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Webinar #1 in the 2014 Webinar Series Date: Thursday June 19, 2014

Finding the Right Balance:

Community Amenity Contributions and Affordable Housing

Future Webinars in 2014 Series Affordable Market Housing in Communities Experiencing Industrial Growth (Focus on North) Webinar 2: Thursday October 2, 2014 – 1:30 p.m. Rental Renaissance: How to Support a Flourishing Rental Housing Sector in Your Community Webinar 3: Thursday October 23, 2014 – 1:30 p.m. When the Going is Tough: Ideas for Finding Neighbourhood Support for Affordable Market Housing and Densification Webinar 4: Thursday November 27, 2014 – 1:30 p.m.

Quick Poll

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Lois-Leah Goodwin

• Executive Director, Intergovernmental Relations and Planning Branch

• Ministry of Community, Sport and Cultural Development

Community Amenity Contributions:

Balancing Community Planning, Public Benefits and Housing Affordability

Lois-Leah Goodwin Executive Director, Local Government Division

Ministry of Community, Sport and Cultural Development

Why we care about CACs

• Help local governments to avoid legal risk

• Want to see practices that support good planning and don’t undermine public confidence

• Housing affordability

Speaking the same language

• Amenity contributions

• Community amenity fees

• Voluntary contributions

• Zoning-based contributions

• Bonus density zoning

• Community amenity contributions (CACs)

CACs vs. density bonus zoning

• CACs – typically negotiated before the adoption of a zoning bylaw

• Density bonus zoning – typically set out in a zoning bylaw with related conditions/amenities

Summary of recommended practices

1. Avoid legal risk

2. Plan ahead

3. Seek modest contributions

4. Apply DCC principles

5. Engage the development community

Legal Considerations

• No express authority

• Discretionary authority through rezoning

• Can’t impose or require a CAC (LGA s. 931(6))

A local government, the City of Vancouver or an approving officer must not (a) impose a fee, charge or tax, or (b) require a work or service to be provided

unless authorized by this Act, by another Act or by a bylaw made under the authority of this Act or another Act.

“Target” Approach

• CACs must be negotiated

• Establish needed amenities up front

• Determine what contributions local government wants to negotiate = set pre-determined targets

• Provides certainty and is legal when negotiated

Avoiding Legal Risk

• Councils and Boards must keep an open mind, and not commit to passing a rezoning

• Avoid using technical approval processes (building inspection, subdivision approval) to obtain CACs

CACs – A Double Edged Sword

• CACs can help to implement plans…but can undermine good planning

• Zoning is intended as a means to implement a community plan…..local governments should not focus on rezoning as a revenue source

Recommended practices for CACs

• Plan ahead for amenities in OCPs

• Nexus, proportionality

• Transparency

• CACs for capital not operating costs

Affordability by design…increasing housing supply • Apply no-cost affordability by design measures

before seeking CACs for affordable housing

• Zoning to reduce costs of producing housing

• small lots, reduced setbacks, suites/laneway houses

• Density bonus

Supply, supply, supply

• Plans, regulations, policies provide for plenty of housing

• Incentives – density bonus, fast-tracked approvals, pre-zoned land

• Avoid creating disincentives – land owners unwilling to sell to developers

Impact of CACs on price developer can pay for land

Impact of CACs on housing prices

Contrasting scenarios

A. A vacant, low density commercial site, owners motivated to sell

B. An established residential area, homeowners reluctant to sell, community plan calls for higher density

Common approaches currently used to obtain CACs

1. Density bonus zoning

2. Pre-determined targets

3. Negotiating CACs based on “lift”

Recommended approach for obtaining CACs

1. Use density bonus zoning as a starting point

2. Plan ahead, set targets, and keep them modest

3. Avoid the “lift” approach

Thank You

Website: http://www.cscd.gov.bc.ca/lgd/

Ministry of Community, Sport and Cultural Development

Jim McIntyre

• General Manager, Planning and Development

• City of Coquitlam

City of Coquitlam Density Bonus and Community

Amenity Contribution (CAC) Programs

June 19, 2014 – for The Ministry of Jobs, Tourism and Skills Training

Economic Development Division Webinar

Affordable Market Housing Webinar Series

Overview

City of Coquitlam Density Bonus and

Community Amenity Contribution (CAC)

