A3 ADMINISTRATIVE REPORT Date: February 4, 1997 Dept. File No. 3308 C.C. File No. 4656-1 TO: Vancouver City Council FROM: Manager of the Housing Centre SUBJECT: Low-Income Housing in the Downtown, 1996 Survey INFORMATION The General Manager submits this report for INFORMATION. COUNCIL POLICY Council policy is to maintain, upgrade, and increase the stock of low-income housing in the downtown. Council has instructed the Housing Centre to monitor the core-need stock in the area on a regular basis. PURPOSE The purpose of this report is to provide Council with the document titled "1996 Survey of Low-Income Housing in the Downtown Core", detailing the results of the 1996 survey, attached as Appendix A.* BACKGROUND In October 1989, Council resolved that the City adopt the objective of "... maintaining, upgrading, and increasing the existing stock of core-need housing in the Downtown". In May 1991, when dealing with housing strategies for Downtown South, Council instructed the Housing Centre to monitor core-need housing in the Downtown South on a periodic basis. Council also re-affirmed their policy of one-to-one replacement of single room occupancy (SRO) units in Downtown South. The attached report is the third report by the Housing Centre monitoring changes to the stock of low-income housing in the Downtown Core; an area extending from Burrard Street to Clark Drive and from the waterfront south to Terminal Avenue. The 1994 report was submitted to Council in June 1994. The attached report presents the results of the 1996 survey of SRO housing and brings together information from other sources on special needs residential facilities (SNRFs) and non-market housing. *Limited distribution - on file at the City Clerk's office SRO housing is the cheapest form of rental housing provided by the market. Typically, a SRO unit consists of one room about ten by ten feet, with shared bathrooms and minimal if any cooking facilities. Even though rents are relatively low, most SRO occupants pay substantially more than 30% of their income for housing. Although SRO units are small and rarely achieve more than basic physical quality standards, it is important to retain SRO stock until more adequate housing is available. While SRO units are low-income housing by default, non-market units are low-income housing by design. Non-market housing is usually subsidized by senior governments to accommodate core-need households, at rents fixed at 30% of income. SNRFs provide housing combined with services to those with special needs - the frail elderly, those with physical, psychological, or substance abuse problems, and those needing emergency shelter. These groups often have low incomes as well. DISCUSSION As of June 1996, there were just under 13,200 low-income units in the Downtown Core. Over three-quarters of the units are in the Downtown Eastside/Chinatown/ Gastown/Strathcona area. More than 50% of the units are in SRO buildings, and over a third of these units are in buildings with pubs (residential hotels). Non-market housing makes up just over a third of the low-income stock, and SNRFs account for the remaining units. Previous Downtown Core surveys found relatively low rates of SRO loss, with these losses more than offset by increases in the non-market housing stock. The total low-income stock increased by 1% between January 1991 and September 1992 and by 2.8% between September 1992 and April 1994. The current report states that between April 1994 and June 1996, the SRO rate of loss increased over previous years to 1.6%, mainly as the result of the conversion of the Patricia Hotel to tourist use. The number of non-market units actually declined by 1%, as only one project was completed during the period and this was too small to offset the loss of the YWCA s former non-market project on Burrard. The number of SNRF beds also fell by 1%. Consequently, the total low-income stock experienced a decline of 215 units, or 1.6%. However, the decline over the last two years is relatively small, and over the longer period of January 1991 to June 1996, there was an overall increase of 1.9% in total stock. The two projects where the main loss of units occurred in the last two years - the Patricia Hotel and the YWCA - had long provided tourist accommodation as well as longer term housing. There are currently ten non-market projects with 728 units under construction or being planned for the Downtown Core that will increase the non-market stock by 15 % over the next two years. All but one of these projects are on land leased from the City The overall SRO vacancy rate in June 1996 was 13 %, compared with 12 % in 1994 and 14% in 1992. Vacancy rates ranged from 7 % in the Downtown South and Victory Square sub-areas to 16 % in the rest of the Downtown Eastside/Chinatown/Gastown/Strathcona area. Differences in maintenance levels, management styles, and rent levels mean that it is not appropriate to compare SRO vacancy rates to those for the conventional apartment stock. The average monthly rent for SRO units in the Downtown Core was $336, ranging from an average of $330 in the rest of the Downtown Eastside/Chinatown/Gastown/Strathcona area to $355 in Downtown South. While the shelter component of social assistance ($325) tends to limit rent increases, in June 1996 only 52 % of SRO units rented for $325 a month or less, compared to 72 % in 1992. Partial data on changes in monthly rents indicate that the average increase in rents between April 1994 and June 1996 was 2.7 %, with higher than average increases in the Victory Square and Downtown South areas The Downtown Eastside/Chinatown/Gastown/Strathcona housing plan process that is currently underway will address many of the issues confronting the low-income housing stock. A draft plan will be presented to Council this summer. Staff are also working on a related project on ways to regulate the conversion of SROs to tourists hotels. * * * * *