Mayor Darrell R. Mussatto and Members of Council HISTORICAL OVERVIEW OF CITY RESPONSES TO HOUSING AFFORDABILITY

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1 Information Package No: A2 D, Manager City Manager The Corporation of THE CITY OF NORTH VANCOUVER COMMUNITY DEVELOPMENT DEPARTMENT INFORMATION REPORT To: From: SUBJECT: Mayor Darrell R. Mussatto and Members of Council Cheryl Kathler, Community Planner HISTORICAL OVERVIEW OF CITY RESPONSES TO HOUSING AFFORDABILITY Date: September 11, 2012 File No: ATTACHMENTS; 1. Historical Overview of City Responses to Housing Affordability, August Time-line of Housing-Related Policies and Initiatives, updated August City of North Vancouver Non-Market Housing Projects, updated August The attached document "Historical Overview of City Responses to Housing Affordability" is provided for Council's information and. reference. This overview document provides a summary of the past 70 years of City responses to housing availability and affordability. The decade by decade narrative of City housing policies, practices and initiatives is set within a context of the intermittent availability of senior government housing related programs. Partnering with others to achieve non-market and market rental housing has been a major theme over the decades of City involvement in housing. The City has increasingly used its zoning, bylaw and development capacity in collaborative and innovative ways to enhance the diversity of affordable and rental housing available to City residents. The Overview document has also been posted on the City's webpage under "Affordable Housing" found at this link: Also attached for reference are the updated versions of documents which have been made available on the webpage for many years, namely a time-line summary of City housing policy and initiatives, and a list of nonmarket housing projects located in the City. The project list indicates the types of City roles in supporting the majority of the non-market housing developed over the years in the City. RESPECTFULLY SUBMITTED: CK/skj/eb Cheryl Kathler Community Planner INFORMATION REPORT: Historical Overview of City Responses to Housing Affordability Page 1 of 1 Date: September 11, 2012 Document: v1

2 Historical Overview of City Responses to Housing Affordability As a community with strong working class origins, the City has long been involved in responding to a broad range of issues affecting its residents. Addressing housing needs of low income residents has been an ongoing City role since World War II. This document provides a decade by decade summary of the evolution of City housing policies, practices and initiatives over the past 70 years within a context of the ebb and flow of senior government housing programs. For easy reference. City policies and initiatives are noted in bold throughout the document, and text boxes note for each decade the non-market housing developed and occupied in the City. A variety of additional information regarding housing policies and projects can be found on the City's website: s through 1960s During the Second World War years the booming City shipyards precipitated a housing crisis for shipyard workers. In conjunction with the federal Wartime Housing program, over 600 small standardized houses were quickly built in the City's south east and south west areas. The City's contribution was to sell at reduced value vacant lots that had been obtained through property tax default. Several of these war-time homes are still visible in the Moodyville neighbourhood. Non-Market Projects: * Kiwanis Apartments (88 units 1950's) * ANAVETS Apartments (88 units 1960's) Post-war, sales of City tax default properties and privately-held lands increased dramatically to provide new housing for returning war veterans. The City also utilized some properties to leverage senior government funding to partner with non-profit housing organizations, such as ANAVETS and Kiwanis, to develop affordable housing for City seniors. 1970s The 1970s saw housing affordability become a growing issue for residents trying to secure quality, appropriate housing and this decade saw the proliferation of senior September 2012 Page 1 Document; v3

3 government housing programs. In 1971 the federal government introduced the Assisted Home Ownership Program to help lower income households attain homeownership. There were also programs in place to support rental housing for modest income renters, single people, and urban dwellers, including the Limited Dividend Program, the Multiple Unit Residential Building (MURB) tax shelter, the Assisted Rental Program, and the Canada Rental Housing Supply Program. Through a combination of grants, preferential loans, and tax concessions, the federal government assisted in the construction of private rental housing and supported a large portion of housing completions in the country. While almost all of the City's 7,225 purpose-built rental units were constructed several decades prior to 1980, 2,441 units were added to the rental stock in the 1970s alone. During this period, both the federal and provincial governments offered programs in support of non-profit and co-operative housing (co-ops). The federal government also offered financial assistance through the Residential Rehabilitation Assistance Program (RRAP) to help repair substandard homes to an appropriate level of health and safety. With significant senior government support and funding during this period, the City saw the completion of two seniors' housing projects, and two family housing projects. The City utilized its own development and regulatory powers to protect and encourage affordable housing options for residents. The City focused on protecting the existing housing stock by creating the Standards of Maintenance Bylaw (Bylaw 5124) in 1978 to establish minimum standards for the maintenance of the physical conditions of residential property. Strata conversion controls were adopted in 1979 to mitigate the loss of market rental units by prohibiting purpose-built rental units from stratification unless the vacancy rate in the City exceeded 3.0%. With amendments to the Non-Market Proiects: * Kiwanis Towers (99 units 1970) * Grant McNeil Place (110 units 1976) * St. Andrew's Place (15 units 1976) * Twin Towers (212 units 1976) National Housing Act in 1978 to support provincial housing activities, senior governments encouraged municipalities to increase their capacity in supporting nonprofit housing. September 2012 Page 2

