SD LIBRARY
IIIII
I I I H010/0060/1969 CITY OF EDMONTON SUBMISSON TO EDMONTON
5092
Twat' 101'
The City of Edmonton
SUBMISSION TO THE TASK FORCE ON HOUSING AND URBAN DEVELOPMENT
2535a .E3 1969
OUTLINE
INTRODUCTION I. Goals and Responsibilities 2. Redistribution of Revenue Sources 3. Public Housing 4. Urban Renewal 5. Limited Dividend Scheme 6. Land Speculation and Servicing 7. Urban Research 8. Dissemination of Information 9, Suggested Amendments to Existing Legislation 10, Mass Production Techniques II. Rehabilitation of Older Areas 12. Summary
Appendix A - Preparation of Subdivision for Servicing Appendix B - Vacant Services Lots Appendix C - Construction and Vacancy - Graphs
CITY OF EDMONTON SUBMISSION TO THE TASK FORCE ON HOUSING AND URBAN DEVELOPMENT
The City of Edmonton submits that there are two fundamental concerns in solving problems of housing and urban development. These are: 8. A better definition of the responsibilities of each level of government and the preparation, by each level of government, of a list of goals consistent with its responsibilities. The proposed General Plan for the City of Edmonton is an example of the type of statement of goals at the local level. Provincial governments and the federal government must prepare similar statements for public review and legislative and parliamentary adoption. 2. The establishment of a system of finance which will ensure each level of government a reasonable supply of funds to provide a balanced program of services and facilities for Canadians. Municipal revenues should go toward providing urban services. Provincial and federal revenues should be directed into schemes for income redistribution; that is, by way of amplification, education, poverty, health and the like. fit is recognized that systems are not changed overnight, but it is important that decisions taken today are consistent with some rational policy regarding the division of responsibility and the allocation of funds. The two points above have been emphasized because, first, rural-dominated legislatures have for too long neglected to examine the problems of local municipalities; and second, because local-provincial-federal systems of sharing finances seem to have been established through continual ad hoc decisions aimed at providing expedient solutions
2
3. Public Housing The City of Edmonton still has no public housing available for low-income groups even though considerable effort has been expended by all three levels of government to solve the problem over a period of years. The need has been apparent for some time. In this connection, it can be said that innovation and imagination are quickly stifled by existing government rules and regulations. It is more expedient to propose "standard type" projects which conform to existing stereotypes, which have already obtained the approval of senior management in Ottawa. At present, the municipality must deal directly with the Provincial Corporation, a fact which creates problems if the positions and policies of the Provincial Corporation and Central Mortgage and Housing Corporation differ. Under this procedure, the municipality must play it safe or face the prospect of not obtaining Federal approval after considerable staff time has been expended. The existing tripartite system is wasteful and expensive. All three levels of government are forced to hire and maintain qualified staff to protect their interests, resulting in a duplication of effort, It would appear logical to consolidate the procedure from three level involvement to two level government involvement, with the Central Mortgage and Housing Corporation involvement limited to that of a purely financial function with all administration and negotiation with the municipality handled by the Provincial Corporation acting as a representative of the Central Mortgage and Housing Corporation. a. To speed further the implementation of public housing schemes it is recommended that internal lines of responsibility and communication within Central Mortgage and Housing Corporation be amended to give local offices wider discretionary powers. b. A qualified person doing any serious reading of the history of public
- 3 housing in the United States and eastern Canada can readily see that the success of public housing and acceptance by the community and professional sociologists depends on low density projects incorporating social rehabilitation and recreation facilities either in the project or in close proximity. To date, although the City of Edmonton desires to gain from other cities' experience and not recreate future problems in this community, it has found it difficult to effect these goals in concrete results. The financial considerations do not favour low density projects because the City must assume complete responsibility for all social service delivery systems and recreational programs. Physical space, (if not assistance towards the cost of appropriate personnel to man these facilities), should qualify for Federal and Provincial assistance in public housing projects. d. The City of Edmonton also wishes to involve private developers in the provision of subsidized rental units.
It is hoped that the federal
regulations will be amended to permit participation by private developers already possessing competent staff and the capability to effect the greatest possible savings. Even allowing the developers a reasonable profit could well prove economical to the municipality. 4. Urban Renewal Federal participation in urban renewal presumably has as its basis the national goal of attractive cities as related to adequately maintained buildings and the relationship between sound and decent structures and the mental and social health of Canadians. a.
