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HomeMy WebLinkAboutDSD-19-134 - Affordable Housing Strategy - Work Program OverviewREPORT TO:Planning and Strategic Initiatives Committee DATE OF MEETING:June 10, 2019 SUBMITTED BY:Alain Pinard, Director, Planning,519-741-2200 ext. 7319 PREPARED BY:Karen Cooper, Manager, Strategic and Business Planning, 519-741-2200 ext. 7817 Brandon Sloan, Manager, Long Range & Policy Planning, 519-741-2200 ext. 7648 WARD (S) INVOLVED:All DATE OF REPORT:May 30, 2019 REPORT NO.:DSD-19-134 SUBJECT:Affordable Housing Strategy Work ProgramOverview ___________________________________________________________________________ RECOMMENDATION: THAT the workplan for Report DSD-19-134, Affordable Housing Strategy -Work Program Overview,be approved;AND FURTHER THAT the followingmembers of Councilbe appointedto participate on anAffordable Housing Strategy Advisory Committee: _____________________ (maximum 3). BACKGROUND: The median average home price within the Kitchener market area has increased by approximately 50% over the last four yearsand the average apartment rent has increased 1 approximately 20%, which is well above inflation. These housing cost increases coincide with a significant amount of new development in Kitchener, largely fuelled by the success of new and expanding businesseswhose employees increase the demand for housing in Kitchener.With largeincreases in housing costs in the Greater Toronto Area and a number of other factors, people are either considering, there are pressures on the housing supplyand sale prices are being drivenup, and new housing of all forms and tenure are becoming unattainablefor many. In some cases,people are feeling displaced or left.The Kitchener housing market has changed. According to a recent City-led Environics Survey, residentsself-identified affordable housing as the second most important issue facing Kitchener today. and community engagement, staff and Council have reaffirmed the importance of taking action, including at the local level. Asa result, the creation of anAffordable Housing Strategy for 1 Canada Mortgage and Housing Corporation (CMHC) 2015-2019 ownership and 2015-2018 private rental housing statistics *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. 2 - 1 Kitcheneris a 2019-2020Business Planproject. It is also anaction within the recommended 2019-2022 City of Kitchener Strategic Plan. REPORT: . The planning definition adopted for our Region and City derives from the Provincial Policy Statement and has similarities to the CMHC definition (see Appendix A).For the purposes of the incentive program that Kitchener currently has in place, the definition focuses on rental housing at a maximum of 80% ofalso has been usedto describe various aspects of what is referred to as -the housing continuum. This may include the full spectrum from emergency shelter/homelessness to supportive housing to rental and home ownership (see Appendix A). The 2016 census showed that 15.8% of owner households spent more that 30% of their income 2 onhousing and 42% of renter households spent more than 30% of their income on housing. 3 During the 2015 to 2019 period, visible homelessness also has increased.For the purposes of the initial phases of the Affordable Housing Strategy project, the full housing spectrum will be considered. During the project and as part of preparing the strategy recommendations, it may become necessary to focus on specific aspects of the housing continuum. There may be segments ofthe housing continuum that a local municipality has more ability to impact. We Are All In This Together Housing and housing affordability is an issue for all levels of government, agencies, providers, developers, not-for-profits and the community to work together on. The Federal Government recently prepared a National Housing Strategy and provided funding for a range of housing initiatives to address affordability. The Provincial Government provides funding, tools, and recently is taking action towards promoting more housing. Until recently, municipalities could not have a planning zoning by-law that could to provide affordable housing units. The introduction of inclusionary housing/zoning provides an opportunity to study the merits and potential approve such an approach.Based on proposed changes, through Bill 108, it appears that inclusionary zoning will continue to be a tool that municipalities can use under the current provincial government. The Region of Waterloo is the affordable housing service managerfor our area. They have a number of programs, strategies, plans and incentivesfor housing and shelter, including owning of updating a combined Housing and Homeless Plan. Part of the updated plan includes a -2019. The updated plan will likely include a number of actions of interest to Kitchener objectives and could lead to some early wins. City staff are part of the Region-led working team and Regional housing staff indicated support for a local level strategy and desire to participate. 2 For the Kitchener Census Metropolitan Area (CMA). 3 Region of Waterloo emergency shelter and homelessness estimates/statistics. 2 - 2 The Ministry of Municipal Affairs and HMunicipal Tools for Affordable Housing outlines a range of potential planning toolsfor municipalitiesto consider. Kitchener is currently using or in the process of further enhancing several of the strategies mentioned in the handbook, including: official plans and zoning by-laws condo conversion policies second units demolition control community improvement plans (not targeted specifically at affordable housing) density exchange/bonusing subdivision design reduced parking requirements waiving of application fees off-set of timing of development charges payment A significant amount of the background, some of the local data and a review of the planning tools and options were contained within a 2015 Discussion Paperrelated to Development Incentives for Affordable Housing. This culminated in a Council Strategy Session in 2017 along with several reports that led toimplementation ofthe