4 1980s According to the 1981 Canadian Census, the cost of housing in the City of North Vancouver was approximately seven times greater than the average household income in the City. The completion of four housing co-ops during this period provided much needed affordable housing and increased the overall supply of non-market housing in the City. By 1988, the City had 865 units of non-profit housing in 12 different housing projects. Furthermore, eight of the 12 non-profit housing projects were on land either leased or sold by the City. Facilitated by funding from senior levels of government, nonprofit housing continues to provide lower cost accommodation to many City residents today. The federal government began to cut funding for non-profit housing in While the economic recession of the late 1980s reduced the cost of housing to roughly four times the average household income in the City, non-profit housing remained limited. Over 1,000 households were on wait lists for these units by the late 1980s. The federal government also restricted eligibility for RRAP in 1989 so that only people of low income or with disabilities could access the program. Building on the recent social (non-market) housing achievements and facilitated by the City's first Social Planner, the City responded to diminishing federal housing programs with an array of housing policies and tools to enhance the City's ability to support affordable housing. City Council adopted a Social Housing Policy in Non-Market Projects: * Creekside Housing Coop (43 units 1985) * Pinewood Place (50 units 1985) * Walnut Gardens (26 units 1985) * Mosquito Creek Housing Coop (67 units 1986) * Capilano Housing Coop (29 units 1987) * North Shore Housing Coop (38 units 1987) January 1989 to emphasize the importance of social housing and the City's role in supporting efforts and initiatives that enable the provision of affordable and adequate accommodation for lower income households. This policy strengthened earlier City efforts to encourage the supply and retention of affordable housing through permitting smaller lot sizes (1983), and policies on condominium conversion (1979) and family suites (1967) and adopted a policy to lease City owned property where appropriate for non-profit social housing. September 2012 Page 3

5 A Social Housing Reserve Fund (Bylaw 6018) was established in 1989 (revised in 1996 to Affordable Housing Reserve Fund) to facilitate the implementation of City social housing objectives. With an initial contribution of $200,000 from the City's general revenue, the money provided a source of funding to address the difference between the sale price of land and the value of land leased for social housing projects, as well as other social housing site-related activities. The City's purpose-built rental stock emerged as a major concern during this period. While rental apartments were demolished at an average of four units per year from 1980 to 1987, 38 units in three rental buildings were redeveloped in 1988, accounting for 41% of all building demolitions in the City that year. The loss of affordable rental units at a rate much faster than rental units were being replaced, together with the displacement of some of the City's most vulnerable residents, prompted City Council to declare a rental housing crisis in the City. Invoking its emergency powers, the City issued a Demolition Moratorium on all rental accommodation in multi-family zones between November 1989 and July s The pattern of federal funding decreases followed by provincial reductions and the delegation of more responsibilities to local government became increasingly evident over the 1990s. In 1993, the federal government cancelled all support for new nonprofit and co-op housing, and capped the budget for the national social housing portfolio at $2 billion annually. Consequently, only British Columbia and Quebec continued to fund new non-profit and co-op housing. The federal government also initiated the process to devolve management and ongoing subsidies for social housing to the provinces. In 1992, the BC government established a Commission on Housing Options to provide recommendations on enhancing the roles of the province and those of local government in provision of affordable housing. The outcome of the Commission was the amendment of the Municipal Act to require municipalities to include strategies on affordable housing in their Official Community Plans (OCRs). The amended Municipal Act also gave new planning powers to local governments to help facilitate affordable September 2012 Page 4

6 housing, including inclusionary zoning, negotiated density bonuses, and transfer of density rights. The HOMES BC program was created in 1994 to provide subsidized housing to lowincome families, seniors, and persons with special needs in the province. The financial burden on the BC government was exacerbated in 1996 when new restrictions on federal employment insurance resulted in a significant reduction in transfer payments from the federal government to the provinces. To compensate, the BC government reduced support allowances, eliminated earnings exemptions, and introduced a threemonth residency requirement for individuals requiring housing assistance. The loss of funding from senior levels of government impacted individuals along the entire housing continuum, from non-profit housing tenants to renters and homeowners. While recognizing its limitations, the City deliberated its role in addressing affordability and adopted an Affordable Housing Action Plan in 1990 as a framework for increasing the supply of affordable housing in the City. The Plan included support for Non-Market Proiects: * Margaret Heights (19 units 1991) * Manor House (50 units 1998) * Quayside Village Cohousing (1 unit 1999) affordable housing projects in the context of the OCR, improved processing times for affordable projects, as well as up to 10% density bonus for affordable housing in higher density residential development. In 1990 the City also increased the Social Housing Reserve Fund annual contribution, and the Fund facilitated development of the 19 unit Margaret Heights family project in Despite the success of this project, the loss of federal housing programs and the limited focus of provincial housing initiatives was to constrain City opportunities to develop affordable housing projects on a regular basis. During the 1990s, with no new purpose-built rental housing constructed in the City since the 1970s, the City sought to protect and retain the existing affordable rental stock. In 1990, the Strata Conversion Policy benchmark vacancy rate was raised from 3.0% to 4.0% to meet the eligibility for municipal grants under the provincial Rent Supply Program. Through this short-lived program, in 1990 the City received $6,000 for five units of housing covenanted as rental units for a period often years, which was added to the Social Housing Reserve Fund. September 2012 Page 5 Document: V3

