Edmonton (Alta.) - 1980-1981 - Annual housing report (1980-04) by Edmonton Tower Resource Centre Online Library

SD LIBRARY

12717978

Edmonton Sodo Economic Edmonton, The City F

THE CITY OF

MOn

REAL ESTATE AND HOUSING APRIL 1980

H010 0468 1980

1980 ANNUAL HOUSING REPORT

PREPARED BY: REAL ESTATE AND HOUSING DEPARTMENT 1980 04 21

TABLE OF CONTENTS PAGE EXECUTIVE SUMMARY 1

INTRODUCTION

CHAPTER I

OVERVIEW OF THE EDMONTON ECONOMY IN THE HOUSING MARKET A. B. C. D. E. F.

CHAPTER II

THE NEED FOR SOCIAL HOUSING IN EDMONTON A. B. C. D.

CHAPTER III

The Edmonton Economy in Review Employment and Population The Housing Market Rental Apartment Vacancy Rates The Cost of Housing in Edmonton Chapter Conclusions

Household Growth and Affordability of Housing The Purpose of Social Housing The Dimension of the Housing Problem Conclusion

3 3 3 4 10 11 13

14 15 16 17

MUNICIPAL INVOLVEMENT IN THE PROVISION OF SOCIAL HOUSING

DIRECT CITY INVOLVEMENT

1.A 1.B

1.0

LIMITED CITY INVOLVEMENT 2.A 2.6 2.0 2.D

Community Housing Program Low Income Housing (Non-Profit and Cooperative Housing Programs) Senior Citizen Lodge Program

Senior Citizen Self-Contained Housing Program Core Housing Incentive Program (CHIP) Alberta Family Home Purchase Program Limited Dividend Program

SUMMARY

28 33 36

36 39 42 46

. . /2

TABLE OF CONTENTS (cont'd)

PAGE

CHAPTER IV

SOCIAL HOUSING TARGETS AND FUTURE MUNICIPAL LAND AND BUDGET REQUIREMENTS A. B. C. D. E. F. G. H.

CHAPTER V

APPENDICES

Community Housing Proposed Activity Low Income Housing Program Proposed Activity Senior Citizen Lodge Program Proposed Activity Senior Citizen Self-Contained Program Proposed Activity Core Housing Incentive Program (CHIP) Proposed Activity Alberta Family Home Purchase Program Proposed Activity Limited Dividend Housing Program Proposed Activity Summary

49 49 56 61 63 64 64 64 65

A PROGRAM FOR ACTION

Action Plan

SUMMARY OF REPORT ENTITLED A HOUSING STRATEGY FOR THE CITY OF EDMONTON

II. CITY COUNCIL RECOMMENDATIONS PERTAINING TO HOUSING

LIST OF TABLES PAGE Table 1.1

Vacancy Rates in Apartment Structures 1976 - 1979 Metro Edmonton

Apartment Rents in Edmonton By Type of Unit 1974 - 1979

Table 1.3

Costs of Home Ownership In Edmonton 1974 - 1979

Table 3.1

Community Housing Program Criteria for Unit Allocation

Total City Subsidy for Community Housing Units Subsidy and Unit Statistics

Table 3.3

Maximum Unit Price Guidelines

Table 3.4

Senior Citizen Lodge Program Operating Deficits 1973 - 1979

Number of Existing Social Housing Units by Program

Community Housing Program Projected Production Targets

Table 4.2

Land Acquisition Budget - Projected ($000)

Table 4.3.a

Total City Subsidy for Community Housing UnitsSubsidy and Unit Statistics

Community Housing Operating Subsidy Discounted Cash Flow Analysis (1980 Dollars)

Table 4.4

Municipal Non-Profit Projected Production Targets

Table 4.5

Land Acquisition Budget - Projected ($000)

Table 4.6

Cooperative & Private Non-Profit Housing Programs Projected Production Targets

Table 4.7

Land Acquisition Budget - Projected ($000)

Table 4.8.a

Senior Citizen Lodges (No. of Beds) Operating Subsidy Paid by the City of Edmonton

Senior Citizen Lodge Operating Subsidies Discounted Cash Flow Analysis (1980 Dollars)

Table 4.9

Projected Production Targets

Table 4.10

Land Acquisition Budget - Projected ($000)

Table 1.2

Table 3.2

Table 3.5

Table 4.1

Table 4.3.b

Table 4.8.b

LIST OF MAPS PAGE Map 3.1

Map 3.2

Map 3.3

Map 3.4

Map 3.5

Map 3.6

Map 3.7

Map 4.1

Location of Community Housing Program Projects

Program Projects - Private Non-Profit and Cooperative Housing

Location of Senior Citizen Lodge Program Projects

Location of Senior Citizens Self-Contained Housing Program Projects

Location of Core Housing Incentive Program Projects

Distribution of Alberta Family Home Purchase Program Housing Units

Location of Limited Dividend Program Projects

Location of Older Neighbourhoods

LIST OF FIGURES

PAGE Figure 1.1

Figure 1.2

Figure 1.3

Figure 1.4

Figure 1.5

Figure 3.1

Figure 4.8

Annual Dwelling Starts in Canada, Alberta and Edmonton Metropolitan Area

Comparison of Provincial and Metropolitan Dwelling Starts

Newly Completed and Unoccupied Dwellings Edmonton Metropolitan Area

Annual Dwelling Starts Edmonton Metropolitan Area 1977, 1978, 1979

Building Permits Issued (By Dwelling Unit Type) for the City of Edmonton, 1977, 1978, 1979

Cumulative Annual Inventory of Community Housing Units

Past and Estimated Operating Subsidies Paid by the City for Senior Citizen Lodge Program

List of Tables (Cont'd)

PAGE

Table 4.11.a

Projected Annual Operating Subsidies by Program

Table 4.11.b

Projected Annual Operating Subsidies by Program Discounted Cash Flow Analysis (1980 Dollars)

Housing Action Plan - 1980 - 1982

Table 5.1

EXECUTIVE SUMMARY

1980 ANNUAL HOUSING REPORT

EXECUTIVE SUMMARY

This summary provides a brief overview of the report entitled: 1980 Annual Housing Report, produced by the Real Estate and Housing Department. This report: 1)

Outlines the conclusions reached about the existing and future housing situation, and the affordability of housing in Edmonton.

Describes the City's involvement in government-subsidized housing programs, and costs incurred.

Addresses the direction the City should be taking in 1980 that will most effectively meet the need and demand for housing.

PURPOSE OF THE 1980 ANNUAL HOUSING REPORT

Housing has been a concern of Edmonton City Councils since the late 1960's, when the rapid growth rate in the metropolitan area was accompanied by high housing costs and low apartment vacancy rates.

In 1973, City Council established an interdepartmental Housing Task Group to review the housing situation and to report back with recommendations. Upon completion of its review, the Housing Task Group recommended that a specific department be established to deal with all matters pertaining to housing, that a full study be undertaken to determine the need and demand for public housing, and that the City build up to 1,000 units of public housing per year.

Subsequently, the Real Estate and Housing Department was formed, public housing production was increased, and a study was initiated to review the need and demand for public housing in Edmonton. The study, entitled: Housing in Edmonton: Directions for the Future, was prepared by the Planning Department and presented to Council in 1976. The report stated that the problem of public housing assistance was complex and difficult to measure, and that, in order to ensure effective utilization of City resources, overall housing policies and priorities were required.

After considerable public involvement and discussion within the Administration, City Council was presented with the report entitled: A Housing Strategy for the City of Edmonton, prepared by the Real Estate and Housing Department, which was adopted in June of 1979. This report provided the City with policy directions for future housing activities, and confirmed that City Council would continue to play a direct role in the area of social housing. In addition, the report recommended that the Administration prepare an annual housing report in order to outline social housing production targets and costs.

Specifically, the objectives of the 1980 Annual Housing Report are to: 1.

Review the existing housing situation;

Discuss the number of households in Edmonton which require some type of housing assistance;

Review in detail housing programs in which the City is actively involved;

Present assisted housing production targets and costs, including action to be taken over the next few years; and,

Recommend a plan of action which will provide greater insight into all areas of housing which will face City Council in the next two or three years.

OVERVIEW OF THE EDMONTON ECONOMY IN THE HOUSING MARKET

1. ECONOMY The expanding economic base and buoyant Alberta economy are attracting people from other parts of Canada where the employment picture is not as strong. Estimates from the City Business Development Department indicate that over the last few years the value of manufacturing shipments from Edmonton increased in excess of 20% per year and the value of retail trade and building permits increased annually at a rate in excess of 25%. All economic indicators reviewed show similar growth rates in the economy and, barring any major setbacks, all forecasts for the future are favourable for continued growth at previous levels or higher.

2.POPULATION The result of Edmonton's economic expansion is that the population of the City has been growing at a rate of approximately 9,000 to 13,000 people per year since the early 1970's, and it is predicted that Edmonton will continue to grow at similar rates during the 1980's.

3. HOUSING A review of housing activity in the City in recent years suggests that over the last few years housing starts have been high, the inventory of unsold and unrented housing units has increased, and housing costs have remained high but have not increased at the pace of several years ago.

It is expected that in the short term the housing market will soften, with a decline in housing starts. The recent decrease in residential building permit applications indicates that the private sector is responding to the excess supply situation and the increased cost of financing. However, in view of the growth potential of the Alberta and Edmonton economies throughout the 1980's, it is expected that the current market adjustment being made by the private sector will be in temporarily reduced production of new units, rather than in a significant softening of prices.

NEED FOR SOCIAL HOUSING IN EDMONTON

A review of the housing situation has indicated that the size of the housing stock - number of dwelling units - is large enough to house the population. However, prices are not expected to decline. The question remains whether or not all Edmontonians are able to afford the type and quality of housing which is adequate to meet their particular basic household needs. For a large portion of the population, of course, there is no serious problem - people in Edmonton on the average are among the best housed in Canada. Unfortunately, for a large and growing number of citizens the rapid inflation of housing prices as well as other necessities is outstripping their ability to pay. The problem is particularly acute for those segments of the population on low or fixed incomes.

iv. C.

THE DIMENSION OF THE HOUSING PROBLEM

Discussion of social housing programs within the context of determining municipal spending priorities reduces ultimately to the following question:

HOW MANY CITY HOUSEHOLDS ARE ACTUALLY IN NEED OF SOME KIND OF

HOUSING ASSISTANCE: FOR EXAMPLE, JUST HOW BIG IS THE HOUSING PROBLEM? To answer the question requires an examination of current housing costs in Edmonton and a comparison of this with information available regarding the distribution of income among the population of the city.

In general, the task is to identify and count those households which are unable to achieve a minimum standard of living by virtue of having too low incomes. Unfortunately the information base currently available in Edmonton does not provide such data. Even where information is available in partial form, the problem exists that it is dated. No comprehensive housing survey has been conducted in Edmonton since the 1974 Central Mortgage and Housing Corporation's Survey of Housing. While this information is dated, it is the most complete household data available, and as such is utilized in the report. A review of this data for Edmonton indicates that in 1974 approximately 19,600 (13%) of all households were in need of some type of housing assistance. Assuming that the proportion of needy households has not changed significantly since that time, it is estimated that presently 14%, or approximately 26,000 Edmonton households, are in need of some assistance.

Beyond identifying the commonly-known target groups for which municipal housing programs should be geared, little can be stated at this time regarding the nature and size of municipal housing target groups. Only detailed analysis, based on a major survey of housing in Edmonton, will provide the needed information on which more specific direction can be given to the City's housing commitment.

MUNICIPAL INVOLVEMENT IN THE PROVISION OF SOCIAL HOUSING

Over the last decade, the City has played a significant role in the delivery of social housing; for example, in the provision of land, direct subsidies, development sponsorship and relaxed land use regulations. The

V. report findings indicate that approximately 26,000 households in Edmonton are being affected by the high cost of housing and are in need of some type of housing assistance.

The City has only limited powers to affect the cost of accommodation. The most significant factors pushing up accommodation costs are high interest rates, and labour and material costs, which are beyond the jurisdiction of the City of Edmonton to control. However, the City can affect the availability of affordable accommodation for low and fixed income households, as well as making land available at reasonable market prices through its Land Banking Program.

The report provides an outline of City involvement in government subsidized housing programs. For each program information is provided on program description; extent of municipal involvement; program activity to date; and approximate expenditure by the City in terms of operating deficits.

The programs have been grouped into two categories according to the level of City involvement, specifically as it relates to the provision of land for housing, direct subsidies, and development sponsorship. These are: a)

Direct City Involvement -

Community Housing Program

Low Income Housing Program (non-profit and cooperative); and

Senior Citizens Lodge Program through the Greater Edmonton Foundation.

Limited City Involvement Programs discussed in this section are those where the Provincial or Federal governments develop the projects and the City provides either subsidized sites or does not receive property â&#x20AC;˘tax revenues. In some programs, the City wishes to have its level of involvement increased. -

Senior Citizen Self-Contained;

Core Housing Incentive Program;

Alberta Family Home Purchase Program; and

Limited Dividend Program.

In the past decade over 14,000 government-subsidized housing units have been built under the above-outlined housing programs.

vi. E.

SOCIAL HOUSING TARGETS AND FUTURE MUNICIPAL LAND AND BUDGET REQUIREMENTS

In the report a scenario of production targets for the development of social housing in Edmonton is presented in conjunction with an outline of municipal land and budget requirements to and including the year 1982.

In order to estimate municipal land and budget requirements for the period 1980 - 1982, City staff met with representatives of the following agencies: Alberta Housing and Public Works Department; Alberta Housing Corporation; Alberta Home Mortgage Corporation; the Edmonton Non-Profit Housing Corporation; and the Alberta Northern Region CMHC Office, to obtain estimates of social housing unit production targets. This information was utilized as the basis in formulating the municipal land and budget requirements to 1982 for those social housing programs which the City currently acquires land; namely the Community Housing Program and the Low Income Housing Program, which encompasses both Public and Private Non-Profit Housing Programs as well as the Cooperative Housing Program.

1. PROJECTED PRODUCTION TARGETS Production targets proposed for the 1980 to 1982 period for the various social housing programs are outlined in Table 4.9, which provides a breakdown of the annual targets, and indicates the priority locations. Refer to Map 4.1 for an outline of older neighbourhoods. Table 4.9

PROJECTED PRODUCTION TARGETS 1980

1981

1982

330 330

160 88 248

150 100 250

MUNICIPAL NON-PROFIT Suburbs Older Neighbourhoods TOTAL

200 200

100 100 200

COOPERATIVE & PRIVATE NON-PROFIT HOUSING Suburbs Older Neighbourhoods TOTAL

25 60 85

50 60 110

100 85 185

355 260 615

310 248 558

350 285 635

PROGRAM COMMUNITY HOUSING Suburbs Older Neighbourhoods TOTAL

TOTAL FOR ALL PROGRAMS Suburbs Older Neighbourhoods TOTAL

vii .

LOCATION OF OLDER NEIGHBOURHOODS

OLDER NEIGHBOURHOODS

SUBURBS

CASTLEDOWNS

LONDONDERRY

CLAREVIEW

BELVEDERE

KINGSWAY

WESTMOUNT

GLENORA

OTTE WELL JASPER PLACE

ALLENDALE KING EDWARD PARK

PRIMROSE

KASKITAYO

MILL WOODS

MAP 4.1 SOURCE: CITY OF EDMONTON REAL

ESTATE AND

HOUSING 1979

2. LAND ACQUISITION PROGRAM While municipal land costs are recoverable on the sale or lease of land, funding is needed for initial land acquisition, administration and carrying costs. It is estimated that a three year lead time is required for the assembly of land for social housing development. In order to make up the three year lead time between acquisition and development, 1980 and 1981 budget allocations include funds needed for land acquisition for the 1980 to 1984 period. The projected annual land budget requirements for 1980 to 1982 are outlined in Table 4.10.