aspects endorsed by Council. While the incentives currently in place are a positive step, there is much more that can and should be done at the local level to help with the housing situation. Actions will be needed beyond the traditional planning and housing tools or incentives. Work Program Overview Staff have prepared awork programto guide the preparation of the Affordable Housing Strategy. An overview is included as Appendix Bto this report. An early objective of the Affordable Housing Strategy will be to develop an understandingof the current market conditions and the accommodationneeds across the entire housing continuum.This would include the market assessment and financial viability proforma that is required as part of the inclusionary zoning process (see Appendix C for the requirements). This work will be invaluable in identifying challenges and opportunities in the local housing market and will be of use for a variety of housing,land use, economicand social planning purposesirrespective of any provincialor other changes that may arise during the course of this project. In order to prepare the Strategy and determine appropriate directions and actions, it will be necessary to review different options and potentially determine which aspects of the housing continuum the municipality should focus our efforts. A determination on whether to move forward with formal amendments tothe Official Plan and Zoning By-law to implement inclusionary zoning will also be needed. Each phase of the project will involve stakeholderengagement, which includes consultation with a proposed Advisory Committee. In the end, the Affordable Housing Strategy willKitchener. 2 - 3 Figure1-Affordable Housing Strategy -Project Plan Summary Phase 1: Project Planning July - Establish Work Program, Resourcing, 2019 May Advisory Committee, Engagement Plan Phase 2: Housing Assessment Dec. Baseline Data, Demographic Profile, Gap Analysis, - 2019 Growth and Future Needs, Influencing Factors Aug. Municipal Assessment Report (Inclusionary Zoning) E n g Phase 3: Issues and Options a g Apr. Confirm Housing Continuum Aspects of Focus, - e Options to Proceed, Implications, Early Wins 2020 Jan. m Direction for Inclusionary Zoning Amendments e n Phase 4A: Prepare Affordable Housing StrategyPhase 4A: Prepare Affordable Housing StrategyPhase 4A: Prepare Affordable Housing StrategyPhase 4A: Prepare Affordable Housing Strategy t Phase 4B: Inclusionary Zoning Amendments Sept. - 2020 Statutory Public Meeting for Official Plan/Zoning By-law May Amendments for Inclusionary Housing Phase 5: Approval Dec. Final Strategy and Actions - 2020 Decision on Inclusionary Housing Amendments Oct. ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: Recommended 2019-2022Strategic Plan Caring Communitytheme helping to make housing affordablePriority: Create an Affordable Housing Strategyfor Kitchener by 2020 in collaboration with Waterloo Region, community groups and the development industry. 2 - 4 FINANCIAL IMPLICATIONS: Approval of the 2019 Budget included a temporary position to focus on affordable housing and to create the strategy. Anyadditional project fundswill be covered from the existing Planning Studies account. This includes one aspect of the municipal assessment report (background to inclusionary zoning) that must be prepared by a third party and would be cost-shared with the other municipalities involved in the joint services initiative. COMMUNITY ENGAGEMENT: The project will utilize as many aspects of the INFORM, CONSULT, COLLABORATE and EMPOWER.The Project Planning (Phase 1) includes the preparation of an engagement planand it is expected that a range of methods will be utilized such as focus groups, on-line surveys, social media and formal notification and meetings. A project Advisory Committee will be established with representation from a variety of sectors: not-for-profit housing, development and rental housing industry, City Council, the Region (housing staff and as service provider), community/agency representation, and City staff. INFORM -This report isnda in advance of the committee/councilmeeting. PREVIOUS CONSIDERATION OF THIS MATTER: CSD-15-085Development Incentives for Affordable Housing Discussion Paper CSD-17-018Development Incentives for Affordable Housing Phase 2 CSD-17-034Development Incentives for Affordable Housing Implementation CONCLUSION: A healthy and sustainable city is one in which every resident has access to affordable and appropriate housing. Objectives of the Affordable Housing Strategy are to articulate a vision, guiding principles and a plan for municipal actions to ensure that there is an adequate supply of appropriate housing to meet the full range of incomes and needs in Kitchener. This approach recognizes that affordable housing across the housing continuum is critical to the -term prosperity, as attracting and retaining residents of all ages requires housing options that reflect typical income levels. Working with ourpartners in the non-profit housing and private sectors, the Strategy will provide an action-oriented plan based on the concerns, opportunities and priorities identified through the process of developing the strategy. ACKNOWLEDGED BY: Justin Readman, General Manager, Development Services Attachments: Appendix A:Affordable Housing Definition and Housing Continuum Appendix B:Affordable Housing Strategy for Kitchener Work Program Overview Appendix C: Provincial Inclusionary Housing/ZoningRequirements 2 - 5 Appendix A: Affordable Housing Definition and Housing Continuum Affordable Housing/Affordability (Region of Waterloo and City of Kitchener Official Plans) a)in the case of ownership housing, the least expensive of: i)housing for which the purchase price results in annual accommodation costs which do not exceed 30 percent of gross annual household income for low and moderate income households; or, ii)housing for which the purchase price is at least 10 percent below the average purchase price of a resale unit in the Regional market area; b)in the case of rental housing, the least expensive of: i)a unit for