Report to: Development Services Committee
Date of Meeting: Sept.
19, 2006

SUBJECT:                          Servicing
Allocation for Markham
Project(s) under the Rental Component of the Canada-Ontario Affordable Housing
Program

PREPARED BY:               Murray Boyce ext 2094

RECOMMENDATION:

THAT the September 19, 2006 staff
report entitled “Servicing Allocation for Markham Project(s) under the
Rental Component of the Canada – Ontario Affordable Housing
Program” be received;

THAT Council authorize a
conditional servicing allocation, in the order of 100 units, from the Town
reserve, in support of any affordable rental housing project(s) located in the
Town of Markham, which may be approved for Canada-Ontario Affordable Housing
Program funding;

THAT the assignment of this
servicing allocation be put on “hold”  conditional on the affordable rental
housing project receiving all necessary municipal approvals and  approval of a Canada-Ontario Affordable
Housing Program funding allocation by the Region of York;

THAT the assignment of this servicing
allocation be conditional on the execution of an agreement between the Town and
the affordable rental housing project proponent, respecting affordable rental
rates and financial arrangements of significance to the Town, to the
satisfaction of the Town Solicitor;

THAT any portion of the approximately
100 units put on “hold” from the Town servicing allocation reserve,
not allocated to an approved affordable rental housing project by December 31,
2007, shall be returned to the Town reserve;

THAT the Clerk
notify the Region of York Commissioner of Community Services and Housing of the
Town of Markham’s
conditional servicing allocation for approved project(s) under the rental
component of the Canada-Ontario Affordable Housing Program;

AND THAT the Clerk be directed to
forward a copy of this report to the York Region MPPs and the Region of York.

1.
Purpose                2. Background         3. Discussion             4.
Financial         5. Environmental

6. Accessibility       7. Engage 21st             8. Affected Units       9. Attachment(s)

PURPOSE:

In support of the provision of
affordable rental housing units in Markham,
the purpose of this report is to obtain Council’s approval to set aside a
servicing allocation for Markham
project(s) under the rental component of the Canada-Ontario Affordable Housing
Program.

BACKGROUND:

A role for Markham
Regarding Rental and Affordable Housing

In February 2003, Council adopted
a Strategy for Affordable Housing that defined an advocacy/partnership, policy
and financial role for the Town, in support of the provision of rental and
affordable housing.  In adopting the
Strategy, Council established a role for the Town regarding affordable housing
relative to other government, private sector and community interests, and
determined how the Town will respond to initiatives of other stakeholders.

Guidelines for Servicing Allocation Prioritization

In December 2002, Council adopted
guidelines for prioritizing servicing
allocation from the Town Reserve and has applied the criteria as a basis
for determining recommended servicing allocation.  The guidelines were based on several
criteria including, but not limited to, affordable housing projects, infill and
redevelopment along key transit corridors, and the provision of development
that supports the Town’s smart growth and new urbanism initiatives, and
that demonstrates exceptional urban design.

Servicing Allocation Reserve Currently Available

In June of this year,  Development Services Committee and
Council received and endorsed a staff report entitled “Servicing
Allocation”, dated June 20, 2006, and approved the distribution of
servicing allocation as outlined in the report.  Council has retained a small reserve of
servicing allocation for infill developments and those developments that
Council deems appropriate to proceed over time.  The Council reserve is currently 838
population, which can translate into 226 singles (@3.7 ppu) or 370 apartments
(2.27 ppu), or something in between, if semi-detached (3.02 ppu) and townhouse
(2.82 ppu) units are included.

Federal/Provincial Affordable Housing Program has been extended and
expanded

In May 2002, a Federal/Provincial
agreement was reached to provide $245 million in federal funding over four
years for affordable housing projects in Ontario.
The 2002 Affordable Housing Program (AHP) was not well received by a majority
of  municipalities for a variety of
reasons including inadequate Provincial participation (ie. no commitment of
additional funding from the Province, other than a PST rebate of $2000 per
unit); a requirement by the Province to provide a blanket indemnification for
third party projects; and a lack of rent supplement funding . Given the
limitations of the 2002 AHP, the Region of York only applied for funding for
three of the Region’s own Housing York proposals; Armitage Gardens in Newmarket, Sutton Multi-Service Youth Centre in
Georgina and the Blue Willow Terraces in Vaughan.  The Region chose to not issue an RFP to
not-for-profit/private developers for any of the 300 rental housing units
available to York
under the Community Rental Housing Program.

In April 2005, the provincial and
federal governments announced an extension and major revision to the
Canada-Ontario Affordable Housing Program (AHP).  Each level of government agreed to
contribute $301 million for the next four years toward a broader range of
affordable housing programs.  York
Region received an allocation of $25.9 million for 370 units under the rental housing component of the AHP
with an average of $70,000 available for each affordable rental housing unit.