Table 4.10

LAND ACQUISITION BUDGET - PROJECTED ($000)

PROGRAM

1980

1981

1982*

COMMUNITY HOUSING Suburbs** Older Neighbourhoods TOTAL

1,869 2,600 4,500

770 4,000 4,770

4,600 4,600

MUNICIPAL NON-PROFIT Suburbs Older Neighbourhoods TOTAL

2,000 2,000

4,600 4,600

2,900 2,900

COOPERATIVE & PRIVATE NON-PROFIT HOUSING Suburbs Older Neighbourhoods TOTAL

2,100 2,100

3,300 3,300

3,700 3,700

TOTAL FOR ALL PROGRAMS Suburbs 1,869 Older Neighbourhoods 6,700 TOTAL 8,569

770 11,900 12,670

11,200 11,200

* 1982 budget figures were developed based on the assumption that the production rate in 1983, 1984 and 1985 will be the same as in 1982. ** In the case of land acquisition in the suburbs, servicing costs are included.

3. PROJECTED ANNUAL OPERATING SUBSIDIES BY PROGRAM The City now contributes 10% of the operating deficit of community housing units, and 100% of the operating deficit of the Greater Edmonton Foundation, which manages lodges for senior citizens. The projected annual operating subsidies that the City will be responsible for are outlined in Tables 4.11.a and 4.11.b. Table 4.11.a provides a summary of the total operating subsidies the City will be required to contribute for existing and proposed units 1980 - 1985. Table 4.11.b presents a discounted cash flow analysis in

Table 4.11.a 1980 A**

B***

COMMUNITY HOUSING Total Operating Subsidy

938,691

SENIOR CITIZEN LODGE PROGRAM **** Total Operating Subsidy

276,885

Total Annual Operating Subsidies Paid By City

1,215,576 1,215,576

ROJECTED ANNUAL OPERATING SUBSIDIES BY PROGRAM* 1983 1982 1981 A B A B A

1,077,144 1,205,511

307,440

1,384,584 1,512,951

1,240,512 1,500,352

337,995

1,578,507 1,838,347

1984 B

1,428,804 1,857,084

368,865

386,865

1,797,669 2,225,949

1985 B

1,642,017 2,277,120 1,855,689 2,791,419

399,420

429,975

2,041,437 2,676,540 2,285,664 3,221,394

* Projected Community Housing operating subsidies determined based on 15% inflation factor compounded annually. Projected Senior Citizen Lodge Program operating subsidies determined based on an average 11% inflation factor compounded annually. ** Option A assumed no new Community Housing units to be built 1981 - 1985. *** Option B assumed for Community Housing Program that in 1981 - 330 units will be developed, and from 1982 to 1985 250 new units will be built annually. **** 1980 - 1985 estimated subsidies are based on the assumption of no new expansion of units.

Table 4.11.b PROJECTED ANNUAL OPERATING SUBSIDIES BY PROGRAM Discounted Cash Flow Analysis (1980 Dollars)* 1980 A**

1981 B***

1982 B

1983 B

1984 B

1985 B

COMMUNITY HOUSING Total Operating Subsidy

938,691

938,691 1,050,561

938,691 1,135,311

938,691 1,220,061

938,691 1,301,760

938,691 1,389,561

SENIOR CITIZEN LODGE PROGRAM **** Total Operating Subsidy

276,885

267,339

255,572

242,534

228,369

213,773

Total Annual Operating Subsidies Paid By City

1,215,576 1,215,576

267,339

1,216,030 1,317,900

255,572

1,194,263 1,390,883

242,534

1,181,225 1,462,595

* Discount Rate used is 15%. ** Option A assumed no new Community Housing units to be built 1981-1985. *** Option B assumed for Community Housing Program that in 1981 - 330 units will be developed, and from 1982-1985 - 250 new units will be built annually. **** 1980 - 1985 estimated subsidies are based on the assumption of no new expansion of units.

228,369

1,167,060 1,530,129

213,773

1,152,464 1,603,334

x. present value (1980 dollars) of the total operating subsidies the City will be required to contribute for existing and proposed units 1980 - 1985.

HOUSING ACTION PLAN

Beyond the adoption of social housing targets and a recommended land acquisition budget with respect to the production of social housing over the next few years, a number of other actions are recommended. From the analysis of the housing situation and social housing programs in the City of Edmonton, an Action Plan has been developed. The recommended plan requires that the Administration undertake a review of the established housing programs in which the City of Edmonton is currently involved. The review proposed will allow the Real Estate and Housing Department to present to City Council a housing program that more accurately reflects the needs of the City over the next few years.

The following Action Plan, which outlines six areas of investigation, is recommended:

1. UNDERTAKE AN ACQUISITION PROGRAM TO ASSEMBLE A SUFFICIENT SUPPLY OF LAND IN ORDER TO ACHIEVE HOUSING TARGETS. While the City's land inventory is sufficient to meet the social housing program land requirements in suburban areas for the next few years, there is, however, a shortage of City-owned land in older neighbourhoods. The rate of acquisition must be increased in order for the City to have enough land to meet the social housing targets proposed. It is envisaged that this activity would be initiated in 1980.

2. REVIEW THE FISCAL IMPACT ON THE CITY OF EDMONTON AS A RESULT OF ITS INVOLVEMENT IN GOVERNMENT-SUBSIDIZED HOUSING PROGRAMS. Over the last decade the City's contributions toward operating deficits has increased for Community Housing units and Senior Citizen Lodges. In addition, the City currently foregoes municipal taxation revenue on self-contained and lodge units for senior citizens which, in 1978, amounted to $1.1 million. A review is scheduled to be undertaken to determine the feasibility of having the Alberta Housing Corporation pay the City of Edmonton a grant-in-

xi. lieu of taxes annually on these units. It is envisaged that work on this project will be initiated in 1980.

3. REVIEW AND PROPOSE AMENDMENTS TO THE CITY'S CURRENT HOUSING POLICIES AND PROGRAMS. Several of the City's housing programs and policies warrant review and revision where necessary; for example, the City's land acquisition policy and land pricing policy.

In 1972, Council concurred in the recommendation that in new residential subdivisions there should be provided an area of net developable residential land sufficient to provide public housing for five percent of the population of that new residential subdivision. Until 1979 sufficient lands were provided to satisfy this policy, through lands found surplus to circulation requirements, and those lands obtained through the "5% purchase" policy found in the standard terms of reference for development agreements. Much of the City's housing land inventory was obtained through this procedure.

A review is required to ascertain whether or not the City should continue to make sufficient land available to provide public housing for five percent of the population of new residential subdivisions.

4. EVALUATE AND IMPROVE THE EFFECTIVENESS OF OVERALL HOUSING RESPONSIBILITIES OF THE CITY OF EDMONTON. Included in the responsibilities of the City for the provision of adequate and affordable housing are: to maintain data on the City's households and housing stock; to advise other governments of the City's requirements; to assist other governments to develop programs appropriate to the needs of the City's present and future residents; to identify housing targets to be met; and, where appropriate, to assume the responsibility for effective utilization of City resources and for implementing programs which can most effectively be discharged at the local level.

5. IMPROVE COMMUNICATIONS AND COORDINATION WITH THE PRIVATE SECTOR, HOUSING SPONSORS AND OTHER GOVERNMENTS, WITH THE VIEW TO INCREASING CITY INVOLVEMENT IN HOUSING DECISIONS.

At the municipal level, there is continuous interaction between the decision-makers, the administration, and the public. The municipality is held accountable by its citizens for the impact of new housing and the form of growth. The City is the level of government closest to the housing needs of citizens and is often expected, by the public, to respond to changing community needs by changing policy direction.

It should be recognized by other levels of government that the local level of government is best acquainted with its immediate housing needs. In Edmonton, where there is an ongoing responsibility by the City to monitor housing activity, it should be acknowledged by the other levels of government that an effective housing program must include consultation with the City. The municipality, with a solid knowledge of housing activities and needs, should be in a position to approach other governments and analyze their programs from a local perspective.

6. DEVELOP A PROGRAM OF RESEARCH AND INVESTIGATION IN ORDER TO DETERMINE THE CITY'S FUTURE RESPONSIBILITIES IN THE PROVISION OF HOUSING. In assessing existing City housing policies it is evident that recent revisions to local area policies and revisions to the Zoning and Development Bylaw and other land use and building control bylaws have provided the City with a reasonably up-to-date set of guidelines for assessing the quality and characteristics of accommodation in the City. However, since the 1974 C.M.H.C. Survey of Housing Units in Edmonton, no similar analysis of the demand for housing in the city and of the ability of households to afford housing, has been undertaken. To fill this gap, the Real Estate and Housing Department, in conjunction with the Planning and Social Services Departments, will undertake an analysis of demand and affordability in order to assist the City in establishing future targets and responsibilities in the provision of housing.

A summary of the above-noted actions is listed in Table 5.1, in addition to an approximate time frame for the research to be undertaken and the estimated number of man years required to conduct the analysis.

Table 5.1 -

HOUSING ACTION PLAN

ACTIVITY

ESTIMATED MAN YEARS 1980 1981 1982

Undertake a land acquisition program to assemble a sufficient land supply in order to achieve housing targets

2.5

Review the fiscal impact on the City of Edmonton as a result of its involvement in government subsidized housing programs

Review and propose amendments to the City's current housing policies and programs

Evaluate and improve the effectiveness of overall housing responsibilities of the City of Edmonton

Improve communications and coordination with the private sector, housing sponsors and other governments with the view to increasing City involvement in housing decisions

Develop a program of research and investi â&#x20AC;˘ gation in order to determine the City's future responsibilities in the provision of housing

2.0

4.0

2.5

7 4

10 5

11 8

15 11

13 11

ADDITIONAL STAFF MAN YEARS REQUIRED

CONSULTANT MAN YEARS REQUIRED

MAN YEARS REQUIRED Routine workload TOTAL MAN YEARS REQUIRED Man Years available

I t''DUCT 11111 NMI NM NM IIIII MIN NIII MIN INN NMI MIS MIS NS NIMI NO MS NM 1111

1980 ANNUAL HOUSING REPORT

INTRODUCTION

Housing has been a concern of Edmonton City Councils since the late 1960's, when the rapid growth rate in the metropolitan area was accompanied by high housing costs and low apartment vacancy rates.

After considerable public involvement and discussion within the Administration, City Council was presented with a report prepared by the Real Estate and Housing Department entitled: A Housing Strategy for the City of Edmonton, which was adopted in June of 1979. This report provided the City with policy directions for future housing activities, and confirmed that City Council would continue to play a direct role in the area of social housing. In addition, the report recommended that the Administration prepare an annual housing report in order to outline social housing production targets and costs.

2. Specifically, the objectives of the 1980 Annual Housing Report are to:

Review the existing housing situation;

Discuss the number of households in Edmonton which require some type of housing assistance;

Review in detail housing programs in which the City is actively involved;

Present assisted housing production targets and costs, including action to be taken over the next year; and,

Recommend a plan of action which will give greater insight into all areas of housing which will face City Council in the next two or three years.

CHAPTER I

airaw OF THE EDMONTON ECONOMY IN THE HOUSING MARKET

3. CHAPTER I - OVERVIEW OF THE EDMONTON ECONOMY IN THE HOUSING MARKET

THE EDMONTON ECONOMY IN REVIEW

The strength of the Alberta economy is centred on two principal industries, natural resource development and agriculture. While this is a well known fact, it is generally not as well known that eighteen of the twenty two principle oil fields in Alberta are located within 160 km (100 miles) of Edmonton, and that two-thirds of all farms in Alberta are located in the Northern and Central parts of the province. These two factors - combined with the fact that a large portion of the world's conventional oil reserves are located within 480 km (300 miles) of Edmonton in the Alberta Tar Sands, and that fifty percent of Canada's coal reserves are located in Alberta, with a large proportion of this reserve located in close proximity to Edmonton means that jobs are being created to accommodate the expanding economic base. These new jobs and the buoyant economy are attracting people from other parts of Canada where the employment picture is not as strong.

In addition, estimates from the City Business Development Department indicate that from 1973 to 1979 the value of manufacturing shipments from Edmonton increased at a rate in excess of 20% per year. At the same time the value of retail trade and building permits increased annually at a rate in excess of 25%. All economic indicators reviewed show similar growth rates and, barring any major setbacks, all forecasts for the future are favourable for continued growth at previous levels or higher.

EMPLOYMENT AND POPULATION

The result of Edmonton's economic expansion is that the population of the City has been growing at a rate of approximately 9,000 to 13,000 people per year since the early 1970's. People are being drawn to Edmonton by the favourable market situation for labour. In recent years labour force participation rates have remained consistently higher than provincial and national averages, and unemployment rates are consistently lower. Over the past few years Edmonton's unemployment rate has averaged between 4% and 5% while national levels have fluctuated between 7% and 12%. Edmonton's high employment rates have been matched by equally favourable wage and

5. ANNUAL DWELLING STARTS IN CANADA, ALBERTA AND EDMONTON METROPOLITAN AREA

280,000 270,000 260,000 250,000 240,000 230,000 220,000 210,000 (151,717 )

N UMBER OF DWELLING

50,000 -

45,000 -

40,000 -

35,000 -

30,000 -

25,000 -

20,000 -

36 % (12,298)

15,000 -

10,000 42.0%*

Source:

32.0% Edmonton 41% Metropolitan Area

1976

1977

35% 35.0%

5,000 -

YEAR

32%

28.0 Â°/o

1972

1973

1974

1975

1978

1979

C.M.H.C, Canadian Housing Statistics Ottawa, December 1979

*Represents the percentage of provincial housing starts. FIGURE 1.1

NI MAP

COMPARISON OF PROVINCIAL AND EDMONTON METROPOLITAN AREA DWELLING STARTS

0 PROVINCIAL

1111111

METROPOLITAN AREA

50,000 _

45,000

40, 000

35,000

30,000

25, 000

20, 000

15, 000

10,000

36% 2 Â°I

5,000

42%

32% 41%

35%

35% 28%

1972

1973

1974

1975

1976

1977

1979

1978

N.B. PERCENT REPRESENTS THE PERCENTAGE OF PROVINCIAL HOUSING STARTS. SOURCE: C. M.H.C. MONTHLY HOUSING STATISTICS DECEMBER 1979.

FIGURE 1.2 I.SH. FEB.80

7. 2)

LOCAL CONSTRUCTION ACTIVITY Figure 1.3 illustrates that the newly completed and unoccupied unit inventory has been increasing steadily since 1977, resulting in an increased inventory of unsold and unrented units.

Figure 1.3 NEWLY COMPLETED AND UNOCCUPIED DWELLINGS EDMONTON METROPOLITAN AREA

3900 - 3750 -3100 — — 3440 --— 3110 --

Aportmans • &.h... Mous. 111 Denlphos

30431 — — 2960 — — 2700 — — 2550 -2400 — — 2250 — — 2100

— —

1950 — — 1100

—

1 650 — 1500

—

1350 1200

—

1050

—

900 — 750 —

600 — 450

—

300 — 150

YEAR

—

JFIIAMJJASONDJ FMAIIJJ ASONDJ F1MAPAJ 1976 1977 1976 Sour.:

JASONDJFINAMJJ A 1979

C.M. 14 ,C . Monthly MousIng Stotlatles Prairie R.I. 0100.

Jon.00

SONS MI. MAIN

An analysis of residential building starts and residential housing permits issued for 1979 (refer to Figures 1.4 and 1.5), indicates that builders are responding to the buildup of inventories, and it would appear that construction activity will be down until the inventories are reduced, which is likely to take some time because of the high interim financing.

