ADMINISTRATIVE REPORT
Date: July 9, 2003
Author/Local: Jill Davidson/7670
RTS No. 03513
CC File No.5104
Meeting Date: July 22, 2003
TO: |
Vancouver City Council |
FROM: |
Director, Housing Centre |
SUBJECT: |
5616 Fraser Street |
RECOMMENDATION
A. THAT Council approve, in principle, a 60-year lease to Triage Emergency Services and Care Society for the PEF-owned property at 5616 Fraser Street with a prepaid lease payment of $331,250 (75% of the 575,000 purchase price) plus applicable taxes, with the lease to be prepaid to the PEF within 90 days of satisfying the attached conditions; and
THAT Council approve a grant equal to the prepaid rent of $331,250 to Triage Emergency Services and Care Society; source of funding to be City-wide DCL funds for replacement housing as provided in the 2003-2005 Capital Plan; and
THAT the lease and grant be contingent on project funding commitment under the Independent Living BC provincial program, provision of tenant support services from the Vancouver Coastal Health Authority, and funding from the Vancouver Agreement.
This recommendation proposes a grant and therefore requires two-thirds (8 votes) support from Council.
B. THAT no legal rights or obligations are hereby created and none shall arise hereafter except upon execution of all legal documents required to complete these transactions to the satisfaction of the Director of Legal Services.
GENERAL MANAGER'S COMMENTS
The General Manager of Community Services RECOMMENDS approval of the foregoing.
COUNCIL POLICY
It is City practice to purchase private lands and lease them to non-profit housing societies and co-operative associations for 60 years at 75% of freehold market value.
Council provides capital grants for non-market housing through the Affordable Housing Fund and DCL funds. Grants require the approval of 2/3 of Council.
BACKGROUND
In July 2000, Council approved the acquisition of 5616 Fraser Street for non-market housing.
The property was purchased and held by the PEF. The location of the site is shown in figure 1 below.
In October 2001 Council named Triage Emergency Services and Care Society as the sponsor for non-market housing for this site, subject to review by Council if the project had not started construction by the end of 2003.
Figure 1
This project was originally conceived as non-market housing to be funded through the 2001 HOMES BC Program and had received Provisional Project Approval from BC Housing. It was designed for 36 small self-contained units, based on a wood frame apartment building, with underground parking. This supportive housing project was to be a combination of affordable housing and addiction program services, funded by Vancouver Coastal Health Authority (VCHA), designed to support individuals recovering from addictions within an abstinence-based environment.
Unfortunately the project was cancelled when the provincial government ended the HOMES BC program and cancelled a number of projects in 2002.
DISCUSSION
There is an opportunity to resurrect this project through a restructured partnership. The project would continue to include 36 self-contained units. Triage is interested in developing the project and will apply for the majority of the needed funding through the provincial government's new Independent Living BC program. That program is officially described as targeting both frail seniors and the disabled, although most of the emphasis seems to be on seniors. This is an opportunity to encourage funding housing for people with disabilities and at risk of homelessness, a group who are part of the City's housing priorities.
The intent is to provide housing options outside the Downtown Eastside for people who might otherwise be forced to live there through lack of choice. The tenants may have addictions or mental health issues, and Triage has requested that VCHA fund 7 days per week coverage of support workers up to a maximum of 12 hours per day. The original project was designed as a residential use, and staff will review whether the new project continues to be residential or is better designated as Special Needs Residential Facility.
A funding request will also be submitted to Vancouver Agreement.
As this project involves a number of partners, it is recommended that the City's offer to lease the land and, in effect, provide the land for free, be contingent on the participation of BC Housing, VCHA and the Vancouver Agreement. The funding structure for the Independent Living BC program requires free land or similar equity from the sponsor or another partner e.g. a municipality. It is appropriate to provide free land as this project would further several city housing objectives. In keeping with City practice for the PEF to lease housing for non-profit housing at 75% of market value, a grant equal to this amount ($331,250) is recommended. These funds would be provided from the City-wide Development Cost Levies designated for replacement housing. As this is a grant, the approval of 2/3 (8 votes) of Council is required.
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