Wednesday, October 11, 2006

Housing starts fail to bring affordable relief

By David SkelhonWednesday, October 11, 2006 http://www.dailycourier.ca/article_600.php
City councillor Juliette Cunningham says she is passionate about the affordable housing problem in Vernon and that’s motivating her to seek out solutions.Part of the problem, she believes, is Vernon’s Development Cost Charges per housing unit. These are $14,000 per unit in Vernon, compared with $7,400 in Kelowna, making Vernon less attractive to developers. The difference may occur because of the way the city sets the charges and Cunningham said, “I personally feel that the costs per unit should be less if (the development is) closer to existing infrastructure.” Currently location doesn’t affect charges.The other issue is the availability of land for apartments and condominiums. Cunningham said, “the city does have some land and we are exploring some options . . . we may soon make it available if we can ensure it stays in the (affordable) pool.”These concerns about affordable housing are substantiated by recent statistics by the Canada Mortgage and Housing Corporation (CMHC), which show single-detached housing starts well ahead of multiple housing in the Vernon area.Vernon had only 70 multiple family housing units started between January of this year and September, whilst single-detached starts numbered 290.Compare this with Penticton, which had 298 multiple housing starts in the same period and only 75 single-detached starts. Cunningham said, “Penticton is way ahead of us in terms of multiple housing.”Paul Fabri, a market analyst for the CMHC said, “first and foremost it’s the market place and the Vernon area still has a supply of land for detached housing.”He said that Vernon had seen little condominium and apartment development in a decade and that part of the problem might be that there was a huge demand for this type of housing in the 1990s followed by an oversupply which took developers three or four years to sell off. This may be discouraging developers from further developments of this type.Fabri added, “given where house prices have gone, you are going to see a much higher demand for lower cost housing in the future.”Cunningham added that’s why the city, through its Affordable Housing Committee, is working with not-for-profit groups such as the Social Planning Council, whose executive director, Annette Sharkey also sits on the committee.Sharkey said the affordable housing problem is very serious. “We’re in a crisis across the province and because the Okanagan is such a desirable place to live we’re going to feel it even more,” she said.No one can escape it, said Sharkey, as the problem goes through the whole community, affecting not just those who are homeless and on the street. She talked about another desirable community: “Whistler couldn’t afford nurses or police officers, so it becomes an employer issue as well.”Sharkey said that definitions of affordable housing vary, but generally spending 30 per cent of family income on housing is where the line is drawn.The Affordable Housing Committee is investigating different ways of keeping housing affordable, said Sharkey, and this could include covenants on properties which keep down resale prices. “It does seem to be working in Banff and Whistler,” she said.Ultimately, Sharkey said, “you need a political will to put things in place that you have never done before.”Sharkey and Cunningham agree on making apartment and condominium development attractive to developers and Sharkey said the committee is looking at ways developers can partner with non-profits and the City or Vernon to make affordable housing a reality.

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