8. ANNUAL DWELLING STARTS EDMONTON METROPOLITAN AREA 8,0001977 1978 1979 7,500—;

7,000 —

6,500 —

6,000 —

5,500-

5,000 —

4,500 —

4,000—

u_ o

3,500 —

cc 3,000 —

2,500-

2,000—

I ,500-

1,000 —

500 —

YEAR

1977 1978 1979 Single Family

1977 1978 1979 Semi Detached

1977 1978 1979 Row Housing

1977 1978 1979 Apartments

Duplex

Sources:

1979 C.M.H.C. 1978 C.M.H.C.

Housing Statistics Prairie Region Table E4 and Monthly Housing Statistics FIGURE 1.4

HL MAR. 80

9. BUILDING PERMITS ISSUED (BY DWELLING UNIT TYPE) FOR THE CITY OF EDMONTON

1977 1978 1979

6,000 -

5,500-

5,000-

4,500 — rirrrnmr

4,000 —

3,500 —

3,000 —

2,500—

Ix Iii

co 2

2,000 —

1,500 —

1,000

500 —

YEAR

1977 1978 1979 Single Family

1977 1978 1979 Semi Detached

1977 1978 1979 Row

1977 1978 1979 Apartments

Housing

& Duplex

Source:

Bylaw Enforcement Dept.,

Building Inspection Branch, City of Edmonton. FIGURE 1.5 HL MAR.80

10. A review of the housing development trends over the past few years indicates that, while national housing starts have declined, Alberta and Edmonton's housing production was strong until 1979 when the rising cost of mortgage funds, combined with the over-supply of housing from 1978, resulted in a decline of approximately 30% in new building starts.

RENTAL APARTMENT VACANCY RATES

As a result of the surge of apartment starts in 1976, rental apartment vacancy rates were higher in April 1979 than they have been for the past several years. As a result of this large number of units coming on the market the vacancy rate increased to 3%, the highest rate since 1974 (refer to Table 1.1).

Table 1.1 - VACANCY RATES IN APARTMENT STRUCTURES 1976 - 1979 METRO EDMONTON Year

Month

1976

April October April October April October April October

1977 1978 1979

Vacancy Rate 0.1% 0.0 0.2 0.1 0.9 0.9 3.0 1.9

Source: CMHC Apartment Vacancy Survey, December 1979

Canada Mortgage and Housing Corporation predicted that vacancy rates would rise again in late 1979 and early 1980, with the completion of additional new units coming on the market. Relative to what demand was expected to be, however, the vacancy rate fell to 1.9% in October 1979. It appears that extraordinarily high rates of absorption occurred which were not anticipated. It is felt the rise in mortgage interest rates that has taken place in the last few months of 1979 and in early 1980 has resulted in a shift in housing demand from homeownership to rental tenure. The present uncertain interest rate picture will no doubt continue to influence upward the demand for rental accommodation. When interest rates will drop is a point of much conjecture, but it seems reasonable that, by the middle of 1980, not much improvement in vacancy rates will be seen.

THE COST OF HOUSING IN EDMONTON

RENTAL UNITS A review of the 1979 rental situation in Edmonton indicates that the average monthly cost of an apartment was $352. This figure represents an increase over 1977 of 33%, and an increase of 63% since 1974. Furthermore, rents are expected to rise dramatically when rent controls are phased out in June, 1980. Average rents by type of unit for the 1974 to 1979 period are presented in Table 1.2.

Table 1.2 - APARTMENT RENTS IN EDMONTON BY TYPE OF UNIT 1974 - 1979 TYPE OF UNIT Bachelor 1 Bedroom 2 Bedroom 3 Bedroom All Units **

1974

1975

YEAR 1976

1977

133 170 216 262 216

148 192 251 312 225

161 199 253 350 241

176 228 286 365 264

1978* N/A N/A N/A N/A N/A

1979** 278 343 378 410 352

CMHC did not collect information in 1978 As of October, 1979, (latest survey completed)

Source: Canada Mortgage and Housing Corporation.

As indicated in Table 1.2 average rents per month in 1979 ranged from $277 for bachelor apartments to $410 for 3 bedroom units. The most rapid increase in rents has been for bachelor and 1 bedroom units, with rents more than doubling in the past five years, and increasing by over 50% since 1977. Rents for 2 and 3 bedroom units have increased by 75% and 56% respectively, during the past five years, and by 32% and 12% since 1977. The relatively high rent increases for bachelor and 1 bedroom units indicates that demand is heaviest for smaller sized apartments.

OWNED UNITS A review of the costs of home ownership in Edmonton is presented in Table 1.3. This table indicates that for 1979 the average selling price of all types of houses was $78,700. This is more than twice what the average selling price was in 1974 and about 9% higher than in 1978.

12. From a monthly cost point of view, assuming 10% down (the balance amortized over 25 years), and calculating payments at prevailing interest and property tax rates, the average monthly cost to acquire a home in 1979 was $774.74. Translating this figure into a minimum income requirement by assuming that monthly payments can not exceed 30% of gross monthly income, only those households earning $32,743 per year or more could afford to purchase in 1979. This assumes, of course, that the household is able to make a non-financed initial downpayment of $7,871. By way of comparison, in 1974, households could afford to purchase if they could put $3,481 down and had an annual income of $12,966 or more. The monthly payment required for homes sold in 1974 was $327.

Table 1.3 -

Average Selling Price (all types)*

COSTS OF HOME OWNERSHIP IN EDMONTON 1974 - 1979

1975

34,809

43,995

58,064

3,481

4,400

31,328

1978

1979

62,884

71,679

78,719

5,806

6,288

7,168

7,871

39,596

52,258

56,596

64,511

70,848

11.0%

11.4%

10.25%

10.75%

12.78%

300

381

521

506

610

774

327

415

559

549

657

826

12,966

16,425

22,148

21,738

26,036

32,743

Down Payment Mortgage Interest Rate** Monthly Mortgage Payment (25 year amortization) Average Monthly Taxes Total Monthly Cost Minimum Income Required To Purchase

YEAR 1976 1977 (dollars)

1974

* Figures provided by the Edmonton Real Estate Board **Figures provided by the Royal Bank

13. F.

CHAPTER CONCLUSIONS

This chapter has briefly outlined housing activity in the City in recent years. It suggests that over the last few years starts have been high, completed and unoccupied housing inventories have increased, and the rental apartment vacancy rates are now declining. Housing costs have remained high, but have not increased at the pace of several years ago.

It is expected that in the short-term the housing market will soften, with a decline in housing starts. The recent decrease in permit applications indicates that the private sector is responding to the excess supply situation. However, in view of the growth potential of the Alberta and Edmonton economies throughout the 1980's, it is expected that the current market adjustment being made by the private sector will be in temporarily reduced production of new units, rather than in a significant softening of prices. It would appear that affordable housing will continue to be beyond the income reach of a large number of Edmontonians.

In the following chapter a review is made of the number of households in Edmonton that are in need of some form of housing assistance.

CHAPTER II THE NEED FOR SOCIAL HOUSING IN EDMONTON

14.

CHAPTER II - THE NEED FOR SOCIAL HOUSING IN EDMONTON

HOUSEHOLD GROWTH AND AFFORDABILITY OF HOUSING

In recent years Edmonton has experienced tremendous population growth, placing a great pressure on the residential land development and construction industry to meet the demand for new housing. From the spring of 1977 to 1978 the population increased by 6,600, and from 1978 to 1979 an increase of 13,300 was recorded. By the spring of 1979 the population of the city stood at 491,400.1

Adding to the pressure created by a

rapidly growing population is the trend to smaller households, meaning that for any given population size more dwelling units are required.

According to the 1979 Civic Census, the population of Edmonton is comprised of 180,500 households, at an average size of 2.7 members per household. This compares to 172,200 households at an average size of 2.8 members per household in 1978.

The 1979 Civic Census records that there were 193,094 residential units in the city in April, with 12,561 of these units vacant (6.5%). Assuming that a 3% vacancy rate is normal, approximately 5,400 units should ideally have been vacant in April; making 7,100 units surplus to what would have been the ideal number of units needed to house the city's population.

Since April this surplus has increased. From Canada Mortgage and Housing Corporation (CMHC) data it is estimated that between April and December 8,100 additional units have been completed, raising the total available dwelling stock to 201,100 by December 31, 1979. Assuming that the household population has continued to grow at the same annual rate as recorded between the 1978 and 1979 Civic Censuses (4.8%), it is estimated that from April through December 1979 the household population has increased by 6,500 to 187,000. This means that approximately 14,100 units were likely vacant by December 31, 1979, of which 8,500 were surplus to actual requirements, after a normal 3% vacancy rate is accounted for.

1979 City of Edmonton Civic Census

15. In addition, CMHC records that approximately 6,100 units were under construction as of September 30, 1979. Assuming that these units are available for occupancy next spring, it is estimated that by the time of the 1980 Civic Census the dwelling stock in Edmonton will approximate 207,200. If current household formation trends continue, the surplus (above a 3% vacancy rate) by the spring of 1980 will be 12,400 - enough to last into 1981.

With this vacancy situation an overall softening of prices and slowdown of the housing industry can be expected in 1980. Recent information indicates that in some parts of the city a weakening in prices has occurred already in the new multiple housing market, while the single detached market continues to remain strong. In light of heavy building activity in the multiple market in recent years a continued shift in relative prices can be expected. Prices are not expected to soften drastically, however, since the current situation is expected to be of short term duration only, with the industry's response being to adjust production and bring supply back in line with demand.

THE PURPOSE OF SOCIAL HOUSING

A review of the housing market situation has indicated that the size of the housing stock - the number of dwelling units - is large enough to house the population. At least in the short run supply exceeds demand. However prices are not expected to decline significantly. The question remains whether or not all Edmontonians are able to afford the type and quality of housing which is adequate to meet their particular basic household needs. For a large portion of the population, of course, there is no serious problem - people in Edmonton on average are among the best housed in Canada. For most people their housing needs are backed by an ability to pay the going price for housing. Their needs are therefore signalled to the marketplace where they are satisfied. However, for a large and growing number of citizens, the rapid inflation of housing prices, as well as all other necessities, is outstripping their ability to pay. The problem is particularly acute for those segments of the population on low or fixed incomes. For these people inflation has eroded their purchasing power to the point where their basic housing needs can no longer be communicated to the marketplace in the form of effective demand backed by purchasing power, with the result that they are forced into substandard and often overcrowded living conditions.

16. C.

THE DIMENSION OF THE HOUSING PROBLEM

Discussion of social housing programs within the context of determining municipal spending priorities reduces ultimately to the following question: HOW MANY CITY HOUSEHOLDS ARE ACTUALLY IN NEED OF SOME KIND OF HOUSING ASSISTANCE: FOR EXAMPLE, JUST HOW BIG IS THE HOUSING PROBLEM? To answer the question requires an examination of current housing costs in Edmonton and a comparison of this with information available regarding the distribution of income among the population of the city. In general, the task is to identify and count those households which are unable to achieve a minimum standard of living by virtue of having too low incomes.

Unfortunately, the information base currently available in Edmonton does not provide such data.

Even where information is available in partial form, the problem exists that it is dated. No comprehensive housing survey, for instance, has been conducted since the 1974 CMHC Survey of Housing. Even the most recent study of housing relevant to Edmonton, entitled Low Income Housing in Alberta: A Review of the Community Housing Program, by Clayton Research Associates Ltd., was forced to rely in large part on this data base for its analysis. While the Canada Mortgage and Housing Corporation's 1974 housing information is dated, nevertheless, it is the most complete household data available, and as such is used in this report. Estimates for the 1979 situation have been extrapolated from this data.

A common practice in housing studies is to measure a household's expenditure on housing as a ratio of its gross income and to compare this to a benchmark ratio which is indicative of need. The usual assumption is that if a household's expenditure on housing is more than 30% of its income, the household is in need of some kind of assistance. The 30% figure is typically applied regardless of tenure, although it can be argued that a higher ratio should be used for owners, in view of the equity position they maintain in their unit. Similarly, it can be argued that a higher ratio should be applied to those in higher income groups. This study follows the usual practice of applying a 30% ratio to both owners and renters but adds a second condition: that the household earn an income of less than $7,500/year before it is viewed as being in need of housing assistance (basis 1974 incomes).

17. An analysis of the 1974 CMHC Survey of Housing indicates that in 1974 there were approximately 153,400 households in Edmonton, of which 83,600 owned their homes and 69,800 were renters. Of the ownership households, 6,200 (7%) paid more than 30% of their gross income on housing, and of the renters 17,100 (24%) paid more than 30%. Of the ownership households which spend more than 30% of their income on housing, 4,000 earned less than $7,500. This figure represents slightly less than 5% of the owner households. For renters spending more than 30% of their income on housing, 15,600 earned less than $7,500. This represents approximately 22% of the renter households. Thus, 19,600 households - 13% of all households - in 1974 would have been considered as needing some type of housing assistance, by definition of the above criteria.

It is estimated that presently there are 187,000 households in Edmonton, of which 96,100 are renters and 90,900 are owners. Assuming that the proportions of renters and owners in need of some kind of housing assistance have not changed significantly since 1974, it is estimated that approximately 26,000 households - 14% of all households - are currently in need of housing assistance. Of these it is estimated that 4,500 are owners and 21,500 are renters.

The above information has been compiled in order to provide an outline of an approximate number of households in Edmonton today that are actually in need of some kind of housing assistance. Further analysis on the basis of a major Edmonton housing survey will be required before specific long term municipal housing targets can be identified in detail. In the meantime, a number of the groups most in need are commonly known; they include senior citizens, single parents, the disabled and handicapped, and people who rely for their living on low paying jobs. These are the people who have the least resources with which to respond to the market situation as housing costs climb.

CONCLUSION

A review of the housing situation in Edmonton has revealed that the existing housing stock should be sufficient to last into 1981. The housing industry has accordingly reduced its level of activity from the record highs of recent years. Because of the anticipated future demand for new housing, however, prices are not expected to decline significantly.

18. While the size of the stock appears to be adequate in the short run, the question remains whether all citizens are able to afford accommodation at current housing prices. A review of the 1974 CMHC Survey of Housing indicates that in 1974 approximately 19,600 (13%) of all households were in need of some type of housing assistance. Assuming that the proportion of needy households has not changed significantly since that time, it is estimated that presently 14%, or approximately 26,000, of all Edmonton households are in need of some assistance. Beyond identifying the commonly-known target groups for which municipal housing programs should be geared, little can be stated at this time regarding the nature and size of municipal housing target groups. Only detailed analysis, based on a major survey of housing in Edmonton, will provide the needed information on which more specific direction can be given to the City's housing commitment.

CHAPTER III MUNICIPAL INVOLVEMENT IN THE PROVISION OF SOCIAL HOUSING

19. CHAPTER III - MUNICIPAL INVOLVEMENT IN THE PROVISION OF SOCIAL HOUSING

INTRODUCTION

The intent of this chapter is to provide a review of City involvement in government subsidized housing programs.

For each of the programs, the following information will be discussed: program description; extent of municipal involvement; program activity to date; approximate expenditure by the City in terms of operating deficits, and budget implications.

In order to simplify the report, the housing programs have been grouped into two categories according to the level of City involvement, specifically as it relates to the provision of land for housing, direct subsidies, and development sponsorship. These are: 1.

Direct City Involvement Included in this section are:

Community Housing Program;

Low Income Housing Program (Non-Profit and Cooperative); and

Senior Citizens Lodge Program (through Greater Edmonton Foundation).

Limited City Involvement This section will review programs where it is the Provincial or Federal governments that develop the projects and the City provides subsidized sites or does not receive property tax revenues. In some programs, the City wishes to have its level of involvement increased. Included in this group are:

Senior Citizen Self-Contained;

Core Housing Incentive Program;

Alberta Family Home Purchase Program; and,

Limited Dividend Program.

Summary

This section summarizes the number of existing Social Housing units, by program, in Edmonton.

20. 1.

DIRECT CITY INVOLVEMENT

1.A COMMUNITY HOUSING PROGRAM

Purpose The purpose of the Community Housing Program is to provide rental housing for low income families unable to secure adequate and affordable housing in the marketplace. The program, initiated in Edmonton in 1969, is also available to senior citizens and handicapped individuals.

Community Housing is generally located in the newer subdivisions in Edmonton. Since 1975 the projects have been built by the Alberta Housing Corporation on land leased from the City. Many of the units are row housing with the majority of units having either two or three bedrooms. Duplexes, specially designed handicapped units and various forms of apartment structures have also been constructed to house specific households.

Agency Alberta Housing Corporation (AHC), - ownership, capital financing, building and financial contributions for operations. Canada Mortgage & Housing Corporation (CMHC), - financial contribution for operations. City of Edmonton, - financial contribution for operations. Edmonton Housing Authority (EHA), - property management.