which the rent does not exceed 30 percent of the gross annual household income for low and moderate income households; or, ii)a unit for which the rent is at or below the average market rent of a unit in the Regional market area. For the purposes of this definition: Low and moderateincome households means, in the case of ownership housing, households with income in the lowest 60 percent of the income distribution for the Regional market area; or in the case of rental housing, households with incomes in the lowest 60 percent of the income distribution for renter households for the Regional market area. Figure2-Components of the Housing Continuum(Region of Waterloo) 2 - 6 Appendix B:Affordable Housing Strategy -Work ProgramOverview Figure3-Project Management Structure 2 - 7 Figure4-Project Work Structure Summary PhasePrimary TasksExpected Timing 1Project PlanningMay-July Confirm purpose and scope 2019 Establish project management framework Prepare elements of the project plan, including Project Charter and Engagement Plan Recruitment process for temporary housing position Input and launch via Committee report Deliverable(s): Report to Standing Committee, Project Charter (Work Program, Engagement Plan) 2Housing AssessmentAugust- Acquire and synthesize data and trends December Baseline and growth: community and demographic 2019 profile, population, age, income, labour force and employment, household composition, housing types and tenures, supportive housing provision and wait list, housing availability and supply, housing market conditions, average market price and rent, trends, influencing factors, etc. Gap analysis and needs assessment Housing market/financial viability analysis and any requirements for Inclusionary Zoning assessment Deliverable(s): Housing Assessment Report 3Issues and OptionsJanuary- Roles and responsibilities April 2020 Tools and strategies Identification of possible options for the housing continuum, directions for focus Review pros and cons of options and potential strategy directions, high level implications Deliverable(s): Report to Standing Committee 4APrepare StrategyMay- Determine direction for options selected/directed in September Phase 3 2020 Conduct further analysis where required (may involve financial implications review) Circulate, stakeholder comments, review, issue resolution Deliverable(s): Draft Strategy for Public Review 2 - 8 4BInclusionary Zoning May- If confirmed through Phase 3 -prepare formal policy AmendmentsSeptember amendments to the Official Plan and Zoning By-law 2020 for inclusionary zoning. Notice, circulate, public meeting, stakeholder comments, review, issue resolution Regionalreview (approval authority for OPA) Deliverable(s): Draft Official Plan Amendment (OPA), Draft Zoning By-law Amendment (ZBA), Statutory Public Meeting, Staff Report 5Final ApprovalOctober- Compile final Strategy document, final planning December amendments and associated staff report(s) 2020 Feedback report Table at Standing Committee meeting Final revisions and Council adoption/approval Deliverable(s): Final Affordable Housing Strategy document, Final OPA/ZBA, Final Report to Standing Committee 2 - 9 4 AppendixC:Provincial Inclusionary ZoningRequirements Inclusionary Housing Assessment Information Requirements Demographics and population; Household incomes; Housing supply by housing type that is both existing and planned for in the OP; Housing types and sizes needed as IZ units; Current average market price and rent for each housing type, taking into account location; Potential impacts on the housing market and potential financial viability of development or redevelopment from IZ by-laws on unit set asides, affordability period, measures and incentives and price or rent of an affordable unit, taking into account value of land, cost of construction, market price, market rent and housing demand and supply. The analysis must also take into account provincial policies and plans and official plan policies related to growth and development; Written opinion of the impact analysis from a person independent of the municipality. Inclusionary Housing Assessment and Monitoring Requirements-(From Ontario Regs) An assessment report required by subsection 16 (9) of the Act shall include informationto be considered in the development of official plan policies described in subsection 16 (4) of the Act, including the following: 1.An analysis of demographics and population in the municipality. 2.An analysis of household incomes in the municipality. 3.An analysis of housing supply by housing type currently and planned for in the municipality. 4.An analysis of housing types and sizes of units that may be needed to meet anticipated demand for affordable housing. 5.An analysis of the current average market price and the current average market rent for each housing type, taking into account location in the municipality. 6.An analysis of potential impacts on the housing market and on the financial viability of development or redevelopment in the municipality from inclusionary zoning by-laws, including requirements in the by- laws related to the matters mentioned in clauses 35.2 (2) (a), (b), (e) and (g) of the Act, taking into account: i.value of land, ii.cost of construction, iii.market price, iv.market rent, and v.housing demand and supply. Provincial policies and plans and Official plan policies A written opinion on the analysis from a person independent of the municipality and who, in the opinion of the council of the municipality, is qualified to review the analysis. Monitoring reports to include: 1.The number of affordable housing units. 2.The types of affordable housing units. 3.The location of the affordable housing units. 4.The range of household incomes for which the affordable housing units were provided. 5.The number of affordable housing units that were converted to units at market value. 6.The proceeds that were received by the municipality from the sale of affordable housing units. 4 As per Ministry of Municipal Affairs and Housing website: http://www.mah.gov.on.ca/Page13790.aspx 2 - 10