Building Knowledge & Capacity for Affordable Housing

in B.C. Small Communities

A Scan of Leading Practices

in Affordable Housing
October 2017
Final Report
Acknowledgements

The Whistler Centre for Sustainability thanks BC Housing for the funding that allowed us to
undertake this research project.

Building Knowledge and Capacity for Affordable Housing in B.C. Small Communities © BC 2018
TABLE OF CONTENTS

Introduction 4

Keys to Success 5

Municipal Tools 7

Partnerships - Land and Financing 17

Capacity Building for Organizations and the Community 27

Building Knowledge & Capacity for Affordable

3 Housing in BC Small Communities
INTRODUCTION
Affordable housing remains a challenge for communities In order to resolve these challenges, survey participants
large and small throughout BC. Many small communities and interviewees had several proposed solutions:
(under 20,000) have policies in their Official Community 1. Work on more and different incentives to lower
Plans (OCPs) supporting the development of affordable development costs for both developers and non-
housing, yet implementation of these policies remains a profit organizations to build affordable housing
challenge.
2. Increase access to funding (general funding,
This scan of leading practices report is part of a larger government security for financing, etc.)
project that seeks an understanding of the challenges
and capacity needs for small communities to deliver 3. Add flexibility to how funding is used, especially for
affordable housing, as well as the current practices pre-development funding
that result in successfully increasing affordable housing
supply. 4. Create a better understanding of development
economics
The first part of this project included a primary research
scan of opinions held by people working across British 5. Create new models of funding not yet used
Columbia to implement affordable housing in small 6. Address the critical need to seek a values alignment
communities. Using an online survey and targeted for all stakeholders engaged in affordable housing
interviews, we captured the thoughts of non-profit projects and collaborations
housing organizations, housing consultants, developers
and builders, financers, local government and crown Other major themes cited throughout the survey
corporations. responses and interviews included:

The results of this outreach confirmed that there is a • Co-ordination/more partnerships to bring actors
need for affordable low-moderate income (workforce) together to plan and develop projects
housing in smaller communities. Progress on the issue • Building capacity of non-profits to more effectively
to date has been “fair” to “poor”, primarily due to build housing
the slow implementation of initiatives despite having
housing plans in place.
• Helping developers better understand the market
and opportunities for workforce affordable housing
The most significant affordable housing challenges This scan highlights proven approaches to affordable
centre on: housing in small communities along with some new

• The cost of development approaches to housing that seek to address the

identified challenges and opportunities for affordable
• The little profit associated with those costs housing. While there are certainly partnership and
• The challenge of funding or financing projects funding roles to play in senior government policy for
housing, the approaches highlighted here target what is
The cost of development and a lack of land for possible to implement and access at the local level.
affordable housing are two of the more prominent
challenges in recent years.

Building Knowledge & Capacity for Affordable

4 Housing in BC Small Communities
KEYS TO SUCCESS
There is a significant amount of literature describing affordable housing approaches and examples of their use
(CMHC, Smart Growth BC), though as the recent Metro Vancouver ”What Works” report on housing points out, there
is very little evidence demonstrating the effectiveness of various municipal affordable housing measures, let alone
small community measures. Two sources cited in the Metro Vancouver report attempt to classify the effectiveness
and cost benefit of various approaches for various types of communities. These tables are included below for
reference.
As the work in our report is focused on smaller communities the approaches that have ‘rural’ benefits are certainly
the most interesting to consider, although the approaches with ‘urban/growing urban/suburban’ benefits are also
interesting, as there are some rural communities that are growing quickly due to the proximity to major metropolitan
areas (e.g Pitt Meadows, Squamish), amenity migration/vacation home pressures (e.g. Whistler, Tofino) , or resource
boom cycles (e.g Dawson Creek, Fort St, John).

Table 2 - Municipal Costs/Benefit of Selected Practices

Direct Cost Benefit
Practices Growing
Low Medium High Rural Urban
Urban

Housing First Policy x MED MED MED

Second Suites x LOW MED MED-HIGH

Housing Levy x MED HIGH HIGH

Inclusionary Zoning x LOW HIGH HIGH

Density Bonusing x LOW HIGH HIGH

Demolition Control x LOW MED LOW

Extraction Programs x LOW HIGH HIGH

Infill x LOW HIGH MED

Alternative Development Standards x LOW MED HIGH

Streamlining Approval Process x LOW MED HIGH

Performance Based Planning x LOW MED MED

Exemption of DC & Other Fees x LOW MED HIGH

Tax Credits x LOW HIGH HIGH

Grants & Loans x MED HIGH HIGH

Trust Funds x MED MED MED

Advocacy x MED MED MED

Direct Provision x HIGH HIGH HIGH

Public/Private Partnership x HIGH HIGH HIGH

SOURCE: THE MUNICIPAL ROLE IN MEETING ONTARIO’S AFFORDABLE HOUSING NEEDS. OPPI. 2001.

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5 Housing in BC Small Communities
Table 3 - Potential Positive Impacts of Measures on Housing Affordability
Type of Measure Development Context
Regulatory Measure Urban Suburban Rural

Adopt alternative planning standards Low High Low

Adopt alternative engineering standards Low Medium High

Reduce parking standards High Medium Low

Reduce restrictions on manufactured / mobile homes Low High Medium

Facilitate lot splitting / subdivision Low Medium High

Financial Measure

Employ density bonusing High Low Low

Establish a housing reserve fund and levy program High High High

Financial incentives / assistance High High High

Planning Policy Measures

Introduce inclusionary planning High High Low

Adopt strategies to encourage brownfield redevlopment High Medium Low

Adopt policies to facilitate greyfield redevelopment Medium High Low

Planning Policy Measures

Streamline municipal approval process High High Low

Address local resistance to affordable housing projects through public education and mediation High High Medium

Appoint a municipal housing facilitator High High High

SOURCE: HALIFAX REGIONAL MUNICIPALITY LAND USE POLICY AND HOUSING AFFORDABILITY, RAY TOMALITY AND ROSS CANTWELL, 2004.

