DRAFTAffordable Housing

Toolkit and

Community Improvement Plan (CIP)

Background- Affordable Housing Development

Toolkit is range of tools that can be used to:

- Implement the Homeless Prevention and Housing Plan.

- Support affordability of housing between Community Housing and Market housing.

- Support the work of the LMCH;- Obtain lands at strategic locations for

affordable housing.- Create, retain and enhance housing stock

that is affordable and attainable.

Approach

Closed Schools Strategy

(ongoing eval’n)

Secondary Dwelling Units

(policy and zoning)

Existing CIPs (with Residential

component)

Surplus Land Sales (OVH, LPH)

Permit-Ready Lots (Monitoring)

ReThink Zoning

Secondary Plans (Transit Villages)

Section 37 Review

(Bill 108, ‘Bonusing’ & Community

Benefit Charge)

Affordable Housing CIP (new)

Inclusionary Zoning

(note: Bill 108)

Rental Conversions Policy and/or

Demolition Policy (Unit Replacement)

City-led OPAs for Regeneration

Sites/LMCH Sites

DC By-law 2023

(note: Bill 108)

Convert to Rent/Secondary

Dwelling Unit (HDC)

Tools of the

Toolkit(so far)

Goals1. Seek input on the range of tools in

the toolkit.

2. Review one of those tools and seek input on its proposed goals, measurements of success (for future monitoring), and draft incentive program.

• Tool is the “Affordable Housing CIP”

What are today’s goals

Community Improvement

Plan

• A CIP is a Plan that allows the City to take actions to support improvements and development or redevelopment within a “project area”.

• Identify changes to planning policy, zoning or other by-laws, policies or practices;

• Direct funds for improvements to public space or infrastructure;

• Acquire land, rehabilitate buildings or clear land;• Provide or direct funds for provision of affordable

housing;• Provide grants or loans to landowners for specific

actions • e.g. develop units, upgrade buildings, etc.

What is a CIP ?

Purpose• Identify housing costs in London and address

need for affordable housing.• Define “affordable” for the purposes of this

Plan.• Establish objectives to address the provision

of affordable housing and other city-building objectives.

• Identify opportunities for incentives to support the development of affordable housing units.

• Identify monitoring measures to assist with future monitoring reports on housing.

Purpose of this CIP

Owner Households

• 116,840 owner households total

• 5,920 owner households are in core housing need.

• 5.1% of owner households are in “core housing need”

Owner Households

Owner Incomes (by

10th of population)

Owner Income vs. Owner Costs

Owner

Households

Income Group

1st

decile2nd 3rd 4th 5th 6th 7th 8th 9th

Owner

Household

Annual Income

$34,500 $49,500 $62,800 $76,600 $90,700 $105,700 $124,100 $150,100 $193,900

30% of income,

pre-tax (annual)$10,350 $14,850 $18,840 $22,980 $27,210 $31,710 $37,230 $45,030 $58,170

Affordable

Monthly$862 $1,237 $1,570 $1,915 $2,268 $2,643 $3,103 $3,753 $4,847

Renter Households

• 64,140 Renter Households total

• 19,050 renter households are in core housing need.

• 29.7% of renter households are in core housing need.

Renter Households

Renter Incomes (by

10th of population)

Renter Income vs Renter Costs

Renter Households

Income Group1st decile 2nd 3rd 4th 5th 6th 7th 8th 9th

Renter Household

Annual Income$12,000 $18,400 $24,100 $30,600 $37,700 $45,600 $55,300 $68,200 $89,300

30% of income, pre-

tax (annual)$3,600 $5,520 $7,230 $9,180 $11,310 $13,680 $16,590 $20,460 $26,790

Affordable Monthly$300 $460 $602 $765 $942 $1,140 $1,382 $1,705 $2,232

30% of Renter Household Monthly Income vs. Average Market Rent

1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th

$300.00 $460.00 $602.50 $765.00 $942.50 $1,140.00 $1,382.50 $1,705.00 $2,232.50

Bachelor/Studio $859

One Bedroom $1,021

Two Bedroom $1,370

Three Bedroom $1,787

Four + Bedroom $2,171

• What is affordable housing defined?• For this CIP?• For other organizations (LMCH)?• How does this CIP fit with other ongoing

initiatives?• Housing Stability Plan• Affordable Housing Development Toolkit• LMCH Regeneration Plan

How does this relate to other initiatives?