In 1970, the

Master Agreement between the Federal, Provincial and Municipal governments created the Edmonton Housing Authority for the purpose of managing the Community Housing projects. The Edmonton Housing Authority takes care of tenant placements, community services, maintenance problems and the project finances.

Eligibility Family eligibility for a community housing unit is based on a maximum annual income of $16,000. After the applicant has been interviewed and accepted, the application is ranked by the degree of need. Applicants apply directly to the Edmonton Housing Authority where all management and tenant selection is done.

21. The criteria used for allocation of the units considers the number, age, and sex of the family members (see Table 3.1).

Table 3.1 - Community Housing Program Criteria for Unit Allocation 1 Bedroom:

single handicapped person handicapped couple senior citizen couple

2 Bedroom:

married couple with one child married couple with 2 children of same sex single parent with one child single parent with 2 children of same sex handicapped couple

3 Bedroom:

married couple with 2 or more children single parent with 2 or more children

4 Bedroom:

married couple with 3 or more children single parent with 3 or more children

The tenant pays 25% of the gross family income to rent, with a one year lease. At the end of each year the family is again evaluated in order to ascertain whether or not there is still a need for housing assistance.

Financing Community Housing in Edmonton has been developed in three ways. Up until 1971 the Federal Government coordinated the development of Community Housing. The projects were jointly owned and financed by each level of government; 75% Federal, 15% Provincial, 10% Municipal. There are 414 units in operation that were developed in this way.

From 1970 to 1974 the City of Edmonton, under the Edmonton Community Housing Organization (ECHO), financed and developed Community Housing. The municipality owns the 1,030 units developed by this method.

In 1973 changes were made to the Alberta Housing Corporation policy. Under the new agreement the Province develops, operates and owns Community Housing projects. The land is leased from the City for 60 years, at the end of which time both the land and buildings become City property. There are 1,226 units developed under this agreement.

22. Under all three of the above development methods, the source of financing is primarily from CMHC. Several recent projects have been financed entirely by Provincial funds with no loans from CMHC.

Municipal Involvement The municipal involvement in the Community Housing program includes the following: 1.

Land Provision In February 1968, City Council recognized an urgent need for public housing in the City of Edmonton and authorized the Administration to expedite the provision of public housing units. Accordingly, in 1969, the City of Edmonton established the Edmonton Community Housing Organization (ECHO), and between 1969 and 1974 approximately 1,030 units were provided under this program.

In 1975 the current leasehold policy came into effect, wherein the City leases sites for Community Housing Projects, the Alberta Housing Corporation develops the sites, and the Edmonton Housing Authority administers the projects.

In order to ensure that there was enough land available to meet the needs of public housing, City Council passed the following motion at the May 10, 1971 meeting: "That 5% of the population of future subdivisions be made available for Public Housing in new areas."

In order to clarify the meaning of "Public Housing" contained in the original City Policy of May 10, 1971, the following recommendation was concurred in on March 13, 1972: "That in new residential subdivisions there shall be provided an area of net developable residential land sufficient to provide public housing for five percent of the population of that new residential subdivision. For the purpose of this resolution "public housing" shall be defined to mean housing financed and operated under Part VI of the National Housing Act unless otherwise determined by resolution of Council."

23. Sufficient lands were provided to satisfy this policy through lands found surplus to circulation requirements, and those lands obtained through the "5% purchase" policy found in the standard terms of reference for development agreements. Under this policy, developers were required to provide land at a nominal price for public purposes. Much of the community housing land inventory was obtained through this procedure. The "5% purchase" policy was in effect between 1971 and 1979 until its legality was challenged in the courts. On April 18, 1979 a Court Order was delivered which declared that the City of Edmonton was "...neither entitled nor empowered by the provisions of the Planning Act to require that a registered owner of land provide more land than is sufficient for the purposes of public roadways or public utilities or both."

In May 1979, therefore, Council concurred in the following Commission Board recommendations: a)

"That Council rescind Section A "Provision of Land for Public Purposes" from the standard terms of reference for development agreements as approved by Council July 17, 1972, and as subsequently amended, and that land for municipal purposes be provided by developers in conformity with the Planning Act 1977."

"That a new policy be developed respecting the provision of Community Housing in new areas."

In response to the May, 1979 resolutions, the following recommendations were approved by City Council in June, 1979: a)

"That City Council authorize the administration to negotiate with land owners to acquire sites for Community Housing in new residential subdivisions according to City Council policy of May 10, 1971, and subject to annual budget approval."

"That City Council amend the definition of "Public (Community) Housing", as used in the recommendation concurred in by Council on March 13, 1972, to mean rental housing developed and sponsored under and by a public agency."

24. The Administration will endeavour, to fulfill the aforementioned City Council Policy, subject to annual budget approval. In addition, consideration will be given to alternate methods to obtain land to achieve Council's policy.

Direct Operating Subsidy The City is required to contribute 10% of the operating deficit of the Community Housing Program under Section 23 of the Alberta Housing Act.

The difference between annual revenues and costs results in operating deficits which are picked up through subsidies paid by the Federal, Provincial, and municipal governments in the following proportions: 50%, 40%, and 10% respectively, for municipal and provincially-owned projects, and 75%, 15%, and 10% for "partnership" projects.

Activity to Date a)

Number of Units Developed As of February, 1980, there have been approximately 2,769 Community Housing units developed on 65 sites provided by the City (refer to Figure 3.1). Currently 394 units are under construction and 249 units are in the planning stages for 1980. Map 3.1 illustrates the location of Community Housing Program projects.

Annual Operating Subsidy Paid by City In 1979, the City's contributions amounted to $769,000 ($295.00 per unit annual subsidy). Refer to Table 3.2.

FIGURE 3.1 CUMMULATIVE ANNUAL INVENTORY OF COMMUNITY HOUSING UNITS

5,000 4, 750 4 , 500 4,250 4 ,000 3, 750 3, 500 3 250 3,000 2,750 2, 500 2, 250 2,000 1 ,750 1 , 500 1, 250 I , 000 750 500 250 UNITS IN SERVICE YEAR 71 72 73 74 75 76 77 78 79

SOUR CE : CITY OF EDMONTON

REAL ESTATE AND HOUSING DEPARTMENT. FEBRUARY 1980

I SH. MAR.60

Table 3.2 -

TOTAL CITY SUBSIDY FOR COMMUNITY HOUSING UNITS SUBSIDY AND UNIT STATISTICS

1971

1972

1973

1974

Developed No. of Units

350

313

648

Cumulative No. of Units

386

699

1,347

1975

1976

1977

1978

1979

COMMUNITY HOUSING

Total Operating Subsidy*

Annual Subsidy/ Unit ($)

1,347

176

255

548

182

1,444

1,620

1,875

2,423

2,605

(49,383) $17,946 ($2,738) ($116,414) ($3,477) $268,943

(127)

(2)

(86)

(3)

166

$357,827

190

* In the years 1971, 1973, 1974 and 1975 inclusive, operating subsidies were not required for several reasons; for example, no extraordinary maintenance repairs required, and low vacancy rates.

$704,321

290

$769,000

295

L OCATI ON OF commusarry

27.

MOUSING

oolgcTs .

• 11104111•M

140

*ft 153 Ave •

• • 137

•

18 AVENUE

Tahl

THE OTT OF

1 46

EACH DOT REPRESENTS ONE PROJECT . REAL ESTATE AND HOUSING

JANUARY 191110 MAP 3.1 00-04-17

14l.

28. 1.6 LOW INCOME HOUSING (NON-PROFIT AND COOPERATIVE HOUSING PROGRAMS)

Purpose The purpose of the Canada Mortgage and Housing Corporation Low Income Housing Program is to provide non-inflationary non-profit rental housing and cooperative housing at moderate costs to families and individuals. The housing must be modest and appropriate to the needs of low and moderate income people. The program has two parts, with some differences in terms and eligibility for cooperative housing groups and non-profit sponsors.

Legislation was passed in spring, 1979, under NHA Section 6 and 56.1. CMHC has released responsibility to the Province to administer the program for municipal non-profit corporations.

Eligibility Eligibility of a non-profit group for funding requires that the group must be incorporated as a Non-Profit Organization under the Societies or Companies Act. Eligibility of a non-profit cooperative group for funding requires that the group must be incorporated as a Non-Profit Cooperative under the Cooperatives Act of Alberta. For Non-Profit sponsors to qualify for funding at least 15% of the tenants under the Non-Profit Program will pay 25% of the gross family income to rent.

Both the Non-Profit and Cooperative Housing Programs operate under a system of maximum unit price guidelines which are dependent on bedroom count (see Table 3.3). Initial rents will be kept at the lower end of market rents with Federal assistance bridging the gap between market and economic rents.

TABLE 3.3 Ground-Oriented Multiple Units $52,000 58,000 63,000

2 Bdrm. 3 Bdrm. 4 Bdrm.

MAXIMUM UNIT PRICE GUIDELINES Walk-Up Apartments

Elevatored Apartment Masonry

$28,500 35,000 41,000 45,000

$32,000 38,500 44,500 48,500

Bachelor 1 Bdrm. 2 Bdrm. 3 Bdrm.

29. Financing a)

Private Co-ops and Non-Profit Groups The Canada Mortgage and Housing Corporation will fully secure any loan made available to a non-profit or co-op group by an approved lender. The amount of the loan may be as high as 100% of the appraised cost of the project. The interest rate is subsidized to 2% over a 35 year mortgage. There is also a start-up fund available to co-op groups of up to $75,000 for preliminary research and design.

Municipal Non-Profit Corporation Alberta Home Mortgage Corporation provides loans up to 100% of the appraised cost of the project to municipal non-profit corporations at AHMC's conventional interest rate (near market rate), with an amortization period of up to 35 years. Canada Mortgage and Housing Corporation provides interest write-down grants for eligible municipal non-profit projects. The grants are the lesser of: i) the amount required to reduce the interest rate on a 100% loan with a 35 year amortization; and ii) operating losses. While municipal non-profit corporations negotiate project agreements with the Alberta Home Mortgage Corporation, private non-profit sponsors and co-op groups deal with CMHC.

Municipal Involvement a)

Provision of Land In order to encourage and foster non-profit and cooperative housing as viable housing options, on March 22, 1977 Council passed the Third Sector Housing Policy, whereby City-owned lands are made available to non-profit and cooperative sponsors on a leasehold basis as follows: "Leases are struck for a 55 year term at a fee calculated on the basis of 50% of the market value of the site or its cost, whichever is greater, plus servicing charges where applicable."

30. b)

City of Edmonton Non-Profit Housing Corporation (ENPHC) The ENPHC was established by an act of provincial legislation in 1978 to develop and maintain housing accommodation of all kinds, including both new construction and rehabilitation of existing stock. Operation commenced in late 1978.

City Council has authorized that interim funding be made available through proceeds received from the Municipal Incentive Grant Program. The ENPHC has a loan from the City of $2.5 million to cover design costs, project construction to the roofing stage, and administrative costs prior to the availability of permanent mortgage financing from AHMC. The intent is to have administration and overhead costs recovered from project revenues over time.

However, on February 26, 1980 Council approved the recommendation that the Policy for Sale or Lease of City-owned land to the Edmonton Non-Profit Housing Corporation be amended in order to permit the ENPHC to be granted freehold title at a similar cost as leasehold, with a guarantee to the satisfaction of the City Commissioners, that the land and improvements revert to the City should the Corporation dissolve, and that the City be granted first right of refusal to purchase the sites back, at cost, if the sites are not developed by the Corporation.

Activity Private Non-Profit and Cooperative Housing Private Non-Profit projects are usually developed for families or senior citizens, depending on the sponsoring group. There are five private nonprofit projects operating in Edmonton, providing a total of 333 units (refer to Map 3.2 for location of projects). Three of these sites are leased from the City at lower than market rates.

There are nine cooperative housing projects in Edmonton, five of which (181 units) are situated on land leased from the City. In total there are 393 units provided under the cooperative program. Cooperative projects developed to date are for family households and are of row housing form. Existing projects are located in suburban areas, with one exception (refer to Map 3.2 for location of projects).

31. PROGRAM PROJECTS— PRIVATE NON—PROFIT AND COOPERATIVE HOUSING

add

LEGEND 53 AVE

•

CO-OP

•

NON—PROFIT

• 137

Ay Ec4k.)E

0 STREET

1113 AVENUc

TI4E C/TY OF

1 141 1 P

EACH DOT REPRESENTS ONE PROJECT. MAP 3.2

..F

•.

* A" E • '

APRIL 80 80-04-17 I4L

,S.•4G DEPT

32. As of February 1980, in the City of Edmonton, there is a total of 726 private non-profit and cooperative housing units.

Municipal Non-Profit To date the Edmonton Non-Profit Housing Corporation has been primarily involved in the pre-planning and coordination of activities for the design and construction of 176 rental housing units. As of March, 1980, plans for 53 units have been finalized and 198 units are currently in the final stages of design preparation. The first major project of the ENPHC, consisting of 28 units, is now under construction and will be completed this summer. During the remainder of 1980 four sites which will include up to 200 units are to be developed and are currently at the application stage. These sites are located in the following neighbourhood areas; Boyle Street, Riverdale, and the Hudson Bay reserve, with construction expected to start later this year.

Currently, there exists an inventory of 31 sites which are available for development by Third Sector sponsors.

33. 1.0 SENIOR CITIZEN LODGE PROGRAM

Purpose The purpose of the Senior Citizen Lodge Program is to provide a housing alternative for senior citizens who are no longer able to prepare their own meals and care for their homes. The program has been in operation in the province since 1958 and now comes under the jurisdiction of the Alberta Housing Act, Section 4.

Agency Alberta Housing Corporation (AHC) - capital financing and construction. Greater Edmonton Foundation - property management. City of Edmonton - operating deficits.

Eligibility The Alberta Housing Corporation develops the lodges with the Greater Edmonton Foundation being responsible for operation and maintenance, as outlined in the 1960 Master Agreement between the City of Edmonton and the Province.

For an applicant to be eligible for lodge accommodation the individual must be 65 years of age or at least one partner must be 65 years of age. The selection is also based on need, income and health factors.

The lodge rates are set by Provincial Government regulations and are presently $190 for a single room and $168 for a double room per person (February, 1980), including meals and laundry.

Financing The lodges ai.e financed by the Alberta Housing Corporation for 100% of the cost of the lodge, including the land. The operating deficit incurred by the Greater Edmonton Foundation is paid in full by the Municipality. This is one of the obligations outlined in the 1960 Master Agreement.

Municipal Involvement The 1960 Master Foundation Agreement outlines the responsibilities of the Municipality, the Province and the Greater Edmonton Foundation for the development and operation of certain projects containing a specified

34. number of beds. The City pays 100% of the operating deficit of the Greater Edmonton Foundation, which manages lodges and cottage projects for senior citizens in the City. On February 12, 1980 City Council approved a new draft of the Master Agreement concerning the operation of senior citizen lodge units. This new agreement is in the process of being submitted to the Provincial government for consideration.

In addition, the City foregoes municipal taxation revenue on selfcontained and lodge units for senior citizens which amounted to $1.1 million in 1978.

Activity The Greater Edmonton Foundation presently manages 494 beds available for senior citizens requiring lodge accommodation. Table 3.4 outlines both the total deficit and the deficit for which the City is recommending responsibility. There are three lodge projects (Pleasantview, Meadowlark, and Kiwanis Place), that were developed by the Alberta Housing Corporation without obtaining City Council's concurrence to amending agreements to the original 1960 Master Foundation Agreement. For these three projects, the City has not paid the operating deficits, and this is reflected in Table 3.4 where a difference is noted between the total operating deficits for the Senior Citizen Lodge Program and the deficits paid by the City. In the past, there have been no requests for operating subsidies for Kiwanis Place Senior Citizen Lodge because surplus funds from the operation of the self-contained units portion were applied to offset the deficit in the Lodge Program portion. Since the operating agreement with AHC has been signed in 1980, it is expected that requisitions will be made for future lodge deficits for Kiwanis Place. TABLE 3.4 -

Year 1973 1974 1975 1976 1977 1978 1979

SENIOR CITIZEN LODGE PROGRAM OPERATING DEFICITS 1973-1979

TOTAL Total Cumulative Deficit No.of Beds 366 366 366 366 429 494 494

Nil $ 73,767 131,357 186,618 242,536 266,134 311,609

Cumulative No.of Beds 315 315 315 315 378 443 315

CITY RESPONSIBILITY Total Average Annual Deficit Subsidy/Bed Nil $ 73,767 131,357 186,618 242,536 266,134 247,573

234 416 594 643 601 786

35. LOCATION OF SENIOR CITIZEN LODGE PROGRAM PROJECTS

EACH DOT REPRESENTS ONE PROJECT

TVG an' OF

1 1*

QEâ&#x20AC;¢. ES'ATE AND' HOUS, NG DEPT MAP 3.3

JANUARY 1980

80.04.17 HL

36. 2.

