COMMUNITY AMENITY CONTRIBUTIONS POLICY Presentation
A slide presentation detailing policy options for affordable housing contributions within the Community Amenity Contributions (CAC) framework.
COMMUNITY AMENITY CONTRIBUTIONS POLICY
BACKGROUND:
- Provision of affordable (below-market) housing was discussed at April 13, 2021 Committee of the Whole meeting
- This report follows up with policy options for consideration with respect to community amenity contributions
DISCUSSION:
- Amending the CAC policy to make specific allocations towards affordable housing
- Directing funds for affordable housing
- Negotiating for affordable housing units in large rezoning developments
1. CAC Amounts for Affordable Housing
a. Set a percentage of CAC for affordable housing b. Increase target amounts of CAC policy
| Option | Single Family Residential | Other types of Residential Units |
|---|---|---|
| 1 No change | $5500 per unit (Allocated case-by-case) | $3500 per unit (Allocated case-by-case) |
| 2 25% of existing CAC rate with no rate increase | $5500 per unit ($1375 for affordable housing) | $3500 per unit ($875 for affordable housing) |
| 3 25% of CAC rate with proposed $500 increase | $6000 per unit ($1500 for affordable housing) | $4000 per unit ($1000 for affordable housing) |
- Percentage target is useful when a tangible amenity (e.g., building a public trail) is provided and the target cash contribution rate is a different amount.
- Leaves 75% of the rate to be used toward other community amenities. In comparison, City of Victoria allocates 70% of cash amenities received to housing reserve fund, leaving 30% for community amenities.
Comparison to other municipalities
| Option | Single Family Residential | Other types of Residential Units |
|---|---|---|
| 2 25% of existing CAC rate with no rate increase | $5500 per unit ($1375 for affordable housing) | $3500 per unit ($875 for affordable housing) |
| 3 25% of CAC rate with proposed $500 increase | $6000 per unit ($1500 for affordable housing) | $4000 per unit ($1000 for affordable housing) |
| Municipality | Single Family Residential Unit | Other types of Residential Units |
|---|---|---|
| City of Langford (2018) | $4800-$7000 total ($1000 for affordable housing) | $3168-$4620 total ($610-660 for affordable housing) |
| District of Central Saanich (2018) | $7500 total ($2000 for affordable housing) | $7500 total ($2000 for affordable housing) |
District of North Saanich, District of Oak Bay and Town of Sidney do not allocate specific CAC or Bonus Density amounts towards affordable housing. City of Victoria rate is based on floorspace.
2. Directing funds for affordable housing
Options
a. Allocate to CRD Regional Housing Trust Fund to supplement current annual contribution b. Collect funds to offset DCC waivers c. Collect funds for a project within the Town
| Option | Pros | Cons |
|---|---|---|
| A Transfer to CRD Regional Housing Trust Fund | • Simple to administer • low overhead costs • Pooling contributions into a regional fund supports affordable housing projects to move forward sooner. • CRD has staff expertise and capacity • CRD can leverage pooled contributions with other funding sources to create more ‘bang for the buck’ |
• uncertain when another a project might be located within Town |
| B Collect funds to offset DCC waivers | • supports projects within the Town • Preserves integrity of DCC program |
• Long time to accrue sufficient funds • No certainty of when funds would be requested • Long term overhead • Inflation |
| C Collect funds for a local project | • supports projects within the Town | • Long time to accrue sufficient funds • Long term overhead • Staff capacity and resources • Inflation |
3. Negotiating for affordable housing units in large rezoning developments
Add to CAC Policy:
Affordable Housing Amenity Where more than 60 additional residential rental units are proposed or possible, target a housing agreement to provide 10% of the units or floor space as affordable units for a twenty-year period as a Tangible Community Amenity Contribution.
- If units are desired, a minimum threshold is recommended because when delivered in small numbers, inclusionary housing units can be challenging and costly to administer, operate and monitor over time
- Units unlikely to be in perpetuity
Options
1. Amending the CAC policy to make specific allocations
- No change – contributions can be made to affordable housing on an ad hoc basis.
- Allocate 25% of CAC funds collected for affordable housing.
- Allocate 25% of CAC funds collected for affordable housing and increase the CAC rate by $500 per unit.
- Allocate a different percent and/or increase to the CAC rates.
2. Directing funds for affordable housing
a. Allocate to CRD Regional Housing Trust Fund (staff recommendation). b. Collect funds to offset DCC waivers for affordable housing. c. Collect funds for a project within the Town.
3. Negotiating for affordable housing units in large rezoning developments
- Should the threshold to consider the provision of affordable rental units on-site be 60 units (same as City of Victoria) or higher (e.g., 100)?
RECOMMENDATION:
THAT the June 2, 2021 report from the Senior Planner titled “Community Amenity Contributions Policy Amendment – Affordable Housing” be received for information.
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