City begins process of supporting innovative homes with legislation

By Timothy Schafer

The city is looking to undertake the fostering and growth of innovative — small home, cluster home and eco-homes — homes in Grand Forks with the revamping of several bylaws and regulations.

In May city staff recommended city council consider changes in context of other issues in the Official Community Plan in regards to innovative homes in order to address the housing shortage pressure.

The changes were proposed to include topics on tiny homes and cluster development, secondary suites and laneway houses, and other tools for the encouragement of affordable and sustainable housing. A public hearing has been scheduled for Sept. 5 to present the changes.

Currently, there are a limited number (approximately 50 to 60) of designated affordable housing units in the city. Across the regional district, the Canadian Rental Housing Index indicates that current supply is inadequate by at least 391 rental units, with an additional 101 units required by 2026.

This translates to a demand in Grand Forks for approximately 70 to 80 new affordable rental units between now and 2026, in addition to demand for rental homes not based on affordability criteria.

“And recent inquiries to people searching for rental properties have found availability of only one or two units at any one time, often only available through word of mouth,” read a city staff report to council.

Respondents to a recent web-based survey in Grand Forks on affordable housing reported that finding affordable rental housing was extremely difficult, with 27 per cent of survey respondents also indicating that their monthly energy costs were greater than $250.

“Which can be critical if rental costs are over 50 per cent of household income, which applies to 75 per cent of the lowest income-earning renters,” read a city staff report to council.

On June 13 2016 council directed staff to undertake a review of the OCP and undertake a public and stakeholder engagement program to implement the changes.

Some of the proposed changes include:

• consider using city-owned land for affordable housing developments;
• use resale price restrictive covenants to eliminate land speculation and keep properties affordable;
• use revenue from land sales for land-banking and replenishing city supply of public land for affordable housing;
• create an affordable housing reserve fund;
• consider waiving, reducing, or deferring payment of development cost charges and other development/planning fees for affordable housing projects;
• consider entering into housing agreements with developers of new subdivisions or in neighbourhood plans to include mixed income / mixed use neighbourhoods and density bonuses to developers who provide affordable housing;
• consider initiating an affordable housing advisory committee with community stakeholders to assess the ongoing housing needs of the community; and
• consider setting permissive tax exemption policy criteria for supportive housing (transitional and second stage housing, supportive housing, group homes).

The city had developed a short online survey and held a stakeholder workshop on housing issues. The department was looking for insight from community members and feedback on key policy issues before developing recommendations for bylaw and policy changes.

Now the city is expected to initiate high-priority changes to the OCP and Zoning Bylaw before the scheduled completion of the Official Community Plan and Zoning Bylaw update (2018/2019).

City staff recommended any changes as an amendment to the current OCP and concurrent repeal and creation of a new Zoning Bylaw.

What is affordable housing?

• Definition: Housing for which the lifecycle costs of rent or mortgage, insurance, energy use, maintenance, repair, and servicing are within the means of the occupant(s), and that limits offsite costs to municipal infrastructure, natural assets and ecosystems, and the climate system (collectively, the commons) to levels that can be sustained indefinitely.

Affordable housing is by definition adaptable, durable, resource-efficient, and functional.

• Occupant criteria: Affordable housing costs less than 30 per cent of before-tax household income.

For renters, shelter costs include, as applicable, rent and payments for electricity, fuel, water and other municipal services. For owners, shelter costs include, as applicable, mortgage payments (principle and interest), property taxes, condominium fees and electricity, fuel, water and other service fees.

— Source: City of Grand Forks

Policy approach

The new policy defines a three-tier approach to supporting affordable and sustainable housing in Grand Forks, supported by amendments to the OCP and Zoning Bylaw.

The first tier prescribes changes to planning documents to lower barriers to affordable housing, including lowering minimum dwelling size and increasing options for accessory dwelling units.

This tier is the lowest cost to the city and is deployed through planning and development processes that include cost recovery (development permits, variances, zoning amendments, building permits) and promote smart growth and infill development.

The second and third tiers would be developed as amendments to the Official Community Plan — updating objectives and setting specific policies — and implementing these policies as actions through the Strategic Plan and other bylaws and policies as appropriate.

These policies would provide guidance and enabling language for servicing, land tenure, and financial and operational contributions to community collaborations and major investments in affordable housing.

The second and third tier may involve a higher level of investment (waiving fees, supporting servicing costs, donating land). This investment will likely be required to increase availability of designated affordable rental and owned dwellings.

— Source: City of Grand Forks