Two planned residential buildings in Hamilton that will share parking, a main vehicle entrance, open space, a pool and an exercise room have been judged by Richmond city councillors to be separate developments. As such the city has lost out on at least two units of sanctioned low-end rental housing comprising of about 2,700 square feet of livable space.
At a July 7 planning committee meeting former councillor Rob Howard of New Coast Lifestyles Management Ltd. and Dana Westermark of Oris Development Corp. presented a joint rezoning application to build a total of 203 housing units; Westermark’s building will consist of ground-level commercial retail space and 73 market condos for sale, while Howard’s adjacent building will provide 30 market condos for sale and 100 market rental units for seniors (including 18 specially designed “memory care” units).
The buildings are to be the first major developments approved under the new Hamilton Area Plan that calls for 7,000 new residents within 20 years, however, the committee’s conversation focused on supposed deficiencies in the city's affordable housing strategy.
Some city councillors had expressed concerns that the buildings have several shared amenities but director of development Wayne Craig noted some of those amenities, such as a shared side-street entrance, would be required by the city to make the street front of Gilley Road more pedestrian friendly for the planned “urban village.”
Despite the commonalities, for the purposes of assessing the companies' respective contributions toward affordable housing, Craig told the committee the buildings are indeed separate developments.
That designation matters because council policy stipulates that a development over 80 market units for sale must include at least five per cent price-fixed low-end rental units for low-income people; anything built under 80 units triggers a cash-in-lieu of units fee. Developers generally prefer to pay the cash.
While councillors Carol Day and Linda McPhail called the application “confusing,” the committee (including councillors Chak Au, Harold Steves, Bill McNulty and Mayor Malcolm Brodie) ultimately unanimously approved the project on first reading with the caveat that staff "discuss" with New Coast and Oris any options to include affordable housing units.
Craig came back at Monday’s council meeting with an offer from the developers: Instead of $330,000 cash the city could take three one-bedroom units totaling 1,700 square feet. According to the initial report, had the 103 market condos been considered one development the city could have asked for five two-bedroom units totaling 4,400 square feet.
Council unanimously took the units.
Coun. Bill McNulty expressed apparent mixed feelings at the committee.
"I'll vote this time to move it forward, but I may not be so generous next time," said McNulty.
And there will be a next time as the plan is still subject to a public hearing and final approval from council.
"I think we are kidding ourselves thinking we have an affordable housing program in this community, because we don't. …When it comes to asking for units or rentals we run away from it," McNulty later concluded.
Also at committee, Steves questioned the existing policy of an 80-unit threshold, stating low-income units should be built in smaller developments as well.
At issue is how the policy leads to the city accruing cash as opposed to securing actual housing units for low to middle income residents. While the money can be used to build housing such as the 129-unit City Centre Storeys development for vulnerable, low-income and mentally and/or physically challenged residents, Steves said it's better to create neighbourhoods with a mix of different people as opposed to "ghettos."
Craig replied that the city is presently reviewing the policy at council's request (the city is consulting with developers on that issue). Notably, the cash charges have not changed in eight years, something Westermark has previously said should change.
Housing affordability and assistance for low-income renters is a growing social problem in Metro Vancouver, a region cited as one of the most unaffordable places in the world.
The region is said to have some of the lowest rental vacancy rates in the country. Richmond’s vacancy rate as of December 2014 is 1.6 per cent, which is actually slightly higher than New Westminster (1.4), Burnaby (1.3) and Vancouver (0.5), according to the Canada Mortgage and Housing Corporation. Meanwhile, one-bedroom apartments advertised on Craigslist start at about $900. According to the BC Non-Profit Housing Association the average rent for a one-bedroom unit in Richmond in 2014 was about $1,100.
Builders often cite extra costs like processing time, energy efficiency, ageing-in-place features and special building requirements (red tape) as impediments to cheaper housing.
McNulty noted the Oris and West Coast developments are also contributing close to $700,000 to future community amenities for the area (more library and community centre space and a public pier). He floated the idea of using that cash immediately for more subsidized units.
Brodie and McPhail noted the community amenity money needs to be used as planned.
Meanwhile, Steves also pressed Westermark for more information on the building's LEED Silver plan, noting the absence of geothermal units, something Westermark, as a developer, was instrumental in bringing to the West Cambie area.
Westermark noted he is in the process of preliminary studies of geothermal in the area with the help of a $10,000 grant from the Government of Alberta.
He also said he owns a number of other lots in the area, and is looking at market rental units in some future developments.
Aside from their work in the development industry, Howard is also the co-founder of the recently founded Richmond Community Coalition, and Westermark is one of the political party's single largest political donor.
