Affordable Housing Program – Capital Funding Allocation – Additional Information

Recommendation:
That the October 27, 2004, Community Services Department report 2004CSW036 be received for information.

Report Summary

This report provides an update on an Administration proposal to explore a range of land use planning measures to promote more affordable housing development in Edmonton.

Previous Council/Committee Action

  • At the November 22, 2004, Community Services Committee meeting, the October 27, 2004, Community Services Department report 2004CSW036 was postponed to the January 10, 2005, Community Services Committee meeting.
  • At the August 23, 2004, Community Services Committee meeting, the following motion was passed:
  1. That the August 11, 2004, Community Services Department report 2004CSW033 be received for information.
  2. That Administration report back to Community Services Committee with a strategy that would look at ways to expand the affordable housing construction into all areas of the city.

At the August 26, 2003, City Council meeting the following motion was approved:

  1. That Administration, in consultation with industry and the Edmonton Joint Planning Committee on Housing, explore a range of land use planning measures to promote affordable housing development. An Administration report on this review to be submitted to City Council by March of 2004.

Report

  • Community Services Department and Planning and Development Department staff have jointly prepared and endorsed a Project Charter (Attachment 1) to explore a range of land use planning measures to promote affordable housing development. One of the measures identified in the Charter is for City acquisition of future affordable housing development sites through undeveloped school sites, which would encourage the expansion of affordable housing construction into all areas of the city. The exploration will include a review of best practices in other cities.
  • The timeline for implementation of the Charter has been amended to be completed by June 2005.
  • Administration’s report to the Community Services Committee in August 2004, outlined the process and criteria which will be used to allocate funding under the annual approved capital budget for the Affordable Housing Program. A further option would be to utilize funding under this program to purchase suitable sites throughout the City for affordable housing.
  • From 1972 to 1979, City Council had authorized Administration to acquire land for public housing in new plan areas in the form of a five percent land dedication. This resulted in a concentration of social housing sites located in the neighbourhoods developed during that time period, with fewer affordable housing sites in newer suburban areas. Excess dedication for affordable and/or social housing would require an amendment to the Municipal Government Act.

Background Information Attached

  1. Project Charter – Land Use Planning Measures to Improve Opportunities for Affordable Housing Development in Edmonton

Others Approving this Report

L.Benowski, General Manager, Planning and Development Department

(Page 1 of 2)

Attachment 1

Project Charter, Land Use Planning Measures to Improve Opportunities for Affordable Housing Development in Edmonton

1.Background

Building Together, The City of Edmonton Low-Income and Special Needs Housing Strategy 2001-2011, approved by Council in January 2002, defined the City’s future role in housing in a principles-based, facilitative and community-driven approach. Under its “Municipal Co-ordination” principle, the Strategy stated that:

  • “Municipalities can enable the development of low-income and special needs housing solutions by dedicating resources to assist, co-ordinate and facilitate at the local level.”

One of the Strategy Statements to implement this Principle required the City to:

  • “Implement land use planning that promotes a range of housing types and prices throughout the City.”

Another Building Together Strategy Statement recommended the establishment of a Mayor’s Task Force on Affordable Housing to address the significant decline in affordable rental housing production in Edmonton.

The Task Force, formed in March 2002, presented its final report and recommendations to City Council in March 2003. The report observed that housing affordability is an important and growing issue in Edmonton. It described the February 2003 announcement of capital funding under the Canada-Alberta Affordable Housing Partnerships Initiative (AHPI) as at best, a limited and unsustainable response to these needs. To have a significant impact on meeting current and future affordable housing needs, the Task Force report advocated an array of complementary and supplemental measures to work outside and in conjunction with that initiative to stretch those limited resources as far as possible.

In July 2003, an Administration report was prepared to respond to the Task Force final report and recommendations. The Administration report contained seven recommendations for City action to address affordable housing needs. One of those recommendations resulted in the following motion approved by Council on August 26, 2003:

  • “That the Administration, in consultation with industry and the Edmonton Joint Planning Committee on Housing, explore a range of land use planning measures to promote affordable housing development. An Administration report on this review to be submitted to City Council by the summer of 2004.”

