ADMINISTRATIVE REPORT

                                                       Date: April 23, 1996
                                                       Dept. File No. F320 


   TO:       Vancouver City Council

   FROM:     Manager of the Housing Centre

   SUBJECT:  Approval of Grant for $140,000 to Habitat for 
             Humanity Society of Greater Vancouver


   RECOMMENDATION

        A.   THAT Council approve a grant of $140,000 to the Habitat for
             Humanity Society of Greater Vancouver to enable Habitat to
             develop core-need family units in the proposed 29-unit
             residential development at 1280 Commercial Drive; source of
             funds to be the Affordable Housing Fund.

        B.   THAT these funds be released to the Society on or before 45
             days from the interest adjustment date and upon the Manager of
             the Housing Centre being satisfied that at least 7 units are
             occupied by core-need families.


   GENERAL MANAGER'S COMMENTS

        The General Manager of Community Services RECOMMENDS approval of
        the foregoing.


   COUNCIL POLICY

   It is Council policy to:

   Maintain and expand housing opportunities in Vancouver for low and
   moderate income households, with priority being given to Downtown
   lodging housing residents, elderly people on fixed incomes, the
   physically and mentally disabled, and single parents with families.


   PURPOSE

   This report seeks Council s approval to grant Habitat for Humanity the
   amount of $140,000 for the development of up to 14 affordable units for
   core-need families in the Commercial Drive Housing
   Co-operative being developed at the N.E. corner of Charles and
   Commercial Streets (see Appendix A).

   BACKGROUND

   On April 3, 1995, Council approved the sale of a strip of Charles St. to
   the Province for $140,000.  The Province intended to consolidate the
   strip with an adjacent parcel to create a site for lease to an equity
   housing co-operative.  Habitat for Humanity intended to be a partner in
   the co-operative, with the goal of developing half the units for
   core-need families.  Habitat for Humanity asked for a grant from the
   City equal to the proceeds of the sale.  However, as the project was
   only at a conceptual stage, Council approved the recommendation

        "THAT Council advise Habitat for Humanity that it may consider a
        grant equal to the purchase price of the portion of closed road
        once all the documentation for their proposed project is in place,
        noting that no commitment is made at this time."


   HABITAT FOR HUMANITY

   Habitat for Humanity is an incorporated Society in the Province of
   British Columbia which strives to provide affordable home ownership for
   low and modest income residents in the Lower Mainland.  The first
   Habitat affiliate in Canada was started in 1985, with 18 affiliates now
   operating in six provinces.  Habitat has built over 150 homes in Canada
   to date.  Its goals are achieved by building affordable homes and
   selling them at no profit or interest to families.  Their selection
   process of applicants is non-discriminatory.   Successful applicants
   contribute 500 hours of unpaid labour to the building of their homes in
   lieu of a conventional down payment.  Habitat also relies on volunteers
   and corporate sponsors, and donations of both time and building
   materials.


   THE PROJECT

   The Commercial Drive Housing Co-operative consists of 29 co-op units
   above ground floor retail outlets.  The proposed co-op will include a
   component to be developed by a partner, Habitat for Humanity.  The
   Province, which is providing interim financing, will lease the land to
   the co-op for 80 years and restrict resales to 85% of market.

   The site is zoned C-2C1 and a development permit was issued on August
   22, 1995.  All the residential units would be stratified, with each of
   the leasehold strata lots having the co-op registered as leasehold owner
   on these lots.

   BCHMC is providing interim funding for the project and has advanced
   pre-development funding of $400,000 to the housing co-op.  Hoardings are
   now in place and construction should commence in May, with project
   completion slated for January 1997.

   HABITAT ROLE IN PROJECT

   Up to 14 of these units would be developed by Habitat for core-need
   households on a first-time ownership basis, requiring income-testing. 
   This would be Habitat s first development in Vancouver and its first
   multi-family project in North America.  The demand has been great. 
   Habitat has received over 160 applications and is no longer accepting
   applications.  Habitat will hold 20-year second mortgages on title to
   control resales.  The total cost of Habitat s portion of the project
   will be $2 million.  Volunteer labour and donated material will cover
   half the cost, enabling 7 units to be affordable to moderate income
   families.  Habitat needs $1 million in donations for the balance, which
   will enable them to develop up to 14 units for core-need housing.

   It is recommended that the City provide a grant of $140,000 as a
   contribution to the project.  The project is a unique partnership and an
   opportunity to create core-need homeownership.  The grant will be
   released only once the project is completed and proof is provided to the
   satisfaction of the Manager of the Housing Centre that at least 7 units
   are occupied by core-need families.  The source of funds would be the
   Affordable Housing Fund.




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