7 In 1992, as the vacancy rate in the City rose to 3.8% and in the context of increasing rents, the Strata Conversion Policy was once again amended to increase the threshold vacancy rate to permit stratification. The City also adopted a Demolition Notification Policy (Bylaw 6140) shortly after the demolition moratorium ended in July 1990 to require a landlord intending to demolish a building containing three or more units to provide a minimum of 6 months notice prior to eviction (Bylaw repealed in 2011 for consistency with the 2006 revision of the Residential Tenancy Act to require a 2 month notice period). In the attempt to create and legalize additional suites in existing apartment buildings, the City created the Multiple Unit Building (MUB) Policy in 1996 as a way to add new rental units to unused or underused areas of existing buildings. Twenty-eight units have been added to the rental stock since The aging of the purpose-built rental stock further prompted the City to create the Rental Premises Standards of Maintenance Bylaw (Bylaw 6996) in 1998 to ensure owners of rental accommodation maintain their property to an acceptable level of liveability and life safety standards for tenants. To ensure the physical safety of new buildings, the City adopted the Third Party Building Envelope Bylaw (Bylaw 7043) in 1999 to require professional oversight and approval of the design and construction of the residential building envelopes. Rental units in private homes, or secondary suites, became a prominent issue in the City during the early 1990s. Since 1967, the City has allowed registered family suites in single detached houses under the Zoning Bylaw. However, many illegal rental suites were constructed by homeowners over the years. When reported and inspected, some suites have been found in contravention of the Building Code life safety requirements, thereby posing significant health and fire risks for tenants. Nevertheless, Council recognized that secondary suites provide an important source of affordable rental housing in the City, as well as supplementary income for homeowners. To investigate the issue. Council declared a Moratorium on Enforcement against Illegal Suites in February After extensive research and consultation with City residents, including convening a Secondary Suites Working Committee in 1991, the City officially legalized secondary suites in single family dwellings in While more residents have since legalized their suites. City staff estimates that over one thousand secondary suites remain unregistered in the City today. The majority of new single family homes are designed and constructed with legal suites. In response to growing affordability challenges and changing demographic trends, residential unit sizes became smaller during this decade. In 1990, the City began to September 2012 Page 6

8 il permit smaller minimum unit sizes to comply with the new standards set out by the Canada Mortgage and Housing Corporation (CMHC) and BC Housing. The City also required 20% of units in larger multi-family projects to be less than 750 square feet. In addition, the City eliminated the unit per hectare residential density control in the 1992 OCR to help facilitate the creation of smaller, more affordable units. With more individuals and families living in smaller units, the City conducted a Townhouse Satisfaction Survey in 1999 to obtain a profile of residents living in townhouse developments, assess their satisfaction with their housing, identify improvements for existing townhouses, and identify improvements to future design guidelines. As the scope of needs grew in the community, facilitating accessible and appropriate housing for people of all ages and abilities became a focus of City housing policy. In 1994, the City endorsed Strategies to Support Seniors' Housing, which included developing partnerships with outside agencies, promoting housing designs that enable aging in place, and creating liveable and accessible neighbourhoods through thoughtful urban design. City staff also worked with seniors' organizations to determine the ideal criteria for location of seniors' housing, resulting in the 1995 adoption of Sites Suitable for Seniors Housing. Central Lonsdale and Lower Lonsdale were deemed ideal locations due to the proximity to shops and services, good transit service, and smaller residential units that are easier to maintain and more affordable. Indeed, the City's core had already become an area of choice for many older persons moving to higher density housing. The exploration into integrating housing for seniors and for individuals with special needs into the community was undertaken in 1996 with assistance from the Working Group on Accessibility in Housing (Adaptable Design Working Group). The policy outcome was the creation of the initial Adaptable Design Guidelines in Adaptable Design creates residential units that are accessible to a wider range of persons through the consideration of adaptations that could be easily and inexpensively incorporated to facilitate independent living and support aging in place. The Working Group met regularly until 2003 assisting staff in the early implementation and the revisions of the Guidelines. Consisting of three levels that range in design and features, the Adaptable Design Policy was adopted in 1998 after a one year trial period. The Guidelines were revised in 2003 to require 20% of applicable units to be AD Level Two, and to offer specified floor area exclusions to compensate developers for the required extra space. This program has seen great success with over 2,500 adaptable design units occupied in the City today, of which 228 were created by With senior government housing programs shifting away from housing core-need households to mixed income projects to more broadly dispense funding, the City revised September 2012 Page 7

