Local Government Policy and Regulatory Environment

1
Local Government Policy and Regulatory Environment

• Local governments can play a key role in
  encouraging housing affordability and building
  capacity.
• They can
• control policy and regulatory areas
• be collaborative and encourage innovation
• bring together a wide range of community
  interests to address local affordability needs
• contribute resources

2
Local Government Policy and Regulatory Environment

• Information has been collected from all
  jurisdictions - 12 have signed-off.

3
Local Government Policy and Regulatory Environment

• What has been collected?

4
Local Government Policy and Regulatory Environment

• What have we found out?
• Most local governments in the CRD are not using
  the tools available.
• Most jurisdictions have.
• OCP policies /goal statements about meeting the
  housing needs of their residents (12)
• Density bonusing (7)
• Comprehensive development zoning regulations (11)
• Intensification - e.g. infill usually through
  duplexing (9) and /or small lots (8)
• Mixed-use /shared facilities (9)
• Secondary suites (8)
• Information on demolition /conversions and
  construction costs
• Public consultation /notification policies and
  practices

5
Local Government Policy and Regulatory Environment

• What have we found out?
• Most local governments in the CRD are not using
  the tools available..
• Most jurisdictions do not have.
• Definitions of affordable /special needs housing
  (5)
• Housing strategies, needs studies, homelessness
  studies or residential design guidelines
• Pre-zoning for multi-family (5)
• Alternate development standards (6) /relaxed
  standards (5)
• Maintenance bylaws (1)
• Demolition /conversion regulations (5)
• Partnerships (4)
• Waived /reduced fees, funding, and /or property
  tax exemptions (3)
• Land leasing /donations at /below market value
  (2)
• Fast tracking or streamlined approval processes
  (4)

6
Local Government Policy and Regulatory Environment

• DEVELOPMENT COSTS - What have we found out?
• Identification and calculation is complex and
  time consuming - 14 local governments x 20 sets
  of fees and charges
• Little consistency amongst jurisdictions - even
  in the same part of the Region
• No consistency within individual jurisdictions -
  costs can fall in the low, mid, high range
• Additional charges are often added to the base
  fee - this varies by jurisdiction
• Charges may be levied regionally, locally, and/or
  by other bodies - and for different purposes

7
Local Government Policy and Regulatory Environment

• We need to validate the information we have
  collected.
• You can help us by
• Providing observations/comments/reactions on the
  data presented
• Providing your perceptions of the major issues
  for housing affordability that arise from the
  data
• Identifying how the data could be presented to
  make it useful

8
Land Residential Construction Costs

• Cost ranges for affordable serviced land,
  examples

9
Land Residential Construction Costs

• Typical Construction Costs per square foot

10
Land Residential Construction Costs

• Other costs of construction
• environmental assessments
• legal fees
• Interest costs
• Soil tests
• Lender fees
• marketing
• Warranty costs
• Engineering fees
• Architectural fees
• Building permits and Development cost charges
• Bonding
• Mortgage insurance premiums and fees

11
Land Residential Construction Costs

• Range of total construction cost for affordable
  housing, examples

12
Partnerships, Financing and Tenure Options

• Some models used to improve housing
  affordability
• Rental housing market
• Rental housing non-profit (with and without
  government subsidies)
• Life leases guaranteed buyback
• Ownership housing condominium and freehold
• Rental co-operative
• Equity co-operative
• Ownership housing sweat equity and philanthropy
• Shared equity
• Co-housing
• Land trusts and housing trusts

13
Partnerships, Financing and Tenure Options

• Partnership examples
• Christian Care of the Elderly
• Pacifica Housing development Society
• St. Andrews Victoria Housing Society
• PEERS
• St. Vincent de Paul of Vancouver Island
• Mike Gidora Place Cool Aid
• Victoria Habitat for Humanity

• Partnership arrangements
• The Christian Care of the Elderly building is one
  of only two or three true public-private
  partnership projects in B.C.
• The other projects were made possible through a
  combination of grants, donations, sweat equity
  and other beneficial arrangements.

14
Partnerships, Financing and Tenure Options

• Financing examples
• Mike Gidora Place
• Saamoa Holdings
• Kiwanis Village Apartments

• Financial arrangements
• Subordinated debt.
• Second and third mortgages with grants.
• High ratio homeowner loans.
• Internal capital without mortgage financing.

15
Partnerships, Financing and Tenure Options

• Tenure examples
• James Bay Housing Co-operative
• Lions Cove View Royal
• Cardiff Place

• Tenure arrangements
• Land trusts.
• Life leases with a guaranteed buyback.
• Collaborative or co-housing.

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Partnerships, Financing and Tenure Options