1 Report to Rapport au: Planning Committee Comité de l
Transcription
1 Report to Rapport au: Planning Committee Comité de l
1 Report to Rapport au: Planning Committee Comité de l'urbanisme 9 June 2015 / 9 juin 2015 and Council et au Conseil 24 June 2015 / 24 juin 2015 Submitted on May 26, 2015 Soumis le 26 mai 2015 Submitted by Soumis par: Susan Jones, Acting Deputy City Manager/Directrice municipale adjointe par interim, City Operations/Operations municipales Contact Person Personne ressource: Aaron Burry, General Manager/Directeur général, Community and Social Services/Services sociaux et communautaires 613-580-2424 ext. / poste 23666, [email protected] Wards: ORLÉANS (1) & RIDEAUROCKCLIFFE (13) File Number: ACS2015-COS-CSS-0009 SUBJECT: HABITAT FOR HUMANITY DEFERRAL OF DEVELOPMENT CHARGES FOR 979 EVE STREET, 1277 COUSINEAU STREET & 1279 COUSINEAU STREET OBJET: REPORT DES REDEVANCES D’AMÉNAGEMENT D’HABITAT POUR L’HUMANITÉ POUR LE 979 RUE EVE, LE 1277 RUE COUSINEAU ET LE 1279 RUE COUSINEAU REPORT RECOMMENDATIONS That the Planning Committee recommend Council approve, pursuant to Section 107 of the Municipal Act, 2001, a deferral of development charges in the estimated 2 amount of $122,613 for 979 Eve Street, 1277 and 1279 Cousineau Street, subject to Habitat for Humanity National Capital Region entering into an agreement with the City that provides as follows: a. Habitat for Humanity will develop one affordable housing unit at 979 Eve Street and four affordable housing units at 1277 and 1279 Cousineau Street; b. Habitat for Humanity will repay up to the estimated sum of $122,613 in the event that the unit(s) does not remain affordable for a term of 35 years and forgiveness of up to the estimated sum of $122,613 if the unit(s) remain affordable for the entire 35 year term; and c. The estimated sum of $122,613 to be secured by way of a Charge/Mortgage from Habitat for Humanity to the City that is registered on title to the properties municipally known as 979 Eve Street, 1277 and 1279 Cousineau Street. RECOMMENDATIONS DU RAPPORT Que le Comité de l'urbanisme recommande au Conseil d'approuver, en vertu de l'article 107 de la Loi de 2001 sur les municipalités, un report des redevances d’aménagement d’un montant estimé à 122 613 $ pour le 979 rue Eve ainsi que les 1277 et 1279 rue Cousineau, sous réserve d’un accord conclu entre Habitat pour l’humanité – RCN et la Ville prévoyant ce qui suit : a. Habitat pour l’humanité aménagera un logement abordable au 979 rue Eve et quatre logements abordables au 1277 et au 1279 rue Cousineau Street; b. Habitat pour l’humanité remboursera jusqu’à la somme estimée de 122 613 $ dans le cas où le ou les logements ne demeurent pas abordables pendant une période de 35 ans et la dispense de rembourser jusqu’à la somme estimée de 122 613 $ si le ou les logements demeurent abordables pendant toute la période de 35 ans; c. une garantie estimée à 122 613 $ sous forme de charge ou d’hypothèque donnée par Habitat pour l'humanité à la Ville et inscrite au titre de propriété du bien-fonds ayant pour adresse de voirie le 979 rue Eve, le 1277 et le 1279 rue Cousineau. 3 BACKGROUND Habitat for Humanity National Capital Region (hereinafter referred to as “Habitat for Humanity”) is a non-profit organization that builds affordable housing and promotes homeownership as a means to breaking the cycle of poverty. Under the current Development Charges By-law, the exemption of development charges for affordable housing extends only to units that are owned by non-profit or charitable housing organizations. It does not extend to units that are developed by a non-profit organization and subsequently sold to private individuals. However, Council has previously provided Habitat for Humanity with a deferral of development charges to assist them in providing affordable housing for low income households. DISCUSSION Habitat for Humanity is planning to construct five (5) affordable housing units to sell to households whose annual gross income is less than the city’s 40th income percentile. The proposed units consist of three detached dwellings and one semi-detached dwelling. Staff recommends that Habitat for Humanity receive a deferral in the approximate amount of $122,613 for the development charges associated with the construction of