September 3, 2009
VANCOUVER – Vancouver Native Housing Society has launched an innovative affordable homeownership program called ‘Building Solutions to the Housing Crisis’.
Dave Eddy, Executive Director, of the housing society said, “We have a housing emergency. Vancouver is the least affordable city in Canada. We have a 30,000 unit shortage of affordable housing today and this number is increasing by 3500 units every year. By 2021 the shortage will be almost 70,500 units.
Eddy quoted the recent 5th Annual Demographia International Housing Affordability Survey that now gives Vacouver the dubious distinction of being the least affordable major urban center on the planet. (Vancouver placed 4th overall after Australia's the Gold (1st) and Sunshine (3rd) Coasts and Honolulu (2nd)). "Besides the high cost of real estate," he continued, "the vacancy rate for rental accommodation is at 0.05% - makinging it almost impossible to find affordable housing. A very unhealthy situation for our communities."
The Society has come up with a bold plan to build its way out of this crisis by creating a development housing society that will offer half of the units that it builds at deep discounts (up to 50%) to low and middle income families.
HOW IT WORKS
We can build our way out of this housing crisis and we have a clear plan.
We are creating a Housing Development Society to develop and build high quality, affordably priced, mixed market housing in Metro Vancouver.
How? We have built a financial and development model that combines full market sales, subsidized rental housing and deep discount, covenanted units sold (in perpetuity) at up to 50% below market.
To maintain these affordable homeownership units the covenanted properties will have to be sold at the same discount as they were purchased or pay a penalty greater than the discount.
The Society will be the co-owner on the covenanted units and therefore will be able to maintain affordable housing options for middle and low-income families in Metro Vancouver in perpetuity.
To fund this initiative we have created an innovative investment model based on short and long-term syndicated mortgages combined with refundable tax credits. We are looking for partners to join us in this exciting affordable housing initiative to begin: ‘‘Building a Solution to the Housing Crisis.”
MODELING SUCCESS
Here's the Santa Clara County housing trusts summary:
Below is an example from London, England called the 'Container City.' This innovative urban design is made from metal shipping containers. Construction costs were £50/sqft. ($90.00CDN) Compare that to the present day cost in Vancouver for concrete/steel construction coming in at $240.00 plus per square foot.
Contact: Joseph MacLean
Project Consultant for Vancouver Native Housing Society
1726 East Hastings Street, Vancouver, BC V5L 1S9
Telephone: 778.835.5801