We identified the ’keys to success,’ described below, by taking into consideration what we heard during the first
phase of our research with housing organizations, municipalities and our advisory committee as well as the
research described in numerous affordable housing guide reports such as The Smart Growth BC Affordable
Housing Toolkit and Canadian Housing and Mortgage Corporation Housing Ideas. Some of the important qualities
of leading affordable housing approaches that we considered included: costs to municipalities, applicability to small
communities, effectiveness and speed of implementation.

Keys to Success
• Inclusionary zoning and density bonus
• Intensification and tenure through rezoning
Municipal Tools • Reducing costs by streamlining approvals and other incentives
• Short-term rentals regulations
• Covenant tools

• Land: Municipal land and land trusts; NPO land

Partnering for Land, Financing • Financing: Housing fund - employee works and service charges or
levy; Alternative Capital; Design and Operations savings

• Housing organization and growing capacity

Capacity Building for Organizations
• Housing strategy
and the Community • Communication and education

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6 Housing in BC Small Communities
MUNICIPAL TOOLS
Inclusionary Zoning and Density Bonus Policy
Both these tools seek to add affordable housing through new development. Inclusionary zoning means zoning
regulations that require an applicant to contribute to below market cost housing units (directly through building or
through funding) triggered as part of a rezoning for a development. Density bonus policy is an incentive that allows
increased development potential as long as affordable housing is included. The number of affordable units created is
often based as a percentage of market units (e.g. 10-20%) built, space created, or in some cases, the amount of new
employment driven by the development.

Actors Partners
Local government and developers Often a housing organization

Ease of Implementing Speed of delivering housing

SIMPLE Dependent on development demand

Benefits
• Integrates affordable housing across the
community
• Secures commitment early on

Considerations
• Requires new development and a market that
can absorb possible minor additional costs

Implementation Process
• Policy change
• Negotiate and approve development
• Administer housing

Making it Happen
• Ensure community buy-in for affordable
housing
• Develop staff and council’s capacity to put
forward a strong policy

Fitzsimmons Walk Employee Integrated

Housing

Synergies
Housing organization, housing fund, engagement
and communication, covenants

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7 Housing in BC Small Communities
Examples
Langford, BC: Affordable Housing Program
• Housing prices in Langford are relatively affordable
compared to the rest of the region, which has made
it an attractive location for new development
• Concerned about rising costs, the City introduced
Langford’s Affordable Housing Program requiring
new subdivisions to build one affordable unit for
every 10 single-family lots
• Qualified purchasers must be at least two people
with a household income under $60,000 and been
employed in the city for ½ a year and or lived in
Langford for two years
• Home has a price cap for 5 years that increases
slightly after 5 years
• The City also has $500 housing fund contribution
policy for every new dwelling
• The City manages the sale and buying process
• The number of units in the program: 30

Langford Affordable Home

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8 Housing in BC Small Communities
MUNICIPAL TOOLS
Intensification through rezoning
Rezoning properties for density or flexible housing uses is one of the fastest ways to access land and financing for
new housing. Secondary suites (attached or detached), zoning for rental buildings, smaller lots, lot subdivisions,
stratification or residential atop commercial all increase the supply of housing, often on a fixed footprint of land.

Actors Partners
Local Government/ Homeowners/Developers Builders and sometimes a housing organization

Ease of Implementing Speed of delivering housing

MODERATELY COMPLEX Fast to moderate

Benefits
• Often uses existing land, mostly privately funded
• Integrates affordable housing throughout community
• Maintains neighbourhood character
• Uses existing infrastructure and services
• Little cost/resources from local government

Considerations
• Focus properties close to community core to reduce
transportation and servicing needs
• Some forms may be attractive as short-term nightly
rentals or weekender rentals, and therefore policies
for long-term rentals need to be in place
• There may be neighbourhood perception concerns
about rentals
• Cost of building may result in a unit that is more
than what is affordable; careful analysis is needed
Canmore Garage Suite • Influence from outside buyers could increase home
sales prices without restrictions.

Implementation Process
• Consultation
• Policy change (OCP/Zoning)
• Incentives as needed
• Negotiate and approve additional dwellings

Making it Happen
• Dispel myths about the neighbourhood impact of
density
• Consider incentives linked to encourage secondary
suites for homeowners, affordable rental rates,
Synergies: local use
Streamlining approvals and other incentives,
engagement and communication, covenants

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9 Housing in BC Small Communities
Examples
Canmore, Secondary Suites
• In an attempt to speed up the provision of
affordable market rental. Canmore made allowances
for secondary suites in most single family
neighbourhoods
• Further ensuring the uptake of this opportunity and
to ensure some level of housing and affordability
the community is also incenting renovations to
suites
• Homeowners are eligible for reimbursement of up to
50% of expenses to the maximum of $10,000
• Homeowners must commit to rent the suite to a
Canmore resident at 10% below market rental rate
for 5 years
Detached Suite, Canmore
• The program was informed by an extensive report by
the community housing corporation
Source: [Link]

City of Langley, Willoughby

• Langley is one of four high growth municipalities
in the Lower Mainland, with increasing demand for
residential development
• A growth strategy calls for implementing smart
growth principles in the form of compact, mixed use
and walkable communities
• In opening up new land for development in
Willoughby, the area is poised for an increase in
residential density

City of Langley • Apartment units are new to Willoughby and new

developments such as Bedford Landing require
a mix of housing types such as single family,
townhouses and row houses
Source: Township of Langley, BC, an overview of
development trends 2010

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10 Housing in BC Small Communities
MUNICIPAL TOOLS
Reducing costs by streamlining approvals and other incentives
As planning and approval processes can add to the cost of developing housing, it makes sense that streamlining these
processes for affordable housing projects will reduce costs to those who are developing housing. Other incentives
to encourage development may include funding support for secondary suite development or other types of land
intensification. Some techniques used for lower approval costs include: ‘one stop shopping’ for builders and residents,
or priority placement in permitting queues.