In this context, the need for most municipal action in the field of urban renewal in western Canada lies in rehabilitation and conservation. Un-
- 4 fortunately there is no federal assistance available in the way of low interest loans or grants which could be used to great advantage in stimulating participation by existing owners and businessmen in urban renewal selfimprovement •schemes. The City of Edmonton now has legislative permission under the Alberta Housing Act to provide grants and loans in urban renewal scheme areas but must bear 100% of the incurred costs. Normally in urban renewal areas, the residents and businessmen in high risk areas are unable to pay going interest rates and some subsidization is required. The tendency now seems to be one of complete demolition and change, a philosophy which has limited future and potential in the City of Edmonton. It is the City of Edmonton's contention that every effort must be made to involve existing residents in the urban renewal process and encourage them to play an active role in obtaining the goals of community improvement. b. As in the case with public housing, there is a definite need for the federal and provincial governments to reconsider their position concerning direct participation under urban renewal financing to assist the municipality in meeting social costs of urban renewal. Neighbourhood social service centres should be eligible for urban renewal financing assistance to spur and stimulate neighbourhood improvement and prevent blight before it has reached the point of no return and expensive drastic redevelopment action is required. c. The inability of home owners to purchase comparable housing after obtaining "fair market value" for their property is a very real problem not now satisfactorily resolved. Unless the housing squeeze eases, no real solution to this problem can be foreseen if the "fair market value" technique is employed. The low socio-ecomonic groups, i.e., old age pensioners,
- 5 transient workers, and the mentally and physically handicapped now depend to a large degree on substandard accommodation in the transitional areas of the municipality. With the cost of new housing rapidly escalating due to land speculation and to construction, material and financing cost increases, to the point where only high middle and high income groups can afford them, all public and private redevelopment programs reduce the number of low rent units available on the market. This constitutes a major problem facing the municipality when it considers the long-range goals of urban renewal planning and program implementation. A similar situation faces low rent dependent small businesses which are forced out of business by renewal programs. There is no equitable financial solution to their problem with the exception of outright subsidy. Much more meaningful research is required into the needs of persons and businessmen displaced by urban renewal action. This should be done we suggest, on a nation-wide basis, with Central Mortgage and Housing Corporation taking an active leadership role0 d0 in studying the City's Boyle Street Urban Renewal Scheme area over the last two years, it has been readily apparent to the City administration that there is a distinct need for greater co-ordination of Federal and Provincial programs dealing with poverty, vocational training, health and welfare, etc. Not only is there a distinct need for improved communication between federal, provincial and municipal agencies on a vertical basis but also on a lateral basis between federal departments and provincial agencies as well as municipal departments. To obtain meaningful results, urban renewal must strive for effective communication to achieve coordination of all programs and co-operation of all public and private agencies.
-65, Limited Dividend Scheme Limited Dividend housing has a very important part to play in the total housing picture
It provides accommodation at low to medium rental levels
for some families which would otherwise be required to spend a disproportionate share of their income on accommodations obtained at market prices. During the last 15 months approval was received for two projects providing, in total, 228 units. Local developers are interested in and capable of constructing in the vicinity of 800 units. There is, however, no guarantee that sufficient funds will be channelled into the Edmonton area by Central Mortgage and Housing to satisfy this stated interest. 6. Land Speculation and Servicing While the rapid rise in housing costs has been the cause of a great deal of concern in the current housing crisis, the part that urban land prices have played in this rise deserves even more careful attention. Land prices have risen at a significantly more rapid rate than housing costs in general as substantiated by Central Mortgage and Housing Corporation statistics. Thus the land component of urban housing now accounts for a proportionately greater share of the cost of urban housing than it did previously. a. If a Capital Gains Tax on the sale of real estate would have the effect of reducing the huge profits being made, and would have the effect of slowing down the terrific rate at which real estate costs are increasing, there is no field, in the City's opinion, that deserves earlier or greater attention. Finding sites within the limits of The City of Edmonton on which to develop the low-density public housing projects referred to previously, and deemed necessary by many researchers for satisfactory operation, has become impossible unless the City is prepared over and above its percentage share
- 7 under the different schemes available, to pay the excess cost of the land required and finance the costly servicing, social and physical, associated therewith. On the other hand, if the institution of a Capital Gains tax on real estate transactions merely has the effect of forcing the speculator to further increase the sale price of his land so that he can cover the tax, such a result would only aggravate the present situation, particularly if the funds realized from the tax merely go into Senior Government revenues and are then used for other purposes than the control of land prices. The City realizes that a change in the policy of assessing vacant land could have the effect of reducing land price escalation, but in that this matter lies within the field of the Provincial Government's jurisdiction, it is not being dealt with in this brief. The point that the City wishes to stress is that early action is necessary to prevent the huge profits being made in land speculation, most of which profits are obtained with little or no real contribution to the overall wealth of the Dominion, and ultimately become a load that the ordinary citizen must carry. b. Urban land might be taxed by municipal governments in a manner to reflect more closely its potential use. This would encourage the highest and best use of land. Two means suggest themselves: I. A shift in the property tax formula involving an increase in the proportion of the tax on land, and a reduction in the level on buildings. (At present in Edmonton, about two-thirds of the property tax results from levies on buildings; one-third from taxes on land.) This results in under-utilization of land and discourages homeowners from improving their property. Voluntary rehabilitation of many older areas might well result from this shift in the formula.