Defining “Affordable”

Closed Schools Strategy

(ongoing eval’n)

Secondary Dwelling Units (policy and

zoning)

Existing CIPs (with Residential

component)

Surplus Land Sales (OVH, LPH)

Permit-Ready Lots (Monitoring)

ReThink Zoning

Secondary Plans (Transit Villages)

Section 37 Review

(Bill 108, ‘Bonusing’, & Community

Benefit Charge)

Affordable Housing CIP (new)

Inclusionary Zoning

(note: Bill 108)

Rental Conversions Policy and/or

Demolition Policy (Unit Replacement)

City-led OPAs for Regeneration

Sites/LMCH Sites

DC By-law 2023

(note: Bill 108)

Convert to Rent/Secondary

Dwelling Unit (HDC)

Tools to support range of housing options

• November 18, 2019• Planning and Environment Committee• Draft Affordable Housing CIP and key

principles for the draft incentive programs

• Council direction to hold more consultation to confirm programs.

• Bring final CIP back in January 2020.

Draft CIP went to Council

Nov. 18, 2019PEC

Draft CIP online

Nov. 18, 2019PEC

• Encourage creation of more affordable units (at and below AMR)

• Provide relief from biggest financial hurdles to construction of affordable units

• Enable creation of more mixed-income communities

• Provide relief to community housing• Acquire and facilitate development of surplus

and other lands for affordable housing• Create units that align with goals of HSP and

The London Plan (various intensities and range of affordability)

Draft CIP Objectives

CIP Objectives –

Are We On The Right

Track?

• Annual reporting of CIP program participation;

• Annual housing monitoring reports• Longer-term monitoring to align with

Multi-Year Budget and Canada Census

CIP Monitoring

CIP Monitoring

and Evaluation:

What are “Indicators of

Success”?

• Number of affordable project and units created through CIP programs

• Vacancy rates• Properties acquired (e.g. surplus school

lands)• Lands sold for affordable housing• New Secondary Suites created by programs• Levels of Affordability (100% AMR, 80%, etc.) • Unit sizes vs household size (vacancy)• Incomes vs rents (core housing need; > 30%)• Sunset clause: how often to review/renew?

CIP Monitoring

CIP Monitoring

1) Affordable Housing Development Loan Program

2) Secondary Dwelling Unit Loan Program

Two CIP Incentive Programs

Incentive Programs

Under the CIP

• Eligible works: Development, redevelopment or renovation.

• Creates 5 or more new affordable units• Units less than or equal to AMR*.• Loan applies only to affordable units.• Building must be mixed-tenure

(affordable and market or mix of affordable levels) if more than 10 units.

• Affordable for minimum of 20 years.• Loan registered on title.• Landlord confirms tenants’ income.

CIP Program #1: Affordable Housing Loan

DraftCIP Program

#1

• Loan is Interest Free• Issued at time building permit issued.• Applicant repays in 3 equal

payments:• 60 days after issued;

• Structural framing complete;

• 10 years or building occupancy (whichever is sooner)

• Program’s scale based on 3 objectives:• Level of Affordability offered• Whether developer pays City property tax• Geographical location targets (growth

objectives; link to rapid transit).

