STAFF REPORT

TO: Committee-of-the-Whole MEETING DATE: March 7, 2017

FROM: Katie Thomas FILE NO: 5040-10-08-03-05 Planning Assistant

SUBJECT: Possible sites for Provincial Investment in Affordable Housing (PIAH) program

RECOMMENDATION(S)

THAT the staff report regarding possible sites for Provincial Investment in Affordable Housing (PIAH) program be received;

AND THAT Council direct staff to organize community consultation on the proposed sites and the Affordable Housing Project;

AND FURTHER THAT Council direct staff to commission a feasibility analysis of the two identified sites for a possible affordable housing project, and that the analysis be funded by the Affordable Housing Reserve Fund.

BACKGROUND/PURPOSE

Due to the housing market developments and a lack on new rental housing being constructed, there is a current shortfall in affordable housing on the Sunshine Coast. The Town of Gibsons has been looking at possible sites over the past year to partner with the Sunshine Coast Affordable Housing Society to develop an affordable housing project in the Town.

In March 2016, Council received a staff report to look at possible cluster housing sites, specifically, Charman Creek Lands and Christenson Lands at 571 Shaw Road. Rather than selecting one of the two sites, Council directed staff to look into the viability of using closed road dedications in Lower Gibsons. Investigation and a feasibility analysis is currently in progress for these five (5) road dedication sites. This will be outlined in an upcoming separate staff report.

In 2015, the Provincial Investment in Affordable Housing (PIAH) program was announced. This is a commitment of $355 million to create more than 2000 affordable rental housing units in B.C. The investment will be distributed over five years. 15 projects have been approved under the scheme — contributing 493 units — with one project on located on the Sunshine Coast, Pender Harbour Senior Housing Society, which will provide 14 units and has an estimated Provincial Contribution of $2,750,000 toward the project.

Report to Committee regarding possible sites for PIAH 2

With upcoming rounds being available in the PIAH program, the Town and the Sunshine Coast Affordable Housing Society have been exploring a tentative partnership by looking at various Town-owned sites once more to see if a larger Affordable Housing Project could be funded through the PIAH program in the Town. The purpose of this report is to provide Council with information relating to two (2) possible sites and the process to select and develop a site.

DISCUSSION

Affordable Housing Policy and Reserve Fund

The Town's Affordable Housing Policy defines affordable housing as "housing units that meet the needs of households in the Town of Gibsons whose income falls below the median income levels at rates that are no higher than 30% of the gross household income."

The Policy outlines the preference that the construction of actual dwelling units of affordable housing be supplied within proposed development, however since the revision date of the Affordable Housing and Community Amenities Policy in March 2016, three (3) recent developments have opted to pay into the Affordable Housing Reserve Fund.

The Policy enables proponents of Affordable Housing projects to apply for grants or loans from the Affordable Housing Reserve Fund, for items such as, project development funding, off-setting of Development Cost Charges or contribution for cost of construction. In order for the Affordable Housing Reserve Fund to be used, the Town requires a willing proponent to build specific affordable housing. Developers who explore this option, often find that construction costs, land value or servicing are too high for a viable project. Therefore, the Town's proposed Affordable Housing project would centre on purpose-built Affordable Housing, which will provide dwellings for a range of needs that the market does not provide.

While the Affordable Housing Reserve Fund is growing, no affordable units has resulted from the fund. With the proposed Affordable Housing Project, funds from the Affordable Housing Reserve Fund could be used for feasibility planning and development of a concept. This would then enable construction of affordable units through a partnership with an affordable housing society, possibly supported by a grant from the PIAH Program.

Two site options

Based on the March 2016 staff review of Town-owned lands, two (2) larger sites were identified as possible sites for affordable housing. The following below provides a description of the sites.

Charman Creek Lands

Town records indicate that this land was purchased in 1970 with the goal to create a residential subdivision. The land consists of two large legal parcels, with the southern parcel (389 Stewart Road) containing the Town's Sewage Treatment Plant and forested areas along Charman Creek ravine.

Both parcels are currently zoned as, Single-Family Residential Zone 3, with the land designation Public and Community Uses, in the Official Community Plan. The current use is recreational with trails connects Upper and Lower Gibsons.

Report to Committee regarding possible sites for PIAH 3

The northern parcel can be accessed by Shaw Road and Eaglecrest Drive, as well as Stewart Road on the east property line. The lot has a relatively steady gradient on the west side of the lot before dramatically dropping towards Stewart Road, see figure 1. The north-west corner of the lot is outlined under the Development Permit Area numbers 1 and 2, for Geotechnical Hazards and Riparian Areas.