- 8 To permit this change in property tax policy, an amendment to the Provincial Assessment Act would be required. 2. A penalty could be imposed on land which is being held back by the owner for income tax reasons or to facilitate his own extended staging program of property development. The penalty, in the form of a special property tax assessment, could be imposed on a yearly basis, starting with the second or third year after services have been installed, c. In a situation where urban land speculation has become concentrated in fewer hands the possibility of collusive activity on the part of land suppliers has become an important issue. By withholding land from the market, through either actual or tacit agreement, the price of land is driven up. Such action, if it exists, is monopolistic and a restraint of trade. Yet land is not considered a commodity in the sense implied in federal anti-combines legislation, and the restraints referred to escape legislative penalties. Consideration should therefore be given to broadening the legislation, or special investigation should be made by the Minister responsible for housing. d. The City of Edmonton has, until recently, prepared most of the plans for new residential subdivisions. At no time has there been any deliberate attempt by the City to restrain the subdivision of appropriate land. Appendix A contains a review of the procedures and time required to bring a raw piece of land to the stage where utilities could be installed. The example chosen is that of one section of land (640 acres) in northeast Edmonton where from the time the first instruction was given to prepare subdivision plans for the area to the time that utility installation
- 9 could begin was 14 months. This example is not atypical; the land negotiations phase can vary and some other subdivisions have taken longer. 1 -1- would probably be generally considered that one to two years is not an unreasonable length of time for this planning phase. The interesting observation, however, is that since February 1968 not one lot in the said section of land has been serviced. The shortage of serviced lots is a problem of extending utilities to that land, i.e., a lack of funds to pay for the City's share of the installation of the services. Prior to 1968, The City of Edmonton, independently of its own share, followed a policy of servicing lots by borrowing on the open market at current interest rates varying from 4% to 7%, and by recovering the costs thereof, with interest, at the time the building permit for the affected lot was applied for, usually within a period of one to two years following actual installation. The work itself was done under the supervision of the City Engineer, the underground electrical and telephone services by Edmonton Power and Edmonton Telephones. Some of the work was done by the City's crews, the remainder by calling for tenders. Notwithstanding the fact that servicing in Edmonton no doubt necessitates laying sewers and watermains at lower depths than is the case in certain parts of Ontario and in British Columbia with consequent greater cost; that all homes are served with underground power, street lighting and telephone; that all houses are supplied with both storm and sanitary sewers, and the supplying of water usually entails greater relative pumping costs than is the case in many Eastern cities, servicing costs in Edmonton compare more than favourably with other large Canadian centres. The major problem confronting The City of Edmonton insofar as the future servicing of lots is concerned, however, arises from the fact that many large trunk sewers, storm and sanitary, will first of all have to be constructed. The same situation
- 10 applies to the extension of watermains and other utilities, as does it also apply to the construction of major highways, freeways and Rapid Transit Lines. Within the next two years the City's Sewage Treatment Plants have to be enlarged. All these projects require the raising of large amounts of capital which have to be paid for by the citizens at large through increased mill rates. Not only do today's high interest rates militate against such borrowings, but finding sources from which to borrow the needed amounts is becoming progressively more difficult. In view of this problem it is this City's contention that the Dominion Government should give serious consideration to making income from Municipal Debenture coupons income tax free as is the situation in the United States. Moreover, if the Government of Canada is seriously concerned in making more homes available in its large cities, it should give serious consideration to making funds more readily available through loaning policies to municipalities such as presently is being done with respect to the construction of large sanitary sewers as provided for in the National Housing Act (1954). 7. Urban Research Agencies to undertake research on urban problems and additional continuing research are, at present, almost non-existent. Central Mortgage and Housing Corporation is geared primarily to administration of federal programs. The Province of Alberta similarly has shown no initiative in attempting to research problems which are common to urban centres in this province. (The City of Edmonton Planning Department has a research Division which includes six professional staff.) The Economic Council of Canada in its Fifth Annual Review states: ....we urge that programs be undertaken to apply first-class scientific minds and advanced technologies to resolving the growing problems of