OPTIONS/ DISCUSSION:

York Region has adopted a Housing Delivery Plan
for Rental Component of AHP

In June 2006, Regional Council adopted a Housing Delivery Plan for the
Rental Component of the Canada-Ontario Affordable Housing Program (See Appendix
‘A’). The Delivery Plan is required by the Province as a condition
of participating in the AHP.  It
represents a best efforts approach by the Region to generate community interest
and creativity in the delivery of affordable rental housing units under the
AHP.

The Housing Delivery Plan outlines the AHP details and the
Region’s requirements for participating in the AHP delivery.  Of York Region’s 370 affordable
rental housing unit allocation, 100 of the units will be designated for persons
with mental illness, dual diagnosis and victims of domestic violence with the
remaining 270 units undesignated.  135
units (or 36% ) of the total affordable rental unit housing allocation will be
allocated to York Housing  and 235
units (or 64%) will be allocated to not-for- profit/private developers who meet
York Region’s tenant targeting and eligibility criteria.

Affordable housing proponents are required to take part in a two stage
RFP process.  The first stage
required an expression of interest from the community during the summer of
2006.  The results of the first
stage RFPQ are to be reported to Regional Council in September 2006, with short
listed proposals approved by Regional Council being asked to supply more
detailed information in the second stage of the RFP process.  A final recommendation from the Region to
the Province is due by January
31, 2007, with the Province subsequently issuing a letter of
commitment of AHP funding approval by March 15, 2007.

In order to meet the 4 year timeframe of the AHP, it is intended that construction
of all affordable rental housing projects receiving an AHP funding must be
completed  by 2010.

Criteria for Selection
of Approved Projects for Canada-Ontario AHP funding

The York Region Housing Delivery Plan identifies conditions where
preference will be given to projects which meet Regional objectives such as
increased intensification in Regional centres and corridors and those that
conform to good urban and planning design principles.  Among other criteria, preference will be
given to projects which demonstrate:

•
Site
zoning and  Servicing Allocation
have been approved for project

•
Infill
or redevelopment of intensification corridors in support of increasing the  live/work ratio

•
Building
design will be barrier free, energy efficient, and meet provincial unit sizes

•
A
proven track record in developing and managing affordable rental housing,
including the financial capability and capacity of developer, owners, and partners

•
Financial
viability of housing project

•
Region
rent targets will be met and, where possible, mandatory tenant targets, will be

addressed.

•
Rent
levels can be achieved  below 80% of
average market rent in area

•
Community
Support

Affordable Housing Proponents must demonstrate Zoning and Servicing
Allocation Approvals

In order to qualify for the second
stage of the York Region RFP process, affordable housing proponents will need
to demonstrate a commitment from the Town to expedite consideration of site
zoning approvals and a servicing allocation.  The servicing allocation recommended in
this report will create the opportunity for Markham project(s) to qualify for a share of
the York Region programme funding, subject to also obtaining the necessary
development approvals.

Servicing Allocation for Approved Projects under Canada-Ontario AHP

In support of the provision of
affordable rental housing units in Markham and the allocation of AHP funded
units to Markham, it is recommended that Council set aside a servicing
allocation in the order of 100 units from the Town reserve for a future
affordable housing project(s) in Markham, conditional on AHP funding and
development approvals.

This recommendation is consistent
with Council’s guidelines for prioritizing a servicing allocation for an
affordable housing project, and Council’s actions in support of the
Town’s affordable housing strategy.

In the event the hold is not
removed from the servicing allocation by December 31, 2007, then it is recommended that
the allocation be returned to the Town reserve.

It is also recommended that the
Region of York Commissioner of Community Services and Housing be notified of
the Town of Markham’s
conditional servicing allocation for approved projects under the rental
component of the Canada-Ontario Affordable Housing Program.

FINANCIAL TEMPLATE (Separate Attachment):

Not applicable

ENGAGE 21ST CONSIDERATIONS:

The Town’s Strategic Plan
identifies areas of focus in the Community Vision and establishes priorities
for the Town in decision-making and resource allocation, relating to the
provision “housing opportunities that meet the needs and expectations of
different age, income and ethnic groups”.

RECOMMENDED BY:

Valerie Shuttleworth, M.C.I.P., R.P.P.

Director of Planning
& Urban Design

Jim
Baird, M.C.I.P., R.P.P.

Commissioner of Development Services

ATTACHMENTS:

Appendix A –  May 25, 2006 report from the Regional Commissioner of
Community

Services, Housing and Health Services on Housing Delivery Plan for the

Rental Component of the Canada-Ontario Affordable Housing Program

Q:development\planning\MISC\MI476\AHPservicingallocationDSCsept06