The Office of the City Clerk delegated the responsibility to respond to this motion to Planning and Development. Planning and Development and Community Services have since agreed to prepare a joint Project Charter to outline the scope and resource implication of preparing a joint response to this Council motion.

2.Goal

The goal of this project is for the Administration to develop, in consultation with industry and the Edmonton Joint Planning Committee on Housing, land use planning policy and procedures to facilitate and expedite the provision of affordable housing in Edmonton by for-profit and not-for-profit providers. This will include, but not be limited to, housing approved for funding under the AHPI and the City of Edmonton Affordable Housing Program (AHP). The intent will be to investigate innovative ways to provide affordable housing within the City of Edmonton without compromising the current planning process and minimum development and servicing standards.

  1. Objectives

(i) To develop a definition of “affordable housing” that is consistent with the land use planning and bylaw enforcement authority delegated to the City by the Province through the Municipal Government Act (e.g. built form, use, density) and which may differ from the definition included in the City’s Building Together Strategy (e.g. Rental or ownership housing provided to households who have an affordability problem [pay in excess of 305 of their income on housing) and earn less than the median income, but are capable of independent living, without a need for support services, requires no on-going government subsidies and includes housing built by the private, co-operative, non-profit and public sectors);

(ii) To investigate the use of land use policies to promote the provision of affordable housing;

(iii)To review the current and anticipated land use planning related policies and procedures of other major Canadian municipalities relating to affordable housing;

(iv)To obtain input from industry, community and government stakeholders at a stakeholder consultation meeting to identify alternative City pilot project initiatives relating to land use planning for affordable housing;

(v) To develop a report and recommendations on high priority pilot project initiatives based on what was heard at the stakeholder consultation;

(vi)To obtain Department and City Council approval for implementation of recommended high priority pilot project initiatives, including:

  • Advocacy-based initiatives (process and education-based activities related to the provision of affordable housing, including the process whereby Community Services provides feedback on major land and housing planning and development proposals);
  • Policy-based initiatives (e.g. amended City Policies on housing for implementation through land use planning policy and procedures [e.g. Policy C-435 – “Identification and Acquisition of Land for Social Housing”]); and
  • Implementation-based initiatives (initiatives to facilitate the provision of affordable housing through new or modified land use planning policies, bylaws and/or regulations).
4.Scope

(i)The timeframe for this project is August 2004 to June 2005;

(ii)This project will be carried out in conjunction with approved corporate plans and related initiatives (e.g. Plan Edmonton, the 2004-2006 Corporate Business Plan; Community Services’ Integrated Service Strategy,and the City’s Building Together Corporate Housing Strategy);

(iii)The focus of this project is on methods to facilitate and expedite the provision of affordable housing units through the City’s land use planning regulatory framework (e.g. land use planning process and planning documents). This project will focus on a review of:

  • Measures involving land use controls:

Proactive encouragement of legal secondary suites (e.g. projects which include units with a secondary suite; examining provincial building and fire code standards to facilitate existing secondary suites; permitting installation of secondary suites as of right in new and existing homes);

Developing a land use bonusing/transfer strategy for affordable housing;

Land use controls to allow for mixed housing and lot sizes;

Reviewing single room occupancy, studio suites, lodging houses and hostels and small unit policies/requirements;

Allowing more flexibility for development of manufactured housing communities and creating zoning and building regulations that support and do not inadvertently preclude those communities.

  • Measures involving the development approval process:

Establishing a “one-window” perspective for affordable housing proponents for interdepartmental review of proposals through Community Services’ Housing Facilitator and facilitate early involvement (concept stage) with appropriate parties within the City; and

Developing public education initiatives to address the NIMBY (Not-In-My-Back-Yard) response to proposals to locate multiple unit housing projects in existing residential areas.