9 : the Social Housing Reserve Fund in 1995 to broaden the use of the funding beyond social housing. In addition to being renamed the Affordable Housing Reserve Fund, a Housing Initiatives Grant Program was also established in 1996 to fund non-capital initiatives related to affordable housing and meet housing-related social objectives. The City's Affordable Housing Policies were also adopted in 1996, in which the City reconfirmed a facilitating and supportive role for itself in continuing to respond to the housing needs of City residents. Therefore, when a group of core co-housing members approached the City in 1999 to develop the first urban co-housing project in the region. Quayside Village Cohousing, the City facilitated the implementation of the project by permitting an increase in density, siting variances, and exclusion of floor area for the affordable rental unit provided in the building, as well as for environmental features of the building. Also in 1999, the City utilized negotiated density bonuses to secure 33 units of non-market rental at the Legion Towers and 108 units of supportive housing (rental) for seniors at the Summerhill Residences. The 1990s saw an increasing array of community needs arise due to the withdrawal of senior government support from many social programs, increasing request for municipal assistance from community agencies, and growing complexities in social issues. In response, in 1997 the City initiated the process to develop a Social Plan to respond to current and future community issues. In recognition of accessible and appropriate housing as fundamental to a healthy and complete community, housing was addressed in the plan. The Social Plan was adopted in September An Affordable Housing Task Force was established between 1997 and 1998 to review existing City affordable housing policies and practices, identify new affordable housing objectives, protect existing affordable housing resources, consult with the community, and present recommendations to protect and enhance affordable housing in the City. The recommendations from the Task Force were incorporated into the Social Plan in November In December 1999, much needed funding came from the federal government to address the growing problem of homelessness in Canadian cities. Under the National Homelessness Initiative, the Supporting Communities Partnership Initiative (SCPI) program provided funding for temporary shelter and services for the homeless. Federal funding under this program was to be matched with contributions from other sources. Under the first phase of SCPI, the BC government received $31 million, of which approximately $25 million was allocated to the Greater Vancouver region. With an adhoc task force comprising of service providers, health region and municipal social planning staff in place since 1998 to address homelessness on the North Shore, the group secured $80,611 of SCPI funding to operate the North Shore's first temporary September 2012 Page 8

10 Adult Emergency Shelter between February and April The City provided the temporary emergency shelter location in a City-owned building and forgave the lease revenue of $25,000 during the three months the shelter was in operation. City contributions also included staff time for the site search, funding submission, community liaison, and building renovation process. 2000s The 2000s witnessed both funding cuts and new funding opportunities for housing from senior levels of government. In 2001, funding ceased for HOMES BC, a program that had successfully created almost 7,000 units of subsidized housing in the province. HOMES BC funds, together with contributions from the City's Affordable Housing Reserve Fund, facilitated the creation of a 42-unit complex for single and family households of various disabilities and income levels (Quayview Community Housing). In 2001, Kiwanis Senior Citizens Homes Ltd. purchased a 27 unit existing apartment building in Central Lonsdale to provide seniors rental housing. Non-Market Proiects: * Legion Towers (33 units 2000) * Quayview Community Housing (42 units 2001) * Kiwanis Carnaby Place (27 units 2001) In addition to the elimination of HOMES BC, the province also introduced cuts to income assistance, together with a three-week wait period and a two year independence test for benefits. A $6 per hour training wage was also introduced in With the cost of housing in the City approximately five times greater than the average household income in 2001, the reduction in hourly wage exacerbated hardship for many individuals trying to secure safe, quality housing. A new federal funding program, the Affordable Housing Initiative, was established in 2001 to create new affordable housing units through up-front capital contributions, rather than ongoing subsidies. Requirements for this funding included provincial matching of federal investment funds and providing the units at prices at or below September 2012 Page 9

11 median market value. In the first phase of funding, the BC government received $88.7 million which it used to fund the Independent Living BC Program, a "housing for health" partnership that focuses on supportive housing for frail seniors and people with disabilities. When the province received an additional $41.7 million in 2004, the urging of the Premiers Task Force on Homelessness and others resulted in the funding being directed to the Provincial Homeless Initiative, which provides supportive housing for the homeless and people with mental illness and addictions. The maintenance, retention, and continual replacement of the purpose-built rental stock are critical to the City's supply of affordable rental housing. Throughout the 2000s, the City continued to focus its efforts on retaining the aging, but more affordable, purposebuilt rental stock marked the first time since the 1970s that purpose-built market rental housing was constructed in the City, and 4 rental buildings with a total of 146 units were constructed by In terms of policy development, between 2000 and 2001, the City conducted a Rental Housing Study to investigate ways the City can maintain and encourage affordability in the existing rental stock. The study found that purpose-built rental housing provided approximately 60% of the City's rental accommodation and rents for this type of housing tended to be more affordable due to its age and limited amenities. In addition, federal fiscal policy was found to be one of the main challenges to the economic viability of purpose-built rental housing. As part of the study, an Affordable Rental Housing Workshop focused on current and potential City initiatives to create affordable rental housing was held in March In 2007, a Rental Housing Working Group was established to dialogue with owners and investors of rental housing and understand their perspectives and business models. The working group report summarized their main issues as punitive federal fiscal policy, escalating energy costs, rising property taxes, and rents inadequate to cover escalating operating costs. Following from the recommendations of the Rental Housing Working Group and supported by the Rental Housing Study, in 2007 the Rental Housing September 2012 Page 10