rapid urbanization. Much more could usefully be done along these lines with respect to such matters as transportation, housing, air and water pollution, noise, recreation, and the human environment generally. (Page 60). We therefore recommend that there should be a substantial strengthening of social science research capabilities in Canada, including an enlargement and broadening of the support available for such research. (Page 53). We recommend that a research group, national in scope, be established in Canada. The organization would preferably be established along the lines of the Brookings Institute in the United States or perhaps the Economic Council of Canada. Additional financial support should be made available to selected universities to support urban research. The university-oriented programs would be tied more closely to problems in their own regions. As part of the increased federal participation in urban research it is suggested that demonstration grants be made available to urban areas. These grants would be used to test out new ideas which might never be tested were it left to local initiative and support. 8. Dissemination of Information The Task Force should arrange for the compilation and distribution of all briefs it receives to governments, planners, university staffs and students and others who might be concerned with urban development problems. 9. Suggested Amendments to Existing Legislation Research should be undertaken into the feasibility of a floating or subsidized interest rate. There seems to be little equity in causing those buying homes in periods of high interest rates to be penalized for the next 25 to 35 years. The maximum loan available for buying older homes should be increased to more
- 12 than the present limit of $10,000. Public housing tenants should be allowed to purchase their dwelling units. It is our understanding that the United States has had such legislation since 1965. If the goal of the various levels of government is to stimulate construction, it appears to be self-defeating to continue the 11% sales tax on building materials. The original problem of equity of taxation must surely have been superseded by the even greater problems of housing. At the present time, other sectors of the economy may be better able to provide this tax revenue than the building sector. The tax could be removed on a selective basis -removed only on materials used in residential strctures. Urban renewal legislation should be amended to enable municipalities to effect rehabilitation in small pockets of blight or poor development without their having to go through the complicated rules and regulations now in force for large urban renewal schemes. 10. Mass Production Techniques The centre for Housing and Environmental Studies, Cornell University, Ithaca, New York, has recently completed a study on mass production of housing units. Entitled "The New Building Block - A report on the Factory-Produced Dwelling Module", the report suggests that components of a dwelling unit, including kitchens and bathrooms, could be factory-produced and assembled to form single-family homes, row housing and low or high-rise apartments. A photostat of an article describing this report is attached. II. Rehabilitation of Older Areas While there is emphasis on providing new houses, it should not be forgotten that every attempt must be made to maintain present housing stock in adequate
- 13 condition so that older housing is not lost even as new houses are created. The proper maintenance of older homes may require federally-guaranteed loans for home improvements. The federal government should encourage the provinces to pass enabling legislation which would permit municipalities to enforce minimum standards for the maintenance and occupancy of property throughout the entire municipality. This type of enforcement would minimize or eliminate the need for further public action in areas which are not yet in need of large-scale public expenditure. 12. Summary The City of Edmonton believes that decent housing is rapidly growing beyond the reach of many Canadians, not merely the obviously poor, but also those who would be spending a disproportionate amount of their incomes on accommodation if they tried to buy a home today. The City further believes that if present circumstances continue and no effort is made--particularly by governments--to make homes easier to buy, the housing situation is bound to deteriorate. Clearly there are limits to the number of new houses that can be built and older homes renewed. But the point is that more could be done within the economic limits of Canada to supply her citizens with housing. When other than economic factors prevent Canadians from owning or renting decent accommodation they are being needlessly denied a basic right. Some of the suggestions in this brief, particularly for a better definition of the responsibilities of each level of government and for a re-allocation of funds so that each might meet its responsibilities, will go far toward overcoming this needless denial. The time has come for government leadership, and co-operation from the private sector, to streamline the procedures
- 14 for getting public housing underway on a scale adequate to meet the demand, for encouraging rent-subsidized projects and for new forms of assistance to the purchasers of their own homes. The housing problem is long-range; it demands new long-range solutions.
APPENDIX A PREPARATION OF SUBDIVISION FOR SERVICING
December 15, 1966
instruction to planning staff to prepare subdivision plan
January 15, 1967
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preliminary design distributed to City departments and Central Mortgage and Housing Corporation
February 20, 1967
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departmental replies received and detailed design initiated
March 21, 1967
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proposed detailed plan distributed to City departments and Central Mortgage and Housing Corporation
May 4, 1967
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departmental replies received and plan submitted to Municipal Planning Commission where it was approved
May 10, 1967
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City Council adopted detailed plan
May 31, 1967
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Central Mortgage and Housing Corporation approval received regarding preliminary design plan
June 5, 1967
application sent to Edmonton Regional Planning Commission (E.R.P.C.) for an amendment to the Preliminary Regional Plan
June 28, 1967
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Detailed plan sent to City of Edmonton Land Department to obtain from the land owners of the parcels under the old farm subdivision to agreement to transfer and sale of land to achieve the new subdivision (or to "negotiate the replot")
August 2, 1967
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Necessary amendment approved by E.R.P.C.