Figure 1: Charman Creek lands and tentative affordable housing site

Report to Committee regarding possible sites for PIAH 4

If this site was chosen, the Town would be looking to designate a portion of the northern parcel to the Affordable Housing Project, as outlined in purple on figure 1. This portion would likely be rezoned to Cluster Residential. The size of the portion would be determined through a feasibility study, geotechnical and environmental report as well as input from neighbours and the Sunshine Coast Affordable Housing Society.

571 Shaw Road

The vacant parcel at 571 Shaw Road is currently zoned Public Assembly and is approximately 15500m2 (3.8 acres).

The property was gifted to the Town by the Christenson family with the restriction that the property may only be used for community uses. More recently, the northern portion was developed by the Good Samaritan Society to create Christenson Village, which offers Assisted Living for mostly seniors. In the past, the Good Samaritan Society has indicated an interest in expanding their facilities to the southern site, however they were unable to gain funding from Vancouver Coastal Health. The Society likely has intentions to expand in the long term, in the meantime, the site could be considered for other projects.

The property has frontage along both Shaw Road and O'Shea Road, and is in close proximity to services in Upper Gibsons. The property is located in a possible riparian area, and therefore would require a QEP report to determine how homes could be developed on the site.

The property is designated Public/Community Uses in the Official Community Plan, and neighbours the Low Density Residential 1 land use designation. The current zoning and OCP designation allow for community use, but not residential use. A Residential Cluster zone would align with the surrounding OCP and Zoning designations. The aim would be to create a development with a mix of housing, including ground-orientated homes for those with limited mobility, as well as dwellings with -3-or more bedrooms for families.

Figure 2: 571 Shaw Road

Report to Committee regarding possible sites for PIAH

Process and Next Steps

Site • Community Selection & Community

Input Concept Input Design

Site Options

5

Rezoning and OCP

Amendment

Housing Project

In order to seek community input to select a site, determine the feasibility and eventually construct a project, the following process would be followed.

1) Explore Town-owned land options

Look at the various sites and determine type of tenure and explore possible partnerships for the project.

2) Community Engagement

Hold an Open House to provide information regarding the proposed Affordable Housing Project site options. Gain community input on desired types of housing. Additionally provide detailed information on the planning process required. Explore interest in renting/buying affordable units. Staff would also begin the feasibility study at this stage.

3) Site Selection and Concept Design

Council would choose a site to locate the proposed Affordable Housing Project. Complete feasibility study to look at unit numbers, unit sizes and tenure as well as include information gathered during the community engagement process. Develop a concept design that takes into account the Town's desired housing types, aligns with Development Permit Number 8 for Intensive Residential and proposed Residential Cluster Zoning.

4) Community Input

Introduce Concept Design and outline next steps. Staff would start the application process under the PIAH program.

5) Zoning and OCR Amendment

Staff suggest that the Residential Cluster Zone might be an appropriate zone, this is due to the fact the zone allows for a variety of building forms, as long as they have a single family character.

6) Housing Project

Complete application process with the PIAH program. Pursue additional or alternate funding sources for project development.

Report to Committee regarding possible sites for PIAH 6

COMMUNICATION

Communication throughout a project such as this proposal, is important to gain support, to inform the feasibility study and to ensure that the project is successful.

The Planning Department propose to invite the community to an information meeting with Sunshine Coast Affordable Housing Society, which would provide information on the Town's affordable Housing policy, current affordable housing options in the Town and the process involved to create a PIAH housing project on one of the two sites. The Planning Department would like to gain input on both sites and on the type of housing supported by the community. It would also be a good time to see what the community interest is for renting or buying one of the proposed units.

PLAN/POLICY IMPLICATIONS

Official Community Plan

Section 9.4 of the Official Community Plan has been attached to this report. The Section 9.4 provides a number of policies relating to the development of affordable housing in the Town, the most relevant policies to an affordable housing project are stated below:

Support initiatives which help provide affordable housing in the community, including: • Provision for housing mixed with commercial development which can create some

lower-cost apartments. • Lands acquired by the Town may be conveyed to a registered non-profit for the purpose

of affordable housing. • Facilitate the development of affordable housing through considering actions such as

fast-tracking the development process, waiving development cost charges, leasing or contributing land, reduced parking requirements for developments with an affordable component etc.

• Review and update the current Community Amenity and Affordable Housing Policy to reflect a change to a density bonusing approach to affordable housing.

• Continue to develop partnerships for the establishment of new affordable housing and protection of existing affordable housing in the Town of Gibsons.