12 1 Strategies recommended a variety of City actions that could support retention and enhancement of rental housing in the City. To further promote good living conditions for renters, the City adopted the Rental Premises Standards of Maintenance and Prevention of Nuisances Bylaw (Bylaw 7931) in 2008 which empowers the City to require owners/investors to provide proactive and ongoing property management and conduct proper tenant screening to ensure the safety, comfort, peace, and quiet of all tenants. The North Vancouver Crime Free Multi-Housing Program, a program that focuses on good management practices to decrease the incidence of illegal activities within residential units, rather than relying on policing, assisted in drafting of the bylaw. The City also explored other affordable housing options to increase the diversity of housing. In 2004, the City conducted an Affordable Home Ownership Workshop to explore new approaches to affordability in home ownership, as well as the City's role in facilitating diverse housing options for residents. The City also hosted an Affordable Housing Action Forum in 2006, which included topics that covered the spectrum of affordable housing, from emergency and homeless shelters through assisted and independent social housing programs, to rental assistance and affordable ownership. From this forum, the Housing Affordability Strategies were developed in Staff report annually with updates on the City's achievements related to affordable and rental housing and more specifically regarding the implementation of the Housing Affordability Strategies and the Rental Housing Strategies. With federal SCPI funding supporting the operation of a temporary emergency shelter in the City, the City continued to lobby provincial and federal governments for sufficient capital and operating funding for a permanent adult emergency shelter and transition housing facility. In November 2001, City Council authorized $1,053 million to purchase a site on West 2 nd Street for the permanent home of the adult emergency shelter and transition housing facility with Lookout Emergency Aid Society as the operator. An adjacent building on the property was the location of the temporary adult shelter for three successive winters. City contributions to the permanent facility included a 50% discount lease and approximately $435,000 to offset utility and site requirements and waive various development-related City fees. The North Shore Adult Shelter and Transition Housing facility opened in 2005 and contained a 25 bed emergency shelter, 15 to 20 dorm style beds available during the cold, wet weather season, and 25 transition studio units where residents can stay up to two years. The facility started as an overnight shelter (8:00pm to 8:00am), but became a 24 hour, year-round operation in 2007 when the provincial government provided funding to increase the number of year-round shelter beds and related support services. This September 2012 Page 11

13 2007 provincial funding flowed from a $1.4 billion investment the federal government made towards affordable housing in May With more than a $2 billion surplus at the end of September 2006, the federal government gave an additional $106 million to the Affordable Housing Trust and $51 million to the Off-Reserve Aboriginal Housing Trust for the BC government to spend within two years. In October 2006, the BC government announced the Housing Matters BC strategy, with continued provisions for the Independent Living BC and Provincial Homelessness Initiative programs, along with a Rental Assistance Program for seniors and low-income working families with children under 19. However, families on social assistance are not eligible for the Rental Assistance Program, nor are singles or couples without children. Non-Market Proiects: * North Shore Adult Emergency Shelter & Transition Housing (25 beds and 25 units 2005) Using the City's own development and regulatory powers, and working in partnership with senior governments, non-profit organizations, and developers, the City was able to facilitate the development of multiple non-profit housing projects during this decade. During 2006 the North Shore Crisis Services Society accessed federal funding to purchase a Lower Lonsdale duplex to provide second stage family housing for those moving beyond transition housing. In January 2007, in support of retaining existing rental housing and partnering to provide non-market affordable housing, the City used funds from the Affordable Housing Reserve Fund to jointly purchase an existing 16 unit apartment building with BC Housing and Marineview Housing Society. Chesterfield House provides supportive housing for individuals with mental health issues. In July 2008, the property was rezoned to permit the construction of an additional building to provide nine new Adaptable Design level 2 units, as well as common space. September 2012 Page 12

14 Non-Market Projects: * Hope's Place (2 units 2006) * Chesterfield House (16 units 2007) * Kiwanis St. Andrews (27 units 2007) In a partnership between a developer, BC Housing, and a non-profit housing society, the City utilized density bonusing, density transfer and exclusion of floor area to create 27 units of seniors housing in In 2009, the inclusion of 6 affordable rental units in a 52 unit strata development in Central Lonsdale (Kimpton) was achieved through density bonusing, but construction was delayed for a few years. Also in 2009, the rezoning of the former Lonsdale School site was approved with the inclusion of a 16 unit apartment for young adults with disabilities. Capital funding for the 16 unit apartment building has not yet been obtained. Despite the availability of federal funding programs during the 2000s, the need for affordable housing continued to outpace the available funds. According to the 2006 census, the cost of housing in the City was approximately ten times greater than the average household income (rising from 7 times in 1981). Given that affordability is an issue of both housing prices and personal income, the 30% of household income threshold established by the City, BC Housing and CMHC as 'affordable' is a challenge to meet. The growing difference between income and housing prices and rents continues to mean that many City residents have insufficient income to secure quality, affordable housing. 2010s Housing affordability has continued to be a major concern. To address the challenge of affordable housing, the City explored different housing forms as a way to increase housing options for residents. In April 2010, the City adopted the Coach House Policy {Bylaw 8065) as a unique housing option for residents. Adding to the diversity of housing types in the City, coach September 2012 Page 13

