Affordable Housing - Re-post

Given the recent presentation by Saanich Peninsula Chamber of Commerce to N.S. Council (June 22), I felt it timely to re-post my article on Affordable Housing that I did last fall during the municipal election campaign:

The issue of “affordable” housing is a popular topic. Individuals of all ages are talking about whether North Saanich will provide housing that young families, young singles, single parent families, people with disabilities and seniors on fixed incomes can afford. Providing real social housing in a North Saanich real estate market is a huge challenge that requires more than just developers, politicians and real estate agents telling us that it should and can be done.

The hot real estate market was accelerated by three major factors -- the Federal government, through CMHC, relaxed mortgage regulations by introducing 0% down, the Bank of Canada and central banks kept interest rates low and major lenders increased maximum amortization periods from 25 years up to 40 years -- buyers could borrow more, pay less and for much longer. These changes opened the market to new home-buyers who would otherwise have little access to an inflated housing market.

Now, in a seriously declining housing market and economy, it is possible that housing needs can be met by lower prices and greater inventory.

So what do we really mean by the term “affordable” in North Saanich? This is a fair question when you see that earlier this year; the average market price of a single-family dwelling in North Saanich was about $723,000, second highest in the CRD behind Oak Bay. In fact, the history of new housing built in North Saanich since 2002, tells the real story -- all units (single-family dwellings and condominiums in particular, including new lots) were priced according to market supply and demand, a market that had been one of the highest in more than 12 years and geared to maximum profitability, including higher income, off shore or non-resident buyers.

For the sake of argument, delete the word “affordable” and instead use the term “below market” housing. In a higher end real estate market such as North Saanich, what would “below market” housing look like? We need to examine the facts about income levels, employment markets and the disparity between land value and new housing costs in North Saanich with the second highest property assessments in the capital region.

In my view, developers define “affordable” housing in North Saanich as what they can afford to build and what you can afford to pay. If a purchaser can afford to get a mortgage for a new housing unit, single-family dwelling or multi-family unit, either low or high density, then that may be considered affordable in the North Saanich market. Furthermore, according to the recommendations of the North Saanich Housing Strategy report, anything affordable appears to be aimed at combined family incomes of between $70,000 and $100,000. Frankly, in North Saanich, that excludes young workers in service jobs, seniors on fixed incomes, people with disabilities on disability pensions and the majority of single parent families that otherwise qualify for affordable housing elsewhere in the CRD.

The Langford model, which some people have suggested we bring to North Saanich, is directly tied to the market value of land in the Western Communities. Langford works like this. The municipality requires developers to donate one affordable housing unit in every 10 before any re-zoning takes place. On a market price of approximately $350,000 per single-family unit for 10 units, the developer must dedicate 1 unit at a price of approximately $150,000 -$160,000. Qualified purchasers must also meet criteria that include a combined family income of no more than $60,000, family assets of no more than $50,000 and some kind of link with the community of Langford. Real estate agents marketing the affordable unit must waive their commissions. I understand that in 2007, there were about 1,700 applicants for one affordable unit. While this is a successful model for Langford and I commend them, it is obvious that there are not enough available units to meet the needs in Langford.

If we as municipal leaders are truly honest about our ability to build affordable housing in North Saanich, then we must develop a plan that involves all key stakeholders and partners at the table -- the BC Government through BC Housing, the Federal Government through CMHC, the real estate industry, banks, non-profit organizations and social service agencies and, of course, generous developers who are willing to reduce profits, donate land and dedicate housing units for sale at well below current market prices.

I support any plan for below market housing that is carefully developed, well managed and guarantees quality of life. We can do it but let’s be honest about what it will take and who will benefit.

Addressing Public Concerns About the Role of North Saanich in the McTavish Road Interchange Project

It has recently come to my attention that some North Saanich residents have questions about the role of Mayor and Council in the proposed McTavish Road Interchange project. I understand that they are critical of what they perceive as a lack of intervention and representation on the part of North Saanich Council to stop or change the project, especially its design. As this perception is, in my view, inaccurate and concerns me, I want to share with you my general response to a local resident who contacted me this past week. If, after reading my reply below, you have any further questions or comments, please call me or send me an e-mail message. You may also want to contact other Council members with your comments/questions. Thank you.