• Work with other Sunshine Coast local governments, as well as Provincial and Federal Governments to address affordable housing regionally.

Affordable Housing Contributions

An Affordable Housing site could also provide the potential for developers to provide in-kind construction of dwelling units on the Affordable Housing site — moving the affordable housing project forward while delivering their Affordable Housing commitment.

Strategic Plan 2016-2018

The 2016-2018 Strategic Plan states the intention to collaborate on affordable housing initiatives. If the feasibility study of the two sites is successful, Council could consider directing staff to prepare an RFP for an affordable housing partnership to interested parties/funders.

Katie Thomas Planning Assistant

Report to Committee regarding possible sites for PIAH 7

RECOMMENDATIONS / ALTERNATIVES

Staff recommendations are listed on page 1.

Alternatively, Council can identify other preferred courses of action

Respectfully Submitted,

Andre Boel, RPP Director of Planning

CHIEF ADMINISTRATIVE OFFICER'S COMMENTS:

I have reviewed the report and support the recommendation(s).

Emanuel Machado Chief Administrative Officer

Attachments: OCP Section 9.4 AND Council Policy 3.14 Copy of presentation from the Sunshine Coast Affordable Housing Society dated January 24, 2017

9.4 Affordable and Alternative Housing

Generally, affordable housing refers to housing where the household is paying less than 30% of their gross

income toward shelter costs'. The cost of housing on the Sunshine Coast has risen significantly in the last ten

to fifteen years, with median dwelling values in Gibsons increasing by 150% between 2001 and 2011, making

housing affordability for many households an important issue. While the real estate market has stabilized

since 2008, very little purpose-built rental housing is being built and households in core housing need are

projected to grow by more than 20% by 2021.

The most recent needs assessment for the Sunshine Coast (Housing on the Sunshine Coast, trends, needs,

directions, by M. Thomson Consulting, April 2014) identified the following key issues for housing:

o Ownership of a median priced home remains unaffordable for even median earning households. The

pressure is greater on young families with incomes below median.

o While rental housing has been generally available in recent years, the supply is changeable subject to

housing market conditions, and more than one-third of renting households on the Sunshine Coast are

in core housing need2. No purpose built rental developments are expected to meet these rental needs.

o The aging population of the Sunshine Coast points to a need for greater resources for seniors,

particularly housing appropriate to seniors.

o There are few resources for the homeless populations.

In recent years the Town has undertaken several initiatives to support affordable housing:

o Provisions for secondary suites were added to the Zoning Bylaw in most single-detached zoned areas.

o As part of the development of Upper Gibsons, new zones were created for small lot development

(minimum lot size 280m2) and for cluster development, an innovative form of housing with multiple detached and attached housing units on a single larger parcel.

Density Bonusing and Community Amenity Contributions

The Local Government Act (section 904) allows municipalities to permit additional density in designated areas

or on specific parcels of land in exchange for defined community amenity contributions from developers. These

amenity contributions can take various forms including special needs and affordable housing. This is an

important tool in the provision of affordable housing and other community amenities, and density bonusing

represents an approach recommended by BC's Ministry of Community, Sport and Cultural Development.

Shelter costs include rent or mortgage payments, property taxes, strata fees if applicable and utilities payments.

'A household is said to be in core housing need if its housing falls below at least one of the adequacy, affordability

or suitability, standards arid it would have to spend 30% or more of its total before-tax income to pay the median

rent of alternative local housing that is acceptable (meets all three housing standards).

• Adequate housing are reported by their residents as not requiring any major repairs.

• Affordable dwellings costs less than 30% of total before-tax household income.

• Suitable housing has enough bedrooms for the size and make-up of resident households, according to National Occupancy

Standard (NOS) requirements.

Policies

9.4.1 Revise the zoning bylaw to establish base and maximum densities for all residential zones. The Town

will also clarify amenity contributions requested of developers for any density beyond that of the

base density.

9.4.2 Support multi-unit and seniors housing developments which are an integral part of the community,

with site designs which balances the need for privacy and security with the need to retain an

attractive streetscape and sense of "fit" in the neighbourhood.

9.4.3 Facilitate the development of a full range of special needs housing for seniors and persons with

disabilities and consider land designated as Medium Density and High Density Residential for these

uses. Homes that require continual medical care 24-hours a day should be directed to land

designated as Public/Community Use.

9.4.4 Support the provision of seniors housing and related services, which encourages independent living

in a support setting, such as congregate housing development. Housing units for seniors should be

adequately designed for special needs and include a variety of affordable units that are based on

the "aging in place" concept.

