Models for Addressing Affordable Housing: The

Municipal Role

P. Gurstein & A. Lesnikowski, UBC Vancouver

Presented At ACSP 2014 Conference

                  

The National Story: Canada

No National Housing Strategy

“Affordability Gap”: gap between income and costs Nearly ¼ of Canadian households spend 30% or more of

their gross household income on housing 13.5% of households are in “core housing need”

Homelessness has grown dramatically – up to

300,000 across Canada…UN Rapporteur 2009: “crisis of homelessness and inadequate housing”

Aboriginal communities have worst housing in Canada 28% of Aboriginal households living off-reserve are in “core

housing need” On-reserve housing is inadequate

The Local Story: Vancouver, BC

Ranked as the 2nd worst in the world for homeownership affordability

High Housing Prices and Low Average Incomes:▪ Average income is one of lowest in Canada - $71,140;▪ benchmark price of single family, detached house almost $1

million

Rental vacancy rates are among the lowest in Canada at 2.6 %

Highest average rent in Canada

Homelessness and Housing Insecurity…

HEDGE

CITY

Vancouver’s Downtown Eastside

one of the poorest neighbourhoods in North America…

SRO, homeless,addiction and mentalIllness, infestations ofbed bugs and vermin

strong community activism and solidarity

Dunbar Area

green,leafy streets…

typicalsingle familydetached housevalue over 2 million dollars

Ringed by Condominium Development

Housing Creation in Vancouver

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Figure 1: Vancouver Historical Starts by Intended Market

Homeowner Rental Condo Co-Op All

Metro Vancouver Housing Strategies

Table 1: Metro Vancouver Affordable Housing Strategies Recommended Policies and Measures

  Abbotsford

Coquitlam

Langley Maple Ridge

New Westminster

Port Moody Richmond

Vancouver

West Vancouver

Amend Official or Area Plans

   

Housing First Policy                Secondary Suites Laneway Housing     Inclusionary Zoning            Density Bonusing       Rental Conversion Control

Infill     Reduced Parking Requirements

       

Streamlined Approval Processes

     

Fee Exemptions        Supply of City Lands       Tax Incentives            Grants or Loans              Housing Reserve Funds

     

Land Banking            Standards of Maintenance Bylaws

     

Advocacy    Partnerships      Public Education     Staff Resources     Task Force           Call for Proposals            

Vancouver’s Housing Policies Increasing the supply of subsidized,

supportive, and rental housing Partnerships with provincial agencies

like BC Housing and non-profit housing operators or private developers

Encouraging a mix of housing tenures and types

Expanding capacity in emergency shelters

Community Amenity Contributions (CACs)

Type of growth financing fee paid by a developer to the City when applying to change the type and/or density of development permitted on a site – rezoning

A way to fund public benefits including non-market rental housing

Development approvals that involve bonus density only small portion of the total number of development permits Between 2010 and 2012, such approvals were

only 2-3% of all approved development permits but are large projects

CACs

Development approvals that involve bonus density make up a relatively small portion of the total number of development permits issued each year

Between 2010 and 2012, such approvals were only 2-3% of all approved development permits but tend to involve large, high profile projects

Affordable Housing Approved through CACs

Table 1: Affordable Housing Obtained Through Additional Density Approvals (2010-2012)

  2010 2011 2012Projects approved with additional density

23 36 44

Share of development permits issued

2% 3% 3%

Net additional density approved 2.2 million sq. ft.

4.2 million sq. ft.

2.4 million sq. ft.

Total value of public benefits secured

$27 million $180 million $68 million

Share allocated to affordable housing

11% 22% 25%

Value allocated to affordable housing

$2.97 million $40.6 million $17.5 million

Non-market rental units built on-site

405 units1 100 units 70 units

Market rental units built on-site 106 units 602 units2 1,011 units3

1 Built through 4 not-for-profit housing projects2 400 units provided through STIR3 Provided through the Secure Market Rental Policy Source: City of Vancouver

•through bonus density received through a

Housing Need in Vancouver

2008 2009 2010 2011 2012 20130

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Figure 2: BC Housing Non-Market Housing Wait List - City of Vancouver

Implications

It seems unlikely that private sector development of non-market housing will ever be able to compensate for funding gaps left by federal government cuts to affordable housing programs

The nature of financing tools like CACs means that non-market housing construction using these funds will face strong competing demands from other policy priorities

Re-Imagining Policy Responses to Housing Affordability

Range of tenure modelsMixed income communitiesSocial housing revivalRent bankTax speculation Income support programmesReform of Residential tenancy lawCommunity Land Trusts

Community Land Trust and Portfolio Model

Community Land Trust Foundation has brought together a group of co-ops and non-profit organizations to work together to create 355 affordable housing on four city-owned sites The City has leased the land to

the Land Trust for free, greatly reducing the cost of the project

The housing projects themselves will be financed by money raised by the non-profits, by generating income from some units renting at just below market rate, and from selling leasehold interest to commercial spaces

Community Land Trust Model

The Community Land Trust model has the potential to create more sustainable affordable housing stock in the city by allowing housing built to be permanently affordable.

Conclusion

Efforts are needed to ensure that the various levels of government have a housing strategy

It is the concerted efforts of government and the private and non-profit sectors that are needed to start building new relationships that ensure the provision of affordable housing for future generations

THE RIGHT TO ADEQUATE HOUSING: COMMUNITY ENGAGEMENT POLICY LAW