15 Non-Market Projects: * Vancouver Resource Sodety (5 units 2011) * Chesterfield House (9 additional units 2011; total 24 units) houses provide residents with more choices in how they live, support extended families, and offer a more liveable detached accessory unit option. By 2011, the first coach house in the City was occupied. As of September 2012, there are approximately 24 coach applications completed, under construction or under review. *ANAVETS redevelopment (72 units 2012) * Hollyburn Seniors' Emergency Housing (1 unit 2012) * Hollyburn Family Services Society (6 units 2012) The City also continued to collaborate with non-profit housing organizations to increase the number of non-profit units in the City. In May 2010, City Council approved to support a second mortgage to the Vancouver Resource Society to facilitate the purchase of an existing 28 unit apartment building in Central Lonsdale. As the equity in the property grows, the Society will renovate the ground floor to accommodate persons with disabilities requiring care and support, while the remainder of the units will be operated as non-market rental housing. With the incorporation of the additional 9 units into the existing apartment building in 2011, Chesterfield House now provides a total of 24 units. This integrated project also received City support to be the first existing residential building in the City to connect to the Lonsdale Energy Corporation (LEC) district energy system. Also in 2011, five units of housing for persons with disabilities were obtained as part of the rezoning for a highrise mixed-use development in Central Lonsdale (Citimark; under construction). The developer's non-profit partner is Vancouver Resource Society. In 2012 completion of the redevelopment of the aged ANAVETS seniors housing complex resulted in a net loss of 16 units. With recent completion of the Kimpton development in Central Lonsdale, the City has leased the six affordable rental units it received as part of the rezoning to Hollyburn Family Services for operation as supportive seniors housing. Also recently, federal and provincial homelessness-related funding was accessed by Hollyburn to secure a unit in the Vancouver Resource Society rental apartment building located in the City for operation as an emergency unit for September 2012 Page 14

16 I seniors at risk of homelessness. Currently there are a total of 1045 non-market housing units occupied in the City. By 2012, another 27 unit purpose-built rental development was added to the City's new rental housing, for a total of 173 units of market rental housing constructed since A Lower Lonsdale 55 unit market rental residential building was approved in July Also in July 2012, Council endorsed the renovation of a Central Lonsdale existing rental building to rebuild an existing eleven unit building to add 2 storeys of eleven units, resulting in a 4 storey 22 unit rental building. When these recently approved projects are constructed, the number of market rental housing units built in the City since 2000 will total 244 units. Increasing energy costs and growing support for sustainability has lead to greater concern about energy efficiency in both existing and new buildings. Following from the example of Chesterfield House, in 2010, BC Housing retrofitted Grant McNeil Place with energy upgrades, as well as connected the building to LEC. BC Housing recognizes that use of locally-produced energy can make older buildings more sustainable while extending building lifespan. In recent years the federal government has continued to divest itself of housing matters. In 2011, the federal government cut national housing and homelessness investments. Overall spending at CMHC was reduced from $3.1 billion in fiscal 2010 to $1.9 billion in fiscal down by 39%. Funding for the national homelessness plan was also cut by 11% from $124 million to $110 million, while the federal affordable housing initiative will be eliminated entirely by The overall number of subsidized homes is expected to drop by 50,200 by 2014, and the number of homes renovated under national projects will only be 745 in all of Canada. The sharp cuts to housing and homelessness spending is happening in spite of CMHC reporting that its net income will more than double from $911 million in 2010 to $2 billion in The news of these cuts comes despite the ongoing lobbying for a national housing strategy from many different stakeholders, including the City and other local governments. Looking forward, a significant concern is the expiration of operating agreements between non-market housing operators and the federal government. Many of these agreements were signed in the 1970s for periods between 25 and 50 years, and presumed that once mortgages matured, cash flow requirements would fall and housing projects would be able to continue operating with affordable rent levels, without subsidies. Subsidy agreements linked to 811 units/beds located in the City will expire between 2017 and 2029, with the bulk of the agreements expiring between 2021 (429 September 2012 Page 15

