CITY COUNCIL AGENDA CONSOLIDATED AS OF JUNE 12, 2015 City Hall Meeting Room C, Guelph City Hall, 1 Carden Street DATE Wednesday, June 17, 2015 6:00 p.m. Please turn off or place on non-audible all cell phones, PDAs, Blackberrys and pagers during the meeting. Disclosure of Pecuniary Interest and General Nature Thereof Affordable Housing Workshop Barb Powell, Manager, Community Investment and Social Services Karen Kawakami, Social Services Policy and Program Liaison Joan Jylanne, Senior Policy Planner ITEM # DESCRIPTION 1 Welcome and Introductions 2 Overview of Agenda and Workshop Purpose 3 Overview of Roles and Responsibilities for Affordable Housing (5 minutes) Federal, Provincial and County as Service Manager 4 Warm up Exercise (15 minutes) 5 Presentation and Questions/Answers Housing Continuum (non-market and market housing) (50 minutes) 6 Affordable Housing Perspectives Exercise (10 minutes) 7 Discussion on Provincial Long-Term Affordable Housing Strategy Update (45 minutes) 8 Summary of Key Issues in Affordable Housing (10 minutes) 9 Workshop Wrap-up and Next Steps (15 minutes) Recommendations: 1. That the presentation on affordable housing, be received. 2. That the City s submission to the Provincial consultation on the Long Term Affordable Housing Strategy Update include the input received at City Council s June 17, 2015 Affordable Housing Workshop. ADJOURNMENT Page 1 of 1 CITY OF GUELPH CITY COUNCIL AGENDA
Council Workshop on Affordable Housing June 17, 2015 1
Workshop Agenda 1. Welcome and introductions 2. Overview of agenda and workshop purpose 3. Overview of roles & responsibilities 4. Warm-up exercise 5. Housing Continuum presentation 6. Affordable housing perspectives exercise 7. Discussion of provincial LTAHS update 8. Summary of key issues 9. Wrap-up and next steps 2
3. Overview of Roles & Responsibilities 3
4. Warm-up Exercise 4
5. Housing Continuum Presentation 5
What is Affordable Housing? Housing is appropriate and affordable when it: Financially costs no more than 30% of before tax income; Is of a suitable size for the household; and Is in good physical condition. 6
Housing Continuum 7
Homelessness Persons, families or households that have no fixed address or security of housing* On a single night in April 2015, 359 individuals in Guelph Wellington were experiencing homelessness (*Adapted from Housing Services Corporation Resources Glossary) ( From Wellington County s April 2015 report Guelph & Wellington Point in Time Count) 8
Emergency Shelter Short-term temporary housing for individuals and families who have no shelter (e.g. emergency housing facilities, motels) Average number of shelter users per night has doubled in past four years Young adults (18-34 years old) represent 42% of shelter users and 22% of the general population In Guelph, there are 75 permanent emergency shelter beds (Adapted from Housing Services Corporation Resources Glossary) 9
Transitional Housing Temporary or interim accommodation for homeless or at-risk of homelessness individuals and/or families Housing is combined with case managed support services, to help these people transition to longterm and permanent housing, self-sufficiency and independence In Guelph, there are 54 transitional housing beds/units (Adapted from Housing Services Corporation Resources Glossary) 10
Supportive Housing Housing with support services (e.g. such as medical and social) to help people live independently In Guelph, there are 437 supportive housing beds/units (MMAH, Municipal Tools for Affordable Housing, Summer 2011) 11
Social Housing Permanent housing financed at least partly through government funding and mortgage guarantees Social housing includes: public housing (which is 100% RGI), municipal and private non-profit rentals, and cooperatives In Guelph, there are 2,186 social housing units (Wellington- Guelph Housing Committee, Definitions of Commonly Used Housing Terms, 2015 12
Subsidized Rental Subsidies provided to offset market rents in private rental units for low income households In Guelph, there are 215 subsidized rental units (Adapted from Wellington-Guelph Housing Committee Definitions of Commonly Used Housing Terms, 2015) 13
Government Contributions to Non-market Housing Through County, as Service Manager, for 2015: Federal subsidy $3,315,000 Provincial subsidy $4,427,000 HPS (federal) $65,202 County of Wellington $4,259,000 City of Guelph $17,116,000 Total Operating $29,182,202 14
Private Market Rental Housing that is rented either in the primary rental market or in the secondary rental market In Guelph, there are 14,530 private market rental units (Census, 2011) 15
Home Ownership Housing that is held either as freehold or as part of a condominium In Guelph, there are 33,585 home ownership units (Census, 2011) 16
Affordable Housing Reserve Housing Type Site/Provider Funding Non-market 18 Norwich St. $122.000 185-187 Bristol $150,000 Private Market Rental Home Ownership 747 Paisley 32 Gordon 371 Waterloo Ave. Habitat for Humanity 5 Gordon 35 Mountford $658,291 $322,803 Total Spent $1,253,094 Balance $416,488 17
