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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