A Regional Collaborative Approach to Meeting Affordable Housing Needs

Transcription

1 A Regional Collaborative Approach to Meeting Affordable Housing Needs 1

2 Affordable Housing Program How It All Began Exploratory meetings with Doug Morrison, Evergreen Sustainable Products Inc., Carlton Trail Regional College and a few municipal and industry representatives (Latter 2007 and early 2008) CTREDA Consultation with Municipalities in the Region (latter 2007) - Affordable housing inventory - Affordable housing needs - Interest in working together to address affordable housing situation 2

3 Many communities didn t feel that they had an affordable housing problem but others, particularly those which supported the hog, manufacturing and meat processing industries, felt that there was a critical need for affordable housing for workers and their families, particularly immigrant workers. Village of Annaheim Village of Englefeld Village of Drake Town of LeRoy (Doepker Industries) (Schulte Industries) (Bergen Industries & Drake Meats) (Stomp Pork Farms) 3

4 Creation of a Regional Affordable Housing Steering Committee - April 2008 Step #1 Determine what organizations want to be involved in the a regional affordable housing program and strike a steering committee made up of key stakeholders Formation of CTREDA Affordable Housing Steering Committee: - Local employers with employees that need housing (3) - Municipalities with need for affordable housing (3) - Credit Unions (1) - Regional College (1) - Carlton Trail REDA (1) - Builders interested in affordable housing (1) NOTE: All organizations with representation on the Steering Committee must be a member of CTREDA 4

5 Project Manager/Consultant -- Doug Morrison, Evergreen Sustainable Products Inc. (agreement endorsed between CTREDA and Doug Morrison to act as project manager/consultant) Resource People and Other Organizations Contacted - Michelle Wuchner, MW Designs Inc. - Martin Chicilo, Affinity Credit Union - Jim Ramsay, Fishing Lake First Nations -CMHC - Saskatchewan Housing Corporation (Tim Gross) - City of Langford, BC - Moose Jaw and Saskatoon social housing development organizations - Some US social housing development organizations 5

6 Need for Affordable Housing With the recent increase in economic activity in the CTREDA region, most communities were left with little or no available housing for low and medium income workers/their families (income range approximately $28,000 - $55,000) Newcomers from out of province were driving up the demand for all types of housing Market values of residential property escalated; any residential lots still available were selling for a premium (In Humboldt new lots were being sold by lottery) No affordable housing (including rental housing) was being built; most building contractors are interested in the up scale housing market rather than the affordable housing market Employers, especially in the manufacturing and food processing sectors were in need of workers but could not hire due to the shortage of housing Meanwhile construction costs and cost of developing residential lots continue to rise 6

7 What Kind of Affordable Housing Is Needed in the CTREDA Region? - basic well built, energy efficient starter homes to purchase - transitional housing (rental accommodations) A Possible Solution Create a collaborative regional approach to development of an affordable housing program for low-medium income workers/families in the Carlton Trail Region. Phase I would be development of an affordable housing program by which low and medium income workers/their families have opportunity to purchase a home. Definition of Affordable Housing: Generally accepted standards for mortgage eligibility: - Housing expenses should be less than 33% - 36% of a family s pre-tax income 7

8 Projected Housing Cost Breakdown Scenario: Carlton Trail REDA If combined household income was $3,000 per month (approx. $21/hr combined family income x 7 hrs/day x 20 days per month) and the cost of a basic affordable home was $100,000, the monthly housing costs for a family might be as follows: Mortgage payments $ 612 Mortgage insurance $ 20 Utilities (heating, electricity, water/sewer) $ 250 Household insurance $ 50 Property taxes $ 150 Total $1,082 * Cost projects fall within affordability index 36% of gross income 8

9 Assumptions: -Costs to purchase an affordable home through the Carlton Trail REDA would have to range between approximately $90,000 - $125,000 - Therefore any types of housing proposed for the program would very likely have to be ready to move homes (RTM) with no frills - Program partners felt that, in order to maintain market value and increase living space, these homes should be installed on a basement -Cost to rent affordable housing (based on local industry starting wages and the going rate for rental units in small communities) should range between approximately $400 - $550 per month 9

10 Roles of the Steering Committee & Consultant Create a regional affordable housing program primarily based on local resources and commitment of program partners (municipalities, employers, lenders, college, etc. within the region) Investigate potential opportunities for affordable housing support through CMHC and the provincial HomeFirst Program and/or other programs that may be available Research other housing programs and modify/further develop housing program criteria and guidelines to create program criteria appropriate for the Carlton Trail REDA Develop the CTREDA regional affordable housing program Template for Phase I including (but not limited to) 10