LIMITED CITY INVOLVEMENT

2.A SENIOR CITIZEN SELF-CONTAINED HOUSING PROGRAM

Purpose To provide self-sufficient senior citizens on low and fixed incomes with apartment units at rents they can afford. Units are fully self-contained bachelor or one bedroom suites and some units are designed for handicapped tenants.

Agency Alberta Housing Corporation - capital financing, building and financial contribution Canada Mortgage & Housing Corporation - financial contribution Non-Profit sponsoring group - management

Eligibility There are two types of eligibility for the program; eligibility of the sponsor and eligibility of the applicant. Sponsors for a project may be one of two groups: 1. A non-profit organization registered under the Societies Act, or 2. The Greater Edmonton Foundation. The sponsor is responsible for the operating management and preventative maintenance of the project. The sponsor is also responsible for justifying the need for self-contained units in the chosen area for the project.

Applicants are eligible for a unit if they have lived in Alberta for one year immediately prior to the application, or if they have lived in Alberta for any ten years of their lives. Priority of allocation depends on the applicant's need, as determined by income, assets, present housing condition and length of time on the waiting list.

Financing The Alberta Housing Corporation finances 100% of the capital costs of the project, including land. Tenants pay rent geared to their income, including pension income. The balance necessary to pay for amortization cost and operating deficits of projects is paid by AHC (50%) and CMHC (50%). In some cases land has been leased from the City.

37. Municipal Involvement The Senior Citizens Self-Contained Unit Program has experienced tremendous growth locally in the past several years. The City has taken an active interest in this program, and in the early 1970's leased sites to nonprofit organizations at $1.00 per year plus an annual equivalent to property taxes. These sites were provided on a 60 year negotiated lease basis, with full payment for all servicing and/or local improvement costs. On April 12, 1977, Council agreed to give the Province the option of purchasing sites for senior citizen developments at fair market value, or to lease the site at 50% of market value plus servicing costs on an upfront basis.

Since that time, the Alberta Housing Corporation has decided to purchase the majority of its own sites and develop all projects. The City has provided certain sites for development. This decision by AHC to develop all of its own projects has often left out municipal consultation on proposed activity, except where a City-owned site is being sought or when rezoning is necessary.

Alberta Housing Corporation pays 100% of the capital costs, while operating deficits are shared on a 50-50 basis between AHC and CMHC. On the surface it would appear that the City shares no direct financial responsibility for this program; this is not the case. The City does not receive any property tax revenues from the Province for its seniors developments, yet services such as bus shelters, free bus passes, fire and police protection, and other normal services to property, are provided at an extra cost to the taxpayer

On June 23, 1976 Council passed a number of resolutions concerning the possibility of securing Provincial payment for this item. The Minister responsible for housing at that time did not support the municipal position. Therefore, the City is providing a direct annual subsidy for this Provincial program which is not acknowledged by the Province. In the case of Ontario, the Ontario Housing Corporation pays the municipality a grant-in-lieu of taxes annually.

Activity There are 2,881 self-contained units for senior citizens in Edmonton as of February, 1980. There are 372 units under construction, and an additional 1,311 units planned for 1980 - 1984 development. Map 3.4 illustrates the location of senior citizen self-contained units.

38.

LOCATION OF SENIOR CITIZENS SELF-CONTANIED HOUSING PROGRAM PROJECTS

1 5 3 AvE

EACH DOT REPRESENTS ONE PROJECT

THE CITY Of

l illb

l aF A. : . • z" • 1,. .._ SiNtj DEPT

JANUARY 1960

MAP 3.4

800417

HI_

39. 2.B CORE HOUSING INCENTIVE PROGRAM (CHIP)

Purpose To stimulate production of rental units.

To increase the supply of modest rental housing affordable to individuals or families with low and moderate incomes.

Fifty percent of each of the unit types within each project built under the program are rented at market rents set by the owner of the project. Rents on the remainder of the units are controlled and are set on an individual project basis by AHMC, taking into account construction, land and operating costs, an allowed rate of return of 5% of the owner's investment in the controlled rent units and the debt service on the loan for the controlled units, bearing a preferred interest rate.

Agency Alberta Home Mortgage Corporation

Eligibility (for Controlled Rent Units) 1.

Tenants a)

The target group is households whose adjusted income is up to $15,000 but higher income households may be eligible.

Adjusted income is defined as total household income less Family Allowance and Youth Allowance; living out or travelling allowances of a family head; earnings of a spouse up to $1,000 per year; income of any source up to $1,000 per year for a oneparent family; capital gains such as insurance settlements, inheritances, disability awards, sale of effects; $500 deduction per dependent, exclusive of spouse, up to a maximum of five. Only those applicants whose income is less than four times the controlled rent qualify for a controlled rent unit.

Proponent Proponents must be able to demonstrate that they have the financial and administrative ability to construct and manage rental projects of the size and type being proposed.

40. Financing Loans to builders of up to 95% of the appraised cost of land and buildings as determined by AHMC at a preferred interest rate. The amortization period is 50 years and the term is 15 years.

Municipal Involvement The municipal role is limited in CHIP, although the City has been closely involved with the Alberta Home Mortgage Corporation in the Multiple Site Competitions in Mill Woods. The City accepts proposal calls for development and judges the competitions. The successful developer buys or leases the land from the City at 50% of the market value plus local improvements.

Activity From the beginning of the program in 1975, up to February, 1980, there have been 1,100 subsidized units built, and 236 subsidized units now under construction. Map 3.5 illustrates the distribution of CHIP units.

41.

LOCATION OF CORE HOUSING INCENTIVE PROGRAM PROJECTS

LL.

3 4 STREET

153 4vE

EACH

DOT REPRESENTS ONE PROJECT.

MAP 3.5

@THE CRY OF

4.1114

REAL ESTATE ANI, HOUSING DEPT JANUARY 1960

LSW MAR. WOO

42. 2.0 ALBERTA FAMILY HOME PURCHASE PROGRAM

Purpose The purpose of the AFHP program is to provide financing to qualified home purchasers. This program combines the Cooperative Housing Action, Direct Lending and Starter Home Ownership program.

The program is directed at families who wish to purchase a new or existing home. The home must be the family's principal and only residential property, but does not have to be their first residence.

The program provides a mortgage subsidy to those families who qualify. It also allows the family to participate in the construction of their home. This labour input, "sweat equity", increases the lending value of the home by adding to the family's cash equity.

The introduction of this program has simplified the Provincially funded home ownership programs, by bringing all the programs together under one name and fund. This program was authorized by the Minister of Housing and Public Works on March 21, 1979, and is implemented by AHMC under the Alberta Home Mortgage Corporation Act, Section 9.

Agency

Alberta Home Mortgage Corporation (AHMC)

Eligibility 1.

Client: a)

Families who wish to build their own homes or have them built, or builders who wish to build homes for sale to qualified purchasers.

Families are defined as a married couple with or without dependents or an adult with at least one child.

Families with an adjusted gross income (AGI) of up to $31,000 per year are eligible. AGI is calculated as follows: AGI = 100% of principle wage earner's income + 100% of working spouse's income, less working spouse's income on up to $4,000, whichever is less, less $300 per dependent child. The applicant and/or co-applicant must have resided in Alberta for at least one of the five years prior to the date of application to obtain a subsidy.

43. 2.

Dwelling: a) b)

The maximum eligible new house price is $70,000. 2 The maximum allowable home size is 110 m (1,184 sq.ft.) for a 2 bungalow, bi-level or split level and 120 m (1,292 sq.ft.) for a two story dwelling. Mobile homes on permanent foundations meeting AHMC requirements are eligible.

Financing: a)

AHMC provides mortgage loans of up to 95% of the lending value of the house and land, up to $53,200 for existing homes and 95% of the lending value of up to $63,360 for new housing, at AHMC's conventional interest rate which is near the market rate.

Subsidies are provided, depending on the applicant's income and house payment, up to $3,240 per year. The need for a subsidy is reviewed every 30 months.

An additional subsidy of $20 per month for a period of 30 months is available to first-time homeowners who meet program guidelines and who purchase new homes complying with special size limits.

Municipal Involvement The City sells subsidized lots to qualified users of the program. The majority of these lots have been made available in Mill Woods, in accordance with the following marketing and pricing policy: Initially, lots were sold at 80% of the appraised market value with varying percentages of lots made available to individuals and builders. In 1976 the policy was changed to permit the sale of subsidized lots only to individuals under one of the Province's assisted home ownership programs. The land was sold for 50% of market value ($0.55 per square foot), and a second mortgage was introduced in an effort to eliminate speculation, at an interest rate of 11% on the difference between the actual price of the land and market value. This is forgiveable at 10% per year to the owner. In 1977 lots for development under provincial home ownership programs were sold at $0.60 per square foot, increasing to $0.65 per square foot in 1978.

44. On March 13, 1979, Council approved the 1979 Marketing and Pricing Policy for Lands in Mill Woods, wherein 716 lots were made available for sale at 50% of market value ($1.10 per square foot), to purchasers under assisted home ownership programs.

Alberta Family Home Purchase Program cost restrictions per unit have resulted in the majority of units being located in Mill Woods, due to the land subsidy borne by the City. The increased unit cost guidelines under the AFHP program may alleviate some of the pressure on Mill Woods, but at present purchases within multiple family condominium projects are the only alternative in other areas. There is potential for zero-lot-line units to meet cost guidelines.

Activity in Edmonton From June, 1976, when the original programs began, until the new consolidated AFHP program was introduced, 2,365 loans were approved. As of February, 1980 there have been 2,175 single family subsidized lots in Mill Woods allocated to the program. There will be 1,900 lots available in Mill Woods after April 1, 1980. Map 3.6 illustrates the distribution of AFHP Program units.

45. DISTRIBUTION OF ALBERTA FAMILY HOME PURCHASE PROGRAM HOUSING UNITS

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MAP 3.6

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46.

2.D LIMITED DIVIDEND PROGRAM (Discontinued in 1975)*

Purpose To encourage the construction of low rental accommodation by providing low interest financing to developers of multiple housing.

Agency Canada Mortgage and Housing Corporation

Eligibility Eligibility to develop housing was extended to builders of multiple housing.

For a tenant to be eligible, the only criteria is income. The income limits have kept up to the standard subsidized unit guidelines; gross family income of $11,500 to $16,000. Tenants may be students, singles, senior citizens and families, but the tendency now is towards single parent families. An income verification prepared by the developer is required by CMHC at least once every three years.

Financing The developer of the project was given a preferred interest rate of between 4% and 8% on loans of up to 90% of the project costs. The loans were generally amortized over a 40 to 50 year period. The profits of the project are reviewed annually and limited to between 3% and 6%. Rental rates for the projects can be adjusted annually, but rates are subject to CMHC approval.

Municipal Involvement There was no municipal involvement in the Limited Dividend Program.

Activity There are 4,013 LDP units operated by the private sector. Map 3.7 illustrates the location of Limited Dividend Program Projects.

* Although the program has been discontinued, projects built under the program provide low cost rental units, operated by the private sector, for low income households.

47.

LOCATION OF LIMITED DIVIDEND PROGRAM PROJECTS

co4N RD

i53 4vE

00 137

•

NE CITY Of

1111 1111°

EACH DOT REPRESENTS ONE PROJECT REAL ESTATE AND HOUSING

MAP 3,7

DEPT

JANUARY INGO

I. VC MAR. 12/1110

48. .

SUMMARY

The number of existing Social Housing units by program are outlined in Table 3.5.

Table 3.5 -

CITY OF EDMONTON NUMBER OF EXISTING SOCIAL HOUSING UNITS BY PROGRAM*

PROGRAM

UNITS

Community Housing Low Income Housing (Non-Profit & Cooperative) Senior Citizen Lodge (beds) Senior Citizen Self-Contained Core Housing Incentive Program (subsidized units) Alberta Family Home Purchase Program Limited Dividend

2,769 726 494 2,881 1,100 2,365 4,013 14,348

* As of February, 1980 These figures do not include units under construction.

CHAPTER IV SOCIAL HOUSING TARGETS AND FUTURE MUNICIPAL LAND AND BUDGET REQUIREMENTS

49. CHAPTER IV - SOCIAL HOUSING TARGETS AND FUTURE MUNICIPAL LAND AND BUDGET REQUIREMENTS

Over the last decade the City has played a significant role in the delivery of social housing in the provision of land, direct subsidies, development sponsorship, and relaxed land use regulations. The intent of this chapter is to outline a program for municipal involvement in the provision of social housing.

The preceding chapters of the report indicate that approximately 26,000 households in Edmonton are being affected by the high cost of housing and are in need of some type of housing assistance.

The City has only limited powers to affect the cost of accommodation. The most significant factors pushing up accommodation costs are high interest rates and labour and material costs, which are beyond the jurisdiction of the City of Edmonton to control.

However, the City can affect the availability of affordable accommodation for low and fixed income households, as well as making available land at reasonable market prices through its land banking program.

The purpose of this chapter is to outline a proposed level of municipal involvement in the provision of social housing. The following section provides a brief overview of social housing production targets and proposed municipal land and budget requirements, for 1980 to 1982, on a program-byprogram basis.

COMMUNITY HOUSING PROPOSED ACTIVITY

Production Targets The Community Housing Program production targets proposed for the 1980 to 1982 period are outlined in Table 4.1, which provides a breakdown of the annual targets, and indicates the priority location. These figures were formulated based on information received from the Alberta Housing and Public Works Department and recommendations presented in the report entitled: Low Income Housing in Alberta, A

50. Review of the Community Housing Program, prepared by Clayton Research Associates in 1978. The report estimated demand for this Program over the next five years, and one of the findings was that 45% of the 1 target households are located in the older communities of the city, as shown on Map 4.1.

Land Inventory To ensure that development under the Program meets the need for community housing units in the older neighbourhoods, over 40% of the community housing units planned for 1981 and subsequent years must be allocated to older neighbourhood areas. The City's land inventory is sufficient to meet projected Community Housing land requirements in suburban areas for the next few years. However, there is a shortage of City-owned land in the older neighbourhoods and, in order to meet the need for community housing in these areas, the rate of acquisition must be increased in order for the City to have enough land to meet the targets proposed. Refer to Table 4.1.

Financial Implications a)

Land Component While municipal land costs are recoverable on the sale or lease of land, funding is needed for initial land acquisition, administration and carrying costs. It is estimated that a three year lead time is required for the assembly of land for social housing development.

To overcome the obstacles associated with inner city site assembly, namely cost and timing of acquisition, sites must be identified now for development in three years' time. In order to make up the three year lead time between acquisition and development, 1980 and 1981 budget allocations include funds needed for land acquisition for the 1980 to 1984 period. For example, the 1981 budget will include funds for acquisition of sites that will be developed in three years time, 1984. The annual land budget requirements for 1980 to 1982 are outlined in Table 4.2.

1. Low Income Housing in Alberta - A Review of the Community Housing Program, Clayton Research Associates, 1978. The following eight communities are regarded as older neighbourhoods: City Park Annex, Bellevue, Hudson Bay Reserve, Oliver, Central, Boyle-McCauley, River Heights and University. p.68

TABLE 4.1

COMMUNITY HOUSING PROGRAM PROJECTED PRODUCTION TARGETS

1981

1980

Suburbs Production Targets (No. of Units) (No. of Acres) City Land Available In Inventory (No. of Units)*** (No. of Acres)

Older Neighbourhoods*

Total

Suburbs

330 19

160 9.4

1,280 75

18 .55

1,298 75.55

1,500 88

1982

Older Neighbourhoods

88** .55

18 .55

Total

Suburbs

Older Neighbourhoods

Total

248 9.95

150 11

100 4

250 15

1,740 101.55

1,562 92

100 4

1,662 96

See Map 4.1 for an outline of areas referred to. Land for 70 of the 88 units will be provided through the development of the provincially-owned Palm Dairies site To derive unit figures we assumed an appropriate density of 17 units/acre in suburbs and 25 units/acre in older neighbourhoods.

