1. A Regional Housing Affordability Strategy for the Capital Region Presentation to UBCM by Mark Hornell, Director CRD Regional Planning Services Thursday, September 25, 2003

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

4. Regional Growth Strategy & Housing Urban containment & green space protection Urban containment & green space protection Growth through infill, intensification, transit- linked major centres Growth through infill, intensification, transit- linked major centres Counteract restriction of land supply 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. 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 87% - want strategy for more affordable housing 82% - strategy should be joint CRD/municipal effort 82% - strategy should be joint CRD/municipal effort 83% - reject “do nothing” option 83% - reject “do nothing” option

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

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

8. Core Housing Need People need housing that: 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 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 Challenge for prospective home buyers, especially when mortgage rates rise Trickle down impact on home sellers Trickle down impact on home sellers Employers may not be able to attract workers Employers may not be able to attract workers Service industry employees may not be able to find adequate housing 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 The Vision Improved housing affordability for residents of the Capital Region. The Goal 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. 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 Create housing positive policy and regulations Increase available funds Increase available funds Promote partnerships to improve affordability Promote partnerships to improve affordability Focus on core need, the homeless, and the hard to house Focus on core need, the homeless, and the hard to house

16. The Strategic Directions Raise and lever additional funds for more-affordable housing. Raise and lever additional funds for more-affordable housing. Reduce the policy and regulatory obstacles, and facilitate more- affordable housing. Reduce the policy and regulatory obstacles, and facilitate more- affordable housing. Encourage intensification (less expensive alternatives to single- detached housing). Encourage intensification (less expensive alternatives to single- detached housing). Utilize public lands to support more-affordable housing. Utilize public lands to support more-affordable housing. Encourage self-help initiatives by community organizations. Encourage self-help initiatives by community organizations. Maximize the use of existing senior government housing programs and advocate for increased more-affordable housing funding. 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 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. 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. 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. 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. 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. 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. 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. 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. 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 Final consultant recommendations for review and comment – phase 1 Business case for housing fund Business case for housing fund “What we have heard” report by year-end “What we have heard” report by year-end Preparation of Draft CRD Housing Strategy Preparation of Draft CRD Housing Strategy Phase 2 consultation on draft HAS Phase 2 consultation on draft HAS Adoption & implementation 3 rd Q 2004 Adoption & implementation 3 rd Q 2004

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