PRESENTATION: Canadian Mortgage and Housing Corporation Housing Accelerator Fund Program

PURPOSE

• Introduce Canadian Housing and Mortgage Corporation’s (CMHC) Housing Accelerator Fund (HAF) Program
• Seek Council’s support on applying for incentive funding to further advance housing initiatives

BACKGROUND

• Incentivize the implementation of local actions that remove barriers to housing supply, accelerate the growth of supply, and support the development of communities that support the following priorities:
  • the development of complete communities (housing and public and active transportation);
  • the development of affordable, inclusive, equitable and diverse communities; and
  • the development of low-carbon and climate-resilient communities.

Funding Eligibility

• A local government must commit to and meet the following minimum requirements:
  • develop an action plan that specifies a housing supply growth target and commit to a minimum of seven initiatives to be undertaken to grow housing supply and speed up housing approvals;
  • commit to a housing supply growth target within the action plan that increases the average annual rate of growth by at least 10% and growth rate must also exceed 1.1%;
  • provide a housing needs assessment report; and
  • submit periodic reports to CMHC in the form and timelines.

Proposed Action List Initiatives

1. Promoting high-density development without the need for rezoning (as-of-right zoning), e.g. for housing developments up to 10 storeys that are in proximity (within 1.5km) of rapid transit stations and reducing car dependency
2. Encouraging Accessory Dwelling units – a second smaller unit on the same property as a primary unit (i.e. garden suites)
3. Implementing land use changes mandating a minimum number of family units (units with more than two bedrooms) or allowing for office conversions to residential with minimum family unit requirements
4. Implementing revised parking requirements such as reduced or eliminated parking spaces for new developments
5. Waiving public hearings on all affordable housing projects that conform to the official community plan
6. Implementing inclusionary zoning (the requirement that a developer builds a certain percentage of their units at affordable (below market) prices or rents) in ways that foster development
7. Implementing changes to decision making such as delegating development approval authority to municipal staff based on established thresholds and parameters

The Blink Line – RapidBus Stations

Future RapidBus Stop

Housing Supply Growth Target

• Establish the two housing projections based on a three-year period ending September 1, 2026:
  • the total number of permitted housing units projected without HAF; and
  • the total number of permitted housing units projected with HAF.
• Commit to a housing supply growth target within the action plan that increases the average annual rate of growth by at least 10% and exceed a growth rate of 1.1%

Incentive Funding

• Base funding - estimated at $20,000 per HAF unit (all types of housing)
• Top up funding - incentivize certain types of housing supply and does not include single family dwellings and estimated as follows:
  • $15,000 per multi-unit housing within 1500m of rapid transit
  • $12,000 for missing middle housing (i.e. garden suites, triplexes, fourplexes, townhouses, apartments less than four storeys);
  • $7000 for other multi-unit housing near rapid transit.
• Affordable housing bonus - reward an applicant that can increase its share of affordable housing units relative to the total projected permitted units with HAF. The estimated amount is $19,000 per affordable housing unit.

Incentive Funding and Permitted Uses

• HAF funding can be used in support of housing under any of the following four categories:
  • investments in housing accelerator fund action plans
  • investments in affordable housing (i.e., construction of affordable housing, repair or modernization of affordable housing, land or building acquisition of affordable housing)
  • investments in housing-related infrastructure that supports housing (i.e., drinking water and wastewater infrastructure, solid waste management, disaster mitigation, etc.)
  • investments in community-related infrastructure that supports housing (i.e., local roads and bridges, sidewalks, lighting bicycle lanes, firehalls, landscaping and greenspace)
• Applicants have flexibility to spend their HAF funding in any of the four categories listed above, including directing all the funding into one or two categories if they choose

Recommendation

• Apply to the HAF program
• Commit to a housing supply growth target that increases the average annual rate of growth by at least 10% and a growth rate of at least 1.1%
• Implement the proposed seven action items that would result in an increase housing supply and streamline development approvals in accordance with the funding program