A Regional Housing Affordability Strategy for the Capital Region

1. A Regional Housing Affordability Strategy for the Capital Region Presentation to UBCM by Mark Hornell, DirectorCRD Regional Planning ServicesThursday, September 25, 2003

2. Why Should We Care About Housing Affordability? Housing is: • a cornerstone for building strong and stable communities • a key determinant of a healthy community – affecting individual health and the social and economic well-being and character of the whole community.

3. Why is a Regional ‘Strategy’ Needed? The external environment has changed and is changing - traditional approaches are no longer available. • Senior governments • Regional Growth Strategy • The community

4. Regional Growth Strategy & Housing • Urban containment & green space protection • Growth through infill, intensification, transit-linked major centres • Counteract restriction of land supply • Housing strategy focus: all residents, especially moderate & low income residents, have reasonable choice by type, tenure, price & location now & in future.

5. Local Support for Housing Strategy • 87% - want strategy for more affordable housing • 82% - strategy should be joint CRD/municipal effort • 83% - reject “do nothing” option

6. How We Did It Funding and Project Partnership of: • Capital Regional District • BC Housing • Vancouver Island Health Authority • Capital Region Hospital District • Canada Mortgage & Housing Corporation • Capital Region Housing Corporation • Project consultants – Urban Aspects Ltd., Lumina Services Inc., & G.P. Rollo Land Economists

7. What IS Housing Affordability? • Two dimensions: • Core housing need • Almost everyone else

8. Core Housing Need • People need housing that: • Is big enough for everyone who lives in it • Does not require major repairs • People who can’t afford housing that meets these standards without spending more than 30% of their income on shelter are in Core Housing Need

9. Growth in core need, 1991-1996

10. 1 in 3 renter households is in core need

11. What about the other dimension?

12. Impact of high housing prices • Challenge for prospective home buyers, especially when mortgage rates rise • Trickle down impact on home sellers • Employers may not be able to attract workers • Service industry employees may not be able to find adequate housing

13. Impact of mortgage rates on ability to buy

14. The Vision and the Goal • The Vision Improved housing affordability for residents of the Capital Region. • The Goal To improve housing affordability for residents of the Capital Region, ensuring they have reasonable choice of housing by type, tenure, price, and location over the short and long term.

15. The Approach Work together locally to: • Create housing positive policy and regulations • Increase available funds • Promote partnerships to improve affordability • Focus on core need, the homeless, and the hard to house

16. The Strategic Directions • Raise and lever additional funds for more-affordable housing. • Reduce the policy and regulatory obstacles, and facilitate more-affordable housing. • Encourage intensification (less expensive alternatives to single-detached housing). • Utilize public lands to support more-affordable housing. • Encourage self-help initiatives by community organizations. • Maximize the use of existing senior government housing programs and advocate for increased more-affordable housing funding. • Improve awareness, change attitudes and build support for more-affordable housing

17. Key Recommendations#1 Establish a Regional Housing Fund • Provide either operating subsidies or capital grants for the acquisition and construction of non-profit affordable housing. • A capital contribution of $2.6 million would allow a non-profit group to construct either 95 new apartment units at market rents or about 50 new apartment units with rents equal to 30% of the average income of Core Need seniors and single parent families.

18. Key Recommendations#2 Establish a Housing Resource Centre • Given the limited resources available to most of the municipalities in the region, it is crucial that there be an office (and Facilitator) to provide expertise and support to local governments, industry and community housing groups. • Would provide resources to support local governments and community organizations in the implementation of the RHAS. The Centre would develop and coordinate regional resources, as well as promote local organizational, program, networking, and advocacy capacity.

19. Key Recommendations#3 Preserving the existing rental stock • Use local government tax incentives for the conversion of non-residential properties into housing, preserve existing rental stock through the strategic use of federal RRAP funding and maintenance by-laws. • The waiving of property taxes for ten years for the conversion of properties into housing and the preservation of existing rental units (like Victoria’s Tax Incentive Program for seismic upgrades and conversions) might cost the municipality about $4,500 to $6,000 per unit over ten years.

20. Key Recommendations#4 Harmonize development regulations • The industry’s capacity to efficiently supply new housing could be improved, and development costs could be reduced, by providing a greater degree of consistency in municipal regulations and fees across the CRD. • Saanich recently received an ACT Grant to pursue this issue.

21. Implementing the Strategy Implementation requires that partners identify a pragmatic combination or set of solutions tailored to each of their situations and resources “one size does not not fit all”

22. Next Steps • Final consultant recommendations for review and comment – phase 1 • Business case for housing fund • “What we have heard” report by year-end • Preparation of Draft CRD Housing Strategy • Phase 2 consultation on draft HAS • Adoption & implementation 3rd Q 2004

23. Information • Website: www.crd.bc.ca/regplan • Phone: Christine Goldburn, HAS Project Manager at 250-360-3160