  • Measures to preserve existing affordable housing rental properties:

Delivering the Residential Rehabilitation Assistance Programs (RRAP);

  • Other measures to encourage affordable housing development:

Acquiring future affordable housing development sites through surplus municipal reserve (e.g. school) sites;

Supporting the information and advocacy campaign of the Edmonton Joint Planning Committee on Housing (as a means of expediting the project development approval process);

Investigating the potential cost saving for providing offsetting grants for development fees to reduce project costs;

Requiring development agreements and levies;

Constraining or precluding the conversion of rental properties to condominiums under certain housing market conditions; and

Undertaking demonstration/pilot projects to explore innovation in land and affordable housing development.

With its “land use policy and planning focus”, this project will not include a review of:

  • Equalization of property taxes for rental housing compared to similar owner-occupied housing units;
  • Alternative development (design/site servicing) standards;
  • Provision of municipal financing or loan insurance for affordable housing projects;
  • Policies regarding the lease or sale of City-owned land for social or affordable housing development;
  • The cost-to-income relationship of housing to the end user;
  • Provision of down payment, second mortgage or homeowner education assistance;
  • Changes to the Municipal Government Act;
  • City capital and/or operating grants for housing (e.g. City LIHCAP or AHP funding); or
  • Improving the capacity of lower-income tenants to afford market rents.
5.Execution
Activity / Responsibility / Timing
  1. Develop, present and obtain endorsement of the draft Project Charter from the senior management teams of Planning and Development (P&D) and Community Services (CS).
/ City-Wide Services (CWS) Branch and Planning & Policy Services (P&PS) Branch / August/04
  1. Appoint Project Steering Committee (PSC).
/ P&PS and CWS / October/04
  1. Develop Consultant work plan based on a definition of affordable housing that is consistent with land use planning powers delegated to the City through the MGA.
/ PSC / October/04
  1. Recruit External Consultant (C) based on a call for consultant proposals to implement the work plan based on the approved Project Charter.
/ PSC / November/04
  1. Execute Consultant agreement/contract.
/ P&PS / November/04
  1. Investigate Edmonton’s existing land use policies and practices and their impact on the provision of affordable housing.
/ C / November/04
  1. Review the land use planning measures to promote affordable housing of other major Canadian municipalities relating to affordable housing (e.g. “Best Practices Scan”, including CMHC related Affordability and Choice Today projects).
/ C / December/04
  1. Prepare “Scoping Report” on existing and potential future land use planning measures to promote affordable housing. Evaluate the (internal) strengths and weaknesses and (external) opportunities and threats of each measure and the pros and cons of policy options and recommended options (including new policies) applicable in the Edmonton context.
/ C / December/04
  1. Present Scoping Report to PSC for endorsement.
/ C / January/05
  1. Based on the PSC-endorsed Scoping Report, prepare “Discussion Guide” for Stakeholder Consultation Session on Land Use Planning Measures for Affordable Housing.
/ C / February/05
  1. Distribute the Discussion Guide to invited “industry” and “EJPCOH” stakeholders for review prior to the Stakeholder Consultation Session.
/ C / March/05
  1. Prepare joint P&D and CS interim project status report for presentation to City Council
/ CWS & P&PS / April/05
  1. Organize and facilitate/conduct Stakeholder Consultation Session to present and review Discussion Guide and to receive all feedback/suggestions from participants. Document all written and oral comments received through the stakeholder consultation session.
/ C / April/05
  1. Prepare draft report and recommendations to PSC on Land Use Planning Measures to Promote Affordable Housing. Revise draft report and recommendations based on PSC feedback.
/ C / May/05
  1. Prepare and present Administration report and recommendations, based on PSC-endorsed draft report and recommendations to the senior management teams of P&D and CS, to Senior Management Team, and to City Council.
/ CWS & P&PS / June/05
6.Deliverables

(i)Scoping Paper on Existing and Potential Future Land Use Planning Measures to Promote Affordable Housing (Disbursement #1: $15,000)

(ii)Consultation Session Discussion Guide on Land Use Planning Measures to Promote Affordable Housing (Disbursement #2: $15,000)

(iii)Joint P&D and CS interim project status (information) report to City Council (April 2005);

(iv)Summary Report and Recommendations from Land Use Planning Measures for Affordable Housing Consultation Session (Disbursement #3: $15,000); and

(v)Administration Report and Recommendations on Proposed CityLand Use Planning Policy and Procedures to Promote Affordable Housing.