Actors Partners
Local Government Developers, Builders

Ease of Implementing Speed of delivering housing

SIMPLE Moderate

Benefits
• Expediting approvals means construction can
start sooner, which can lower financing costs and
risks
• Providing minor funding or relaxation on charges
for creating new units such as secondary suites,
lot splits or rental can catalyze housing that might
not otherwise occur

Considerations
• Expediting approvals may require staff training
• Need to ensure permitting remains at a high
standard
• Builder education may also be required to help
speed up the process

Implementation Process
• Consultation
• Policy and procedure changes
• Communication of tools

Making it Happen
• Ensure appropriate training for staff and builders
Kamloops Affordable Housing about the process and importance of affordable
Developers Package housing
• Use other tools such as covenants to ensure
housing stays affordable and occupied
• Ensure there is a local government commitment
and culture prioritizing the construction of
affordable housing
Synergies
Housing funds, engagement and communication

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11 Housing in BC Small Communities
Examples
Kamloops: Affordable Housing Developers Package, Saskatoon: Priority review of housing applications
Grants and DCC exemptions
• Process proposals as soon as they are received,
• Goal is to speed up affordable housing projects staying at the front of the line as they circulate
• Affordable housing reserve fund offers up to $5,000 through various departments.
per unit, up to $150,000 total • Quality is maintained, but the proposals jump the
• DCC exemptions vary but up to 100% eligible for queue.
rental • Impact: A total of 500 new units since 2008 and
• Downtown revitalization tax exemptions for a this process was one of several that led to this
downtown multi-family rental project, up to 100% for success
10 years • Other policy tie in: Must be a project approved under
• Other requirements: must be affordable, along with the municipality’s affordable housing programs (City
a housing agreement with the City guaranteeing owned land for affordable housing, non-profit rental
affordability housing property tax abatement, capital funding
support for affordable housing) to ensure long-term
Source: Tyee and City of Kamloops affordable housing.
Source: Tyee and CMHC

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12 Housing in BC Small Communities
MUNICIPAL TOOLS
Short-term nightly rental regulations
Short-term nightly rentals are part of a broader trend of sharing assets; in this case residential property owners earn
revenue from using their homes as nightly rentals (fewer than 30 days). While short-term rentals benefit a homeowner
by providing an additional source of income, they can reduce the availability of affordable rental units (apartments,
suites, rental homes). Regulating short-term rentals through zoning and other tools as well as through enforcement is
one way to reduce the impact on the existing stock of long-term rentals. Leading practices to protect affordable housing
supply includes full bans on short-term rentals, or limiting them to primary residence single detached dwelling units.
Both approaches require enforcement through municipal ticketing.

Actors Partners Online rental platforms, home-owners,

Local Government BC Hotel Association, Tourism Boards

Ease of Implementing Speed of delivering housing

SIMPLE Fast, if enforcement is included

Benefits
• Allowing some short term rentals in primary
residences maintains income benefits to
homeowners while reducing the loss of long-term
rental properties
• Banning short-term rentals maintains more
opportunities for rentals in shared and detached
units
• Addressing short-term rentals may help to
manage other neighbourhood concerns such as
noise or lack of parking

Considerations
• Demand for short-term nightly rentals in a
community requires some level of enforcement in
order to protect affordable housing
• Nightly rental income may play an economic
development role through tourism, including in
resort-based or resource/transitional towns

Implementation Process
• Policy changes
• Enforcement

Village of Pemberton Short-term Rental Making it Happen

Engagement • Understand the extent of the issue
• Consult the community
• Support enforcement budgets initially

Synergies
Zoning

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13 Housing in BC Small Communities
Examples
Nelson: Permitting some short-term rentals across Pemberton: Permitting some short-term rentals in
the community and enforcing designated zones and enforcing
• After extensive consultation, they City now allows up • Had up to 100 units in the area being advertised on
to 100 permitted short-term rentals, but no more Airbnb, with about 30 within Pemberton boundaries
• Protects many long-term rentals by limiting short- • After consultation, the Village is considering allowing
term rental permits to primary residences up to 30 short-term rentals in detached single family
• Enforcement is key residences only

Source: [Link]/615/Short-Term-Vacation- • Protects long-term rentals by limiting permits mainly

to primary residences
Rentals
• Considering changes to ticketing system to allow for
fines for marketing non-permitted units
• Enforcement will be funded through business
license fees
Source: From files, [Link]/

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14 Housing in BC Small Communities
MUNICIPAL TOOLS
Covenant tools
The BC Community Charter allows for the use of covenants that are registered on the land title of properties. These
covenants (essentially contracts) can restrict what an owner can do on the lands, and/or allow or restrict an activity to
the effect of benefiting the local or provincial government. In an affordable housing situation covenants may be used in
a housing agreement to restrict who can live on a property and how much the property can be sold or rented for, thereby
keeping a home perpetually affordable for future owners. The covenant can also include a listing of fines and other
tools to ensure compliance and long term affordable housing. Development agreement covenants are used to ensure
the benefit of affordable housing is provided as part of a rezoning process.

Actors Partners
Local Government Developers, property owners, housing organizations?

Ease of Implementing Speed of delivering housing

Extra restrictions may slow down the initial
COMPLEX, THOUGH GOOD EXAMPLES EXIST development/uptake of affordable housing, but it
will preserve affordability in the end.