LOCATION OF OLDER NEIGHBOURHOODS

OLDER NEIGHBOURHOODS

SUBURBS

MAP 4.1 SOURCE: CITY OF EDMONTON REAL ESTATE AND HOUSING 1979

52.

53. 4.2 -

LAND ACQUISITION BUDGET - PROJECTED ($000) Year 1982** 1980 1981 Area

Table

Suburbs*

$1,869

770

Older Neighbourhoods

2,600

4,000

$4,600

Total

4,500

4,770

4,600

* In the case of land acquisition in the suburbs, servicing costs are included. **1982 budget figures were developed based on the assumption that the production rate in 1983, 1984 and 1985 will be the same as in 1982.

Operating Subsidies The City contributes 10% of the operating deficit of comfflunity housing units. In 1979, the City's contribution amounted to $769,000 ($295 per unit annual subsidy). Table 4.3.a depicts the City's contribution to date and indicates what the future City annual subsidies will be with the addition of the proposed 1980 to 1982 units (refer also to Table 4.3.a for graphic illustration).

Table 4.3.b presents a discounted cash-flow analysis in present value (1980 dollars) of community housing operating subsidies The present value of the City's commitment to the community housing program operating subsidy over the next five years (1980 -1985 inclusive), assuming that there is no increase in units (OPTION A - STATUS QUO), is estimated to be $5,632,146. Assuming that there is an increase in units (OPTION B PROPOSED TARGET ACTIVITY), the present value of the City's commitment to the community housing operating subsidy program over the next five years (1980 - 1985 inclusive), is estimated to be $7,035,945. The operating subsidy cost to the City of proceeding with the proposed increase in units would be $1,403,799.

Table 4.3.a

TOTAL CITY SUBSIDY* FOR COMMUNITY HOUSING UNITS SUBSIDY AND UNIT STATISTICS 1971 COMMUNITY HOUSING Developed # of Units Cumulative # of Units

1972

350 386

313 699

1973

1974

1975

1976

1977

1978

1979

648 1,347

1,347

97 1,444

176 1,620

255 1,875

548 2,423

182 2,605

Total Operating Subsidy**($49,383) $17,946 ($2,738)($116,414)($3,477) $268,943 Annual Subsidy/Unit($) (127) 25 (2) (86) (3) 166

$357,827 190

$704,321 290

$769,000 295

* In the years 1971, 1973, 1974 and 1975 inclusive, operating subsidies were not required for several reasons; for example, there were no extraordinary maintenance repairs required, and there were low vacancy rates. ** City's Share - Represents 10% contribution toward the total operating deficits.

TOTAL CITY SUBSIDY PER YEAR FOR COMMUNITY HOUSING UNITS

TOTAL SUBSIDY IN 4000/ $11.750 5,500 5,550 5,000 4.750

1980

1981

1982

1983

â&#x20AC;¢ ,500

1985

1984

'OPTION A - STATUS qyo (NO NEW ums BUILT) COMMUNITY HOUSING Developed f of Units Cumulative if of Units

4,550 4,000 5.700

164 2,769

Total Operating Subsidy*** $938,691 339 Annual Subsidy/units($)

2,769 $1,077,144 389

2,769 $1,240,512 448

2,769

1.500

2,769

2,769 $1,855,689 681

$1,428,804 $1,642,017 516 593

ACTUAL COSTS

5.550

PROPOSED CAST

TO DATE

1.000 5.750 8,500

OPTION 8 - PROPOSED ACTIVITY

5,250 5,000

COMMUNITY HOUSING Developed f of Units Cumulative f of Units

164 2,769

Total Operating Subsidy*** $938,691 Annual Subsidy/unit(S) 339

330 3,099 $1,205,511 389

250 3,349 $1,500,352 448

250 3,599

250 3,840

$1,857,084 $2,277,120 516 593

1,730

250 4,099

1,500 1,250

$2,791,419 681

1.000 750 100

*** Projected operating subsidies determined based on a 15% inflation factor compounded annually.

YEAR

250

SURPLUS

500

1971

76 77 70 79 DO Al 82 85 84 85

750

PROJECTED FIGURES BASED ON 15% INFLATION FACTOR COMPOUNDED ANNUALLY.

SOURCE : [In OF EDMONTON

REAL

ESTATE

AGO

HOUSIP',

FT FINIIARY 10An

cn 4=.

Table 4.3.b

COMMUNITY HOUSING OPERATING SUBSIDY DISCOUNTED CASH FLOW ANALYSIS* (1980 Dollars)

1980

1981

1982

1983

1984

1985

5 YEAR TOTAL

OPTION A - STATUS QUO (NO NEW UNITS BUILT) COMMUNITY HOUSING Estimated Expenditure Present Value (1980 Dollars)

$938,691 $1,077,144 $1,240,512 $1,428,804 $1,642,017 $1,855,689 938,691 $5,632,146 938,691 938,691 938,691 938,691 938,691

OPTION B - COST TO THE CITY OF IMPLEMENTING PROPOSED PRODUCTION TARGETS COMMUNITY HOUSING Estimated Expenditure Present Value (1980 Dollars)

* Discount rate used is 15%.

$938,691 $1,025,511 $1,500,352 $1,857,084 $2,277,120 $2,791,419 938,691 1,050,561 1,135,311 1,220,061 1,301,760 1,389,561 $7,035,945

56. 4.

Proposed Program Modifications To date the majority of community housing units have been built in the 1 suburbs. A recently completed consultant report on the Community Housing Program recommended that projects should be better distributed throughout the city, and future land acquisition for community housing units should be in older neighbourhoods of the city.

While it is recognized that sites are required in these areas, land cost per unit guidelines have hampered efforts to date to develop units. Over the years the Administration recommended sites in selected Neighbourhood Improvement Program (NIP) areas to the Alberta Housing Corporation for the development of community housing units; however, the sites were rejected primarily because of program cost limitations. Further negotiations between the City and the Province on the unit land cost component are necessary if community housing units are to be built in older neighbourhoods.

Over the last decade the City's contributions toward operating subsidies have increased dramatically. It would appear that closer coordination is required with respect to Community Housing Program policy decisions.

LOW INCOME HOUSING PROGRAM PROPOSED ACTIVITY

MUNICIPAL NON-PROFIT I.

Production Targets The Edmonton Non-Profit Housing Corporation (ENPHC) has set an annual production target of 200 units per year from 1980 to 1982. Table 4.4 provides a breakdown of annual targets and indicates the priority location.

A market evaluation study was prepared by a private consulting firm for the Board of Directors of the Edmonton Non-Profit Housing Corporation, and a report was submitted with recommendations concerning the target group. The report recommended that accommodation should initially be directed at low and moderate income households who are non-elderly renters. The profile of target households indicates they are small in size, headed by young adults with few children, with 1. Low Income Housing in Alberta - A Review of the Community Housing Program, Clayton Research Associates, 1978

1 Table 4.4 MUNICIPAL NON-PROFIT PROJECTED PRODUCTION TARGETS

Suburbs

Older Neighbourhoods*

1982

1981

1980

Total

Suburbs

Older Neighbourhoods

Total

Suburbs

Older Neighbourhoods

Total

Production Targets (No. of Units) (No. of Acres)

200 5

100 5.9

100 2.5

200 8.4

100 5.9

100 2.5

200 8.4

City Land Available In Inventory** (No. of Units) (No. of Acres)

182 11

346 8.7

528 19.7

349 20

146 3.7

495 23.7

249 15

46 1.2

295 16.2

See Map 4.1 for an outline of areas referred to. To derive unit figures we assumed an approximate density of 17 units/acre in suburbs and 40 units/acre in older neighbourhoods.

58. a large percentage of single parent families. The study also indicated that the target households tend to be concentrated in the older inner City communities, with a higher percentage being located in the Boyle Street-McCauley district. In accordance with the consultants' recommendations, in the period 1980 to 1982 development will be concentrated in the older neighbourhoods and inner city, for example, Boyle StreetMcCauley; Riverdale; and Hudson Bay Reserve.

Land Inventory As a public agency the ENPHC is able to draw from either Community Housing Program or Non-Profit Housing land inventory, pursuant to City Council's resolution of June, 1979. Up until 1981 proposed targets will be met through the development of sites already held in the City land inventory; however by the end of 1981 the land inventory in the older neighbourhoods will be depleted. It is expected that there will be a shift in emphasis to include development of suburban sites after 1980. This shift is predicted due to the high cost of inner City sites, decreasing availability of these sites, and to promote a more equitable distribution of this housing type.

Financial Implications (Land Component) While municipal land costs are recoverable on the sale or lease of land, funding is needed for initial land acquisition, administration and carrying costs. It is estimated that a three year lead time is required for the assembly of land. In order to make up the three year lead time between acquisition and development, 1980 and 1981 budget allocations include funds needed for land acquisition for the 1980 to 1984 period. For example, the 1981 budget will include funds for acquisition of sites that will be developed in three years time. The annual land budget requirements for 1980 to 1982 are outlined in Table 4.5.

Table 4.5 - LAND ACQUISITION BUDGET - PROJECTED ($000) Year Area 1980 1981 1982* Suburbs Older Neighbourhoods 2,000

4,600

2,900

Total

4,600

2,900

2,000

* 1982 budget figures are based on the assumption of an annual production rate in 1983 to 1985 similar to 1982 rate.

59. PRIVATE NON-PROFIT PROGRAM AND COOPERATIVE HOUSING PROGRAMS 1.

Production Targets Estimates of required annual production targets for 1980 to 1982 for the Private Non-Profit and Cooperative Housing Programs have been developed in consultation with Canada Mortgage and Housing Corporation, the Federal agency directly responsible for assisting non-profit housing sponsors and non-profit cooperative housing groups. Table 4.6 provides a breakdown of the annual targets and the priority location.

Land Inventory Historically, most Non-Profit sponsors have provided their own land for development. However, because of revised program cost guidelines and the perceived preference for currently scarce, assembled older neighbourhood area sites, it is anticipated that sponsors will, over the next few years, wish to avail themselves of the terms of the City of Edmonton Third Sector Housing Policyl to a greater extent than in the past.

Non-Profit Cooperative groups in the past have almost exclusively depended upon the availability of land from the City at below market value, so that their development costs would meet program guidelines. It is expected that this trend will continue and that municipal land will be required for all new construction undertaken by Non-Profit Cooperative groups.

Sufficient inventory exists to meet production target requirements for these programs in suburban areas for the next few years. However, further municipal land acquisitions in older neighbourhood areas will be necessary to meet production target requirements. Refer to Table 4.6.

Refer to Low Income Housing Program information in Chapter IV for explanation of the Third Sector Housing Policy.

Table 4.6 COOPERATIVE & PRIVATE NON-PROFIT HOUSING PROGRAMS PROJECTED PRODUCTION TARGETS

1980

Suburbs

1982

1981

Older Neighbourhoods* Total

Suburbs

Older Neighbourhoods

Total

Suburbs

Production Targets (No. of Units) (No. of Acres)

25 1.5

60 4

85 5.5

50 2.9

60 4

110 6.9

100

City Land Available In Inventory (No. of Units)** (No. of Acres)

207 12.3

120 8

327 20.3

182 10.7

60 4

242 14.7

132

* **

Older Neighbourhoods

Total

185

132

See Map 4.1 for an outline of areas referred to. To derive unit figures we assumed an approximate density of 17 units/acre in suburbs and 30 units/acre in older neighbourhoods.

61. budget allocations include funds needed for land acquisition for the 1980 to 1984 period. For example, the 1981 budget will include funds for acquisition of sites that will be developed in three years time. The annual land budget requirements for 1980 to 1982 are outlined in Table 4.7.

Table 4.7

LAND ACQUISITION BUDGET - PROJECTED ($000) Year Area 1982* 1980 1981

Suburbs Older Neighbourhoods 2,100

3,300

3,700

Total

3,300

3,700

2,100

* 1982 budget figures are based on the assumption of an annual production rate in 1983 to 1985 similar to 1982 rate.

SENIOR CITIZEN LODGE PROGRAM PROPOSED ACTIVITY 1.

Production of Units The Real Estate and Housing Department has advised the Alberta Housing Corporation that it is not prepared to recommend that City Council approve additional units until a revised Master Foundation Agreement has been signed by the City and the Province.

Financial Implications a)

Operating Subsidies The 1960 Master Foundation Agreement outlines the responsibilities of the Municipality, the Province and the Greater Edmonton Foundation for the development and operation of certain projects containing a specified number of beds. The City pays 100% of the operating deficit of the Greater Edmonton Foundation, which manages lodges and cottage projects for senior citizens in the City. The Master Foundation Agreement requiring this dollar commitment is currently under review and being renegotiated with the Alberta Housing Corporation as the annual operating costs are extremely high. Table 4.8.a outlines past and estimated future operating subsidies paid by the City for the Senior Citizen Lodge Program. Refer to Figure 4.8 which graphically illustrates these subsidies.

Fable 4.8.b

lable 4.o.a SENIOR CITIZEN LODGES (NO. OF BEDS) OPERATING SUBSIDY PAID BY THE CITY OF EDMONTON Subsidy Year Actual 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985

Subsidy Cumulative Estimated* No. Beds

$ 73,767 131,357 186,618 242,536 266,134 247,573 $ 276,885 307,440 337,995 368,865 399,420 429,975

SENIOR CITIZEN LODGE OPERATING SUBSIDIES DISCOUNTED CASH FLOW ANALYSIS (1980 Dollars)

Average Annual Subsidy/Bed

315 315 315 378 443 315 315 315 315 315 315 315

$ 234 416 594 643 601 786 879 976 1,073 1,171 1,268 1,365

Year

Estimated Expenditure

1980 $ 276,885 1981 307,440 1982 337,995 1983 368,865 1984 399,420 1985 429,975 Five Year Total

* The Real Estate & Housing Department has advised the Alberta Housing Corporation that it is not prepared to recommend that City Council approve additional units until a revised Master Foundation Agreement has been signed by the City and the Province. Thus, 1980-1985 estimated subsidies are based on the assumption that no new units will be built.

Figure 4.8 PAST AND ESTIMATED OPERATING SUBSIDIES PAID BY THE CITY FOR SENIOR CITIZEN LODGE PROGRAM

COST TO DATE

PROPOSED

$(000) 650 600 550 500 450 400 350 300 250 200 150 100 50 Total Subsidy/Year YEAR 74 75 76 77 78 79 80 81 82 83 84 85

Present Value (1980 Dollars) $ 276,885 267,339 255,572 242,534 228,369 213,773 $1 484 472

63. Table 4.8.b presents a discounted cash-flow analysis in present value (1980 dollars) of the estimated future operating subsidies to be paid by the City for the Senior Citizen Lodge Program. The present value of the City's commitment to the Senior Citizen Lodge operating subsidy program over the next five years (1980 - 1985 inclusive) is estimated to be $1,484,472.

In addition, the City foregoes municipal taxation revenue on self-contained and lodge units for senior citizens which amounted to $1.1 million in 1978. An investigation should be undertaken to determine the feasibility of having the Alberta Housing Corporation pay the City of Edmonton a grant-in-lieu of taxes annually on these units.

SENIOR CITIZEN SELF-CONTAINED PROGRAM PROPOSED ACTIVITY

Program Review Alberta Housing Corporation pays 100% of the capital costs, while operating deficits are shared on a 50-50 basis between AHC and CMHC. On the surface it would appear that the City shares no direct financial responsibility for this program; this is not the case. The City does not receive any property tax revenues from the Province for its senior citizen developments.