11 Roles & Responsibilities of Steering Committee Letter of Commitment/Interest from Local Employers Council resolution committing serviced lot(s) for Phase I of CTREDA Affordable Housing Community Team - Purpose of community team - Members of the team - Council resolution appointing team 11

12 Builder Eligibility (Required by any builder wishing to participate in CTREDA ) - Must become a member of CTREDA - Must be a reputable builder or official agent for a reputable builder/manufactured housing supplier - Must meet or exceed CTREDA AHP minimum house building standards - Must provide housing costs and designs based on CTREDA AHP minimum standards or higher (three basic sizes approx 800 sq. ft; approx 1,000 sq. ft and approx 1,200 sq ft) - Must adhere to CTREDA AHP house construction/delivery and bidding process, including provision of housing completion/delivery date - Must provide New Home Warranty 12

13 CTREDA AHP Promotion & Awareness Create a concise document which provides basic information about CTREDA (whose involved, how the program got started, reasons for/benefits of a regional program, components of the program, role of steering committee and community teams, employee application process, etc.) Distribute this information document to participating communities (including municipal offices, employers/staff rooms, credit unions, etc.) Create a brochure and flyer promoting CTREDA AHP to distribute in participating communities (Once the program is fully developed and tested, promotional materials can then be circulated to other communities within the region 13

14 Application Process for Prospective Homeowners Workers interested in purchasing a home through CTREDA AHP would complete a very simple application form to demonstrate their eligibility for the program (pres-screening tool) and submit their application to the local municipal office (Roles of the Community Team and guidelines/options for prescreen applications are set out by the Steering Committee but time frame for receiving applications and screening criteria would be at the discretion of the local community team) Once applicant(s) have been pre-screened by the local Community Team to determine CTREDA AHP eligibility, the eligible applicant(s) are asked to complete a prescribed personal information form and then make application for a mortgage at a participating credit union 14

15 Possible Options for Mortgage Assistance Often times newcomers to Canada and first time home owners (low to medium income range) have trouble putting together enough money for a down payment on a home. HomeFirst Program. Recent announcement by provincial government advised that this fund has been depleted (The fund was primarily used in Saskatoon and Regina and provided little or no assistance in rural Saskatchewan) Generally speaking, employers do not want to become landlords but in some cases they will provide some funding assistance for an employee to scrap together enough money for a small down payment on a home.employees should also be encouraged to start saving for a mortgage. Phase II of CTREDA AHP is being planned to create a non-profit community development corporation as a source of funding assistance for those who do not have enough funds for a down payment on a home through CTREDA AHP. 15

16 Applicant/Prospective Homeowner Information Being Developed Listing of approved/interested affordable housing builders in the CTREDA AHP (only two or three have expressed interest at this time) How the buyer would select a builder (based on amount of mortgage approval, size of home required, time frame for completion of home/set up on lot, etc.) - A new homeowner manual is being developed by Doug Morrison to guide first time home purchasers through the process of contracting with a builder, inspections required/building standards, contractor insurance and a myriad of other important information/ legalities involved in building a new home CTREDA is developing a home care and maintenance guide for those who are new to Canada and/or who have never had the responsibility of caring for a home. All new home owners and their spouses accessing the CTREDA AHP will be required to participate in a home care and maintenance workshop prior to moving into their new residence. 16

17 Demand for Transitional Housing Carlton Trail REDA CTREDA AHP Steering Committee recognized the immediate need for transitional housing in all communities with major employers in the manufacturing, hog production and meat processing industries It is anticipated that: - formation of a regional non-profit housing development corporation and - commitment of local municipalities to provide some serviced lots for multi family development will create opportunity to build some transitional housing (duplexes, fourplexes, etc.) provided that rental fees can be kept within an affordable range for low/medium income workers and their families 17

18 Conclusion Carlton Trail REDA The Carlton Trail REDA regional approach to developing an affordable housing program has been an interesting journey with many challenges.although all participants in the Program have learned a lot and value the experience, there is still lots of research and fine tuning to be done. The model has not been tested and the first house isn t on the ground yet! Risk Communities/employers may not wait for the regional program to get up and running many have had to seek individual solutions to shortage of affordable housing for workers. 18

