City of Vancouver Housing Work Program

City of Vancouver Housing Work Program

January 29, 2019 Presentation to Council

Presentation Purpose

• Outline the Housing Work Program for 2019

• Identify areas of alignment with emerging Council priorities

Aligning With Council Early Directions

Council has provided early direction on a number of priorities to address the housing crisis, including:

• Strengthening renter protection, enhancing support and preventing displacement

• Developing more robust and accessible engagement processes

• Deepening affordability in new residential development projects

• Taking rapid actions to address persistent homelessness

• Increasing the ambition and urgency to address the climate emergency; recognizing that building emissions play a large role

• Expediting a city-wide plan that includes accommodating growth, pursuing reconciliation and increasing housing that’s locally affordable

Presentation Outline

1. Housing Vancouver: A Strategy Based in Values

2. Housing Trends & Challenges Influencing City Action

3. City of Vancouver Housing Work Program

Housing Vancouver: A Strategy Based in Values

What We Heard: Public Engagement

10,000+ participants, majority of participants under 40 years old Key themes: • Younger generations and families are concerned about their future in

the City

• Addressing homelessness and rental protection are a top priority for Vancouverites

Affordability

Diversity

Equity Security

Connection

Housing Vancouver: A Strategy Based in Values

Core values that guide our new approach:

Housing Vancouver Strategy

2017 marked an important transition from the previous Housing and Homelessness Strategy 2012-2021 to Housing Vancouver 2018-2027.

The 10-Year Housing Vancouver Strategy is intended to foster a diverse and vibrant city, and is founded on the following: 1. Creating the ‘Right Supply’ of housing and address speculative demand 2. Protect and retain the existing rental stock 3. Support renters and vulnerable residents

City of Vancouver Housing Targets

5,200 1,600 2,000 2,500 12,000 5,500

6,500 16,500 7,000 2,000 2,000

300 700 1,700 3,300

5,200 4,500 23,500 26,200 11,000 72,000 7% 2% 6% 33% 37% 100%

12,000 20,000 30,000 4,000 1,000 5,000

17% 28% 42% 5% 1% 7%

100%

3,000 200

1,600 15%

• There are affordability challenges for Vancouverites across the income spectrum

• Need action on multiple fronts to address complexity and deliver housing better targeted to incomes

• Focus on preserving 83,000 existing affordable homes in addition to new supply

Who Are We Trying To Serve? Incomes Targeted: <$15k/yr. - $30k/yr.

Social & Supportive Housing 6,800 new homes (<30k/yr.)

Low-income residents and those experiencing homelessness • 10% of households earned <$15k in 20151

• 2,181 individuals were counted as experiencing homelessness in 20182

• In 2018, 40% of those experiencing homelessness were Indigenous, compared to 2% of the population3

• Individuals in need of additional support

1. Source: Stats Can 2016 Census. “Households” refers to private households. 2. Source: City of Vancouver 2018 Homeless Count. 3. Source: City of Vancouver 2018 Homeless Count.

Type of housing needed:

Who Are We Trying To Serve? Incomes Targeted: <$30k/yr. - $80k/yr.

Social & Supportive Housing 5,600 new homes (<$30k/yr. - $80k/yr.)

Low-income residents • 35% of renter households spent 30-99% of

their income on housing costs in 20151

• In 2017, 4,789 people were waitlisted for social housing in City of Vancouver2

• 43% of family households with children earned <$80k in 20153

1. Source: Stats Can 2016 Census. “Households” refers to private households. 2. Source: BC Housing 3. Source: Stats Can 2016 Census. “Family households with children” refers to one-census-family private households with at least one child


Who Are We Trying To Serve? Incomes Targeted: $30k/yr. - $150k/yr.

Purpose-Built Rental Housing 20,000 new units

Moderate income residents including key workers, young people and families • Renters are a diverse group covering a range of

incomes; different types of rental are needed including below-market rental options

• 53% of Vancouver households rented their home in 20161

• 62% of renter households earned between $30k and $150k/yr. in 20152

• 41% of family households rented their homes in 20163

1. Source: Stats Can 2016 Census: “Household” refers to private households. 2. Source: Stats Can 2016 Census. “Household” refers to private households. 3. Source: Stats Can 2016 Census. “Family household” refers to census-family private households with or without children.


Who Are We Trying To Serve? Incomes Targeted: $50k/yr. - >$150k/yr.