What is Affordable Rental Housing? Housing costs should not exceed 30% of before-tax household income. Affordable Housing (Provincial Policy) means: In the case of rental housing, the least expensive of: 1) a unit for which the rent does not exceed 30 percent of gross annual household income for low and moderate income rental households; or 2) a unit for which the rent is at or below the average market rent of a unit in the regional market area. 18
What is Affordable Ownership Housing? Housing costs should not exceed 30% of before-tax household income. Affordable Housing (Provincial Policy) means: In the case of ownership housing, the least expensive of: 1) housing for which the purchase price results in annual accommodation costs which do not exceed 30 percent of gross annual household income for low and moderate income households; or 2) housing for which the purchase price is at least 10 percent below the average price of a resale unit in the regional market area; 19
What is a Low and Moderate Income Household? In the case of ownership housing, households with incomes in the lowest 60 percent of the income distribution for the regional market area; or In the case of rental housing, households with incomes in the lowest 60 percent of the income distribution for renter households for the regional market area. (Census, 2011) 20
What is Affordable Housing in Guelph? 2013 Ownership Rental Market $294,000 $944 Income $316,000 $1,153 21
Rental Affordability Average Primary Market Rents and Affordable Rents by Renter Household Income Decile (2013) Income Percentile 10th Household Income $12k 20th $17k 30th $23k 40th $30k 50th 60th $38k $46k 3 Bedroom $1178 70th $56k 2 Bedroom $961 1 Bedroom $842 Bachelor $654 Benchmark Rent $944 0 200 400 600 800 1000 1200 1400 average rent ($) Source: Statistics Canada Custom Tabulation (2011), MPAC (Dec. 2013), et al. 22
Ownership Affordability Resale House Prices and Affordable Prices by All Household Income Decile (2013) Benchmark Pric ce $294,000 Source: Statistics Canada Custom Tabulation (2011), MPAC (Dec. 2013), et al. 23
Affordable Housing Problem Statement The range of housing options available in Guelph is not fully meeting the affordability needs of low and moderate income households. 24
Housing Needs in Guelph Current rental vacancy rate is 1.2% Limited new primary market rental units constructed Secondary rental units, including accessory apartments, account for approximately 45% of private market rental housing 25
Housing Needs in Guelph Households paying more than 30% income for housing 12,615 households (26%) 20% owner households, 41% renter households Core housing need households 5,150 households (11.2%) 5.2% owner households, 25.8% rental households Low income renter households 4,332 households (9%) fall within 30 th percentile of renter household incomes ($23,381 with an affordable monthly rent of $585) 26
Questions? 27
6. Affordable Housing Perspectives Exercise 28
7. Long-Term Affordable Housing Strategy Update Consultation Questions 1. What outcomes should social and affordable housing programs focus on achieving? 2. How can the province improve the existing system of housing assistance? 3. How can we encourage private investment in affordable housing through planning, financial, regulatory and other tools? 29
8. Summary of Key Issues County of Wellington Advocacy Focus Federal Role FCM, AMO, LUMCO Coordinated Advocacy 30
Advocacy Focus Federal Role 31
FCM, AMO, LUMCO Coordinated Advocacy Federal Government Develop a comprehensive National Housing Strategy; Protect current levels of federal investments in affordable housing now set to rapidly decline; Create incentives to increase rental housing, taking the pressure off homeownership; and Deliver the housing and support services that can end homelessness. 32
FCM, AMO, LUMCO Coordinated Advocacy Federal & provincial governments should work with municipalities to explore policy options and opportunities to encourage private sector engagement in creating more affordable housing and to ensure it remains affordable over the long-term (e.g. tax credits; social finance; etc.) 33
9. Wrap-up and Next Steps 34
HOUSING CONTINUUM IN GUELPH HOUSING CONTINUUM POINT Homelessness Emergency Shelter Transitional Housing Supportive Housing Social Housing Subsidized Rental Persons, families or households that have no fixed address or security of housing. (Adapted from Housing Services Corporation Resources Glossary) DEFINITION # OF UNITS IN CITY GOVERNMENT CONTRIBUTIONS EXAMPLES Short-term temporary housing for individuals and families who have no shelter (e.g. emergency housing facilities, motels). (Adapted from Housing Services Corporation Resources Glossary) Refers to temporary or interim accommodation (in the form of multi-unit apartments, single room occupancies, scattered site apartments, etc.) for homeless or at-risk of homelessness individuals and/or families that is combined with case managed support services, aimed at helping these individuals to transition to long-term and permanent housing, self-sufficiency and independence. (Adapted from Housing Services Corporation Resources Glossary) Housing with support services (such as medical and social) to help people live independently. (MMAH, Municipal Tools for Affordable Housing, Summer 2011) Permanent accommodation that offers an alternative to institutional care. A range of support services