Benefits
• Ensure housing agreements around property use,
resale and prices, and are critical to ensuring that
affordable housing remains as intended over the
long term
• Create development agreements to ensure a
developer provides the affordable housing benefits
they agreed to

Considerations
• Covenants require legal expertise to ensure that
they are clear and resilient to challenges
• The restrictions in the agreements may not be
appealing to those looking for affordable housing

Implementation Process
• A development agreement generally requires
a rezoning process in which an agreement for
The Whistler Housing Authority benefits relating to the development can be
negotiated
• A housing agreement needs to be applied, which
generally needs to be considered in the rezoning
and again at the times of sale for the property
owner to agree to the terms

Making it Happen
• Development agreements tend to require a demand
for development and rezoning in the community
• Education is often required for property purchasers
and agents about covenant details and penalties
• Providing an opportunity in the agreement for a
Synergies housing organization or municipality to purchase
units upon sale allows preserves the opportunity to
Inclusionary zoning/Density bonusing, Housing adjust the covenant as required in the future
Organization

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15 Housing in BC Small Communities
Examples
Whistler: Housing Covenants
• Whistler has had a long history with housing
agreement covenants on title starting in 1982 and
continuing to today
• Covenants evolved over this time to ensure
the appropriate benefits were delivered to the
community; other tools to control the use of
property included land leases
• The majority of the 2,000 dwellings of Whistler
managed affordable housing has covenants on title
• Whistler also used development agreements
to ensure inclusion of affordable housing by
developers
• Critical to the program’s success is a housing
organization, the Whistler Housing Authority,
which manages the buying process, waitlists and
development, and access to low-cost land through
acquisitions and inclusionary zoning

Key ingredients to include in housing agreement

The Whistler Housing Authority Story: covenants for ownership housing:
A History of Affordable Housing in Whistler
• Resale and rental price restrictions - set and
primarily limited to the CORE inflation index
• Description of the resale process that requires
sales to the municipality or people on the housing
waitlist managed by a housing organization
• Occupancy restrictions on who can live in the unit –
targeted at employees (20hrs/week), retirees and
dependents
• First right of refusal for the municipality to purchase
ownership housing when it is sold – to ensure
control over the longer term as well as the ability to
adjust covenants as required
• Breach of covenant penalties up to $500/day

Other considerations to include:

• Rental duration limits on ownership units
• Provisions for capital improvements
Source: WHA History and Evolution of the Resident
Housing Covenants

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16 Housing in BC Small Communities
PARTNERSHIPS - LAND & FINANCING
Municipal land and land trusts
Access to low-cost land for affordable housing, whether private infill or larger parcels of brownfield or underutilized land, is critical.
This approach considers land that is acquired by a municipality or a non-profit organization (e.g. a land trust) at a low cost to hold
for the benefit of affordable housing. Property for affordable housing is typically acquired through donations or grants of land from
sources such as the provincial government. Beyond land donations, the servicing of land can be an impediment to affordable
housing, so land donations with servicing or land that can be accessed easily for servicing are especially valuable. In addition
to municipally held land developed by the municipality or other partners, land trusts are one arrangement of land ownership that
is underpinned by an organization with a built-in desire to create permanently affordable housing. Land trusts often maintain
ownership of the land while making it available for housing through land lease or housing rental agreements to ensure long-term
control of the land. Though effective, community land trusts are not as popular yet in Canada as in other international jurisdictions.

Actors Local Government, Community Land Trust, Partners Financiers/Senior Governments, Housing
Land Owners Organizations, Co-op Housing Groups, Developers

Ease of Implementing Speed of delivering housing

MODERATELY COMPLEX Moderate to slow

Benefits
• As land is donated, this approach requires fewer
resources and energy to undertake than other
strategies
• Suitable in smaller communities with more and
somewhat less valuable land than urban areas
• Potential for lower cost housing due to low cost
of land and lower infrastructure requirements

Considerations
• Leased land can be more complicated to
administer and to attract buyers than a model
where the land is sold but controlled by another
mechanism such as a covenant
• Requires the support of a strong organization
and partners for administration of the land, sales,
development, resales etc.
Lopez Island housing
Implementation Process
• Land trust organization development in the case
of a using a Land Trust
• Donation or acquisition of land under conditions to
be used for affordable housing
• Release of land through a lease or arrangement
to a third party to develop the land for affordable
housing

Making it Happen
• Regularly discuss with the community and senior
governments about the desire for land; proactively
seek land for potential acquisition
Synergies • Ensure capacity building for strong housing
organizations and/or land trust groups
Alternative financing; Covenants • Reduce the need for servicing costs

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17 Housing in BC Small Communities
Examples
Lopez Community Land Trust, Lopez Island, WA, USA
• Incorporated in 1989 to meet the challenge of the
rise in the cost of housing on Lopez Island
• Non-profit with a mission to build diverse
sustainable Lopez Island community through
affordable housing
• Own five parcels of land covering 13 acres; there
are 5 housing organizations leasing parcels on the
land base
Fraserview Housing
• There are 32 homes and 2 rental units; 45% of
owners are business owners or self-employed and
most of the rest work in the community
Champlain Housing Trust, Vermont • Houses are paid for through a combination of sweat
equity and cash down payments; investments are
• Activities have created 1,500 affordable apartments capped to appreciate by 2-5% per year
(managed by the Trust) and 1,000 affordable single-
family homes and condos (down payment grants/ Source: [Link]
shared equity financing) in 25 years [Link]
• Many ownership properties were built by the Trust
Fraserview Housing Co-op, Vancouver
but most were once market units selected by
homeowners who partnered with the Trust to cover • Land is owned by the City who provides 99-year
the land value costs leases on four sites to the Vancouver Community
Land Trust Organization
• Collaboration with citizen groups, municipalities in
the northwest region of Vermont • The foundation is working with co-op and non-profit
housing providers to develop the housing which
• Low interest loans help homeowners make repairs
includes 278 units for moderate to low income
and install environmentally sound energy systems
families and singles
• They have a significant grassroots member base
• Targeting 76% of market rents across the four
who provide funds and energy to run and promote
properties
the organization
• Housing organizations are investing $5 million of
• The model started small and scales very well
their own equity to make it more affordable, BC
Source: [Link] Housing is investing $4 million of equity and more
than $90 million in construction financing
• The Land Trust is also making use of private equity
from New Market Funds, a social impact investment
firm targeting housing
• Revenue generated via the projects will return to
operate housing organizations and maintenance
Source: May 25th , 2016 Media Release Co-op
Housing Federation of BC; [Link]

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18 Housing in BC Small Communities
PARTNERSHIPS - LAND & FINANCING
Non-profit owned land
Some land in communities is owned by non-profit organizations or faith-based groups. These organizations may be
able to make land available for housing through low cost long-term leases, donating land or providing the land at below
market value. In each case, the housing is made more affordable by separating the cost of the buildings from the cost
of the land, and subsequently reducing or eliminating the latter. Similarly, the non-profit may be able to develop their
land, if they have the capacity to do so; partnerships in this case can be very useful.