Laneways (Rental) 4,000 new units

Coach Houses (Strata) 1,000 new units

Townhouses 5,000 new units

Moderate and higher income residents underserved by existing housing types • 5,760 family households with children lived in

one-bedroom homes in 20161

• 18,030 people ages 30-45 moved from Vancouver to elsewhere in the region between 2011 and 20162

1. Source: Stats Can 2016 Census. “Family households with children” refer to one-census-family private households without additional persons, with at least one child.

2. Source: Stats Can 2016 Census. Age is age recorded at 2016 Census period.


Who Are We Trying To Serve? Incomes Targeted: $50k/yr. - >$150k/yr.

Condos 30,000 new units

Households looking for ownership opportunities • In Dec. 2018, benchmark price for condos was

$538k vs. ~$1.45 mil. for a detached home on the eastside1

• 33% of households earning more than $100k/year were renter households in 2016 vs. 22% in 2006.2

• 28,144 (31%) rental condos in Vancouver in October 2018, providing additional rental options3

• Condos create value that enables non-market housing and other public benefits

1. Source: MLS Home Price Index, data from Real Estate Board of Greater Vancouver. 2. Source: Stats Can 2016 Census and 2006 Census. “Households” refer to private households . 3. Source: CMHC 2018 Condominium Apartment Survey.


How Are We Preserving Existing Affordable Housing, Supporting Renters & Providing Homelessness Services? Incomes Targeted: <$15k/yr. - >$150k/yr.

• Homelessness Services – Outreach Team, Temporary Winter Shelters, Warming Centres, Community Grants, actions on Destigmatization

• Supporting Renters – Tenant Relocation Policy, proposed new Renters Office

• Preserving existing affordable housing – SRA Bylaw, Infrastructure Grants, Rental Housing Stock ODP, Non-profit & Co-op Lease Framework for Renewal, engaging with BC Housing & CMHC on rehabilitation of existing housing

Supportive and Social Housing 25,000 homes preserved

Purpose-Built Rental Housing 58,000 homes preserved

What is the City’s Role in Housing?

“Municipal Tool Kit” Invest Regulate Advocate/Partner

I

R

A

I

A

R

• Prioritizing & expediting affordable housing projects

• Policy, incentives & regulation to enable development

• Identify local needs & investment opportunities for senior government money

• Engaging with neighbours and residents

City of Vancouver

• Acquiring land & providing for affordable housing projects

• Capital grants • Non-market housing

operator

City-Wide Plan

Community Plans

City Strategies, Tools, and Initiatives

20,000 new 58,000 preserved 30,000 new 4,000 new 1,000 new 5,000 new

Rental Incentive Programs

(R100/MIRHPP)

Explore Rental Only Zones

Enhanced Tenant Protections

Rental Housing Stock ODP

12,000 new 25,000 preserved

Partnerships & Provision of City

Land

Inclusionary Zoning

Facilitating Community-Based

Projects

Supportive and Social Housing

SRA Strategy & Bylaw

Purpose-Built Rental

Laneways (Rental)

Coach Houses (Strata)

Townhouses

Low-density Neighbourhood planning (Making Room) within City-wide Plan

Laneway House Program

Character Retention Incentives

Condos

Empty Homes Tax

Short Term Rental

Regulations City-initiated rezoning – Community Plan

implementation

Support Services (Homeless Outreach Team, Rapid Actions on Homelessness)

DCLs & CACs

Healthy City Strategy

Housing Vancouver Strategy

City of Reconciliation

Framework

Greenest City Strategy

Poverty Reduction Strategy

Housing Trends & Challenges Influencing City Action

Housing Trends Influencing City Actions

Homelessness continues to increase.

2005 – 2018 Homeless Trend in Vancouver

773 765

1,294 1,427 1,296 1,327 1,267 1,258 1,308 1,601 1,522

591 811

421 154 306 273 536 488 539

537 659

1,364 1,576

1,715 1,581 1,602 1,600

1,803 1,746 1,847

2,138 2,181

0

500

1000

1500

2000

2500

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Sheltered Unsheltered Total


Increasing rents in the private SRO Stock – only 15% of units now rent at shelter rates.

60%

33%

8%

36%

50%

14%

26%

60%

14%

24%

45%

31%

17%

41% 41%

15%

25%

60%

0%

10%

20%

30%

40%

50%

60%

70%

$375 and Under $376-450 $451+

2007 2009 2011 2013 2015 2017

Changes in private SRO Distribution of Average Rents 2007-2017


Rental housing demand remains strong, but there are not enough affordable rental units due to limited production over the past four decades.


Housing prices continue to increase faster than incomes, and normal market conditions do not fully explain the rapid price escalation.

