HomeMy WebLinkAboutCSD-18-049 - Development Charges Rebate ProgramCouncil
REPORT TO:
DATE OF MEETING: February 26, 2018
SUBMITTED BY: Alain Pinard, Director of Planning, 519-741-2200 ext. 7319
PREPARED BY: Alain Pinard, Director of Planning, 519-741-2200 ext. 7319
WARD(S) INVOLVED: City Wide
DATE OF REPORT: February 21, 2018
REPORT NO.: CSD-18-049
SUBJECT: Development Charges Rebate Program
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RECOMMENDATION:
That the City of Kitchener participate in the Development Charges Rebate
Program offered through the Province of Ontario’s Fair Housing Plan (2017); and
That the City of Kitchener designate the Housing Service Manager at the Region
of Waterloo as program administrator for the City of Kitchener; and further
That the City of Kitchener authorizethe Housing Service Manager at the Region of
Waterloo to submit an expression of Interest to the Ministry of Housing on behalf
of the City of Kitchener.
BACKGROUND:
On December 20, 2017 the Province of Ontario invited several municipalities to submit
Expressions of Interest to participate in the Development Charges Rebate Program.
This is a new program and the purpose is to increase the supply of purpose-built market
rental housing. Under the program, eligible market rental housing development would
receive a rebate of development charges collected by municipalities. The program
would be administered by municipalities. Kitchener is one of 84 eligible municipalities.
The list of candidate municipalities would appear to include all or most of the
municipalities in the Greater Golden Horseshoe and several others.
The timelines are very tight. Municipalities intending to submit an Expression of Interest
(EOI) were required to submit a preliminary submission by February 16, 2018, and
completed submissions must be received by 1:00 pm on March 2, 2018.Submission
requirements are quite demanding, require key strategic decisions and the pool of
funding is limited relative to the anticipated demand.The purpose of this report is to
authorize participation in the program.
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
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REPORT:
Program Overview
Key program details that Council should be aware of are summarized as follows:
•The program has a one-stage selection process.
•Up to $125 million over five years is available to municipalities, starting with $25
million in 2018-2019
•Funding is not guaranteed to all municipalities who make a submission
•Notional allocations will be announced in spring 2018
•Housing Service Managers (in our case the Region of Waterloo) can administer the
program on behalf of a municipality
•Rebates can apply to all eligible development charges, including those of the Region
and the school board
•Program administration would include numerous activities that include entering into
a Transfer Payment Agreement (TPA) with the Ministry of Housing, entering into
agreements with participating developers, and flowing funds to eligible recipients.
It is further noted that EOI submissions are required to include a lot on information
regarding local housing market conditions, supportive planning and housing policies and
how the program would be administered. Municipalities making submissions are also
required to demonstrate that they have the capacity to administer the program and that
they have measures in place to ensure that funded units do not get converted to
ownership housing or get rented above theagreed upon rates for a minimum of 20
years. This would appear to be an important consideration in the evaluation of
submissions.
The program does allow for some variation as to how the program is to be delivered by
the different municipalities. EOI submissions need to specify how a municipality
proposes to operate the program within the parameters set out by the Province.
Decisions on many variables need to be decided including the following:
•If the Region should administer the Program on our behalf
•Should Kitchener set a maximum threshold that is lower than maximum allowable
Average Market Rate (AMR) of 175%?
•Whether Kitchener is proposing full or partial rebates
•Whether the program should apply city wide or only in specific geographic areas.
Action Taken to Date and Next Steps
In order to take advantage of this program is was necessary to initiate the process in
advance of this report. A preliminary submission was filed prior to the February 16
deadline in order to maintain eligibility.
Given the substantial administrative requirements and the burden to demonstrate
“capacity” as part of EOI submissions, staff concluded that municipalities need to have
dedicated staff in order for this program to be feasible. Assistance from the Region of
Waterloo Housing Services was sought and the Region has since agreed to administer
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the program on Kitchener’s behalf. The other participating area municipalities in this
Region reached the same conclusion and are taking the same approach.
Should Council agree to participate in the program, Planning staff would continue to
work with Regional staff to finalize the submission. A resolution from Kitchener City
Council to authorize participation in the program and to designate the Region of
Waterloo to administer the program on the City’s behalf is required as part of the
submission that is due March 2, 2018. A similar resolution is not required from Regional
Council; however Regional staff will be asking Regional Council to authorize the work.
Although staff are still collecting and analyzing information in order to finalize the
submission, it is proposed that Kitchener’s program operate as follows:
The Housing Service Manager at the Region of Waterloo would administer the
program on Kitchener’s behalf; and
The program would establish a threshold Average Market Rate (AMR) maximum of
125% ; and
The program would provide full development charges rebates (100% of City, Region
and educational development charges); and
The program would apply city wide.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
This initiative supports several community priorities, especially priority 3.4 of Kitchener’s
Strategic Plan which is excerpted below:
Facilitate and promote housing developments that provide options for a diversity
of lifestyles and household types.
FINANCIAL IMPLICATIONS:
There are no capital costs and no new operating costs associated with this initiative as
presented. The City of Kitchener would have incurred new operating expenses if it had
decided to administer the program.
COMMUNITY ENGAGEMENT:
INFORM – This report has been posted to the City’s website with the agenda in
advance of the Council meeting.
CONSULT – Staff from the Ministry of Housing, the Region of Waterloo and four other
area municipalities were consulted in order to develop a better understanding of the
program and to compare approaches.
COLLABORATE – City staff have collaborated with Region of Waterloo staff to prepare
Kitchener’s initial submission. Should Council agree to participate in the program, this
collaborative effort would continue.
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ENTRUST – Region of Waterloo staff have been entrusted to file a submission on
Kitchener’s behalf.
CONCLUSION:
Although the submission requirements are very demanding, this program offers the
opportunity to increase the amount of rental housing in the City of Kitchener which
supports the objective of providing a full range of housing options. The City of Kitchener
would collaborate with the Region of Waterloo who would administer the program on the
City’s behalf. This is an efficient use of public resources as the Region is equipped to
administer such a program in a way that is much more cost effective than if done by an
individual area municipality.
ACKNOWLEDGED BY: Michael May, Deputy CAO (Community Services)
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