Actors Non-profit groups, community organizations Partners

with land assets Developers, Builders, Housing Organizations

Ease of Implementing Speed of delivering housing

MODERATELY COMPLEX
Moderate to slow, due to multiple levels of
decision making

Benefits
• As land is donated, this approach requires fewer
resources and energy to undertake than other
strategies
• Potential for lower cost housing due to low cost of land
• Providing land can give private developers an
incentive to build affordable housing

Considerations
• If the land is leased it will need to be done in a
manner that supports any financing required for
building
• NPOs are not usually attuned to property development
• Land in smaller communities may not be at a
premium and therefore it may be difficult to leverage
St. Andrews Church in Port Moody, Catalyst the property for development; however, serviced land
Development Society would be easier to start with

Implementation Process
• A church or NPO considers its mission and needs,
and then determines if housing is a fit or a route to
other goals, including revenue generation
• NPO approaches a developer and potentially a
housing organization to determine models
• Apply to government for rezoning
• Build and deliver housing using many of the common
affordability approaches

Making it Happen
• The pressure to sell prime real estate is strong so
innovation is needed to meet the financial needs
of the organization and meet community affordable
housing goals
• Many effective partnerships are required in order to
Synergies fill the skill gaps
• Where land is not as valuable/costly consider
Housing Organizations, Intensification through subdividing for a development lot while maintaining
rezoning original structures

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19 Housing in BC Small Communities
Examples
Oakridge Lutheran Church, Vancouver
• Redeveloping the property in to a six story mixed-use
building with retail at grade, the Church and
community space on the second floor and four levels
of affordable housing above
• Includes a partnership with a non-profit real estate
developer who partners specifically with community
organizations to develop real estate, much of which
includes affordable housing
• The property is along a busy transportation route to
reduce transportation needs and also includes car
share opportunities and ample bike parking
• The Church is moving temporarily to a nearby Church
while the development is taking place
Oakridge Lutheran
• City affordable housing incentives: requirements for
parking are relaxed, development costs are waived
somewhat, a density bonus is allowed, approval
processes are streamlined
• Other tools: Housing agreement requirements to
initiate starting rents
Sources: [Link] and
[Link]

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20 Housing in BC Small Communities
PARTNERSHIPS - LAND & FINANCING
Housing Funds
There are a number of mechanisms for municipalities to raise funds for affordable housing and it is important that
those funds are aggregated into a Housing Fund set up by a municipality, regional government or housing organization.
Funding can come from property taxes, works and service charges for new development, or from cash-in-lieu
contributions from developers using a density bonus or rezoning agreement.

Actors Partners
Local Government Housing organizations, developers or property owners

Ease of Implementing Speed of delivering housing

SIMPLE Depends on capacity of organizations to
spend it on housing.

Benefits
• Provides secure equity assistance, leverage or
funds to be applied to any affordable housing
project
• Can aggregate smaller contributions for greater
impact
• Easy to set up

Considerations
• May not be enough to fund land and development
costs
• Cash in lieu leading to 100% affordable housing
units may result in a segregation of market and
affordable units throughout the community
• Contributions may not be enough to get financing
for projects
• Need to have a plan to continually build up and
utilize the fund
• Needs someone to apply for the funding

Implementation Process
• Identify possible sources of funding
• Set up a housing fund at the municipality
• Establish a process for administering the fund to
housing projects
CRD, CHRD Carrey rd. developments
Making it Happen
• Requires an organization/person to manage
and invest the funds in affordable housing
Synergies developments
Housing organizations, Streamlined processes • Requires a strong communication program to
taxpayers if funding is to come from general
and other incentives, Municipal or Non-profit land,
revenues or levies
Designed for affordability

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21 Housing in BC Small Communities
Examples
Capital Regional District (CRD) Housing Trust Fund
• Capital Regional Housing Corporation formed in
1982 to “build and manage housing for low and
moderate income families, seniors and persons with
special needs”
• Through this effort they’ve developed 43 buildings
(2007), 1,200 rental units as of 2016
• 10 of the 16 CRD municipalities participate in the
Housing Trust Fund through contributions collected
from property taxes
• Funding of about $12,000-$15,000 per unit is
provided to non-profit developers, which represents
less than 10% of the costs
Whistler rental, Chiyakmesh Apartments • Subsidized housing is provided to those with lower
incomes, and market housing (slightly less than
private market rentals) is also available
• Latest project is a 73-unit development on eight
acres of land that were purchased and assembled
by the Capital Regional District Housing Corporation
Whistler, BC: Housing Fund
from 2002-2007
• Whistler developed a unique trust fund approach to
• Development included an extensive consultation
providing financing for the construction of affordable
process with the community and stakeholder groups
housing in 1990
• Other developments on the site utilized modular
• The fund is contributed to through levies (Employee
housing units repurposed from the Whistler
Works and Service Charge) placed on developments
Athletes’ Village
that increase the number of employees in the
community [Link] and [Link]/crhc
• Funds are provided to the Whistler Housing Authority
organization to help deliver affordable housing
• Amount of the Charge is $5,908/employee, but
as it is significantly lower than what is needed to
develop housing, the Resort Municipality of Whistler
is seeking to increase it
• The fund was critical to leveraging more in bank
loans and launching the first housing rental projects
in Whistler
• Other critical tools included land donations,
occupancy restrictions on who can rent units, as
well as rent controls
• Whistler now has over 2,000 dwellings of ownership
and rental affordable housing
Source: CMHC and [Link]

Building Knowledge & Capacity for Affordable

22 Housing in BC Small Communities
PARTNERSHIPS - LAND & FINANCING
Partnership funding and alternative capital
Seed and ongoing capital to invest in affordable housing is critical, especially for projects not funded through private development. Almost
every case described in this scan includes some level of partner or homeowner funding and/or low interest loan support. Both the
Canadian Mortgage and Housing Corporation and BC Housing provide support, with the former also offering up pre-development funding as
well as low interest loans. While we may in be in a period in which there is increased interest from senior levels of government to provide
funding for housing, this interest can fluctuate meaning that organizations must be self-sufficient. Housing organizations funding their
housing reinvestment activities with income from rentals or from shared-equity appreciation models have been around for some time now,
which is proving to be effective for managing the housing organization’s activities. A less popular, but newer, approach to funding housing
is called a community investment fund. These funds are locally sourced pools of capital from investors in a specific community, and can be
directed at initiatives such as affordable housing in the community. Since most projects in this scan report use more traditional forms of
financing affordable housing the implementation and cases below focus on alternative capital approaches.