0%

20%

40%

60%

80%

100%

120%

140%

160%

180%

200%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017Change in housing costs and income, 2006-20171

Detached price - Van East Apartment price - Van East

Primary market average rent Median income

1. Source: CMHC 2017 Rental Market Report, Statistics Canada, Income Statistics Division, 2015, Annual Income Estimates for Census Families and Individuals, 13C0016, and MLS Home Price Index. For all data, increases are compared to 2006 levels. Benchmark prices and rent levels are from October of each respective years. Median income is shown for all family units.


Moderate and higher-income renters are priced out of ownership and putting pressure on an already tight rental market with limited rental options affordable for low-income residents. • Migration to Vancouver continues – over 25,000 more people in the city employed between

2011 and 20161; 42,305 migrants to Vancouver between 2011 and 20162

• Demand for rental continues to be strong – 0.8% vacancy rate for private apartments3

1. Source: Stats Can 2016 Census and 2011 National Household Survey. Employed persons only includes residents ages 15+ 2. Source: Stats Can 2016 Census. 3. Source: CMHC 2018 Rental Market Report.

Renter Households as a share of New Households (%)

2006 to 2011 2011 to 2016 %Point Change

City of Vancouver 40 76 +36 Burnaby 19 61 +42

New Westminster 25 47 +22

North Vancouver 40 65 +25

Surrey 40 46 +6

Vancouver CMA 32 59 +27


New rental supply has increased significantly in recent years, but the new rental housing is not affordable to lower income households.

$1,368 $1,418 $1,414 $1,654

$1,983

$0

$500

$1,000

$1,500

$2,000

$2,500

Mon

thly

rent

Year of Construction

Average Private Apartment Rent by Building Age

0.0

0.2

0.6 0.5

1.2

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

Vaca

ncy

rate

(%)

Monthly rent

Private Apartment Vacancy Rate (%) by Rent Range, 2018

Source: CMHC 2018 Rental Market Report


New housing projects face challenging headwinds such as rising construction costs, uncertain interest rates and high land costs making it challenging to achieve necessary affordability levels for very-low income residents.

1. Source: Altus Group Canadian Cost Guide. “Condo” refer to multi-family projects between 13-39 storeys. Construction costs are specific to Vancouver and are by square foot.

$270

$315 $325

$210

$250 $265

$150$170$190$210$230$250$270$290$310$330$350

2016 2017 2018

Cost per ft2

Vancouver Estimated Residential Construction Cost Range, 2016-20181


The City has regained the momentum in new rental housing development in recent years

0

5,000

10,000

15,000

20,000

25,000

30,000

# U

nits

Year Range

Rental Approvedand/or UnderContructionRental CompletedInside RHS ODPZonesRental CompletedOutside RHS ODPZones

Source: CoV Secured Market Rental Inventory

Vancouver Rental Housing Production 1990-2017


New Federal and Provincial affordable housing programs have the potential to significantly improve the viability of affordable housing projects.

• National Housing Co-Investment Fund • Affordable Housing Innovation Fund • Rental Construction Financing • Federal Community Housing Initiative

• Funding for new affordable housing (including rental & supportive)

• Funding to keep existing housing affordable

• HousingHub

Housing Challenges

• How can we provide leadership and support to ensure robust partnerships between all levels of Government to take rapid action on homelessness?

• How can we enable new homes through renewal/new development while avoiding displacing renters?

• How can we enable more rental housing supply to meet the need and reduce pressure on existing stock?

• How can we shift some of the new supply to be affordable to low-income residents and those experiencing homelessness?

• How can we improve public processes while maintaining the urgency in addressing the housing crisis?

City of Vancouver Housing Work Program

Aligning With Council Early Directions

Council has provided early direction on a number of priorities to address the housing crisis, including:

• Strengthening renter protection, enhancing support and preventing displacement

• Developing more robust and accessible engagement processes

• Deepening affordability in new residential development projects

• Taking rapid actions to address persistent homelessness

• Increasing the ambition and urgency to address the climate emergency; recognizing that building emissions play a large role

• Expediting a city-wide plan that includes accommodating growth, pursuing reconciliation and increasing housing that’s locally affordable

Q2 Q4 Q3 Q1 2019 2020

TRPP: Initial policy changes

Rental 100/DCL Review: consultation

& review results

Family Housing: Revised policy &

guidelines

Vancouver Affordable Housing Endowment

Fund: strategy, governance &

resources

Rental 100/DCL Review/Rental

Zoning: policy report

Grandview-Woodland: pace of

change update

City-wide Plan: work plan/low-density work

(Making Room) (motion on file)

