Controls planned for housing project

Richard Rolke - Vernon Morning Star Published: September 19, 2009 12:00 PM

Anyone buying into an attainable housing project in Vernon could find their hands tied when it comes time to sell. The city-owned Hesperia Development Corporation is proposing that there be a controlled market for attainable housing units constructed on 69 acres of land on Apollo and Longacre drives.“Because of the location, there is the potential for quick-flip profits,” said Ken Stewart, corporation president. “We don’t want them to become vacation homes.”

The corporation is responsible for establishing a development plan for the property. Private developers would then construct up to 1,000 residential units and some commercial lots.About half of the units would be open market housing and the other half would be deemed attainable housing (for families earning between $55,000 and $90,000 a year). The corporation’s goal is to control the resale price of the attainable units and that they always remain part of the attainable housing pool. “We created attainable housing not for a one-time event but in perpetuity,” said Stewart, adding that anyone who purchases a unit would have to agree to the terms.“The expectation of great profit disappears in this situation.”

The corporation believes there will be benefits to the owners of the attainable units.“Those with ongoing income growth potential can eventually use such housing as a stepping stone into normal market housing, if they so wish. Those with lower middle-income earnings can be comforted in knowing that they can stay in their own home for as long as they wish and build up some measure of equity in the process,” it states in a report.The model is based partly on policies initiated by Whistler. “We’re attempting to redefine their plan so it meets our situation,” said Stewart.

The original goal was to have the property developed in nine years, but build-out could take between 15 and 20 years because the planning process has taken longer than anticipated.Zoning and development plans are being pursued through the city’s legislative process.“We will be back to the public and council this fall to get everything approved,” said Stewart, adding that some construction could begin in about a year. It’s anticipated that the entire project could generate revenue of $42 million with a potential dividend of $19 million for the city. “Any profits flow back to the shareholder and the shareholder is the city,” said Stewart.