17 1 units/beds) and (339 units/beds). It is anticipated that the loss of the federal support will lead to increased numbers of people who need affordable housing. A 2005 Canadian Housing and Renewal Association study concludes that most social housing projects implemented after 1986 would most likely be non-viable once their agreements expire due to inflation of operating expenses. Currently a collaborative analysis of the issues and opportunities facing housing providers and potential strategies to sustain the stock and the non-market housing sector is underway involving BC Housing, BC Non-Profit Housing Association and Cooperative Housing Federation of BC. The project will release a report in the fall This issue as well as other topical housing concerns are being addressed by City staff as members of the municipal staff housing committee coordinated by Metro Vancouver. 'CitvShapinq' Official Communitv Plan Update: "Housing for AH" The CityShaping process to review and update the City's Official Community Plan was initiated in The context for the CityShaping discussion of housing includes these key concerns: - housing affordability is challenging for the City to address because housing costs are largely controlled by market forces; - few partnership resources are available to the City in creating affordable housing options such as non-market rental housing and entry-level ownership housing; - maintenance, retention and continual replacement of the aging rental housing properties will be another housing policy challenge for the next few decades; - bringing together the concepts of affordability, social infrastructure and livability while addressing housing needs will enhance social sustainability. The CityShaping community engagement process sought input from City residents and City-shaping participants regarding the role of the City and developers in creating affordable and rental housing under the concept of 'Housing for All'. Feedback on a number of policy options was requested, including 5-6 storey wood frame buildings, mini-suites, locked-off units, smaller house and lot sizes, lower tax rates in exchange for affordable and rental housing, use of City lands for affordable housing, and a 1:1 replacement ratio for redevelopment of rental buildings and suites in duplexes. One of the primary community concerns identified through the CityShaping process is that the City needs to match amenity development with population growth, particularly as most of the new population growth is residing in new, high density housing. The two policy options that were identified during the community engagement process as high priorities for the City's consideration were retention of existing rental units, and delivery September 2012 Page 16

18 ! i of the least expensive housing forms. Other priorities included provision of different housing forms and tenure, flexible development, and lower-cost and smaller housing options. These priorities and other policy options noted by the public will be the focus for further public discussion and policy development as CityShaping moves forward. Summary & Conclusions As outlined in this document, increasingly over the past several decades, the City has used its zoning, bylaw and development powers to create and support a variety of affordable housing policies and practices. The City has sold and leased lands for nonmarket housing, formed partnerships with non-profit organizations, and utilized federal and provincial housing-related assistance whenever possible. More recently negotiated density bonuses and transfers have been successfully used by the City to create nonmarket housing, and market rental units. Despite retraction in senior government support for housing, the City continues its long history of partnering with others in collaborative and innovative ways to facilitate and support diverse housing options that meet the needs of its residents.! September 2012 Page 17

19 Attachment No. 2 Time-line of Housing-Related Policies and Initiatives The following timeline outlines the initiatives and policies that have been adopted, developed and maintained by the City of North Vancouver in an ongoing effort to address the need for social housing and provide continued support for those who require affordable housing. 1950s- Development of Seniors' Housing: 1960s» Kiwanis Apartments - 88 units ANAVETS Apartments - 88 units s Development of four non-market projects: o Kiwanis Towers - 99 units 1970 Twin Towers units 1976 Grant McNeil units 1976 St. Andrews Place - 15 units Minimum Maintenance Standards Bylaw (Bylaw 5124; updated 1998 and 2008) 1979 Strata Conversion Control policy (amended 1992, 2003, 2008) 1980s Development of two family projects (Pinewood Place - 50 units 1985; Walnut Gardens - 26 units 1985) and four housing co-operatives (Creekside Co-op - 43 unitsl 985; Mosquito Creek Co-op - 67 units 1986; Capilano Co-op - 29 units 1987; North Shore Co-op - 38 units 1987) 1983 Smaller lot sizes permitted in a subdivision on City owned property (10% with frontages of 30 to 40 feet) 1989 Social Housing Policy "The City of North Vancouver recognizes the need for social housing and supports continuing efforts and initiatives to enable the provision of affordable and adequate accommodation for lower income households. The City currently encourages the supply and retention of existing affordable housing through policies on condominium conversion and family suites. The City shall adopt appropriate methods including continuing the practice of leasing City owned property where appropriate for nonprofit social housing." 1989 Social Housing Reserve Fund to provide financial support for non-market housing development (revised 1996 to "Affordable Housing Reserve Fund") 1990 Affordable Housing Action Plan: Prohibit condominium conversions (revised in 1992) Demolition moratorium (November 1989 to July 1990) Up to 10% density bonus for affordable housing in higher density residential development (February 1990 Bylaw 6288) Support for affordable housing projects in the context of the Official Community Plan Improve processing times for affordable projects 1990 Smaller minimum unit sizes permitted to comply with BCHMC / CMHC standards 1990 Demolition Notification Bylaw (Bylaw 6070) 1990 Requirement in large high density residential projects for 20% of units to be less than 750 sq.ft. (Bylaw 6139) City Housing-Related Initiatives and Policies August 2012 Page 1 of 4 Document;

