Today I attended a webinar on non-market initiatives to increase affordable housing through the Planning Institute of British Columbia. Given the fact that the National Housing Strategy is hot off the press, this was the third in a series of very timely webinars PIBC has hosted on the topic.
CMHC’s new National Housing Strategy prioritizes the idea that “housing rights are human rights”: 530,000 people will be removed from core housing need (they currently live in units that do not meet affordability, suitability, or adequacy). Lance Jakubec, Innovation Fund Consultant (and my former co-worker at CMHC!), explained that new legislation will require and the new national housing council will draw on perspectives from a range of people including those with lived experience in affordable housing. National Housing Co-Investment Fund will ensure that existing rental housing isn’t lost due to lack of upkeep: 15.9 billion will be allocated to accessibility, energy efficiency and affordability initiatives to preserve and repair existing units, and up to $200 million in federal lands will be transferred at low or no cost to build accessible, affordable housing in municipalities. $4.3 billion will be devoted to the resilient community housing sector (housing provided through co-operatives and non-profit providers) which will preserve over 300,000 affordable units across the country. As I reported last week, most initiatives will begin in April 2018 so we’ll expect to see more details on these in the new year. The CMHC Observer allows you to use the Census Program Data Viewer to assess core housing need down to the Census Tract level, generate graphs and reports.
Armin Amrolia, Executive Director of Development & Asset Strategies at BC Housing, noted that they recently added student housing into their housing continuum model. She discussed the impact of the new NHS on non-profits and co-operatives in BC: almost 30,000 units will expire by 2033 (15,000 by 2025 and 14,000 by 2033). Expiry means the end of government subsidy, the end of the requirement to make financial/administrative reports to BC Housing or CMHC, and the end of rental subsidies for tenants in many cases. There are about 21 active redevelopment projects (total 1,745 units) who have approached BC Housing about redeveloping their units as affordable housing now that their contracts have expired. BC Housing’s low-cost financing tool allows up to 100% financing on construction, with an interest rate of 1/16%, no loan insurance required, and a 1% loan fee. Take-out financing for non-profits allows 100% financing, a competitive bulk rate of 2.9% over a 10-year term, CMHC loan insurance of $75/unit (max $5000) and an amortization term of 35 years. These are extremely attractive rates for non-profits and developers.
- Lynnhaven, Abbotsford: the society owned 40 detached units for low-income seniors. In 2010 the society approached BC Housing for a land swap that would allow them to build 64 bachelor units closer to amenities. The developer provided the up-front costs and the project funding came through the Community Partnership Initiative. The new units were built first so that the existing tenants could be rehoused before the older land was redeveloped. The project also received funding from CMHC, the City of Abbotsford, and the society used some of their own equity.
- Kiwanis Court, Richmond: Richmond Kiwanis Seniors Citizens Housing Society owned a building with 122 units for low- to moderate-income seniors. Their partners were City of Richmond, Polygon Homes and BC Housing. The society retained about 1/3 of the property and 2/3 would go to the developer. The society retained the affordability they required, while the developer built a market rate project next to the affordable building. The unit number increased by 174 units. All of the tenants were rehoused during the redevelopment project and then relocated to the new building. Again, the society provided some equity, as well as the City providing some funding in their budget.
- Pleasantvale, Kelowna: the Society of Hope operated a 50-unit building for low- to moderate-income seniors. They approached BC Housing and the City of Kelowna–the society was willing to put their site up for redevelpment and the City provided two adjoining plots to develop 50 one-bedroom units and 20 townhouses. Again, the tenants were all relocated during construction and then rehoused in the new project. The City provided some funding and a development charge credit as well.
Kaeley Wiseman, MCIP, RPP, Manager of Planning & Development at M’akola Development Service. M’akola Housing Society has 1,600 units on Vancouver Island. Their Development Service helps non-profits understand the complexity of housing development. M’akola is also working on a lot of redevelopment projects with the end of operating agreeements. Traditionally, their affordable housing concept included low-density (townhouses), small household sizes, isolated sites often removed from communities (often the only available parcel of land), often reliant on subsidies. This model describes most of the housing M’akola currently operates. The pro-initiative model includes higher density (mixed-use and taller buildings), serves more families and a diverse mix of residents, has lower utility costs for tenants, focuses on tenant education, focuses on affordability in construction, meets tenant needs through in-houses services/supports, has shared spaces (allowing non-profits more ownership of their building through commercial space), allows internal mobility/flexibility and is operationally sustainable (e.g. without subsidy). Kaeley emphasized the need for a clear vision and mission, the development of partnerships to help fund a redevelopment project, and early and ongoing communication with levels of government (municipalities/regions, province).
Juliet Van Vliet, Director of Lands, Public Works and Resources for Toquaht Nation (and SCARP alumni–shout-out!) noted that the Nations have something to teach municipal governments in accessing federal funding (and it seems, developing a clear vision/priority for affordable housing). Toquat Housing was in treaty negotiations from 1991-2011, which meant lack of clarity on housing tenure in 10 houses. There were also major issues with water quality and infrastructure (a waste water treatment facility and fiber optic network were completed in 2016). The Nation worked hard on developing a clear vision on housing, engaging residents as part of an Official Community Plan (2012-2015), establishing a home ownership program (2016-2018) and setting aside $320,000 towards rental housing in their 2016 budget, an identified need. This money (equity cash from the claim settlement) was used to leverage an additional $1 million from CMHC to build eight units in total). UBC students also supported the planning for new housing. The new units are to be affordable based on the needs of low-income residents ($587 average unit rent, with deep affordability available), will be Nation-owned on Toquat lands, and will include a gathering space which is also lacking in the community. Some of the materials used include local cedar which was milled in the community.
These projects are amazing illustrations of what has been possible even without the new funding the NHS will be providing. I’ll be sharing them with my students in housing policy.
