07) Decreased Affordability Saskatonians pay 40% of income on housing (RBC Report) Condition of Dwellings monitoring conditions, improved inspections Availability of Builders/Contractors affecting construction timelines Falling Vacancy Rates for Rental Accommodation - < 3.0% In July 2007, City Council resolved: To set new affordable housing target of 500 units per year; Increase incentive from 5% of total capital costs to 10%; Increase revenue to Affordable Reserve from $500,000 to $2.5 M per year. Instructed Administration to investigate more initiatives.
4 Affordable Targets Council has set a target of 500 affordable dwellings per year: Target is divided amongst five main sectors: Government Supported Financial Institutions For Profit Builders/Developers Investors (major condo conversion) Faith-based Providers
5 C. Role of City in 1. Maintenance of Stock 2. Serving the Continuum: The Province serves transitional, social and emergency housing. The Market serves those with incomes allowing choices. The City, other orders of government, private sector, community organizations should focus on: Supported home ownership; Rental, and, Entry Level housing ( Feeder market). Province City Priority Rental For-Profit Builders
6 Recommendation: Implement First Home Ownership Program in City-owned residential developments. Identifies Possible Locations for First Time Home Ownership housing. City-owned neighbourhoods to start. Sale Price of land will remain fixed. Disposition through RFP process no tendering. Subject to Architectural standards. Helps disperse low cost housing across city. Creates Land Base for Low Cost. Will consult with private developers to adopt similar approach. Status: Ready to Implement. Rental
7 Recommendation: create new Zoning District(s) specifically designed for affordable housing. Regulates the maximum size of development site. Applied to Single and Low Density Multiple Unit Dwellings. Creates Land Base for Low Cost. Allows unique housing forms such as Grow Homes. Can be applied in all neighbourhoods, including private. Promotes integration of low cost housing in all neighbourhoods. Architectural Controls will apply. Status: More Consultation. Rental
8 Recommendation: Consult with Providers to implement Development Bonuses to encourage Inclusionary Development Generally used to encourage specific types of development Currently used in Zoning Bylaw to promote Accessible Dwellings Encourages voluntary inclusion of affordable units within major residential developments Bonuses may include: more developable area, reduced parking standard, greater FAR, etc. Preferred over mandatory approach to inclusionary zoning. Status: More Consultation. Rental
9 Recommendation: Investigate feasibility of implementing a Permanent Affordable model in Saskatoon (new concept) Method to secure dwelling units by removing units from influence of marketplace. Geared towards moderate income individuals and families. Sometimes known as a land, or housing trust. Mainly for low and medium-density multiple unit dwellings. Rental or Ownership units. New non-profit organization needs to be formed. Intended for the Feeder Market. Similar to program in Canmore, Alberta Units created are never released in open market. Public $ s stay with the unit. Status: More Consultation & Business Plan development. Rental
10 Recommendation: Provide Disposable Land to Affordable Providers. City acquires land parcels from time to time (tax title, plan changes, etc). New policy to offer parcels to affordable housing providers first - through SHIP. No open tender process. Status: Ready to Implement. Recommendation: Priority Review for Affordable Speeds up permitting process for affordable housing when backlog exists. Move applications to front of queue. Not a fast track, same review undertaken. Status: Ready to Implement. Rental
11 Recommendation: Undertake Policy Review for Granny, Garage, Carriage & Secondary Suites. Could increase supply of low cost housing units. Need to determine acceptance in community for this type of housing. Rental Units. Small separate units on site. Are permitted in some cities. Determine appropriate standards. Status: More Consultation. Undertaken during Development Plan & Zoning Bylaw Review. Rental
12 Recommendation: Provide Incentive for Creating & Legalizing new Secondary Suites. Could increase supply of low cost housing units. Rental Units. Full Rebate of Permit Fees for new Secondary Suites. Full Rebate of Fee to Legalize Existing Suite. Funded from Plan Review & Inspection Service Stabilization Reserve. Complements Provincial incentive program to encourage new Secondary Suites. Status: Ready to Implement. Rental
13 Recommendation: Five Year Tax Abatement for Affordable Rental Method to increase supply of low cost housing units. Abate incremental taxes only. Already offered in Downtown and Enterprise Zone. Encourage low cost units across city. Rental, Non-Profit developments only. Will require review of ten-year business plan. Status: Ready to Implement. Rental
14 Recommendation: Support for Affordable Business Plans Method to increase supply of affordable housing. Assistance needed in the community. Engages new sectors (ie. faith based) in providing affordable housing. Will assist with planning and funding applications. Assistance could be offered through SHIP. More Assistance is among top five priorities in Community Plan. Funded by Plan Review & Inspection Service Stabilization Reserve. Status: More Consultation needed. Rental
15 Meeting Targets Meeting the target of 500 affordable dwellings per year Is dependent on three things: 1. Sufficient Construction Capacity to construct new and renovate existing affordable dwelling units. 2. A Voluntary Spirit and Contribution from the for-profit housing and development sector. 3. Appropriate allocation of funding from the Provincial Home First Program to meet the stated need of an additional 3,500 low cost housing units.
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STEPS IN ESTABLISHING A TDR PROGRAM Adopting TDR legislation is but one small piece of the effort required to put an effective TDR program in place. The success of a TDR program depends ultimately on the