JASPER COMMUNITY HOUSING CORPORATION REGULAR BOARD MEETING MINUTES Approved MAY 24 TH, 2012 Minutes of the regular meeting of the board of directors held May 24, 2012 Present CAO Peter Waterworth Chairman Councillor Brian Skehill Director John Ogilvy Director Chad Gulevich-Director Leanne Pelletier Administrative Officer Laurie Rodger-Guest, Rodger and Ireland Barristers and Solicitors Absent Councillor Brenda Zinck-Director Call to Order The Chairman called the meeting to order at 3:40 Additions to the Agenda None Approval of the Motion by John Ogilvy that the Agenda be approved as presented Agenda FOR AGAINST #12/12 4 Directors 0 Directors Approval of Motion by John Ogilvy that the Minutes of the April 18th, 2012 regular Minutes of the Board meeting be approved as amended. April 18 th FOR AGAINST Meeting 4 Directors 0 Directors #13/12 New Business Discussion with Laurie Rodger, Co-Op Housing Peter explained that the Board has been speaking with Parks and the private sector to determine viable housing models for Jasper. Co-op housing models have been successful and presently there is
an opportunity to assist Caribou Creek to facilitate quicker construction. The Board appreciates any information Laurie Rodger can offer as far as process and legalities. Fundamentals Laurie explained that developments in Jasper once referred to as co-operatives are now referred to as restricted price condominiums. In the past, co-operatives were able to get blanket mortgages through CMHC financing. The co-operative secured the mortgage and then individuals moved into the units. The problem with this model is that individuals do not have their own mortgage, and therefore don t own the leasehold or have title. Currently CMHC does not want to be involved in these kinds of projects. If CMHC is not involved individuals are then responsible for their own mortgage and have to adhere to stricter mortgage requirements, such as a 20-25% down payment. This increases the cost of entering the housing market substantiality and essentially eliminates the possibility of the target audience being able to afford a unit. In order to loosen the mortgage requirements, the model is now referred to as restricted price condominium, and attached to the lease are certain stipulations. Individuals are responsible for their own mortgage and in the lease are caveats that restrict the price of resell. The caveat also outlines that the unit has to be sold back to the condo association and the resell price can only go up by the cost of living. Advantages of this model are that individuals can obtain their own mortgage from their bank of choice, they can use the unit as equity, there is a greater sense of ownership and initial buy in costs are low. Each development has a set of bylaws. Each development has a waitlist. Individuals within the condominium development are tied together as members of a condominium board allowing the group to share costs. Laurie outlined the legal process by which resell is restricted. A caveat is filed against each title that is an option for the condominium corporation to buy the unit back. Market Trends Current market housing trends were discussed. Chad inquired if the caveats in the leases could be changed at any time, to allow for market fluctuations. This is not possible because the land is issued at 5% of market value, requiring any development on it to be bought and sold at regulated, less than market values. Brian pointed out that resell is not a problem as there is always an extensive waitlist. Laurie affirmed that the co-operative or restricted price condominium model works well in Jasper. The only instance where a problem could arise is if all housing prices plummeted significantly, to the
point where you could purchase; for example, a Stone Mountain for less than a unit in a condo development or if there was no one interested in buying the units. No one foresees this happening in the future. The difficulty of determining rental demand was discussed, along with the merits of mixed use housing. Income Restriction Peter inquired if there is any income restriction on buyers at the time of purchase. He noted this might be something to consider for future developments. Whether income restrictions may facilitate entry into the housing market by front line service workers was discussed. Some felt that these individuals, based on income, may not be able to secure a mortgage. The restricted price condominium model does not allow for business owners to purchase units to house staff. Mr. Rodger indicated these units must be owner occupied. Peter noted that the qualifying criteria and caveats attached to the restricted price condominium model are similar to the ones the Whistler Housing Corporation operates with. Of interest was the point that the same requirements mandated by a Housing Corporation can be achieved in an individual condominium. Future Development Laurie detailed an affordable condominium model used by Banff that failed. Condos were built and then sold with an unpaid vendor s lien of approximately $50,000 on them. Housing prices then skyrocketed which allowed the owners to sell the condos at profits of approximately $100,000. After paying the lien, owners were able to make large profits. Peter raised the question of whether a group of people looking to downsize could start a development; if they were willing to restrict their resell price would they qualify to get land from Parks Canada at a discounted rate? Also, would Parks Canada support a development initiated by individuals that already own property. Laurie feels that Parks Canada would not allow individuals that already own property the opportunity to begin a development. Construction on the last phase (combined phase 2 and 3) of Caribou Creek is expected to begin in June 2012. Peter noted the article in the May 24 th edition of the Fitzhugh about the recent decision by the Municipality and Council to support a guarantee for Caribou Creek, allowing the construction to be done in one phase. Peter summarized affordable housing options explored by the JCHC to date. -Housing Authority Bylaw Model -Potential partnering with Parks Canada -Private Development (Urban Life Management) -Restricted Price Condominiums
A housing model that incorporates the Old Firehall should be discussed. Peter noted that the Restricted Price Condominium model caters to the middle market. It appears to be an affordable option for Jasper residents. The JCHC hopes the effect of more condominium units is a loosening of the rental market, needed to house seasonal or front line workers. Business Arising Licence of Occupation Potential SAU s based on Commercial Cap Leanne read an email from Dave Kreizenbeck of Parks Canada. He stated that the draft LOO has been vetted through the Department of Justice and is going through a final review by the superintendant prior to it being released to the Municipality for its review process. Until the decision by the PDAC committee is known regarding recent development variance requests there is no way to determine exact numbers. SAU s required vary depending on what is being developed. Core Needs Leanne informed the board that the Core Needs Income Threshold for Jasper Income Threshold has been released. It has been increased by $2,000 from 2011. The CNIT for a 1 bedroom apartment in 2012 is $38,000. Application forms and the website have been updated. The question was raised, what is the income gap between those applying for subsidized housing and those being able to buy? Past personal experience from those in attendance in relation to mortgages, income and buying homes was discussed. Peter emphasized the need to explore in detail the numbers related to income and housing stock to see where the gaps in the market are, he suggested that gaps may only exist in short term housing. Apartment Leanne provided a copy of the 2011 Apartment Vacancy and Rental Cost Survey Vacancy and results for Alberta. She pointed out there was a %0 vacancy rate in Jasper in Rental Cost Survey 2011. Also, rental rates were lower than other communities. Next Meeting Peter suggested a single item agenda. The JCHC has been collecting information and speaking to different parties to explore viable housing options. At this point the board feels they can review their findings and outline different options available. Chad s recent dealings with the Jasper Chamber of Commerce and Parks Canada to reach an agreement around the use of Jackman House could be the base of a model.
ACTION: Chad will write up and present options at the next meeting. Cathy Jenkins will be invited. John requested a map showing zoning be made available at the meeting. To be held Wednesday June 20, 2012 at 3:30pm. Further Discussion Brian brought forward the subject of PHA s. He anticipates that home owners will turn apartments vacated by people moving into the co-ops into approved accommodations. He feels this will take away from the short term renters market. Brian pointed out that they are approved by Parks Canada but the Municipality provides the business license. Adjournment 4:45pm