9.4.5 Ensure that affordable housing units or complexes are integrated in the community and not

segregated or concentrated in specific areas.

9.4.6 Support initiatives which help provide affordable housing in the community, including:

o Provision for housing mixed with commercial development which can create some lower-cost

apartments.

o Lands acquired by the Town may be conveyed to a registered non-profit for the purpose of affordable

housing.

o Facilitate the development of affordable housing through considering actions such as fast-tracking

the development process, waiving development cost charges, leasing or contributing land, reduced

parking requirements for developments with an affordable component etc.

o Review and update the current Community Amenity and Affordable Housing Policy to reflect a

change to a density bon using approach to affordable housing.

o Continue to develop partnerships for the establishment of new affordable housing and protection of

existing affordable housing in the Town of Gibsons.

o Work with other Sunshine Coast local governments, as well as Provincial and Federal Governments

to address affordable housing regionally.

9.4.7 Promote the use of the Accessible and Adaptable Housing Design Guidelines (February 2012),

encouraging architects and builders to consider accessible and adaptable features in developments.

9.4.8 Evaluate the Garden Suite program and consider expanding the area / situations where garden

suites may be allowed.

TOWN OF GIBSONS Policy Manual

SECTION: PLANNING AND LAND USE

TITLE: Affordable Housing and Community

Amenities

POLICY # 3.14

APPROVED DATE: July 17, 2007

REVISED DATE: March 1, 2016

RESOLUTION #: R2007-349

RESOLUTION #: R2016-051

PURPOSE

In order to alleviate the shortfall in affordable housing and community amenities as a result of

increased residential development within the Town of Gibsons, Council will request as part of

any new residential rezoning, funds towards or the provision of community amenities and

affordable housing. The authority to pursue these voluntary contributions will be addressed

through the use of Section 482 "Zoning for amenities and affordable housing" in the Local

Government Act.

DEFINITIONS

Affordable Housing

Housing units that meet the needs of households in the Town of Gibsons whose income falls

below the median income levels at rates that are no higher than 30% of the gross household

income.

Community Amenities

Improvements to parks and public spaces, community, social and / or cultural services that

offset the impact of the proposed development and that benefit the community at large.

Cash in Lieu

A cash contribution to the Affordable Housing Reserve Fund in lieu of providing Affordable

Housing units and / or a cash contribution to the Community Amenities Reserve Fund in lieu of

providing Community Amenities.

Housing Agreement

Page 1

Affordable Housing and Community Amenities Policy No. 3.14

The standard Housing Agreement developed by the Town which provides a mechanism to

leverage funds for the Affordable Housing Reserve Fund for any Affordable Housing ownership

units.

COMMUNITY AMENITIES

The intent of providing funds towards the Community Amenity Reserve Fund is to enable the

Town to build up a cash reserve to pay for the expansion of services and development of parks

that are needed as a result of the increased density enabled by residential rezoning applications.

For larger residential rezoning applications community amenities could be provided on or off

site instead of providing funds.

Residential rezoning applications that result in the creation of less than 10 residential lots or

multi-family residential units will be encouraged to contribute to a community amenity reserve

fund towards the development of parks, community, and cultural services

Residential rezoning applications that result in the creation of 10 or more residential lots or

multi-family housing units will be encouraged to either provide community amenities on or off

site or contribute funds to the community amenity reserve fund.

AFFORDABLE HOUSING

The Town supports the development of affordable housing with a range of tools and incentives.

This Policy outlines the available support options for different types of Affordable Housing.

General

It is preferable that actual units of affordable housing be supplied within the proposed

residential development as this ensures affordable housing is provided as integral part of all new

development in the Town. Alternatively, contributions to the Affordable Housing Reserve Fund

enable the Town to build up a cash reserve that can be used to purchase land for affordable

housing projects or to support projects by affordable housing providers.

Residential rezoning applications that result in the creation of less than 10 residential lots or

multi-family residential units will be encouraged to contribute funds towards an affordable

housing reserve fund.

Residential rezoning applications that result in the creation of 10 or more residential lots or

multi-family residential units will be encouraged to provide at least 10% of the units for

affordable housing on or offsite or contribute funds or in kind services in an equivalent amount

towards an affordable housing reserve fund.

Page 2

Affordable Housing and Community Amenities Policy No. 3.14

The Town has reduced Subdivision Bylaw requirements for servicing of new development to

promote housing affordability and improve the Town's financial sustainability by reducing the

amount of new assets that will need to be maintained and renewed.