19 Presentation by Edie Spagrud, Ec.D Economic Development Officer Carlton Trail REDA Box 2947 Humboldt, SK S0K 2A

20 Phase 2 Affordable Housing Development Corporation (The Concept) A Collaborative Regional Approach to Meeting Community Affordable Housing Needs 09/30/2008 1

21 Purpose of the Affordable Housing Development Corporation 1. Provide oversight for the Carlton Trail. 2. Continue to build partnerships required at the regional and local level to support affordable housing programs. 3. Work with Affinity Credit Union and other financial institutions to create and manage a regional affordable housing program loan fund. 4. Provide mortgage assistance loans to approved affordable housing families. 5. Develop and fund transitional rental housing in the region. 6. Support the development of resource materials needed for regional and community affordable housing programs. 7. Act as a coordinating and leveraging resource for community affordable housing programs. 09/30/2008 2

22 Examples of Affordable Housing Development Corporations 1. Saskatchewan Housing Corporation 2. Neighborhood Development Organizations Quint Development Corporation (Saskatoon) Connecting As Neighbours Co-operative (Moose Jaw River Bend (Prince Albert) 3. Cress Housing Development (Saskatoon) 4. Habitat For Humanity (Saskatoon and Regina) 5. Nationswest Housing Corporation (North Battleford) 6. Options For Homes (Toronto) 09/30/2008 3

23 Affordable Housing Continuum Traditional Affordable Housing Continuum Emergency Shelters Transitional Housing Social Housing Formal & Informal Rental Affordable Home Ownership Non Market Near Market or Market New Affordable Housing Continuum Emergency Shelters Transitional Housing Social Housing Affordable Rental Affordable Home Ownership Affordable Rental Affordable Home Ownership Government owned or subsidized Market Non Market Non Profit 09/30/2008 4

24 Types of affordable housing supported 1. Low to medium income working families (rental and homeownership) 2. Seniors 3. Assisted living 4. Social assistance 5. Youth First priority is low to medium income working families Housing financial assistance through 1. Provincial Low-income Rent Supplement 2. Provincial HomeFirst program (homeownership) 3. Mortgage assistance for community members (municipal support) 4. Mortgage assistance for employees (employer support) 5. Transitional rental development financing (municipal and employer) 09/30/2008 5

25 Possible Structure of Affordable Housing Development Corporation 1. Incorporated member owned non-profit corporation. 2. Members will be municipalities, businesses, etc Board members elected from member representatives. 4. Bylaws follow co-operative model (one member one vote). 5. Volunteer Director. 6. Operating expenses paid by income from affordable housing development fund. Possible Structure of Affordable Housing Development Fund 1. Use Community First Development Fund of Saskatoon model. 2. Investors pledge GIC or donate cash, stock, property. 3. Investors may be individuals, businesses, churches, etc. 09/30/2008 6

26 Annaheim Englefeld Drake LeRoy others St Gregor Affinity Conexus others CMHC Sask Housing Financial Carlton Trail Regional College SIAST others Communities Funding Steering Committee Education Affordable Housing Development Corporation Partner Network Mid Sask East Enterprise Region Board of Directors Affordable Housing Development Corporation Affordable Housing Loan Fund Program Management Evergreen Sustainable Products Design Builders Materials Workers AC Realty Treaty 4 Castle Builders (Annaheim) Quill Plains Sales Canadian Modular Manufacturing others Building supply companies Co-ops local trades SIAST YouthBuild Interns Administered by Evergreen Sustainable Products Affinity Credit Union Al Treppel & Associates Low Energy Design M&W Design 09/30/2008 SIAST YouthBuild Interns 7

27 Potential Affinity Credit Union role The Affinity Credit Union will participate in the regional Affordable Housing Program in these roles: 1. Advisor to the Steering Committee and Affordable Housing Development Corporation Board on mortgage issues. 2. Act as lead credit union and financial institution for. 3. Assist in structuring and creating the Affordable Housing Loan Fund. 4. Act as the manager of the Affordable Housing Loan Fund. 5. Support new homeowner education and counseling project. 6. Work with to obtain increased Provincial loan commitments for new affordable home ownership and transitional rental development in rural communities. 09/30/2008 8

28 Affordable Housing Development Corporation Concept Affordable Housing Program Elements Homebuyer Assistance Education & Counseling Rental Assistance Group Living Transitional Rental New Construction Renovation 09/30/2008 9