A9
ADMINISTRATIVE REPORT
Date: July 11, 1995
Dept. File No. 3116
TO: Vancouver City Council
FROM: Manager of the Housing Centre
SUBJECT: C.A.R.E. Proposal - Non-Family Non-Market Site
Roundhouse Neighbourhood - Concord Pacific Place
RECOMMENDATION
A. THAT Council approve the proposal from C.A.R.E. to develop a
seniors project on the non-family non-market site in the
Roundhouse neighbourhood of Concord Pacific Place, and
instruct the Director of Legal Services to prepare and execute
the necessary legal documents to assign the City's option to
the site to C.A.R.E. and to bring forward the by-law required
to authorize the Housing Agreement outlined in the attached
Letter of Understanding, and
FURTHER THAT no legal right or obligations shall arise or be
created until the required by-law is passed and all documents
to the satisfaction of the Director of Legal Services have
been executed and registered.
B. THAT the Director of Planning be instructed to make
application to amend Section 6.3(g) of CD-1 By-law No. 7156
(the Roundhouse CD-1 By-law) to increase the maximum amount of
excludable amenity space by 500 m› to 3,500 m›;
FURTHER THAT the Director of Legal Services be instructed to
prepare the necessary by-law;
AND FURTHER THAT the application and by-law be referred to a
Public Hearing.
GENERAL MANAGER'S COMMENTS
The General Manager of Community Services RECOMMENDS approval of A
and B.
COUNCIL POLICY
Twenty percent of the units in major projects must be designated for
Non-Profit (core-need) housing. Council retains the flexibility to
consider alternative affordable housing programs for particular sites in
regard to housing need, neighbourhood mix, amenities, and
services.PURPOSE
This report seeks Council approval of the revised proposal from C.A.R.E.
(Community of Affordable Residential Environments) to develop the non-
family non-market site in the Roundhouse neighbourhood in Concord
Pacific Place (see Appendix A). Their proposal, titled A HOPE AND A
VISION FOR THE FUTURE, is on file with the City Clerk.
BACKGROUND
Concord Pacific commenced development of the Roundhouse neighbourhood in
1993. They were ready to develop the 69 unit nonŸfamily non-market site
as the parking garage for the adjacent condominium project, which will
provide the podium for the non-family non-market site, was under
construction. B.C. Housing Foundation, on behalf of Concord, submitted
the site to BCHMC for a 1994 allocation of Non-Profit units. As there
were limited units available for seniors, Council gave approval to seek
alternatives to Non-Profit housing in the event an allocation was not
received. Concord presented a proposal from the Community of Affordable
Residential Environment to develop a 63 units of life-lease units and 6
units to provide accommodation to 16 seniors in need of support for
Council's consideration.
On October 20, 1994, Council approved:
"A. THAT Council give approval in principle to the Community
of Affordable Residential Environment (C.A.R.E.) proposal
to develop the affordable seniors site in the Roundhouse
Neighbourhood for 63 life-lease and 6 assisted living
units, should the Non-Profit submission for the seniors
site not receive a 1994 allocation of units, and subject
to report back on land cost and affordability.
B. THAT Council permit C.A.R.E. to acquire the freehold
interest in the Roundhouse affordable seniors site if and
when it gives final approval of the project, subject to
registration of legal agreements to the satisfaction of
the Director of Housing and Properties and the Director
of Legal Services ensuring affordability and tenure for a
minimum term of 60 years."
REVISED C.A.R.E. PROPOSAL
The proposal C.A.R.E. presented to Council in October 1994 consisted of:
- 63 unstratified life-lease units which would be developed within
the Maximum Unit Prices (MUPs) set by the Non-Profit program for
seniors units, and sold at cost which would be 10 to 20% less than
their market value, - 6 assisted living units to
accommodate 16 seniors who would
rent a room and bath in shared
units and receive on-going
services and support from
C.A.R.E.,
- a floor of amenities, such as lounge and dining room, that would be
available to all residents of the building as well as those in the
assisted living units, and
- C.A.R.E. hoped to raise $1.5 Million in donations which would pay
for the assisted living units and the floor of amenities and
possibly allow C.A.R.E. to keep ownership of up to 5 of the life
lease units which they would rent to seniors who could not afford
to purchase a life lease unit.