Dear Resident:
Mayor Alice Finall has shown real leadership and was the first off the mark once this project was announced (by the federal and provincial governments and the Victoria Airport Authority) and called together the North Saanich and Sidney Councils asking for our feedback and arranging for two important meetings: a combined meeting with the Province at Council Chambers that included Sidney and North Saanich Council members and staff, where hard questions and community concerns were presented to the Province, resulting in a design change that restored McTavish Road as a thru street to Lochside; the other is Councilor Ruby Commandeur's suggestion for the formation of a Citizens' Liaison Committee, which was ratified at this week's Council meeting, as another vehicle for involving the community in giving ongoing feedback to the Province.

We also discussed the project at length at the last neighbourhood meeting in early June for Dean Park and the Southeast Quadrant. The comments and concerns expressed at that meeting were also shared with our municipal engineering staff who are in regular communication with Provincial staff. You can find a copy of the meeting minutes on the District website and my comments on this blog.

Further, Mayor Finall and I, as your representatives on the Tri-Municipal Council Committee, also raised issues on behalf of North Saanich residents at the last meeting in early June at which Mayor Cross, Mayor Mar and Mayor Frank Leonard of Saanich were present, along with senior staff from each of the three Peninsula municipalities. Mayor Cross and Mayor Finall keep in constant touch on this topic, both having major concerns about the impacts of the project on traffic in our two communities. Mayor Finall has also raised residents' concerns and suggestions for alternative designs with the Airport Authority.

We are trying to influence the process but as you must know, ultimately, we are at the mercy of the federal and provincial governments and the Airport Authority -- the Airport asked initially for the intersection improvements and raised $3-million to support the project. We supported the project in principle because of the belief that changes would result in major improvements to traffic safety and management at that intersection. We were never formally asked for input on the original design or to participate financially in the project nor would we do so, given the current economic decline and our attempts to hold the line on any local spending. We have, however, consistently shared with the Province alternative designs, ideas and concerns suggested by local residents.

I understand that Mayor Finall in fact attended the Open House the other night (June 17th), as did other Council members.

I don't mind taking the flack when it's well deserved, but on this topic I feel that the criticism is unfounded and the information is not accurate. I believe we are doing all we can to try to provide an effective voice for our community. The metaphor I will use is this -- we are trying to turn a freighter in a very tight space. In the end, I feel it is unrealistic to expect this Mayor and Council to radically change or stop the project when we are not in control at any level, including financially. We will continue to work within the limitations we face and to present community concerns at every opportunity.

I encourage you to contact MLA Murray Coell and MP Gary Lunn with your comments and concerns and you may also want to participate on the Citizens' Liaison Committee. Please watch for announcements about the Committee on the District website and in the Peninsula News Review.

Tri-Municipal Council Meeting Hosted by Central Saanich

This week's Tri-Municipal Council Meeting (between North Saanich, Central Saanich and Sidney Mayors and Councils) was hosted by Central Saanich Mayor Jack Mar and his Council and highlighted by two key presentations, one by Karen Morgan, Board Chair of the Saanich Peninsula Hospital Foundation and one by Dick Faulks of Island Transformations, a group promoting light rail transit on the South Island.

Both presentations, recommended to the Tri-Municipal Council by North Saanich Mayor Alice Finall, demonstrate the importance of local community support and commitment, particularly in the case of the Saanich Peninsula Hospital.

Facts About Our Local Community Hospital Foundation
- First opened as an extended care facility in 1974
- Acute care introduced in 1977
- Saanich Peninsula Hospital Foundation was created in 1985 and has grown to 14 Directors and 2 staff, with revenues of about $2.5M in 2008 - a streamlined and well run operation that is ahead of most Canadian health charities on returns on the dollar
- Raising funds essential and occurs through annual campaigning, major gifts and planned gifts
- Fund-raising helped to support major projects and improvements for the ECU (extended care unit), a new CT scanner and OR and OR 2 (operating rooms), representing a combined total of more than $4.0
- Projects pending include a new hospital chapel and further operating room renovations
- Karen Morgan closed her presentation by stating that the wonderful support the Foundation receives from local governments, Rotary Clubs and other groups, organizations and individuals demonstrates "that this hospital is needed, wanted and supported by the community."

