Community Land Trusts and Affordable Rental Housing Development - - PowerPoint PPT Presentation

Community Land Trusts and Affordable Rental Housing Development

November 2015

Outline

• 1. Introduction
• 2. Community Land Trust Model
• 3. Review of Land Trust Developments: Project Examples
• 3. Lessons and Conclusions
• 4. Questions and Discussion

Existing Co-ops in BC

260

• Approx. 15,000 Homes

Existing Co-ops in BC

• 260
• Approx. 15,000 Homes

Co-op Sector Challenges

• Aging and often

inefficient infrastructure.

• Deferred

maintenance.

• Reduced (or non-

existent) government support.

• Limited financial

means (and small scale operations).

• An aging population

with changing accessibility needs.

• Sub-optimal unit mix.

Our Priorities

Priorities 1. Keep the co-op housing we have. 2. Build more.

Priority #1

Keep What We Already Have

• Replacement subsidies for low-income residents as federal

agreements expire

• Massive capital re-investment
• More effective asset management strategies

Priority #2

Build More Co-op Housing

• Wait for government to:
• build more co-op housing directly.
• incent the market to do it.

OR

• Mobilize community assets and partnerships (i.e. the Land

Trust Model).

Community Land Trust Model

What is a Community Land Trust?

• A Community Land Trust is a non-profit or charitable
• rganization that acquires and holds land for the benefit of a

community.

• Land is available in perpetuity for affordable housing.

Housing typically targets low- and moderate-income residents in both rental and ownership models.

CHLTF

Society (incorporated 1993) and Registered Charity Owns six properties leased by five co-ops and one society. Responsible for the (a) Disability Trust and (b) the Domestic Violence Relief Fund.

VCLTF

Society (incorporated 2014) Has 99-year leases on City of Vancouver properties on Kingsway and in SE Vancouver (Kent & Marine Drive). Partners with two non-profit housing societies and Fraserview Co-op.

CLTF-BC

Society (incorporated 2015) Key to new developments, acquisitions, and major redevelopments of existing co-ops. Provides and preserves housing opportunities for low and moderate income households.

Community Land Trust Model

The Approach

• Sector-led development.
• Portfolio approach (development, operating).
• Community partnerships.
• Private equity.
• Leveraging of City assets.
• Platform for future opportunities.
• Capacity building and surplus sharing.

Land Trust Developments

Project Range

• New co-op housing opportunities.
• Redevelopment of existing co-ops (i.e. under utilized

density).

• Relocation of existing co-ops. Typically for a higher density

to achieve a net gain of homes.

• Renewal of existing co-ops (i.e. comprehensive renovations).

Land Trust Developments: Vancouver

City of Vancouver

• Request for Expressions of Interest by the City (August

2012) to "build and operate affordable (below market) rental housing on six sites.”

• Objectives:
• Affordability
• Expedited delivery
• Innovative mix of tenure
• Livability

Location of Co-op Development Location of Kingsway Development

Land Trust Developments: Vancouver

• Fraserview Housing Co-op
• Tikva Housing Society
• Sanford Housing Society
• BC Housing
• CHF BC
• City of Vancouver
• Vancity

Vancity

BC Housing

Project consultants Architects Contractors Legal advisors

CRU Fraserview Housing Co-op

(90 units)

Total of 278 units

• ver two sites.

A Community Land Trust Development Model

City of Vancouver

Operator Agreements

Sanford Housing Society

(48 units)

Head lease (99 years) Housing agreements (Affordability

• bligations)

Tikva Housing Society

(32 units)

Fraserview Housing Co-op

(80+108 = 188 units)

Kingsway Site East Marine Drive Site Kent St. Site

Vancouver Community Land Trust Foundation

358 Homes

Site 3: 1700 Kingsway Mixed use: commercial/residential

Sites 4/5: Fraserview (towers), Tikva (townhomes)

Sites 4/5: Tikva Townhomes (View from East Kent Ave.) Family-centred housing

Land Trust Developments: Vancouver

• City of Vancouver (land contribution)

$24.7 million

• Land Trust
• Partner equity

3.8

• Proceeds from CRU sale

4.8

• Fund equity

11.0

• BC Housing equity

4.0

• Lease-up income

2.0

• Debt financing

69.3

• Total Project Capital

$119.6 million

Land Trust Developments: Vancouver

Significant Features

• 7.7% return on investment measured in affordability in first

year of operation.

• Deep and continuing affordability (76% of market in year
• ne and getting better over time).
• Cross-site subsidies (capital and operating).
• No operating subsidy from any level of government.
• Future surplus shared by Land Trust and City.
• Best practices in procurement and long-term asset

management.

Land Trust Developments

Additional Active Files

• Metro Vancouver, the Fraser Valley and Vancouver Island.
• 3 - new development opportunities.
• 5 - redevelopment opportunities of existing sites
• 1 - relocation of an existing co-op
• 1 – renewal of an existing co-op
• 10 – Provincial Rental Housing Corporation transfer opportunity
• Project costs range from $5m to $60m with each project

having it’s own unique requirements for funds and financing.

Land Trust Developments

Innovations and Advantages

• A common table for community partners.
• A single point of contact for our partners.
• Portfolio-based leverage (capacity and scale).
• Diversity of tenure and target populations.
• Long-term stewardship and asset management.
• Deep initial and ongoing affordability.
• Platform for future opportunities.

Lessons and Conclusions

Lessons (so far…..)

• Everything will take longer and cost more.
• Value stubbornness and resilience.
• Choose the right partners.
• Build internal capacity.

Lessons and Conclusions

Looking Ahead

• Don’t look back.
• Start pooling our assets for mutual benefit.
• Create economies of scale and net income.
• Find the right balance between:
• short-term affordability and long-term sustainability
• neighbourhood autonomy and portfolio synergy
• Generate capacity and energy for growth from within.

Lessons and Conclusions

Critical Factors

• Capital
• Capacity
• Partnerships
• Scale

Thank You for Attending

• Questions
• Discussion