The City foregoes municipal taxation revenue on self-contained and lodge units for senior citizens which amounted to $1.1 million in 1978 (1979 data not available).

On 1976 06 23 Council passed a number of resolutions concerning the possibility of securing Provincial payment for this item. The Minister responsible for housing at that time did not support the municipal position. Therefore the City is providing a direct annual subsidy for this Provincial program which, to a large part, is not being acknowledged by the Province. In the case of Ontario, the Ontario Housing Corporation pays the municipality a grant-in-lieu of taxes annually.

64. E.

CORE HOUSING INCENTIVE PROGRAM (CHIP) PROPOSED ACTIVITY

Program Modifications This section will briefly outline some of the problems with this program in an effort to identify areas of needed improvement.

In Mill Woods the City has worked with Alberta Housing Mortgage Corporation in the multiple site competitions where land is sold by the City at 50 percent of market value, including servicing charges. Unfortunately, when the Province develops Core Housing Incentive Program projects outside of Mill Woods, Municipal participation is not solicited in determining the most appropriate location. As a result of this lack of communication, CHIP and Community Housing program projects have been developed in close proximity creating pockets of low income households in several areas of the city.

Proposed activity for this program is that the City meet with the Province in an effort to introduce program changes that will minimize the Core Housing Incentive Program overlap with the Community Housing Program and the Non-Profit Housing Program.

ALBERTA FAMILY HOME PURCHASE PROGRAM PROPOSED ACTIVITY

Program Review Municipal concern with the program is focused on the need for a more equitable distribution of units throughout the City. Cost restrictions per unit have resulted in the majority of the Alberta Family Home Purchase Program units being located in Mill Woods due to the lower cost of land available there under the City's Mill Woods Marketing and Pricing Policy. The few units that have been built in other areas of the City are condominiums, the only viable alternative due to the cost restrictions per unit.

LIMITED DIVIDEND HOUSING PROGRAM PROPOSED ACTIVITY

Program Review While there was no municipal involvement in the development or operation of this program, the City encourages the Provincial

65. government to review this program, to ensure that the units built under this program remain available to low income households.

Some projects have 15 year terms, after which the loans may be paid off and all monitoring of profit and income ends. A number of projects could be paid out in five years' time, although it is not known how many owners intend to exercise this option. An investigation into the number of units which could be affected, and the phasing of this turnover, should be undertaken in order to review the feasibility of maintaining this low income rental stock.

SUMMARY:

On a program by program basis, Tables 4.9 and 4.10 provide a summary of the 1980 to 1982 annual production targets and projected land acquisition budget. Table 4.11.a provides a summary of the total operating subsidies the City will be required to contribute for existing and proposed units 1980 - 1985.

Table 4.11.b presents a discounted cash-flow analysis in present value (1980 dollars) of the total operating subsidies the City will be required to contribute for existing and proposed units 1980 - 1935.

66. Table 4.9

PROJECTED PRODUCTION TARGETS 1980

1981

1982

330 330

160 88 248

150 100 250

MUNICIPAL NON-PROFIT Suburbs Older Neighbourhoods TOTAL

200 200

100 100 200

COOPERATIVE & PRIVATE NON-PROFIT HOUSING Suburbs Older Neighbourhoods TOTAL

25 60 85

50 60 110

100 85 185

355 260 615

310 248 558

350 285 635

PROGRAM COMMUNITY HOUSING Suburbs Older Neighbourhoods TOTAL

TOTAL FOR ALL PROGRAMS Suburbs Older Neighbourhoods TOTAL

Table 4.10 -

LAND ACQUISITION BUDGET - PROJECTED ($000)

PROGRAM

1980

1981

1982**

COMMUNITY HOUSING Suburbs* Older Neighbourhoods TOTAL

1,869 2,600 4,500

770 4,000 4,770

4,600 4,600

MUNICIPAL NON-PROFIT Suburbs Older Neighbourhoods TOTAL

2,000 2,000

4,600 4,600

2,900 2,900

COOPERATIVE & PRIVATE NON-PROFIT HOUSING Suburbs Older Neighbourhoods TOTAL

2,100 2,100

3,300 3,300

3,700 3,700

TOTAL FOR ALL PROGRAMS Suburbs 1,869 Older Neighbourhoods 6,700 TOTAL 8,569

770 11,900 12,670

11,200 11,200

Table 4.11.a 1980 A**

B*** ,

COMMUNITY HOUSING Total Operating Subsidy

938,691

SENIOR CITIZEN LODGE PROGRAM **** Total Operating Subsidy

276,885

Total Annual Operating Subsidies Paid By City

1,215,576 1,215,576

ROJEC ED ANNUAL OPERATING SUBSIDIES BY PROGRAM* 1983 1982 1981 A B A B A

1,077,144 1,205,511

307,440

1,384,584 1,512,951

1,240,512 1,500,352

337,995

1,578,507 1,838,347

1984 B

1985 B

1,428,8041,857,084 1,642,017 2,277,120 1,855,689 2,791,419

368,865

386,865

1,797,6692,225,949

399,420

2,041,437 2,676,540

429,975

2,285,664 3,221,394

Table 4.11.b PROJECTED ANNUAL OPERATING SUBSIDIES BY PROGRAM Discounted Cash Flow Analysis (1980 Dollars)* 1980 A**

1981 B***

1982 B

1983 B

1984 B

1985 B

COMMUNITY HOUSING Total Operating Subsidy

938,691

938,691 1,050,561

938,691 1,135,311

938,691 1,220,061

938,691 1,301,760

938,691 1,389,561

SENIOR CITIZEN LODGE PROGRAM **** Total Operating Subsidy

276,885

267,339

255,572

242,534

228,369

213,773

Total Annual Operating Subsidies Paid By City

1,215,576 1,215,576

267,339

1,216,030 1,317,900

255,572

242,534

228,369

1,194,263 1,390,883 1,181,225 1,462,595 1,167,060 1,530,129

213,773

1,152,464 1,603,334

PIG IAMFOR,C0

68. CHAPTER V - A PROGRAM FOR ACTION

The following Action Plan, which outlines six areas of investigation, is recommended:

69. 3. REVIEW AND PROPOSE AMENDMENTS TO THE CITY'S CURRENT HOUSING POLICIES AND PROGRAMS. Several of the City's housing programs and policies warrant review and revision where necessary; for example, the City's land acquisition policy and land pricing policy.

5. IMPROVE COMMUNICATIONS AND COORDINATION WITH THE PRIVATE SECTOR, HOUSING SPONSORS AND OTHER GOVERNMENTS, WITH THE VIEW TO INCREASING CITY INVOLVEMENT IN HOUSING DECISIONS. At the municipal level, there is continuous interaction â&#x20AC;˘between the decision-makers, the administration, and the public. The municipality is held accountable by its citizens for the impact of new housing and

70. the form of growth. The City is the level of government closest to the housing needs of citizens and is often expected, by the public, to respond to changing community needs by changing policy direction.

71. Table 5.1 - HOUSING ACTION PLAN 1980 - 1982 ACTIVITY

ESTIMATED MAN YEARS 1980 1981 1982

Undertake a land acquisition program to assemble a sufficient land supply in order to achieve housing targets

2.5

Review the fiscal impact on the City of Edmonton as a result of its involvement in government subsidized housing programs

Review and propose amendments to the City's current housing policies and programs

Evaluate and improve the effectiveness of overall housing responsibilities of the City of Edmonton

Improve communications and coordination with the private sector, housing sponsors and other governments with the view to increasing City involvement in housing decisions

Develop a program of research and investi gation in order to determine the City's future responsibilities in the provision of housing

2.0

4.0

MAN YEARS REQUIRED Routine workload

2.5

7 4

10 5

8 5

11 8

15 11

13 11

ADDITIONAL STAFF MAN YEARS REQUIRED

CONSULTANT MAN YEARS REQUIRED

TOTAL MAN YEARS REQUIRED Man Years available

72. APPENDIX I Summary of Report Entitled

A Housing Strategy for the City of Edmonton

Preface

This paper is a summary of the report entitled, A Housing Strategy for the City of Edmonton, published by the City of Edmonton Real Estate and Housing Department in September, 1978, and approved by Council in June, 1979. It attempts to present a summary of the plan of action or strategy to be implemented by the City of Edmonton in order to ensure continuity in municipal commitment to housing programs.

As such, the summary will deal with the following topics:

History of the report

Purpose of the report

Government, Private and Third Sector Roles in Housing

Quantity and Quality of Housing - Areas of Municipal concern

1. HISTORY

In 1975, a research report entitled "Housing in Edmonton: Directions for the Future" was prepared by the City of Edmonton Planning Department, in response to a need for information on future housing demand. This document was presented to City Council in May, 1976, at which time Council directed that this report be received as information and that public comments be invited on the issues discussed in the report.

The Real Estate and Housing Department was given responsibility for preparation of the policy document and the Planning Department was asked to coordinate the public participation process. The rationale of this approach was to ensure public participation at an early stage in the formulation of a housing policy. Thus, in response to Council's directive, A Housing Strategy for the City of Edmonton incorporates findings

73. obtained from Edmonton citizen groups and the private sector as well as an evaluation of current City housing policies and other Canadian municipal housing experiences regarding social housing.

2. PURPOSE OF THE REPORT

The purpose of the report entitled, A Housing Strategy for the City of Edmonton, is to define the role of the municipality in the regulation and supply of housing in Edmonton. The municipal role in housing is defined by presenting three major components of a housing strategy. These components include:

the City of Edmonton's Housing Goal,

seven housing strategy objectives, and

twenty-five action recommendations.

The City of Edmonton's Housing Goal

To set the framework for Municipal involvement in housing, it was deemed essential that Council adopt a primary goal to provide policy direction in housing. Consequently, in June, 1979 the following goal was adopted by Council:

The City of Edmonton's Housing Goal is "the provision of adequate and affordable housing to allow individual choice concerning housing location, type and tenure."

The Housing Strategy Objectives

Seven housing strategy objectives are presented in the report as the means of achieving the City of Edmonton's Housing Goal. The housing strategy objectives are as follows:

To achieve a coordinated approach by the public sector in developing housing that is complimentary to private sector initiatives.

74.

To ensure that an adequate supply of developable land is available for continuous housing production in sufficient quantity to meet consumer needs and market demand.

To ensure reasonable standards of privacy, health and safety in new and existing housing.

To ensure an equitable distribution of housing stock by type, tenure and location.

To ensure that the Private Sector, the Public Sector, and the Third Sector produce housing sufficient to provide Edmonton Housing consumers a reasonable level of choice within their economic capability.

To encourage and pursue housing development that incorporates sound principals of energy conservation.

To assist in providing methods and procedures for involving users in the establishment of standards of new and existing housing.

These objectives are designed to be used as benchmarks against which progress can be measured, and as a basis for analyzing program alternatives.

Action Recommendations

There are twenty five action recommendations which are presented in conjunction with the housing objectives just listed. These recommendations specify how the various housing strategy objectives are to be implemented.

75. 3. GOVERNMENT, PRIVATE AND THIRD SECTOR ROLES IN HOUSING

INTRODUCTION

In the past, the City has often assumed a reactive role relative to senior government programs and initiatives. Although the City has been a willing and able participant in terms of assisting with housing programs, it has not had the advantage of sharing in policy and program determination. A more coordinated public sector approach, with increased input from the municipal level would result in more effective housing programs. The roles of the various agencies involved in municipal housing will now be discussed.

Federal Role:

The principal role of the Federal Government in municipal housing is as an organizing and funding agent of housing programs.

At the Federal-Provincial Housing Ministers Conference held in Edmonton in February, 1978, the issue of reduced Federal control over the expenditure of federally available funds was discussed. It appeared that a new direction regarding the role of the Federal Government, in housing, was imminent and it was anticipated that the municipality will have the opportunity to play an increased role in terms of housing production and delivery.

The current Federal approach places an increased emphasis on both private and public non-profit housing with more attention directed to the role of private lenders.

Provincial Role:

Although the Province's involvement in housing has developed fairly recently, it has made a significant contribution in the assisted housing field, and has placed housing near the top of its priorities.

76.

The role of the Province is also expected to change substantially in view of the recent new Federal position. Discussions with Provincial officials indicates strong support for a major municipal housing commitment both in terms of production, via the non-profit route, and as a housing coordinator.

Municipal Role:

The municipality has traditionally undertaken to guide and influence the supply of housing through planning decisions and enforcement of standards.

While the City is the level of government most familiar with its immediate housing needs, the City has often taken a reactive role to senior government programs. This is due, in large part, to the limited financial and legislative responsibility of the City's jurisdiction in housing. However, the municipality is held accountable by its citizens for the impact of new housing and the form of growth. Since housing is a major component of the urban structure for which the municipality is responsible, it is essential that the municipality have more direct input on housing programs than is presently the case.

Annual decisions must be made by the City regarding the quantity of new housing required, the amount of housing to be produced by the private and public sectors and the form housing is to take. The primary responsibility for producing housing rests with the private sector, and public sector involvement in the actual production of housing is viewed as complementary. However, in order to make the annual decisions regarding the amount of assisted housing required, the public sector should undertake a thorough analysis of the housing market in order that housing shortfalls are identified. Groups with special housing needs include senior citizens, single parent families, students, transients, handicapped persons and native people.

The City's role in the research and monitoring of assisted housing is seen as twofold:

A City-at-large analysis of the effectiveness of existing housing programs; and,

77.

An examination of specific housing requirements including multiple housing design guidelines, location criteria for housing forms and programs such as senior citizen housing, and the applicability of available programs to the City's housing needs.

Private Sector Role:

The Municipal Housing Strategy states that the primary responsibility for the provision of housing rests with the private sector. However, it is evident that the private sector, primarily for economic reasons, cannot meet the needs of the total housing market. In order to cover the market it is reasonable to expect that the private and public sectors will cooperate and coordinate their efforts in producing and regulating the supply of housing.

The crux of the housing problem is one of affordability and therefore it is important that the private sector continue to work to attain cost efficiency in both the production of new housing and housing rehabilitation. The municipality should actively encourage the private sector in exploring innovations in both the form and tenure of housing. Recent examples in the City of Edmonton include the use of the zero-lot-line concept, modular housing, and site design standards. New developments such as these should be pursued further by the private sector in coordination with the City administration.

Third Sector Role:

The aim of the non-profit housing program is to provide housing for families and individuals of limited financial means by extending the alternatives available in the present housing market in housing form, cost and tenure. The recent shift in policy at the Federal level has resulted in an increased emphasis on Third Sector Housing.

The City of Edmonton plays an important supportive role in relation to non-profit and cooperative groups, providing technical and financial assistance to further their development in a market system which, in the past, has not been generally receptive to non-profit principals.

78.

4. THE QUANTITY AND QUALITY OF HOUSING - AREAS OF MUNICIPAL CONCERN

Quantity of Housing

Regional growth strategies have indicated that Edmonton will continue to absorb the major part of the residential expansion for the region. Since 1972, the City has accounted for approximately 73% of the Regional growth, although this percentage has been declining slightly on an annual basis.

While the development and redevelopment of both the downtown and the suburbs is necessary to achieve a housing balance, the City is now placing increased emphasis on housing in the downtown. This is seen in Council's adoption in September, 1979 of the Downtown Housing Study. Encouraging housing in downtown not only contributes significantly to the overall supply of housing stock but also provides the opportunity for the development of assisted housing in the core where a significant degree of need for social housing exists.

Quality of Housing

The current production trend indicates continued dominance of the multiple housing type of accommodation. Late 1977 saw a surge of activity of multiple housing as developers responded to the capital cost allowance (tax shelter), the Assisted Rental Program and the Core Housing Incentive Program. The obvious result of the increased activity in multiple housing production has been the decline, in recent years, of single family housing production as a percentage of total housing production.

The reasons for increased multiple housing activity are mainly founded on economic considerations, and this form of housing is increasingly becoming a way of life for many households. However, many of these households, particularly those with young children or those planning families, view this form of housing as only temporary accommodation. The ideal of most households is the single detached house. Rising housing costs have placed this goal beyond the grasp of many households; many others are being put in the position of residing in multiple family housing for a longer period

79.

of time than originally perceived. Therefore, it is important that multiple family housing design standards which better reflect household needs be advanced. The City has expressed concern over both the long term impact and quality of multiple housing production and, as a result, the Planning Department is currently reviewing specific site design guidelines for multiple housing.