The Town has introduced Zoning Bylaw options for small lots (RC zoning).

The Town plans to update Zoning Bylaw provisions to include bonus density provisions that

support the development of Affordable Housing.

Affordable Ownership

The following types of ownership units are currently eligible as Affordable Housing under this

Policy:

• Single Family or Duplex unit up to $ 258,500, at least 1300 sft and at least two bedrooms

• Two bedroom condo up to $ 200,000, at least 1000 sft

• One bedroom condo up to $ 160,000, at least 800 sft

An upper limit of $ 258,500 has been established based on median income data from the 2014

housing needs assessment. The price and size ranges above reflect types of housing that the

market currently does not provide and are based on an assumed construction cost of

approximately

$ 200 / sft. This information may be updated from time to time based on changes in the real

estate market.

If ownership units are built as part of a development, a Housing Agreement will be required

ensuring that at time of re-sale a contribution to the Affordable Housing Reserve Fund is made

determined by the difference between restricted price and market price.

Council may consider Cash in Lieu instead of the provision of ownership units as part of the

development.

Market rental

The Zoning Bylaw provides options for Secondary Suites and Garden Suites within certain areas

of the Town.

Council may consider reductions for servicing requirements under the Subdivision Bylaw for

purpose built rental projects providing apartments for rent.

Council may consider allocating funds from the Affordable Housing Reserve Fund for market

rental projects in exchange for commitments preventing strata conversion of the rental

apartments.

Market rental units are not expected to have pricing restrictions.

Page 3

Affordable Housing and Community Amenities Policy No. 3.14

Affordable (subsidized) rental

The following levels of monthly rent are currently eligible as Affordable Housing under the

category Affordable rental:

• Bachelor / Studio: up to $650

• 1 bedroom: up to $875

• 2-bedroom: up to $925

• 3-bedroom: up to $1087.50

• 4-bedroom: up to $1200

The rent levels above are derived from Housing Income Limits that are monitored by BC Housing

based on market rents in the area. This information may be updated from time to time based

future updates of housing needs and availability of rental options.

Council may consider reductions for servicing requirements under the Subdivision Bylaw.

Council may consider allocating funds from the Affordable Housing Reserve Fund to facilitate

the development of affordable rental housing units.

Seniors housing, special needs housing, services for the homeless

Council may consider reductions for servicing requirements under the Subdivision Bylaw.

Council may consider allocating funds from the Affordable Housing Reserve Fund to facilitate

the development of seniors housing, special needs housing or services for the homeless.

Strata Conversion applications

Council may support Strata Conversion applications provided that each rental unit is replaced

with rental units of a similar level of affordability.

AFFORDABLE HOUSING RESERVE FUND

Council will endeavour to make use of any available funds within 5 years of receipt of the funds.

Council may consider adding tax revenue as a contribution to the reserve fund through the

annual budget process.

Page 4

Affordable Housing and Community Amenities Policy No. 3.14

Council may consider applications for a grant or loan from the Affordable Housing Reserve Fund,

subject to approval and adoption of a expenditure bylaw (as required for Reserve Funds). The

following list outlines eligible requests that can be made by proponents of Affordable Housing

projects:

• project development funding, for example for expert reports following a satisfactory

feasibility analysis

• contribution to off-set Development Cost Charges and / or development application fees

• contribution for required off-site works under the Subdivision Bylaw and / or administration

charges for a Servicing Agreement

• contribution to facilitate securing funds from other sources

• contribution for cost of construction or the purchase of land

• contribution to facilitate the operation of a homeless shelter

ROLE OF STAFF

Council instructs the Director of Planning to use Section 482 of the Local Government Act to

negotiate with the applicant the amenities and affordable housing to be provided as part of the

residential rezoning prior to the application being referred to a Public Hearing.

Page 5

Affordable Housing

Update

BC Housing's PIAH

2015 the Province announced $355 [in' on investment in

affordable housing

As of 2016, $79 million has been committee

a Ongoing funding calls for the next our aa:s for the ,

remainder of the funding

Potential Location #1

Potential Location #2

Market Rents

(October

2016) $969.33 $1,460.56

Mixed Income Development

Housing below HILs $688 $875 $938 $1,100 Rent Geared to Income:

Below Median Income $700 $700-$814 $850-$1,200 $1,400 Housing for

Median Earners

$878

$975

$1,017-

$1,691 $1,691

Public Open House

We would like to put the two properties to the public for

input in advance of an application

Content wou d ndu e:

• Background on provincial housing

• Information on potentia ies

• Target rents and househo dg oups

Questions?

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