Actors Partners Developers, Builders, Credit Unions or

Housing organizations, Investors Banks, Investment firms

Ease of Implementing Speed of delivering housing

SOMEWHAT COMPLEX Moderate to slow, as it is a new model

Benefits
• Agency funding is often linked to capacity building for
the housing organization
• Home ownership funding models provide access to
significant funds through traditional lenders
• Established records of success for housing
organizations and community investment funds
• Reduces the reliance on senior government funding
programs and creates more resilient housing
organizations
• May be more efficient than other forms of raising capital

Considerations
• Funding from rentals may not be enough to cover all
ongoing costs
• Appreciation reliant approaches that provide funding
back to the housing organization may not secure
affordable housing over the long-term
• The BC legal environment may not be ripe for
community investment funds

Implementation Process
• Assess needs for housing and assemble a team and
a buzz about the investment fund
• Find good financially viable projects and housing
organizations; seek feedback from supporters
• Set up investment fund structure
• Sell the opportunity to attract investors and supply
funds to partner organizations

Making it Happen
• Housing organizations need to retain ownership of
Synergies rental housing so they can benefit from rental income
• Investment funds require strong relationships and
Housing organizations, Housing funds, structure to be able to attract investors. Trust is built
Municipal land through relationships and good information about
investments

Building Knowledge & Capacity for Affordable

23 Housing in BC Small Communities
Examples
New Dawn Enterprises in Nova Scotia
• Initiated in 1976 to revitalize Cape Breton’s regional
economy that collapse with the closure of coal
mines
• New Dawn Rentals is one enterprise and has funded
the development of 193 rental units, 4 commercial
buildings and 28 supported housing units as well as
a host of other enterprises
Source: Community Investment Funds How-to Guide,
New Dawn Enterprises in Nova Scotia Sarah Amyot et al. 2014

New Market Funds Social Enterprise, BC

• New Market Funds (NMF) is a specialized fund
manager that takes an integrated approach to
deliver market competitive investment performance
with long-term community benefit
• They have a Housing Fund that invests in purpose-
built, stabilized multi-family affordable rental
housing in partnership with strong existing non-profit
operators such as the Vancouver Community Land
Trust Foundation
• The first four investment commitments in Vancouver
totaled 358 rental units of family, workforce, elderly
and special needs housing aimed at those making
70% of the median income
• Investments totaled $11 million, or 9% of the
project costs
• Most investors are foundations at 50% with
institutions and others making up the other 50%
Source: Tyee, [Link]
New Market Funds, BC

Building Knowledge & Capacity for Affordable

24 Housing in BC Small Communities
PARTNERSHIPS - LAND & FINANCING
Design and operational savings
The design of housing as well as the construction approach and commitment to energy efficiency can reduce the
investment required for housing as well as the operational costs on an ongoing basis. Lot sizes, dwelling size/density,
the use of common spaces and smart design all impact costs. Construction techniques such as modular housing or
prefab housing that has been constructed in a warm dry environment offsite keeps costs down by reducing higher cost
onsite labour and weather dependent building conditions. Once design and construction approaches are applied, energy
efficient building qualities will reduce the operating costs over the life of the building.

Actors Partners
Local Government, Architects, Housing Organizations Developers, Builders, Financers, Utility Companies

Ease of Implementing Speed of delivering housing

MODERATE DUE TO NEW INNOVATIVE APPROACHES Minimal disruption if considered at the
project’s outset

Benefits
• More affordable construction and operation costs for
housing organizations, renters and homeowners
• Prefab and modular homes can often be built faster than
onsite construction homes
• Healthier and more comfortable homes
• Potential local economic development opportunity for
local builders

Considerations
• Small unit sizes may require some adjustment by
purchasers/tenants as well as zoning requirements
• Prefab/modular transportation costs may make them
less affordable for rural areas
• Possible higher construction costs for energy efficiency
along with a need for builder training

Implementation Process
• Size and design is often a function of zoning &
Passive Home Apartments, Whistler architecture so the importance of these qualities need to
be emphasized to partners to ensure proper application
• Design considerations include: combining rooms,
multipurpose rooms, built-in furniture, higher ceilings and
compact appliances
• Energy efficiency needs to be considered in the design
and site layout phase and in the architecture drawings

Making it Happen
• Good design and use of pilot projects and open houses
can get people used to smaller sized units
• Combining multiple orders for modular units may reduce
transportation costs
• Provincial utilities and some municipalities financially
support energy modelling and efficient building
Synergies approaches to reduce costs and the new BC Step Code
makes it easier to apply efficiency standards
Intensification of zoning, Streamlined permitting • Consider at the outset of the project to get the best
and other incentives impact

Building Knowledge & Capacity for Affordable

25 Housing in BC Small Communities
Examples
Baker Gardens, Cranbrook
• Largest modular housing development to be built in
the province with 36 one story, one-bedroom rental
homes
• While it is targeted at seniors with disabilities, the
model is applicable to other tenants
• Partnership with BC Housing, who purchased the
modular housing; it is managed by the Canadian
Mental Health Association, Kootenays; other
partners included Columbia Basin Trust (grants) and
the City of Cranbrook (land and waived development
fees)
• Homes achieve a relatively high energy rating, which
Baker Gardens, Cranbrook were above the standard at the time
• The project is one of 20 developments across BC
using modular homes
Source: CMHC