CIP Program #1: Affordable Housing Loan

DraftCIP Program

#1(continued)

• 3 Loan Levels• Low ($ 10,000)• Medium ($ 15,000)• High ( $ 20,000)

CIP Program #1: Affordable Housing Loan

DraftCIP Program

#1(continued)

Do Not Pay Municipal Property Taxes Do Pay Municipal Property Taxes

Downtown, Transit Villages, Rapid Transit Corridor

Sites within Primary Transit Area or any Closed School Site

Other Sites Downtown, Transit Villages, Rapid Transit Corridor

Sites within Primary Transit Area or any Closed School Site

Other Sites

< 80% AMR HIGH HIGH MEDIUM HIGH HIGH MEDIUM

< 80-89% AMR

HIGH MEDIUM LOW HIGH HIGH MEDIUM

< 90-99% AMR

MEDIUM MEDIUM LOW HIGH MEDIUM LOW

Map 1 – Place Types

Locational Targets

Primary Transit Area

- Program levels comparable to development charges (to off-set DCs)

- Current DCs below for reference:

- DCs in 6 yearly installments (for market rental developers)- DCs in 21 yearly installments (for non-profit developers)

CIP Progam #1

Single and Semi-

Detached (per

dwelling unit)

Multiples/Row

Housing (per

dwelling unit)

Apartments (with

less than 2

bedrooms) (per

dwelling unit)

Inside Urban

Growth Area

$ 33,136 $ 22,409 $ 14,656

Outside Urban

Growth Area

$ 20,849 $ 14,099 $ 9,221

Program levels are

comparable to Development

Charges

• Focus is on affordability of home ownership and creation of long-term stable rental units.

• Development, redevelopment, renovation, servicing to create new secondary dwelling units.

CIP Program #2: Secondary Dwelling Unit Program

DraftCIP Program

#2

Existing Building (on date by-law passed)

Value of Loan

$ 20,000 or cost of eligible works (the lesser)Interest free.25% forgivable (granted back at end of each year of repayment)10 year amortized.

Conditions Owner occupation required;Issued when works and inspection completed;Repayment begins 12 months after works completed. No short-term rentals;Rental license required (RRUL) ;On same property as primary dwelling.

• Objectives• Monitoring – measures/indicators• Programs

• #1: Affordable Housing Development Loan Program• 3 Levels of Loan• Number of units created• Repayment schedule

• #2: Secondary Dwelling Unit Forgivable Loan Program• Value of loan and a 25% forgivable portion• Paid when works complete; Repayment schedule 10 years• 1 loan per new secondary unit or 1 loan per property • Future monitoring of the rental rates of these units

Your Feedback is Important

Review and Feedback: Draft CIP

Closed Schools Strategy

(ongoing eval’n)

Secondary Dwelling Units

(policy and zoning)

Existing CIPs (with Residential

component)

Surplus Land Sales (OVH, LPH)

Permit-Ready Lots (Monitoring)

ReThink Zoning

Secondary Plans (Transit Villages)

Section 37 Review

(Bill 108, ‘Bonusing’ & Community

Benefit Charge)

Affordable Housing CIP (new)

Inclusionary Zoning

(note: Bill 108)

Rental Conversions Policy and/or

Demolition Policy (Unit Replacement)

City-led OPAs for Regeneration

Sites/LMCH Sites

DC By-law 2023

(note: Bill 108)

Convert to Rent/Secondary

Dwelling Unit (HDC)

Review and Feedback:

A.H. Development

Toolkit

• Take in Feedback.• Complete Final CIP and program guidelines.• January 20, 2020 Planning and Environment

Committee for Final CIP.

• Coordinate completion of the CIP with the City’s Multi-Year Budget process.

• Following CIP’s completion and finalization of Toolkit, the other tools in Toolkit will be undertaken by various Departments and Agencies.

Next Steps

Next Steps

london.ca

Contact info: Travis Macbethtmacbeth@london.ca519-661-2489 x 5102

http://www.london.ca/business/Planning-Development/secondary-plans/Pages/Affordable-Housing-Community-Improvement-Plan.aspx