7.Organization
Staff Requirements:
  • Project Co-Sponsors:

BobCaldwell, P&PS

KathyBarnhart, CWS

  • Project Co-Managers:

ScottPragnell, P&PS

DarylKreuzer, CWS

  • Project Steering Committee (8 representatives)

Planning & Development (2 representatives)

ScottPragnell, P&PS (Co-Chair)

BrianKropf, P&PS;

Community Services (2 representatives)

DarylKreuzer, CWS (Co-Chair);

BeatriceMcMillan, CWS;

Edmonton Joint Planning Committee on Housing (2 representatives)

EJPCOH (EJPCOH Board and Social and Affordable Housing Standing Committee);

Industry (2 representatives)

Urban Development Institute (UDI); and

CMHC Edmonton Housing Industry Forum (HIF) (which includes representation from the Greater Edmonton Home Builders Association [GEHBA]).

8.Other Resource Requirements

Based on an estimated Consultant per diem of $1,000, the total estimated funding of $45,000, including G.S.T., is required to retain an External Consultant to:

  1. Review Edmonton’s existing land use planning policies and practices and their impacts on the provision of affordable housing;
  2. Review the land use planning measures to promote affordable housing of other major Canadian municipalities;
  3. Prepare Scoping Report on existing and potential future land use planning measures to promote affordable housing applicable in the Edmonton context;
  4. Prepare Discussion Guide for Stakeholder Consultation Session;
  5. Plan and conduct/facilitate Stakeholder Consultation Session (including developing lists of industry and community stakeholder representatives to be invited and document participant inputs at the Session);
  6. Review all comments received and prepare and present draft report and recommendations on high priority pilot project initiatives based on what was heard at the Session; and
  7. Attend 7 Project Steering Committee meetings

The total estimated $45,000 Consultant cost is based on the following anticipated Consultant activities:

Estimated Cost
Activity / Excluding G.S.T. / Including G.S.T.
Preparation of Scoping Report
Internal policies and practices and external (“Best Practices”) review and analysis
Preparation of Scoping Report (draft and final)
Total / $12,000
$ 5,000
$17,000 / $12,840
 $5,350
$18,190
Stakeholder Consultation Session
Preparation of Discussion Guide (draft and final)
Session Planning (list of invited participants, invitations, venue rental, refreshments)
Conduct/Facilitate Session
Total / $5,000
$3,000
$3,000
$10,000 / $5,350
$3,210
$3,210
$10,700
Draft Report and Recommendations Arising from the Consultation
Review all comments/feedback provided at the Stakeholder Consultation Session
Prepare draft report and recommendations to the PSC on top priority pilot project recommendations
Printing and distribution
Total / $2,500
$3,500
$ 500
$6,500 / $2,675
$3,745
 $535
$6,955
Project Management
Consultant attendance at 7 PSC meetings:
Meeting #1 (Project Start-up)(to review work plan, contract details)
Meeting #2 (to review draft Scoping Report)
Meeting #3 (to review final Scoping Report)
Meeting #4 (to review draft Discussion Guide)
Meeting #5 (to review final Discussion Guide)
Meeting #6 (to review draft Report and Recommendations)
Meeting #7 (to review final Report and Recommendations)
Total / $3,500
$3,500 / $3,745
$3,745
Contingency
Total / $5,000
$5,000 / $5,350
$5,350
TOTAL / $42,000 / $44,940

88It is recommended that this total estimated $45,000 budget for Consultant expenses to implement the work plan be shared on a 50/50 basis between Community Services and Planning and Development, with the source of these funds being:8$22,500 from the 2004 Planning and Policy Services Branch budget; and888

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