The proposal has been revised in response to issues raised as the
concept was developed further. The intent of the proposal to create a
supportive environment for seniors with a range of incomes has not
changed. As revised, the proposal consists of:
- 64 stratified 1 and 2-bedroom units which would be developed within
the Maximum Unit Prices (MUPs) set by the Non-Profit program, and
sold at market value,
- 5 assisted living units to accommodate 15 seniors, 50% of whom
would be core-need seniors, who would rent shared units and receive
on-going services and support from C.A.R.E.,
- a floor of amenities, such as lounge and dining room, that would be
available to residents of the strata titled units in the building,
seniors living nearby, as well as those in the assisted living
units,
- C.A.R.E. has pledges for $1.2 Million in donations, and expects to
raise more. These funds are expected to pay for the assisted
living units, and the floor of amenities. The funds remaining,
plus the difference between the market value of the strata units
and MUPs, allows C.A.R.E. to retain up to 10 of the strata lots for
rent to seniors who cannot afford to purchase, and
- C.A.R.E. will retain management control of the strata corporation,
and an option to acquire the strata lots or to retain a minimum of
25% of any capital gain upon resale, so C.A.R.E. can continue to
purchase strata lots with the ultimate intent of owning the whole
building.
The 2 major revisions are the stratification of the project, and the
sale of the strata lots at their market value instead of at cost. CMHC
has advised that stratification is required for this project to qualify
for mortgage insurance, and C.A.R.E. believes market acceptance for
unstratified ownership is limited. For these reasons the life lease
form of tenure originally proposed has evolved into something closer to
congregate care.It is proposed that the units be sold at market value
rather than at cost to focus the affordability potential. Rental, which
may be market rental for the first years, is of greater value in terms
of affordability than the sale of units at 10% or 20% below market which
provides households who could afford to buy a older condo already with
an opportunity to buy a new one. How many of the strata lots C.A.R.E.
retains will depend on the market value of the units, which is subject
to change, relative to the MUP cost.
AFFORDABILITY AND LAND COST
The approval in principle granted by Council last October was subject to
report back on affordability and land cost.
The project budget included in C.A.R.E.'s proposal is based on the MUP
budget for a 69 unit handicapped accessible building ($8.8 Million).
This includes all costs including the land cost of $1.5 Million which
C.A.R.E. will pay Concord. The project design and budget has been
reviewed and the construction costs are considered reasonable, with the
result that Concord will receive as the price of the land what it would
have received from a Non-Profit Housing project as is the intent of the
revised 20% policy.
The project will be as affordable as a congregate care project developed
within MUPs can be without federal or provincial subsidies. The project
is being subsidized through the donations raised by C.A.R.E. and the
restriction placed on Concord to build it within Non-Profit MUPs. The
market value for a typical strata lot in the building would be between
$135,000 and $140,000, compared to $145,000 to $150,000 for a market
condo of similar size, because of the restricted budget and restrictions
on resale. The 1994 MUP for seniors units in an accessible building is
$128,000 per unit. The rooms in the assisted living units would rent
for $500 per month, with food extra. Half the rooms would be rented to
core need seniors paying 30% of their gross income on rent or the
shelter component of welfare, whichever is greater, with food extra.
HOUSING AGREEMENT
A condition of Council approval last October was that affordability and
tenure be secured for at least 60 years. It is proposed that a Housing
Agreement be required as a condition of assigning the City's option to
the site to C.A.R.E. The Housing Agreement would control the use of the
site and allow the City to acquire the property for the value of the
donations raised if C.A.R.E. fails to provide the service expected. The
Letter of Understanding setting out the basics of the Housing Agreement
is attached as Appendix B. The Housing Agreement requires by-law
authorization which will not be sought until the agreement is settled.
AMENITY SPACE
It was hoped that a rezoning to accommodate the C.A.R.E. proposal could
be avoided. However, the proposal will consume approximately 5,300 (492
m›) sq. ft. of excluded amenity space. The Roundhouse CD-1 By-law
limits the total amount of excludable amenity space to 3,000 m›. and
Concord has already allocated most to the other projects in the
neighbourhood and requires that the limit be raised by the amount
C.A.R.E. needs. This increase can be accommodated without difficulty,
and it is recommended that the total amount of excluded amenity space
permitted in Roundhouse be increased by 500 m› to a total of 3,500 m›.
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