Secondary Suite Review update

Housing Vancouver Annual Progress

Report Broadway Plan

Enhanced TRPP Rapid Actions on Homelessness: 2019 Homeless Count, Shelter &

Supportive/Modular Housing Strategy

Affordable Housing & Community Spaces Incentive Program

Rental zoning: broader implementation

Renters Office Report Back & Updates (motion on file)

Rapid Actions on Homelessness:

Temporary Winter Shelter Update

Protecting Tenants Report Back,

including notification & enforcement

(motion on file)

Rental Housing Taskforce

Rental Building Reinvestment

Short Term Rental Regulation Annual

Report

Jericho Lands

Indigenous Housing Strategy Update

Rezoning applications anticipated to go to Public Hearing ~30 Social & Rental Housing Projects (~2,350 units)

Empty Homes Tax By-Law Amendments

(motion on file)

Housing & Homelessness Grant

Report

Regent & Balmoral Report Renters Office

Update (motion on file)

SRO Strategy Update


Update

Low-Income Housing Survey

2020 Federal, Metro & City Homeless

Count Report

Update on City-wide plan engagement


Report


Report

Renters Office Update


Report Renters Office Update

1. Preventing Homelessness & Pathways Toward Housing Stability

Key objectives of work program

• Enable pathways out

of homelessness • Replacing private SRO

stock with social housing

• Improving living conditions for vulnerable and at-risk renters

• Develop good practices in Housing to respond on Opioid Crisis

• Advancing Reconciliation and Equity goals through partnerships and improvements in service delivery

2019

Rapid Actions on Homelessness: Homeless

Count, Shelter & Supportive Housing/MH Strategy with

BCH

SRO Strategy Update

Regent & Balmoral Report

2020

Rapid Actions on Homelessness: Homeless

Count, Shelter & Supportive Housing Strategy Update

SRO Strategy Update

Ongoing Initiatives

Equity & Reconciliation

in Service Delivery

Warming Centres & Temporary

Winter Shelter Implementation

SRO Tactical Taskforce

Housing & Homelessness

Grants

2. Enhance Renter Protections & Preserve Existing Affordable Housing


• Increase advocacy to

influence partners

• Enhance services and supports for renters

• Protect existing renters

• Reduce impact on renters of new development

• Enable aging affordable rental buildings to undertake repairs to ensure renter safety

• Enable renewal and redevelopment that preserves affordability

2019

Renters Office Report Back & Updates

Protecting Tenants Report Back, including notification

& enforcement

Tenant Relocation Policy: initial changes

2020

Enhanced Tenant Relocation & Protection

Policy

Rental Building Reinvestment: explore upgrades & incentives

Ongoing Initiatives Non-profit & Co-op

Housing Lease Framework for

Renewal

Oversight of Tenant Relocation Plans

Rental Housing Taskforce: improve renter protections facing renovictions

3. Delivering New Supportive & Social Housing Through Partnerships


• Develop supportive

housing to meet the needs of residents experiencing homelessness, and at-risk renters

• Uphold our Reconciliation commitments on Indigenous housing vision

• Optimize partner investments

• Incentivize partners to bring forward their land for development

• Advancing equity goals through partnerships and improvements in service delivery

2019 Supportive/Modular Housing

Strategy with BCH

Indigenous Housing Strategy Update & Projects

Vancouver Affordable Housing Endowment Fund:

strategy, governance, resources

2020


Ongoing Initiatives Grants for new Social

Housing Projects

on private land

Below market

leases on City Land

Prioritizing approval of

Social Housing projects

Operator selections

for new Social

Housing

Inclusionary social

housing projects

4. Enable New Rental Housing


• Introducing new

affordable housing options into neighbourhoods

• Increasing affordability of new housing supply to be affordable to local incomes

• Improving livability of new rental housing units and buildings

• Streamlining City processes to enable affordable projects

2019 Rental 100/DCL Review:

consultation & review results

Family Housing: revised policy & guidelines

Rental 100/DCL Review/Rental Zoning:

policy report

2020

Rental zoning: options for broader implementation

Ongoing Initiatives

Explore Affordable Homeownership: Jericho, Heather Lands & Making

Room

Moderate Income Rental Housing Incentive Pilot

Program

Rental Incentive Projects (Rental 100, Affordable

Housing Choices)

5. Projects Impacting Multiple Housing Priorities


• Ensure integration of

Housing Vancouver goals and objectives with city-wide initiatives, including both preservation targets and new supply targets

• Encourage all housing to be occupied or rented to alleviate pressure on a tight housing market

