ADMINISTRATIVE REPORT

TO:

Vancouver City Council

FROM:

Director of the Housing Centre

SUBJECT:

Housing Agreement - Dunsmuir House 555 Homer St.

 

RECOMMENDATION

GENERAL MANAGER'S COMMENTS

COUNCIL POLICY

Council's housing priorities are to maintain and expand housing opportunities in Vancouver for low and modest income households with priority being given to families with children; seniors on fixed incomes or in need of support; SRO residents; and the mentally ill, physically disabled, and others at risk of homelessness.

BACKGROUND

The Dunsmuir House, currently located at Richards and Dunsmuir, provides 166 SRO (single Room Occupancies) rooms, 23 shelter beds, and limited support services to low income single men in a drug and alcohol free environment. It also includes a dining room that serves meals to residents. Corrections Canada contracts with the Salvation Army to use up to 30 of the SRO rooms to accommodate parolees and others in their care and custody.

For the past couple of years, the Salvation Army has been exploring the relocation of its Dunsmuir House operation into a new facility. The renovation and reuse of the current building were evaluated but were determined to be not feasible. In June of 2001, the Salvation Army sold the existing Dunsmuir House and have leased back the building for up to 3 years to permit them to find a new site and develop a replacement facility.

On February 19, 2002, City Council (In Camera) approved the purchase of 555 Homer Street from B.C. Hydro for $3,009,000 (net), and then sold the property to the Salvation Army for the relocation of their Dunsmuir House facility and operation for $2,009,000. The $1 million difference in price was a Capital Grant funded from the City-wide Development Cost Levies (DCL) allocated to replacement housing.

PURPOSE

This report seeks Council's approval to enter into a housing agreement with the Salvation Army so that the development is qualified for exemption from paying $225,000 DCLs.

DISCUSSION

Salvation Army applied for a development permit (DE406781). The proposed facility is a SNRF (Special Needs Residential Facility) - Group Living. It includes 122 program beds, a 36-bed emergency men's shelter, a 32-bed emergency women's shelter, and six transitional suites for women and single moms. It also provides a broad range of services including a dining room, training and educational programs, counselling and recreational activities. Up to 30 of Corrections Canada's parolees would continue to be accommodated.

Funding for the support services will be provided by the Salvation Army, the Ministry of Human Resources, Corrections Canada, Vancouver/Coast Health Board and Human Resource Development Canada. The total capital cost of the project is estimated at $19 million. In addition to the City's contribution of $1 million, B.C. Housing provides $3 million in the form of a commitment to pay the principle and interest payments for the project's 35 year mortgage, and Human Resources Development Canada contributes $1 million through their 2002 Supporting Community Planning Initiatives (SCPI) Program.
The development permit was approved by the Development Permit Board on September 30, 2002. The development site is affected by the Development Cost Levy By-law (DCL) No. 8149. Levies of $225,000 will be required to be paid prior to issuance of Building Permits. The Salvation Army is on a tight construction schedule. They have paid the assessed levies on December 16, 2002 in order to have the building permit issued. However, the DCL By-law exempts social housing. Under the Vancouver DCL By-law, "Social housing" is defined as "housing where a minimum of thirty (30%) per cent of the units are to be occupied by persons on government income assistance, where a covenant restricts the use to such housing, and where the owner, if a non-profit organization, is eligible for a government shelter subsidy."

There are 153 dwelling units in the Dunsmuir House. At least all occupants of 30% (46 units) of the units will be receiving government paid income assistance. The Salvation Army is a non-profit organization and is eligible for government shelter subsidy. B.C. Housing is funding the project and has an operating agreement in place ensuring that the project will continue to be operated as social housing. The applicant will be able to apply for full refund of the paid levies subject to the registration of the housing agreement.

Section 565.2 of the Vancouver Charter enables Council to authorize the City, through a by-law, to enter into a housing agreement providing affordable and special needs housing. The major features of the proposed housing agreement are noted below:

Terms of the Agreement

1. Forty-Six (46) dwelling units, housekeeping units or sleeping units shall always be kept and maintained for adults (some with children) receiving income assistance from government.
2. Term of the housing agreement: Life of the building

CONCLUSION

It is recommended that Council approve the housing agreement in principle. The Dunsmuir House has been an important component of the City's social infrastructure for half a century. The replacement development is an enhancement of the existing operation. It will continue to provide affordable housing targeted to homeless and homeless at risk individuals along with integrated comprehensive support programs. In the City's efforts to provide housing for low-income residents, this project is considered to be a high priority.

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© 2002 City of Vancouver