Programs

• Coquitlam context

• High growth community

• Growth financing overview

• Coquitlam density bonusing program

• Coquitlam Community Amenity Contributions (CAC)

program

Coquitlam in the region

Coquitlam in the region

A unique growth context

Evergreen

Line growth

areas

A unique growth context

City Centre

2011

Population –

8,000

Lougheed

Neighbourhood

2011 Population –

6,700

Burquitlam

Neighbourhood

2011 Population –

9,700

Coquitlam – A high growth community

A rapidly growing and diversifying community

• 2013 population – 138,722

• 2041 projected population -224,000

• 85,278 more people

• 42,800 more jobs

Coquitlam – growth context

Urban growth – along new Evergreen Line

• 41,000 new residents by 2041

• 44% of total growth

2041 projected population by area

• City Centre = 27,200 more people, 12,900 more jobs

• Lougheed = 5,800 more people, 2,900 more jobs

• Burquitlam = 7,800 more people, 2,400 more jobs

Evergreen Line and shaping growth

Transit Oriented Development Strategy (TOD)

• Adopted by Council on July 30, 2012

• Aligned with existing OCP policies and guides new development

along the Evergreen Line

• Divided into three sectors:

• Core (400 metres from a station)

• Shoulder (within 400 & 800 metres of a station)

• Transit Corridor (between stations)

Evergreen Line and shaping growth

‘Create Great Places’ – a key TDS objective

• Provide amenities, improved streetscapes and public places in

high density station areas

• Supports safe, walkable, and livable neighbourhoods

• Potential, partial funding by:

• density bonusing contributions

• Community Amenity Contributions (CACs)

‘Create Great Places’

Local Government financing choices

COST RECOVERY

TOOLS SOURCES OF

CAPITAL

DEVELOPMENT-BUILD

AGREEMENTS

PARTNERSHIP

AGREEMENTS

Short-tern

Borrowing

Long-tern

Borrowing

Local

Improvement

Fees &

Charges

DCCs Specified

Area

Latecomer

Charges Development

Works

Agreements Comprehensive

Development

Agreements

Density

Bonusing

DCC

Credits &

Rebates

Public-Private

Partnerships

Public-Public

Partnerships

Other

Agreements

Reserves

Zoning for amenities and affordable

housing

Regulated under Sections 904

LGA

• A zoning bylaw may establish

conditions that will entitle an

owner to a higher density

• Conditions:

• conservation or provision of

amenities

• provisions for affordable and

special needs housing

Coquitlam’s density bonus program

Applied towards amenities:

• Transit oriented infrastructure

(e.g., streetscape improvements, wider sidewalks, bike lanes)

• Community facilities

(e.g., parks, plaza, public art, public buildings)

• Affordable housing

Coquitlam’s density bonus program -

evolution

Town Centre Commercial, C-4 zone

• Approved by Council on May 3, 2004

Base density 2.5 GFA

• Employment-generating use must occupy 0.7 FAR

Density bonus structure

• Core Area, 1.0 additional FAR at a ratio of:

• 1m² of employment generating GFA to 3m² of residential GFA; or

• 1m² of accessible residential GFA to 1m² of residential GFA; or

• A combination of both

• Frame Area: Additional density may be approved by Council in

the form of civic uses

• Up to a maximum of 3.5 FAR

Coquitlam’s density bonus program -

evolution

City Centre Commercial, C-4 zone

• Approved by Council on June 16, 2008

Base density 2.5 GFA

• Employment-generating use must occupy 0.7 FAR

Density bonus structure

• 1.0 additional FAR at a ratio of:

• 1m² of employment generating GFA to 3m² of residential GFA; or

• 1m² of accessible residential GFA to 1m² of residential GFA; or

• A combination of both

• 0.5 additional FAR for financial contribution of 50% of land

value, split 50/50 between public amenities & affordable

housing fund

• 1.0 additional FAR for civic & assembly uses

• Up to a maximum of 5.0 FAR

Coquitlam’s density bonus program -

evolution

City Centre Commercial, C-4 zone

• Approved by Council on June 13, 2011

Base density 2.5 GFA

• Employment-generating use must occupy 0.5 FAR

Density bonus structure

• Value Based Model - bonus density offered in exchange for

financial contribution based on land value of additional density

• Up to a maximum of 5.0 FAR

Coquitlam’s density bonus program -

evolution

Densit

y Step

Conditions of Additional Density GFA

Ratio

Max GFA Ratio

Step 1 Financial contribution of 75% of land

value of additional density

Up to

0.5

3.0 times the lot

area

Step 2 Financial contribution of 65% of land

value of additional density

Up to

0.5

3.5 times the lot

area

Step 3 Financial contribution of 50% of land

value of additional density

Up to

0.5

4.0 times the lot

area

Step 4 Financial contribution of 35% of land

value of additional density

Up to

0.5

4.5 times the lot

area

Step 5 Financial contribution of 25% of land

value of additional density

Up to

0.5

5.0 times the lot

area

Density bonus program expansion

High Density Apartment Residential, RM-4, RM-5 & RM-

6 zones

• Approved by Council on October 22, 2012

Base density 2.5 GFA

Density bonus structure

• RM-4: up to a maximum of 3.0 FAR, 8-12 storeys

• RM-5: up to a maximum of 3.5 FAR, 8-20 storeys

• RM-6: up to a maximum of 4.0 FAR, no height limit

Density bonus program expansion

Transit Village Commercial, C-7 zone

• Approved by Council on October 22, 2012

Base density 2.5 GFA

• Employment-generating use must occupy 0.25 FAR

Density bonus structure

• Up to a maximum of 4.5 FAR

• No height restrictions

How are we doing?

What we have heard from the development industry:

• If you allow higher density then reduce off-street parking

requirements

• Surplus of employment-generating floor space in current market

– limited take up

• Limited buyer demand for accessible units

• Transparent and straightforward administration

How are we doing?

• To date $11,400,000 density bonus contributions received

• Land value is based on $60.00 sqft.

• Density bonus estimates:

• 2014 - $1,500,000

• 2015 - $4,000,000

• 2016 - $11,000,000

High

Street

in 1999

High

Street

Today

CACs help fund new community amenities

• Voluntary contribution sought through rezoning process in

Burquitlam/Lougheed neighbourhood

• Burquitlam/Lougheed community centre the identified amenity

An alternative or supplement to typical growth

financing (DCCs, taxes)

• Focused on high-growth areas in ‘amenity need’

• Helps to fund growth-related amenities

• Shares capital cost burden between new & existing residents

Community Amenity Contributions

(CACs)

UDI: CACs need to be guided by principles:

1. Need & Nexus

2. Transparency

3. Equity

4. Certainty

5. Efficiency

6. Consistency

7. Right of Consultation and Arbitration

8. Accountability

CAC principles

Community Amenity Contributions

(CACs)

Coquitlam’s CAC approach

Applied to Burquitlam / Lougheed neighbourhood

• Significant new growth underway; more expected

• Identified need for community centre amenity

• Applies to TDS core, shoulder and corridor areas

• Burquitlam Neighbourhood Plan identified a need for a new community recreation centre (adopted June 17, 2002)

• TDS initiative confirmed the need for a new community centre and provided a basis for the CAC approach

Coquitlam’s CAC approach

Program Structure: $3 per sq.ft.

• Research involved - reviewing other municipal approaches, preliminary discussions with UDI

• Applies to new residential floor space up to 2.5 FAR when a rezoning is required

• A credit is given on existing residential floor space being replaced

• Potential projected $20-25 million over several decades

CAC relaxation and grandparenting

In-stream application considerations

• CAC’s have implications for the land market – land is purchased based on assumed set of fees

• CAC’s were identified during TDS process (2012) and implemented February 2013

• In stream protection granted to rezoning applications consistent with the OCP if the project obtains a building permit within one year (by February 2014)

How are we doing?

One year Progress Reporting

• To date two development applications have submitted CAC funds, totaling approximately $650,000

• 11 projects have development applications in stream and are eligible for CAC submissions

• Meanwhile the City is continuing to pursue planning for a community centre in the Burquitlam/Lougheed Neighbourhood

2014 2015 2016

CAC Estimates $65,000 $587,000 $1,425,000

Coquitlam’s approach to CAC’s

• Consistent with UDI principles and implements TDS direction

• Defined policy provides predictability, certainty

• CAC’s can help fund amenities in higher density areas

• Potential future CAC program expansion to Coquitlam City Centre & Partington Creek Neighbourhood Centre

How are we doing?

Questions?

Don’t forget the 3 webinars in the fall.

Resources

Local Government Division (CSCD)— http://www.cscd.gov.bc.ca/lgd/planning/community_amenity.htm

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Contacts

Lois-Leah Goodwin, LoisLeah.Goodwin@gov.bc.ca, (250) 356-1128 Jim McIntyre, JMcIntyre@coquitlam.ca, (604) 927-3401

Feedback is very much appreciated:

http://www.surveys.civicinfo.bc.ca/v2/TakeSurvey.aspx?SurveyID=96M27l7

THANK YOU for your participation in this webinar

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