20 1991 Secondary Suites Working Committee (March - November) 1991 Lease of Cedar Village site for 19 non-profit family townhouse project, "Margaret Heights" Elimination of unit per hectare residential density controls in Official Community Plan 1992 Strata Conversion Control policy (amended 2003, 2008) 1993 Legalization of Secondary Suites (July Zoning Bylaw amendment) 1993 Lower Lonsdale Community Guidelines Seniors'Housing Policies: Strategies to Support Seniors Housing (1994) Sites Suitable for Seniors (1995) Seniors Housing Guidelines (1995) 1995 Guidelines for Integrating Housing Units for Special Needs 1996 Affordable Housing Policies (revised 2000) 1996 Policy to allow for the creation and legalization of additional suites in existing multiple unit apartments 1996 Housing Initiatives Grant Program (revised 1997) Adaptable Design Working Group (re-convened periodically to 2009) Adaptable Design Guidelines (revised 1998, 2001, and 2005) Social Plan Working Group (July 1997 to Spring 1998) Rental Premises Standards of Maintenance Bylaw (Bylaw 6996; revised 2008) Affordable Housing Task Force (October 1997 to October 1998) Adoption of Social Plan (September) 1999 Negotiated density bonuses and excluded floor area:» Legion Towers (non-market rental and strata development) «The Summerhill Residence (Waterford Gardens) (rental supportive housing) «Quayside Village Co-Housing (one affordable rental unit) 1999 Third Party Building Envelope Bylaw 1999 Affordable Housing Workshop (July 19) 1999 Townhouse Satisfaction Survey Rental Housing Study (May 2000 to December 2001) Initial Temporary Adult Emergency Shelter (West Esplanade; December to April) 2001 Social Plan Housing Chapter updated 2001 Affordable Rental Housing Workshops (March 27 and April 23) City Housing-Related Initiatives and Policies August 2012 Page 2 of4 Document:

21 2001 Purchase of a site for North Shore Adult Emergency Shelter & Transition Housing facility (occupied 2005) 2001 Lease of Lower Lonsdale site for 42 unit project for single and family households of various disabilities and income levels, "Quay View Community Housing" Temporary Adult Emergency Shelter (West 2 nd ; October to April) Temporary Adult Emergency Shelter (West 2 nd ;October to April) Strata Conversion Control policy (amended 2008) Temporary Adult Emergency Shelter (West 2 nd ; October to April) Affordable Home Ownership Workshop (April 22) 2005 North Shore Adult Emergency Shelter & Transition Housing Facility Occupied (January) 2006 Affordable Housing Action Forum (May 6) 2006 Negotiated density bonus, density transfer and excluded floor area to create site for 27 unit seniors' non-profit housing project, "St. Andrews Place" 2006 Partnership purchase of existing apartment building for non-profit housing, "Chesterfield House" 2006 Housing Affordability Strategies (May 2006 Affordable Housing Action Forum) 2007 Rental Housing Working Group (May to June) 2007 Rental Housing Strategies (November) 2008 Rezoning of "Chesterfield House" to permit 9 unit additional building (total 24 units; occupied 2011) 2008 Regional Workshop for Housing Planners (Density Bonusing & Inclusionary Zoning) 2008 Rental Premises Standards of Maintenance & Nuisances Bylaw (Bylaw 7931) 2008 Strata Conversion Control policy amendment 2009 "Chesterfield House" energy and water upgrades, and connection to Lonsdale Energy Corporation for existing and new additional building 2009 Density bonus provides 6 affordable rental units to the City in a 52 unit wood-frame strata development (Kimpton; leased in 2012 to provide supportive seniors' housing) 2009 Rezoning of Lonsdale School Site to include a 16 unit apartment building for young adults with disabilities (HYAD) (awaiting capital funding) 2009 Coach House Policy adopted (April 2010, Bylaw 8065); initial Coach House occupied in Existing 28-unit rental apartment building purchased by Vancouver Resource Society with second mortgage support from the City 2010 BC Housing converts non-market housing in Lower Lonsdale to Lonsdale Energy heating (initial project Grant McNeil Family Housing) 2010 Approval of a 27 unit market rental building with commercial ground floor (under construction 2011) City Housing-Related Initiatives and Policies August 2012 Page 3 of 4 Document:

22 2010 Housing Diversity and Affordability Forum (October 23) 2011 Density bonus provides Vancouver Resource Society with 5 units for persons with disabilities in strata development ( completion) 2011 Life Safety Upgrade Program adopted to improve fire suppression response time in older (pre-1992) wood frame residential buildings Bylaw to waive City Development Cost Charges (DCCs) for non-market housing (100%), and for rental housing (50%) for 3 year trial period 2011 Rezoning for redevelopment of Army Navy and Air Force Veterans Society (ANAVETS) project (76 units replacing 88; occupied 2012) 2012 Approval of a 55 unit market rental building with commercial ground floor 2012 Rezoning of an existing 2 storey rental apartment building to add 2 storeys of 11 units (total 4 storeys with 22 units; under construction 2012 Non-market Housing Units - total 1,045 Units 861 non-profit 177 co-operative housing City Housing-Related Initiatives and Policies August 2012 Page 4 of 4 Document:

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