August 10, 1967
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C.M.H.C. approval in principle of detailed subdivision plan
September 5, 1967
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Provincial Planning Board concurs with decision of E.R.P.C.
APPENDIX A (Continued)
October 18, 1967
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Land Department indicated that the southeast quarter of the section could be surveyed as agreements with landowners were made
January 18, 1968
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Final survey linen approved for 183 acres in the southeast part. Letters sent to property owners.
February I, 1968
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Municipal Planning Commission recommended approval and adoption of replotting scheme by City Council
February 26, 1968
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City Council adopted the scheme for the 183 acres
Currently
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The Land Department is continuing negotiations with remaining owners in the section.
APPENDIX B THE DISTRIBUTION OF VACANT AND SERVICED LOTS. THROUGHOUT THE SUBURBAN AREAS OF EDMONTON October 1968
May 1965. West Buena Vista Patricia Heights Quesnell Heights Vic, Terrace Westlawn Elmwood Meadowlark Park Northeast Delwood Londonderry Pundle Heights Steele Heights Belvedere Maypark Balwin Southwest Aspen Gardens Duggan Greenfield Lansdowne Riverbend Royal Gardens Westbrooke Estates Ottewell arandview Heights Malmo Plains West Capilano TOTAL *Not included in survey
0 * * o 155 89 244
Jan, 1966
July 1966
32 0 83
30 0 122 * o * o 152
0 59 48 222
Nov. July 15, Nov. 9, April 18, July 23, Oct. 15 1968 1967 1968 1968 1966 1967 60 075 4 o 3 o
*172-
225 369 581 462 201 148 0 25 164 215 o 166 334 266 327 273 98 139 191 138 * * 75 0 0 2 37 1,136 1:76 1,161 1,074
71 233 89 14 125 o 0
58 201 49 13 89 o 0
41 158 44 8 39 0 0
--
T7E
532
410
290
-57
200 264 325 183 0
119 495 299 480 0 * C 1,393
59 420 237 348 o * 0 1,57
23 340 202 251 0
370 319 218
0 77
907
8 236 150 104 69 4 131 o o o o 702
8 89 75 88 51 4 108 o o o o 423
1 37 21 70 63 o 89 o o o c 243
2 627
1 897
1 349
51 0 75 14 o o 0
0 972
56 127 191 326 9 146 253 4 o 33 236 702 472 399 243 148 299 251 0 331 95 111 113 0 121 21 290 139 488 276 185 163 206 122 148 o o 93 43 305 o o o 39 65 o o o 39 113 o o * 31 33 1,754 5746 1,780 1760 925 3,134 2 934 3,093 2 776 2 037
30 82 40 46 89
17 -63 140 -88
3Eg 1 502
Dwelling Units Under Construction
Edmonton
Planning Deportment
Source • C.M.H.C.
4000
3500
3000
2500
2000
1500
APARTMENTS & ROW HOUSES
1000
500 :::•••'• •
iii 1963
iii.,
L
1964
i
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.1 + 1965
1966
1967
1968
Graph I
Newly Completed Unoccupied Detached and Semi-detached Dwellings — Edmonton
The City of Edmonton Planning
Department
Source . C.M.H.C.
800-
700-
600-
500-
400-
2001-
100
01
I
I i i I i
1963
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1964
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1965
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1966
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1967
Graph 2
Vacancy Percentages of Apartment Buildings
Edmonton
Source
Planning Department
Sample — one-third of all rental units (not including apartments completed for less than six months)
20%-
Downtown Area Remainder of the Metropolitan Area
a. ma. ma.. ma, •
City Average 15%-
• • • O. •
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'•% •
4 •
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596—
4 •
• ve
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....... "am •• •
I•
1963
1964
C.M.H.C. defines the Downtown Area
1965
•
•
**-
mem
••• •••
1966
••4
1967
1968
as bounded on the North by the C.N.R. tracks, on the South by the River, on the East by 82 st. on the West by 124 St.
Graph 3
Source
C.M.H.C.
Vacancy Percentages in High Rise Apartment Buildings City of Edmonton Planning
Department
20 "Yo
15%
— 10%
— 5%
0, .1 , 1,9r3„ ,„ „
, I „Ii
,
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1967
1968
1111111111
Graph 4
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