Whistler Housing Authority (WHA), Passive House

• A passive house seeks to dramatically reduce the
energy use of a dwelling by employing air tightness,
increased insulation and better openings and heat
exchange ventilation
• Energy costs are reduced by close to 2/3 compared
to a traditional home, and building costs are
estimated at 5% above traditional homes
• There are currently three Whistler homes with
affordable housing covenants that utilized a
prefabricated passive house approach to speed up
construction, reduce operating costs, and improve
Whistler single family passive house building comfort
• The passive homes are also relatively efficiently
designed and built on small lots, with two of the
homes in a duplex configuration and the single
family home also housing a suite
• The WHA is currently building a 25 unit passive
house rental apartment building on municipally
owned land that will be occupied in 2018 and will
be passing on operating cost savings to tenants
Source: Pique News Magazine

Building Knowledge & Capacity for Affordable

26 Housing in BC Small Communities
CAPACITY BUILDING - ORGANIZATIONS & THE COMMUNITY
Housing organization and building capacity
A housing organization is a non-profit entity dedicated to providing and managing non-market housing stock that is for
rent or purchase by qualified individuals and families. In addition to being a repository for affordable housing units, a
housing organization can house expert advisors on affordable housing, ongoing champions for affordable housing, and
in some cases leverage expert skills and know-how to support other needs such as property management. Housing
organizations can also serve specific projects, a municipality or a greater region.

Actors Partners
Non-profit organizations or Local government Local government

Ease of Implementing Impact on developing housing

MODERATE Critical to help manage funds, and/or development

Benefits
• Affordable housing is more likely to be produced
and effectively managed when a high functioning
organization is dedicated to that goal
• Acts as a community resource for housing
• Can monitor the process of rentals and resales to
ensure qualified individuals and families
• Can hold housing funds and act as project
managers for new developments

Considerations
• Needs funding to get started
• Small communities may not be able to support
an organization; however, a regional housing
organization serving several communities in a
region may be feasible
• Requires a self-funding business plan to limit
additional requests for funding

Implementation Process
• Establish the organization with the right members
• Secure seed funding
• Create the business plan
• Acquire units and manage projects and activities
• Continue to manage the activities of the
organization including ongoing professional
development for staff and Board members

CMHC Building Your Team Making it Happen

• Work with the local government to receive seed
funding and quickly develop projects to help fund
the organization from rental income and sales
Synergies • Consider a regional organization in order to
generate enough capital from multiple communities
Inclusionary zoning, Density bonusing, Housing fund, • Create the organization while the local government is
Covenants, Alternative capital & funding, Housing strategy establishing housing units and funding mechanisms

Building Knowledge & Capacity for Affordable

27 Housing in BC Small Communities
Examples
Lower Columbia Affordable Housing Society (Society),
Trail Project
• The Society was born in 2013 out of an Attainable
Housing Committee of the Lower Columbia Community
Development Team Society
• The Society was challenged to find the right fit for
rentals by purchasing existing homes so they worked to
develop their own housing
• The Society purchased a lot near a walking route that
will host a home with two single-bedroom and two two-
bedroom apartments
• When complete, a total of nine dwellings for rentals will
be available
• Funding was accessed primarily through a Columbia
Basin Trust and BC Housing partnership and the
Federal Government, along with some funding from the
Kootenay Savings Credit Union and Teck Metals
Source: Various News Sources

Whistler Housing Authority (WHA)

• Created in 1997 to oversee and assist development of
Trail Affordable Rental Units
resident restricted housing
• Is a wholly owned subsidiary of the Resort Municipality
of Whistler; governed by a board of directors
• Oversees the development, administration and
management of resident restricted housing in Whistler
• Initially used $6M collected by the municipality in
development levies through its Employee Housing Service
Charge bylaw, plus $13M in bank loans to purchase and
develop close to $22 million worth of real estate
• Currently WHA owns or oversees 1900 units of
affordable rental (46%) and ownership (54%) housing,
with another 69 units (179 beds), including a new 25
unit passive house rental apartment building, to be built
in the next two years
• Rental fees cover mortgage debt, fund the property
management and capital replacement reserves, and
cover WHA operations
• Covenants on property titles restrict WHA housing to
Banff Housing Units people working at least 20 hours/week, retirees and
dependents, and on resale, rental, and rental prices

Banff Housing Corporation (BHC)

• The BHC is an arm’s length non-profit organization of the
Town of Banff and is involved with 182 ownership units
and 45 suites in those units
• Board experience required in the areas of non-profit
housing, real estate, property development, property
management, building and development, staff
accommodation/housing asset management/non-profit
housing, accounting/finance
• Board is supported with training throughout the year

Building Knowledge & Capacity for Affordable

28 Housing in BC Small Communities
CAPACITY BUILDING - ORGANIZATIONS & THE COMMUNITY
Housing Strategy
An affordable housing strategy is a document, usually commissioned by local government, which recognizes and
quantifies an affordable housing shortage (housing needs assessment) in a given jurisdiction and then recommends
a series of approaches to reduce the shortage. Communities that have undertaken such strategies have generally
been more proactive in addressing the shortage. Other than providing a good sense of the problems and solutions,
developing a housing strategy with a range of stakeholders and community members helps to develop the relationships,
roles, partnerships and trust that will ultimately help in the delivery of affordable housing.