2019 City-Wide Plan: work plan/low-density work (Making Room)

Empty Homes Tax: by-law amendments

Grandview-Woodland Pace of Change update


Short Term Rental Regulations: first annual report

2020

Broadway Plan: preserve existing & enable new

affordable housing

Jericho Lands Planning Program: reconciliation &

new housing


Ongoing Initiatives Rezoning &

Development Permit Applications

Community Plan Implementation

Broadway DCE Implementation

6. Maintaining & Developing Strategic Partnerships


• Work effectively with

partners to address regional housing challenges

• Continuously improve data monitoring and tracking systems

• Ensure connection with up-to-date housing policy research nationally and internationally

Ongoing Initiatives Home Front (Metro Van Homelessness Coordination)

Regional Planning Advisory Committee

Metro Vancouver Aboriginal Executive Council

Inter-Gov Relationship with Ministry of Municipal Affairs & Housing and Ministry of Social Development &

Poverty Reduction

CMHC / BC Housing Partnerships

Stats Canada/CMHC Data Enhancement

UBC Housing Research Collaborative

Shaping Futures (International Research)

Non-Profit Housing Operator Shortlist

7. Streamlining City Development Processes


• Improve planning and

development systems and processes to better serve customers

• Expedite affordable housing projects to meet housing needs of residents

Ongoing Initiatives

Expanded ‘SHORT’ program to expedite production of all multi-family affordable housing

Fast-track Modular Housing

Customer Service Improvements: reduce wait-times/number of visits

Low Density Housing – Expand ASAP ‘nexus lane’ to all outright homes, create new Housing Renovation

Centre, enable delivery of HV programs

Increase Sector Knowledge: staff training & engagement with development industry

Regulation Redesign: simplify, clarify & update

8. Monitoring & Reporting


• Ensure transparent,

timely and accurate information on Vancouver’s housing market and progress towards targets is available to the public and Council

• Ensure rigorous data-gathering methods to inform evidence-based decisions

2019

2018 Annual Housing Vancouver Progress Report

& Data Book

Report on 2019 Homeless Count

Housing & Homelessness Grant Reports

Renters Office Updates

2020

Bi-Annual Low-Income Housing Survey: private

SRO stock

Report on 2020 Federal, Metro & City Homeless

Count

Ongoing Initiatives

Council Memos: CMHC Rental Market Reports,

Census releases

Ongoing monitoring of project delivery towards

targets

Key Work Program Initiatives to Prioritize Based on Council Early Direction

Rapid Action on Homelessness • Increase shelter

beds • Explore more

Modular Housing

• Housing responses to opioid crisis

Shelter-Rate Homes • Rental rate

requirements • Provide

sufficient homes for residents to move out of homelessness

Renter Advocacy & Supports • Proposed

Renters Office • Work with

Province to improve situation for Renters facing renovictions / demovictions

Rental 100 & Development Cost Levy Review • Effectiveness of

incentives • Affordability

level achieved

Integrating Housing Priorities & Climate Action • Housing

affordability links to lowering GHG emissions

Q2 Q4 Q3 Q1 2019 2020

TRPP: Initial policy changes

Rental 100/DCL Review: consultation

& review results

Family Housing: Revised policy &

guidelines

Vancouver Affordable Housing Endowment

Fund: strategy, governance &

resources

Rental 100/DCL Review/Rental

Zoning: policy report

Grandview-Woodland: pace of

change update

City-wide Plan: work plan/low-density work

(Making Room) (motion on file)


Housing Vancouver Annual Progress

Report Broadway Plan

Enhanced TRPP Rapid Actions on Homelessness: 2019 Homeless Count, Shelter &

Supportive/Modular Housing Strategy


Rental zoning: broader implementation

Renters Office Report Back & Updates (motion on file)

Rapid Actions on Homelessness:

Temporary Winter Shelter Update

Protecting Tenants Report Back,

including notification & enforcement

(motion on file)

Rental Housing Taskforce

Rental Building Reinvestment

Short Term Rental Regulation Annual

Report

Jericho Lands

Indigenous Housing Strategy Update

Rezoning applications anticipated to go to Public Hearing ~30 Social & Rental Housing Projects (~2,350 units)

Empty Homes Tax By-Law Amendments

(motion on file)


Report

Regent & Balmoral Report Renters Office

Update (motion on file)

SRO Strategy Update


Update

Low-Income Housing Survey

2020 Federal, Metro & City Homeless

Count Report



Report


Report

Renters Office Update


Report Renters Office Update

Thank you

City of Vancouver Housing Work Program

Documents

Transcript of City of Vancouver Housing Work Program