I asked if and when the Saanich Peninsula Hospital might have full digital mammography for Saanich Peninsula women who must now travel to either the Mammography Clinic on Richmond Road in Victoria or to Victoria General Hospital at Helmcken -- Karen Morgan agreed to bring this item to the Board for consideration. Naturally, there would be a substantial cost involved in obtaining the best equipment to provide the best mammography possible but I feel it's worth a try. If you share my thoughts about providing full and permanent mammography services at the Saanich Peninsula Hospital, please contact Karen Morgan and the Saanich Peninsula Hospital Foundation to express your support. Thank you.

Island Transformations -- Future of Light Rail Transit on Southern Vancouver Island
- Did you know?:
- increasing price of oil will negatively impact food growing and limit our access to food from other parts of the world (transportation);
- lives will change and so will transportation;
- 885 acres of farmland on Vancouver Island is lost every year.

- How do we sustain a rural lifestyle, reduce greenhouse gas emissions and reduce our dependence on oil and the costs of transportation? -- LIGHT RAIL TRANSPORTATION
- 1996 saw the first regional study sponsored by BC Transit on the viability of LRT for this region
- 62 rails systems in North America are either being established or contemplated e.g., Portland, Oregon is cited as a strong model for successful application of LRT
- A recent proposal for the South Island focuses on the West Shore, with a regional rail line to downtown Victoria and enhancement of the E&N up island -- the larger concept is one that divides the CRD into 2 regions, with a central rail station built at Six Mile that would route to downtown Victoria and out the Peninsula -- a West Shore commuter rail system can be built for $16M and another $7M over 7 years -- a cheaper alternative than, for instance, the Malahat Study that suggested a $1.2B price tag for a bridge across Finlayson Arm
- LRT is cheaper, more efficient, less polluting and encourages less dependency on automobile transportation
- A Community Liaison Committee has now been established to explore regional rail and a new plan for the E&N -- consistent with the CRD's current targets for long term GHG emission reductions across the region
- "Start with something..."
- To learn about leading edge thinking and planning for LRT, please visit Island Transformations at http://www.islandtransformations.org/

Other Meeting Highlights
Central Saanich Councilor Alistair Bryson proposed exploring a new program to address youth crime in our communities, titled "Positive Ticketing." The program currently operates in Richmond and is getting positive results from both law enforcement and youth themselves -- it involves police officers ticketing youth for their positive behaviour and activities; the ticket may involve a free pass to the local recreation centre, movie theatre, etc. The program attempts to reinforce positive relationships between the community and youth and raise awareness about the positive contributions youth make to their communities. Central Saanich Councilor Adam Olsen supported this idea, suggesting that First Nations would appreciate input into such a proposal. Everyone agreed that this is something worth discussing with local police and the matter is now referred to the Peninsula Task Force for further discussion, an action-oriented sub-committee of the Tri-Municipal group. Stay tuned.

Central Saanich Councilor Alistair Bryson suggested that the three municipalities should focus on a big "splash" event to launch the opening of the new Panorama Pool expansion and to promote the opening in some special way. Municipal Peninsula Recreation Commission (PRC) representatives are asked to take this suggestion forward to the next PRC meeting.

The 2010 Olympic Torch Relay occurs October 30, 2009, with the torch actually landing in North Saanich first. There was discussion about how the three municipalities could plan some type of recognition event as the torch passes, ever so briefly, through each of our communities. This could be an opportunity to showcase the new pool at Panorama. VANOC will also provide guidance and assistance to communities interested in event-planning, although it seems clear that VANOC will take the lead on any planning. Everyone agreed that involving local communities in this exciting event is important so this topic was referred to the Task Force for further discussion and brainstorming.