Actors Partners Developers, Builders, Non-profit organiza-

Local Government, Housing Organization tions, Real Estate Agents, Housing Consultants

Ease of Implementing Speed of delivering housing

MODERATE Important to provide a road map

Benefits
• Provides a clear representation of the problems and
opportunities
• Engages critical partners to focus on affordable
housing
• Provides a good foundation for communication
efforts and engagement around affordable housing
• Highlights the most effective approaches to
advance affordable housing in the community

Considerations
• Without a strategy in place the community
development partners and local champions are less
likely to be engaged and less will be built
• It can be difficult to develop the urgency needed to
create a strategy
• Focusing on actions without discussing the
governance and roles in implementation will result
in a shelved plan

Implementation Process
• Identify partners and stakeholders to engage
• Assess the need for housing
• Inventory resources and assets and policies, as well
as sites and locations for development
Fernie Housing Strategy • Prioritize strategies
• Assign responsibilities/roles and ongoing
resourcing for the strategy implementation
• Annual review

Making it Happen
Synergies • Consider a needs assessment before developing a
strategy to assess the urgency
Housing organization, Engagement and • Ensure equal amount of time and resources is spent
communication, Housing funds to identify how to fund and implement the strategy

Building Knowledge & Capacity for Affordable

29 Housing in BC Small Communities
Examples
Fernie, BC
• Fernie created its first housing strategy in 2007
after the completion of two earlier reports to
describe the housing challenges and needs in
Fernie
• The strategy identified ‘low income individuals and
families’ as the top priority for housing
• Opening in 2012, Veneto Place was BC Housing’s
first public-private partnership offering 45 units
with market, below market rental, rent to own and
attainable ownership options
Veneto Place, Fernie
• Partners included: CMHC, Parastone Developments
(private developer), Columbia Basin Trust, BC
Housing, City of Fernie and Fernie Family Housing
Society
• Seed funding from CMHC helped to carry out market
research, financial feasibility and preliminary design
with site work
• Fernie is now updating their housing strategy
• Energy efficiency techniques were embedded in the
building
Source: Various News Sources

Smithers, BC
• In 2010 a Smithers Housing Report was completed
by a local housing task force
Smithers 2nd St homes • The report focused on a snapshot of local housing
needs and opportunities while outlining roles of
various groups in providing housing
• The Smithers Community Services Association
bought a four-lot property in walking distance of
downtown/amenties to place six houses on
• The main affordability feature of the houses was its
size, at about 540 sq ft, to keep utility costs low
• Partners included: CMHC for seed funding
• The properties opened as rentals in 2015 and the
rents cover the servicing on the mortgage with extra
for incidentals to cover the Association’s cost of
managing and providing housing
Source: CMHC Profile

Building Knowledge & Capacity for Affordable

30 Housing in BC Small Communities
CAPACITY BUILDING - ORGANIZATIONS & THE COMMUNITY
Engagement and Communication
Generating support for affordable housing planning, development and operation activities is critical to successful delivery.
Engagement and communication to generate support starts with creating a core group of individuals and organizations and
developing a housing needs assessment, and then to the continuous communication required to foster more affordable
housing units. Good engagement and communication brings important stakeholders along for the affordable housing
planning and development journey and helps to make them promoters of affordable housing, but it can be easier said than
done. Activities might include: community consultation – providing and receiving feedback; communication – informing and
building momentum for your projects; education – bringing resources and expertise to the project from the community and
from outside as needed; commitment – securing ongoing commitment to building and maintaining affordable housing.

Actors Partners Chambers of commerce, tourism organizations,

Local Government, Housing Organizations, Developers housing consultants, engagement and communication consultants,
affordable housing residents

Ease of Implementing Impact on development of housing

SIMPLE Critical to get support for housing

Benefits
• A community that shares housing objectives
makes the provision of affordable housing much
easier
• The support of key local organizations and actors
is crucial in developing affordable housing

Considerations
• Engagement and communication that begins too
late will likely result in costly delays
• One way communication may lead to a feeling of
disrespect and create barriers to developments
• Engagement and communication is often
overlooked and under resourced

Implementation Process
• Hold a session to identify allies for affordable
housing
• Develop a communications and engagement plan
• Execute the plan alongside other activities
that build support for housing such as needs
assessments
• Carry engagement activities right through to the
end of a development process and beyond

Making it Happen
Canmore conversation guide • Set aside funding for engagement and
communication
• Focus on shared community goals and values
• Nurture your current affordable home residents to
be ambassadors
• Start as early as possible and map out key timing
Synergies and methods for engagement and communication
such as forums, surveys, etc.
Housing strategy, Housing organization

Building Knowledge & Capacity for Affordable

31 Housing in BC Small Communities
Examples
Canmore, AB: Livable Canmore, Quality Housing in
Great Neighbourhoods for All
• The Town of Canmore, supported by most of the
community, prioritized the development of affordable
housing during the most recent term of government
• Two projects in particular were creating some
neighbourhood angst due to the development
locations, amount of development and style of
dwellings
Canmore development • To ensure the silent majority was being heard in
the process, the Town initiated an engagement and
communication exercise to invite the community to
talk about the different types of affordable housing
and possible locations for it in the community
• Engagement activities included: one survey; five
community ‘Idea Walls/Talk to us’ posters around
the community, 10 citizen-led conversations about
housing, two neighbourhood interactive events and two
workshops involving housing experts and facilitated
conversations, three background briefs to inform
conversations and six housing situation stories to help
people to understand the need for housing
• When completed, one site will have 49 units of
perpetually affordable housing made up of a mix of
townhouse, stacked townhouses and duplexes
• The project will be managed by the Canmore
Community Housing Corporation
Source: Town of Canmore

Enterprise Community Partners: Non-profit housing

developer messaging recommendations
• Research was conducted for nonprofit affordable
housing developer, Enterprise Community Partners,
on messages for affordable housing
• Some of the tips and approaches included:
• Linking success stories of housing to the policies
and actors that made it happen
• Expanding the notion of who plays a role in
the solutions; not just government but other
organizations, individuals and champions
• Focus on building homes vs. housing/affordable
housing
• Use simple explanations of cause and effect for
why there is an affordable housing shortage and
what can be done to encourage more homes
• Link the importance of a home to other issues
like economic development and health
Source: [Link]/

Building Knowledge & Capacity for Affordable

32 Housing in BC Small Communities
1701 - 4555 Kingsway
Burnaby, BC V5H 4V8
Phone: 604.439.4135
Toll-free: 1.866.465.6873
Email: research@[Link]
[Link]