the three properties. The breakdown of development charges is as follows: Table 1: Development Charges Total Development Charges 979 Eve St 1277 Cousineau Street 1279 Cousineau Street Total $24,330 $65,492 $65,492 $155,314 ($6,409) ($12,818) ($12,818) ($32,045) ($328) ($328) ($656) Development Charges to be paid by Habitat for Humanity: Transit Portion Millenium Park Area-Specific Development Charge 4 Deferral Amount $17,921 $52,346 $52,346 $122,613 The transit portion and the Millenium Park area-specific development charge are excluded from the deferral and will be paid by Habitat for Humanity. The deferral for the remaining development charges is subject to Habitat for Humanity entering into an agreement with the City that provides as follows: i. Development of five (5) affordable housing units at 979 Eve Street, 1277 Cousineau Street and 1279 Cousineau Street to be sold to households at or below the city’s 40th income percentile; ii. Repayment of up to the estimated sum of $122,613 in the event that a unit(s) does not remain affordable for a term of 35 years and forgiveness of the estimated $122,613 if the units remain affordable for the entire 35 year term; and iii. The approximated sum of $122,613 to be secured by way of an interest free Charge/Mortgage from Habitat for Humanity to the City that is registered on title to the properties municipally known as 979 Eve Street, 1277 Cousineau and 1279 Cousineau Street. Habitat for Humanity will hold a first mortgage on the homes and will arrange an affordable payment schedule with the buyers to ensure that the mortgage payment is no more than 30% of the household income. The mortgage loans will be interest free so the payment schedule will be for repayment of the principal amount only. Habitat for Humanity also retains the right of first refusal in the event the home is sold prior to the mortgage being paid off to ensure it will remain affordable and available to another qualified household. If a unit is sold and not kept affordable prior to the 35-year affordability period coming to an end, the development charges for that unit will be repaid by the vendor to the City as part of the sale process. Providing Habitat for Humanity with a deferral of development charges for the 979 Eve Street, 1277 Cousineau Street, and 1279 Cousineau Street development charges will assist with keeping the proposed units affordable and will help to advance the objectives of the Ten Year Housing and Homelessness Plan. RURAL IMPLICATIONS There are no rural implications associated with this report. 5 CONSULTATION This report was not subject to consultation. COMMENTS BY THE WARD COUNCILLOR(S) Councillor Monette and Councillor Nussbaum are aware of this report. ADVISORY COMMITTEE(S) COMMENTS N/A LEGAL IMPLICATIONS There are no legal impediments to approving the recommendation contained in the report. RISK MANAGEMENT IMPLICATIONS There are no risk implications. ASSET MANAGEMENT IMPLICATIONS N/A FINANCIAL IMPLICATIONS The deferral agreement between the City and Habitat for Humanity provides for a delay in the collection of approximately $122,613 of the total amount of $155,314 in development charges required to be paid for the overall project. The Public Transit portion and Millennium Park area-specific charge, approximately $32,701, are payable at building permit issuance. If a housing unit is sold to a person or organization, other than Habitat for Humanity, prior to the expiry date of the deferral agreement then the full amount due including accrued interest is immediately payable. ACCESSIBILITY IMPACTS N/A ENVIRONMENTAL IMPLICATIONS N/A TECHNOLOGY IMPLICATIONS N/A 6 TERM OF COUNCIL PRIORITIES The recommendation described in this report supports the Strategic Priority of Healthy and Caring Communities, specifically, the strategic objective: Improve social and affordable housing (“HC3”). SUPPORTING DOCUMENTATION N/A DISPOSITION Housing Services Branch will coordinate with the Planning and Growth Management Branch the approved conditional grant for the amount of the development charges. Corporate Development and Environmental Law Division will review and approve the form and content of the agreements to provide for the deferral for an estimated total amount of $122,613 between the three subject properties.