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2. MUNICIPAL
HOUSING PROJECT FACILITIES AGREEMENT AND DEFERRAL OF FEES FOR 1866 ALCIDE /
5809 BUCKLAND ENTENTE SUR LES PROJETS
DOMICILIAIRES MUNICIPAUX ET REPORT DES FRAIS DU 1866, AVENUE ALCIDE ET DU
5809, CHEMIN BUCKLAND
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Committee recommendation
That
Council approve the following with respect to 1866 Alcide / 5809 Buckland for
the purposes of increasing the available affordable rental units in the rural
areas:
1.
the deferral of
the rezoning application fees;
2.
the funding of
the building permit fees associated with developing four affordable rental
units at the two properties; and
3. delegated
authority to the Director of Housing to enter into a Municipal Housing Project
Facilities Agreement with Mr. Tom Valks and 15778102 Ontario Inc.
Recommandation du Comité
Que le Conseil approuve ce qui suit en ce qui concerne le 1866, avenue Alcide et le 5809, chemin Buckland en vue d’augmenter le nombre de logements locatifs abordables disponibles dans les secteurs ruraux :
1.
le
report des frais de demande de rezonage;
2.
la
compensation des frais de permis de construire liés à l’aménagement de quatre
logements locatifs abordables aux deux adresses mentionnées; et
3. la délégation au directeur du Logement du pouvoir d’établir une entente sur les projets domiciliaires municipaux auprès de M. Tom Valks et de 15778102 Ontario Inc.
1.
Deputy
City Manager, Community and Protective Services report dated 4 June 2007
(ACS2007-CPS-HOU-0008).
Report
to/Rapport au:
Agriculture & Rural Affairs Committee
Comité de l'agriculture et des
questions rurales
and Council/et au Conseil
Submitted by/Soumis par : Steve Kanellakos, Deputy City Manager/Directeur
municipal adjoint,
Community and Protective Services/Services communautaires et de
protection
Contact
Person/Personne-ressource : Janet Kreda, Senior Housing Development Coordinator
Housing/Coordonnatrice principale, Aménagement
de logements sociaux, Logement
(613) 580-2424 x, janet.kreda@ottawa.ca
REPORT RECOMMENDATION
That Agriculture and Rural Affairs Committee recommend that Council
approve the following with respect to 1866 Alcide / 5809 Buckland for the
purposes of increasing the available affordable rental units in the rural areas:
RECOMMANDATION DU RAPPORT
Que le Comité de l’agriculture et des affaires
rurales recommande au Conseil municipal d’approuver ce qui suit en ce qui
concerne le 1866, avenue Alcide et le 5809, chemin Buckland en vue
d’augmenter le nombre de logements locatifs abordables disponibles dans les
secteurs ruraux :
3. la
délégation au directeur du Logement du pouvoir d’établir une entente sur les
projets domiciliaires municipaux auprès de M. Tom Valks et de
15778102 Ontario Inc.
City Council on October 13, 2004,
in considering Amendments to the City Council Approved Official Plan to modify
policies related to affordable housing, provided direction to staff to
implement various planning incentives and direct supports to promote and
encourage the achievement of the Official Plan policies. Mr. Tom Valks provided the Housing Branch
with a proposal to develop four rental units which will rent at or below the
CMHC average market rent. Earlier in
May of 2007, City Council approved the amendment of the former City of
Cumberland Rural Zoning By-law to change the zoning of 1866 Alcide Avenue /
5809 Buckland Road from General Commercial – Exception 6 to Residential 2
“R2-(XX).
The recommendations if approved
by Council will result in the long-term deferral of approximately $8,000 in
planning application revenue. If the
units continue to meet the affordable housing requirements, over the proposed
twenty year period, the principal amount plus interest accumulated will be
waived by the City. Building permit
fees in the amount of approximately $4,000 will be funded from capital project
904120 (Fee Relief- Affordable Housing).
Le 13 octobre 2004, après
prise en compte des modifications aux politiques du logement abordable dans le
Plan directeur qu’il avait avalisé, le Conseil municipal a fourni à son
personnel une orientation dans la mise en œuvre de diverses mesures incitatives
de planification ou de soutien direct, afin de promouvoir et de favoriser la
mise en œuvre des politiques du Plan directeur. M. Tom Valks a
présenté à la Direction du logement une proposition de lotissement de quatre
logements locatifs à loyer égal ou inférieur au prix moyen du marché établi par
la SCHL. Au début de mai 2007, le Conseil municipal a avalisé la
modification au règlement de zonage rural de l’ancienne ville de Cumberland
afin que le zonage du 1866, avenue Alcide et du 5809, chemin Buckland
passe de commercial général – exception 6 à résidentiel 2
« R2‑(XX) ».