is provided in order to help residents maintain independence. Supportive housing is geared for individuals with special needs, including long-term mental health problems, physical disabilities, developmental delays and the frail elderly. Supportive housing is accessed through specific Housing Providers. (Wellington-Guelph Housing Committee Definitions of Commonly Used Housing Terms, 2015) Permanent housing financed at least partly through government funding and mortgage guarantees. A portion of units is rent-geared-to income (RGI), and the remainder may be rented at market rents. For these RGI units tenants pay no more than 30% of their household income in rent and the remainder is subsidized through government contributions. Social housing includes: public housing (which is 100% RGI), municipal and private non-profit rentals, and cooperatives where residents contribute to the management of the property to increase the sense of community and reduce operating costs. In Guelph Wellington, social housing is accessed through the Centralized Waiting List and through specific Housing Providers. (Wellington- Guelph Housing Committee, Definitions of Commonly Used Housing Terms, 2015) Subsidies provided to offset market rents in private rental units for low income households. For qualifying households, subsidies are generally provided by the Service Manager for a Service Provider (e.g. CMHA). Market rent less RGI calculation (may average $500 per unit per month); this involves an agreement with a landlord for a particular unit(s) to be allocated to a household(s) on the Centralized Waiting List. (Adapted from Wellington-Guelph Housing Committee Definitions of Commonly Used Housing Terms, 2015) 75 permanent beds 54 beds/units 437 beds/units Through County (as Service Manager) for 2015: Federal subsidy $3,315,000 Provincial subsidy $4,427,000 Homelessness Partnering Strategy (federal) $65,202 County of Wellington $4,259,000 City of Guelph $17,116,000 Total Operating: $29,182,202 Other government contributors: Ministry of Health and Long-Term Care (MOHLTC) Ministry of Community and Social Services (MCSS) Waterloo Wellington Local Health Integration Network (WWLHIN) Canada Mortgage and Housing Corporation (CMHC) City of Guelph (directly to Wyndham House for the Youth Emergency Shelter) $442,900 City of Guelph one time contributions via Affordable Housing Reserve Fund (one time): 18 Norwich (Youth Emergency Shelter) $122,000 for renovation costs Transitional 185-187 Bristol (Michael House Pregnancy Care Centre) $150,000 to offset City fees Stepping Stone (men s shelter) Elizabeth Place (women s shelter) Wyndham House Youth Emergency Shelter Stonehenge Michael House Residential Program Guelph Independent Living Stonehenge Wyndham House College Place Retirement Residence 2,186 units Grange St (County owned) Private Market Rental Housing that is rented either in the primary rental market or in the secondary rental market. 14,530 units City contributions since 2004 from the Affordable Housing Reserve* $658,291 Home Ownership Housing that is held either as freehold or as part of a condominium. 33,585 units City contributions since 2004 from the Affordable Housing Reserve* Habitat for Humanity $322,803 *Other levels of government may have contributed additional funding to these projects which has not been listed 215 units Silver Wood Housing (federal coop) Cole Road Co-op (provincial co-op) York Road (non-profit) 747 Paisley 32 Gordon 371 Waterloo 185-187 Bristol 5 Gordon 35 Mountford
AFFORDABLE HOUSING RESERVE ACTIVITY 2004-2015 Affordable Housing Reserve Activity 2004-2015 as at May 28, 2015 Opening Balance January 1, 2004 781,333 Transaction Type Explanation 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Revenue Budget Allocation 2015-250,000 One- time interest allocation 6,436 Operating Surplus Allocation 300,000-350,000-100,000 Revenue Sum (300,000) (350,000) 0 (6,436) (100,000) (250,000) Program Expenditure on Affordable Housing 32 Gordon (rental) 6,276 18,828 185-187 Bristol (transitional housing) 8,798 137,821 371 Waterloo Ave (rental) 121,642 130,820 747 Paisley (rental) 121,642 112,465 Program Expenditure on Affordable Housing Sum 249,560 243,285 18,828 8,798 137,821 Program Expenditure on Habitat for Humanity 133/135 Bagot St 45,656 18 Harris and 24 Alma 50,000 26 & 28 Huron and 439 York Rd 69,063 297/299 Paisley 76,734 3-5 Johnston St 55,350 27 Morris St 26,000 Program Expenditure on Habitat for Humanity Sum 26,000 50,000 55,350 45,656 145,797 Capital Project Funding 18 Norwich St (Youth Emergency Shelter) 130,755 Capital Project Funding Sum 130,755 DC Late Payment Agreement Affordable Housing Lost Interest (35 Mountford, 57 Watson Prky S and 5 Gordon St) 25,263 12,479 27,438 15,803 21,743 31,834 24,872 DC Late Payment Agreement Affordable Housing Sum 25,263 12,479 27,438 15,803 21,743 31,834 24,872 Grand Total (300,000) 249,560 243,285 (324,000) 68,828 211,367 51,699 (72,562) 15,803 167,540 40,632 (87,308) Ending Balance 1,081,333 831,773 588,488 912,488 843,660 632,293 580,594 653,156 637,353 469,813 429,181 516,488 Projected lost interest over the remainder of the 3 DC late payment agreements 100,000 Funding currently available for new program expenditures 416,488