SUMMARY

The housing strategy report describes the municipal role in housing. As such, it is an outline of the key areas and methods of municipal involvement in housing. These areas include: provision of land for social housing, research and policy formulation regarding social housing programs, initiation and delegation of innovative housing solutions, limited housing production, support of private sector activities, and promotion of conservation of existing housing stock where possible.

APPENDIX II CITY COUNCIL RECOMMENDATIONS PERTAINING TO HOUSING

CITY COUNCIL March 30, 1965 Recommendations approved in principal from Urban Renewal Study 1963/64: Redevelopment of residential areas limited to areas of substantial blight and in which an alternate land use is appropriate. -

rehabilitation of housing stock program supported

a five year tax exemption on home improvements, stock constructed before 1972

encourage cooperative housing.

February 22, 1978 Recommendations approved: Housing Resolutions -

expedite provision of public housing units

strive for balance in public housing between new land and purchase of existing structures

study best method to acquire existing property in older residential areas to allow construction and leasing of patio housing units to low income families

study alternative techniques to provide low cost accommodation by public and private enterprise now employed in other areas

encourage and support participation of non-profit organizations to provide low cost accommodation.

January 20, 1969 Recommendations approved: Public Housing Development. The City should develop its own public housing units on suitable small parcels of City-owned land which are too small for comprehensive development.

January 21, 1969 Recommendations approved: Comprehensive developments in cooperation with private developers to effect a balance of public housing with other residential accommodation. -

inclusion of public housing in comprehensive developments on Cityowned land

City develop its own public housing units on suitable City-owned parcels too small for comprehensive development.

80.

81. March 10, 1969 Recommendation approved: Initiating land assembly projects eligible for government support. -

that public housing projects integrate all low income groups.

July 15, 1969 Recommendation approved: Request Alberta Housing and Urban Renewal Corporation to include developments for hostel and dormitory accommodation for single senior citizens in urban renewal areas.

July 15, 1969 Municipal Policy approved: Senior Citizen Project Proposals - City owned land leased or sold to non-profit corporations for senior citizen accommodation.

March 13, 1972 Recommendation approved: New residential subdivisions must provide an area of net developable residential land sufficient to provide public housing for 5% of the population of that new residential subdivision.

March 27, 1972 Recommendation approved: In view of the refusal of A.H.C. to reconsider its policy change relating to municipal equity in public housing, Council approved by resolution that the City continue planning on the basis of providing 1,000 unit starts per year.

January 8, 1973 Recommendation concurred in: Offer subsidized rental housing in the Boyle Street area for various types of housing users. -

implement a demonstration project involving the acquisition and renovation of an existing building for senior citizens in the Boyle Street area

monitor the effective need and demand for low cost subsidized accommodation in the central city, and formulate appropriate recommendations to meet the needs.

May 14, 1974 Recommendation concurred in: Canora N.I.P. - offer relocation compensation for households, and the relocation of the dwelling unit where possible.

82. May 27, 1974 Recommendation agreed: General Housing Goals - "to assist senior governments to assure an adequate supply of housing for low income people to clarify the role that housing is to play as a function of local government at reasonable cost". -

that housing development policies and practices provide for citizen participation.

May 28, 1974 Recommendation concurred in: Shortage of Public and Welfare Housing -Real Estate and Housing Department provide housing program information services in a consolidated form to reach those who require the programs. -

support adoption of the rent supplement program press forward with various alternative public housing programs under municipal ownership.

November 26, 1974 Motion carried: Establish a low interest municipal loan fund, or permit placement of rehabilitation charges on the tax roll with allowance for payments over a number of years.

March 25, 1975 Recommendation concurred in: Leasing of City-owned land for social housing for a period of 60 years on the basis of the land value at the price by which the City acquired or may acquire it.

April 22, 1975 Recommendation concurred in: Urge greater financial support for N.I.P. and other resources which preserve and strengthen inner city communities. -

greater support for cooperative housing in Canada.

June 10, 1975 Recommendation agreed: Submitted to Provincial Task Force on Condominium conversion - municipal authority to reject conversion applications if vacancy rate falls below a specified level or conflicts with good planning. -

full disclosure to purchaser by developer of total costs; eg., down payment, monthly payments.

83. January 14, 1976 Recommendation agreed: Public Housing - City support for public housing, and urge greater federal/provincial funding for land assembly and public housing construction.

April 13, 1976 Recommendation Agreed: Statement of housing policy be prepared.

June 22, 1976 Recommendation concurred in: That the City approach the Provincial government to seek compensation for tax losses after amendments to the Municipal Taxation Act 1972 by requesting grants in lieu of taxes for all senior citizens projects in the City of Edmonton.

August 10, 1976 Recommendation carried: Encourage Central Edmonton as an attractive multidensity residential area, with planning which takes into account the historical character and particular social and physical needs of existing communities and which discourages and minimizes instability and disruption -(an amendment to General Plan, pending approval of completed review of General Plan).

October 26, 1976 Recommendation concurred in: Senior Citizen Leasing Policy - encourage nonprofit sponsored senior citizen accommodation, and City retain ownership of land where practical.

November 23, 1976 Motion agreed: Resolution to the Federal government to undertake financing for first time owners, with an income maximum of $16,300 and subject to resale conditions.

February 22, 1977 Motions to Federation of Canadian Municipalities: To request the Federal government implement a general program of assistance for rehabilitation with City as administrators. -

Feds provide interim financing programs to non-profits and cooperatives.

Feds subsidize land costs for non-profits and cooperatives to extent necessary to provide a competitive position with private industry in regard to allowable unit costs, and initiate site banking programs to enable acquisition of appropriate sites well in advance.

84. March 22, 1977 Recommendation approved: Third Sector Policy. -

That for the purposes of this report third sector housing shall refer to those housing projects constructed by non-profit organizations incorporated under the Societies Act of Alberta or the Companies Act and continuing cooperatives incorporated under the Cooperative Associations Act of Alberta utilizing either Section 15.1 (of the National Housing Act), or Section 34.18. (In any event the incorporation shall be subject to requirements of C.M.H.C. for funding under these 2 sections.)

That the City encourage and foster non-profit and cooperative housing as viable accommodation alternatives in Edmonton, its purpose being to provide more housing options to lower and middle income families.

That the City make land available where possible or practically feasible for the development of housing projects to non-profit groups and cooperatives.

That the Real Estate and Housing Department and the Realty Development office be directed to examine the feasibility of having the private sector committed to produce a balanced housing mix from developed lands through the development agreement procedure to include all types of housing without penalizing the public housing program/or to develop an alternative where the private sector would ensure that land be made available for third sector housing projects.

That the City make land available for sale to: a) non-profit organizations b)continuing cooperatives; and c) building cooperatives at current market values for those groups who prefer freehold title.

That the City encourage 55-year leases of City land to non-profit housing organizations and continuing cooperative housing groups from its inventory on the following basis: a) All sites to be leased at 50% of freehold market value plus servicing costs on an up-front basis except; b) Where the acquisition cost or book value to acquire the site exceeds 50% of its market value in which case the site will be leased at cost, including full payment of servicing costs on an up-front basis. ) sites provided through land assembly or land banking programs of the senior levels of government (namely Section 20 of the N.H.A.) be subject to pricing policies approved by Council.

85. -

That all leases and sales of City land be made directly with the nonprofit group who is sponsoring the project.

That the City make land available to the City Non-Profit Housing Corporation on the same basis as in the foregoing.

That programs offered as incentives to private developers (ie, C.H.I.P.) and subsequently used by non-profit groups to develop housing projects should acquire land from the City by either lease or sale at market value.

That the Real Estate and Housing Department through the Housing Development Section program and budget for land for non-profit and cooperative groups on an annual basis to be able to respond by the provision of sites in keeping with Council's suggestion of increasing alternatives for lower income families.

That a position be created in the Real Estate and Housing Department through the Housing Development Section in 1977 which would deal specifically with the increasing number of requests to the City for nonprofit and cooperative assistance. This position would be programmed for and budgeted on an annual basis to provide consulting, technical and coordinating expertise to groups in site acquisition and facilitation of housing projects through the civic government.

April 12, 1977 Recommendation agreed: Senior Citizen Project Proposals - Policy. -

Sold at fair market value subject to control to maintain this use, or lease a market value plus servicing cost on up-front basis, or leased at cost where acquisition cost to acquire exceeds 50% of market value.

April 26, 1977 Motion carried: Prepare study recommending ways and means of initiating and stimulating residential development in downtown core, identify suitable sites.

June 14, 1977 Resolution Carried: That the Government of Alberta establish or make available to Alberta municipalities monies to create a revolving fund for loans to nonprofits and co-ops for interim financing.

86. September 8, 1977 Recommendation concurred in: Establishment of Non-Profit Housing Corporation, providing moderately-priced rental units.

April 25, 1978 Recommendation concurred in: Marketing and Pricing Policy for Residential Land in Areas Other Than Mill Woods. That residential R-1 and R-2 lots be disposed of through advertisement on a tender basis. May 9, 1978 Recommendation concurred in: Residential Marketing & Pricing Policy for City Lands in Mill Woods, Southwood Subdivision. One-Family Dwelling Lots 1.1 That 375 (241/2%) one-family lots be offered, at $1.10 per square foot plus local improvements to persons qualifying under subsidized programs 1.2 That 375 (241/2%) one-family lots be offered at $1.10 per square foot plus local improvements to persons enrolled through house building cooperatives qualifying under subsidized programs 1.3 That the remaining 769 (51%) lots be offered at market value to private individuals with any surplus lots being offered to house builders. Two-Family Dewlling Lots 2.1 That duplex lots be offered on an individually tendered basis. Multiple Housing Sites 3.1 That a two-price system be implemented in the marketing or leasing of multiple housing sites. That such sites be disposed of through the fixed price proposal call review system, with market value to be established and presented to Council for pricing approval immediately prior to advertising of the site on the following basis: 3.2 That up to 30% of the land assigned to Multiple-Family Dwelling uses be offered at 50% of market value of land plus local improvements for developments qualifying under Federal and Provincial subsidized lending programs 3.3 That the remaining Multiple-Family Dwelling Sites be offered at market value of land plus local improvements.

August 15, 1978 Recommendations approved: Site Selection for Senior Citizen Housing. That the City of Edmonton's Housing Policy include an 'equitable distribution' policy for the distribution of senior citizens subsidized housing; that upon adoption of this policy, the Administration be directed to develop and implement criteria for planning future locations.

87. -

That the criteria for actual site selection within a selected area be adopted as guidelines for use by the City in its review of applications; that sites must meet the criteria deemed to be 'essential', and that the criteria be subject to further review and refinement in response to changing needs and conditions.

That the City of Edmonton request the Province of Alberta to establish formal consultation with the City of Edmonton regarding the location and suitability of sites for senior citizen housing before purchases are finalized or approved for rezoning or redevelopment is requested.

August 15, 1978 Recommendation approved: Guidelines for the Distribution and Design of Neighbourhood Density.

February 27, 1979 Recommendations concurred in, in Policy for Sale or Lease of City-owned land to the Edmonton Non-Profit Housing Corporation. Recommendation No. 1 "That the Edmonton Non-Profit Housing Corporation not be included in the disposition policy for the sale or lease of land to Third Sector Housing Sponsors." Recommendation No. 2 "That sites purchased for the purpose of supplying land for subsidized housing be leased to the Edmonton Non-Profit Housing Corporation for an up-front payment of cost, including carrying charges, plus local improvements, or 50 percent of market value, plus location improvements, whichever is greater. The term of the lease will be the length of mortgage amortization plus ten years. All improvements at the end of the lease shall revert to the City of Edmonton."

March 13, 1979 Concurred in: Marketing and Pricing Policy for Lands in Mill Woods. Various pricing policies for one and two family dwelling lots, multiple housing lots and Commercial Sites were approved by Council. The purpose of the new Marketing and Land Pricing Policy is to enable the development of projections to the completion of the Mill Woods project and to identify the City's role in the provision of housing.

The following recommendations were concurred in:

88. One Family Dwelling Lots 1.1 That 25% of the one family lots be offered to persons qualifying under subsidized programs. 1.2 That 25% of the one family lots be offered to persons enrolled through house building cooperatives qualifying under subsidized programs. 1.3 That the remaining 50% of the one family lots be offered at market value to: i.Private individuals ii. House builders on a restrictive basis. Two Family Dwelling Lots 2.1 That duplex lots be offered on an individually tendered basis. Multiple Housing Lots 3.1 That a two price system be implemented in the marketing or leasing of multiple housing sites. That such sites be disposed of through the fixed price proposal call review system, with market value to be established and presented to Council for pricing approval immediately prior to advertising of the site on the following basis; 3.2 That up to 30% of the land assigned to Multiple-Family Dwelling uses be offered at 50% of market value of land plus local improvements for developments qualifying under Federal and Provincial subsidized lending programs. 3.3 That the remaining Multiple-Family Dwelling sites be offered at market value of land plus local improvements. Commercial Sites 4.1 That the small commercial neighbourhood sites be offered on the following basis: i. Tendered on a lease basis at an up front payment of 80% of market value of land plus local improvement costs. ii. If the proposal call under the lease basis is successful, sites will be tendered for sale on a proposal call basis. One Family Dwelling Lots 2.1 That 358 (25%) one family lots be offered at $1.10 per square foot plus local improvements to persons qualifying under subsidized programs. 2.2 That 358 (25%) one family lots be offered at $1.10 per square foot plus local improvements to persons enrolled through house building cooperatives qualifying under subsidized programs. 2.3 That the remaining 716 (50%) lots be offered at market value to private individuals and house builders on a restrictive basis.

89. March 27, 1979 Guidelines approved: Guidelines for the Distribution and Design of Neighbourhood Density. In response tO the trend toward the development of higher density neighbourhoods the Planning Department and Social Services Department have developed guidelines with respect to the desirable range, mix and compatibility of different housing types, their location within the neighbourhood, detailed design aspects, and the provision of amenities to serve higher density areas.

April 10, 1979 Recommendation approved: City, Province, Industry Task Force on Housing Costs in Edmonton. The objective of the Task Force was to determine means of reducing the costs of housing. The major recommendations arising from the work of the Task Force include improved processing procedures and time frames pertaining to such aspects as land planning, servicing, and financing of land. Most of the recommendations put forth in the Task Force report will have an impact on servicing requirements, and ultimately could influence housing costs in the city.

June 11, 1979 Recommendation Approved: Tax Remission to Continuing Housing Cooperatives. City Council authorized the Real Estate and Housing Department to credit the lease accounts of two Continuing Housing Cooperatives: Synergen Housing Co-op and Homestead Housing Co-op.

June 26, 1979 Approved by Council: A Housing Strategy for the City of Edmonton. The purpose of this report is to define the role of the municipality in the regulation and supply of housing in Edmonton. It attempts to present a summary of the plan of action or strategy to be implemented by the City in order to ensure continuity in municipal commitment of housing programs.

October 16, 1979 Motion carried: City Council requested the Provincial Decontrol Board in conjunction with the Edmonton Landlord and Tenant Advisory Board to conduct an immediate investigation into the effect and impact of recent increases in apartment rents and damage deposits, with specific emphasis on senior citizens and others on limited income.

90. February 26, 1980 Recommendations concurred in regarding the request for modification of the Policy for the Sale or Lease of City-owned Land to the ENPHC. "That the Policy for Sale or Lease of City-owned land to the Edmonton Non-Profit Housing Corporation be amended by the addition of the following section: That notwithstanding the leasing provisions of the policy, that to develop sites purchased or acquired for subsidized housing purposes and approved by City Council for use by the Edmonton Non-Profit Housing Corporation, the Non-Profit Corporation be granted freehold title at a similar cost as to leasehold, with a guarantee, to the satisfaction of the City Commissioners, that the land and improvements revert to the City should the Corporation dissolve, and that the City be granted first right of refusal to purchase the sites back, at cost, if the sites are not developed by the Corporation."