Si le Conseil municipal avalise les
recommandations, celles‑ci entraîneront le report à long terme d’un
revenu d’application de la planification d’environ 8 000 $. Si les
logements demeurent conformes aux exigences des logements locatifs abordables,
sur la période proposée de 20 ans, la Ville renoncera au montant principal
auquel s’ajouteront les intérêts accumulés. Les frais des permis de bâtir qui
s’élèvent à près de 4 000 $ seront financés au moyen du projet
d’immobilisations 904120 (exonération de droits – logement abordable).
DISCUSSION
The proposed housing meets the
Official Plan definition of "affordable" in that the household will
not pay more than 30% of income on rent, and the household income is at or
below the 30th income percentile.
In order to create these rental
units a rezoning was required, as the properties are currently zoned
commercial. Staff agreed that the
upfront cost of the rezoning fees and building permit fees would reduce the
affordability of this project. The
rezoning application for this property was approved by Council on May 9,
2007. (ACS2007-PTE-APR-0109) where Council approved
the amendment of the former City of Cumberland Rural Zoning By-law to change
the zoning of 1866 Alcide Avenue / 5809 Buckland Road from General Commercial –
Exception 6 to Residential 2 “R2-(XX).
Based on the direction from
council to provide incentives for affordable housing, the Housing Branch
proposes to enter into a Muncipal Housing Project Facilities Agreement to defer
and secure the payment of the re-zoning application and secure funds from the
Fee Relief -- Affordable Housing Capital Account (ACS2006-CPS-HOU-0004)
approved that will offset the building permit fees until such time as the units
are no longer rented at affordable rates or the property is sold. At that time, the deferred fees would be
repaid to the City. This requires that
the Vendor enter into a Municipal Housing Project Facilities Agreement with the
City, and that the value of the deferred amounts plus interest be secured as a
second mortgage in favour of the City.
Staff propose that the interest
rate for the deferred amounts be the rate used by City staff to determine the
annual affordable housing costs for the purposes of the Official Plan
affordable housing targets. This rate
is the average of the last three years for a fixed-rate three year term
mortgage as posted by the Bank of Canada.
The rate used by the City for calculations of housing affordability for
all income percentiles for 2006 (last complete year of data) is 5.9%. This approach is similar to the agreement
reached for the development at 138 Somerset/St. Johns Church. (ACS2005-PGM-APR-0129), approved June 18,
2005.
The term of Municipal Housing
Project Facilities Agreement is 20 years.
The amounts, plus interest would be repayable to the City when:
1. The property is sold , or,
2. The rents no longer meet the definition of "affordable" as defined in the Official Plan.
If neither of the above conditions occur prior to the expiry of the MHPFA, the amounts will be forgiven at the end of the 20 year MHPFA, and the mortgage on title in favour of the City will be removed.
CONSULTATION
The report has been circulated to the Planning Transit and the Environment Department, and to Legal and Financial Services Branches. No public consultation has been conducted with respect to this request for assistance. The request and recommended response is consistent with current program practice.
FINANCIAL IMPLICATIONS
The approval of this report will result in the long-term deferral of approximately $8,000 in planning application revenue. If the units continue to meet the affordable housing requirements, over the proposed twenty year period, the principal amount plus interest accumulated will be waived by the City. Building permit fees in the amount of approximately $4,000 will be funded from capital project 904120 (Fee Relief- Affordable Housing).
SUPPORTING DOCUMENTATION
Document 2 - 2006 Housing Continuum
DISPOSITION
A project specific Municipal Housing Project Facilities By-law will be brought forward to Council.
Upon approval by Council, the Housing Branch will execute a Municipal Capital Facilities Agreement with Tom Valks and 1578102 Ontario Inc. as per the terms identified in this report.
Corporate Services, Financial Services Branch to prepare the payment and adjust accounts accordingly.
Upon execution of the MHPFA, Revenue Division will be requested to register a note on the Tax Account for this property.
The Housing Branch will set-up an internal tracking mechanism to ensure that if the property is sold or the rents no longer meet the definition of 'affordable' the deferred re-zoning fees plus interest will be immediately payable to the City.
Document 1: Proposed Rents
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CMHC
Average Market Rent (AMR) 2006 |
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Apartments |
Proposed
Rent |
AMR
Gloucester/Cumberland |
AMR |
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Bachelor |
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$698 |
$633 |
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One
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$650-675 |
$753 |
$774 |
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Two
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$685 |
$858 |
$941 |
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