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›. * * * * *