DocumentsStaff ReportNov 5, 2018Pages 45–46
Staff Report: Bylaw No. 1813 and No. 1815 – Amendments to Housing Agreement
Planning staff report proposing replacement and amendments to existing housing agreements for affordable housing units and presenting new purchase price calculations for resale of program units.
Key facts
- Purpose: authorize replacement of existing housing agreements with updated versions for resale process
- New purchase price methodology: original purchase price plus $2,000 for every full year after first 5 years
- New purchase prices cited: $166,000 (Bylaw No.1813 home) and $126,000 (Bylaw No.1815 condo)
- Options: Give readings to Bylaws No.1813 and No.1815 or take no action
Staff Report: Bylaw No. 1813 and No. 1815 – Amendments to Housing Agreement
2nd Floor · 877 Goldstream Avenue · Langford, BC Canada · V9B 2X8
T · 250-478-7882 F · 250-478-7864
Date: November 5, 2018
Department: Planning
Subject
Bylaw No. 1813 and No. 1815 – Amendments to Housing Agreement
Background
At their Regular Meeting on December 16th, 2013, Council passed the following resolution with respect to amendments to the standard Housing Agreement:
- Direct staff to proceed with amending the Affordable Housing Agreement template and modifying at the time of resale the affordable housing agreements currently registered on title by adding the following items:
a) Allow co-signers on mortgages provided that the co-signer signs a Statutory Declaration drafted by a lawyer stating that the co-signer has a 1% undivided interest only for the purposes of obtaining financing from the Lender to complete the purchase, not living at the residences and waive any future claim and equity to the property;
b) Give the city the following options when an affordable house comes up for resale in the 20th year, or thereafter:
i. A first right of refusal to purchase an affordable house and rent it out 30% below market rate, or a percentage determined by Council, for the remainder of the time in which the housing agreement is on title (25 years) and use the revenues towards other affordable housing projects In the community; or
ii. Extend the expiration of the housing agreement by 10 years, or by a given amount of time determined by Council (5,10,15 or 20 years);
Commentary
Pursuant to the Local Government Act, any new or modified housing agreement to be registered on title must be authorized by Council via bylaw. Staff have received direction from the owner of a home within the Affordable Housing Program to commence the resale process, and as such have brought forward Bylaw No. 1813 and Bylaw No. 1815 to authorize the replacement of the existing housing agreements with the updated versions.
Purchase Price
The new housing agreements also state the new purchase prices which is based off of the original purchase price plus $2,000 for every full year after the first 5 years of ownership.
The new purchase price for the home is $166,000 (Bylaw No. 1813) and the new purchase price for the condo is $126,000 (Bylaw No. 1815).
Options
- Give first, second, and third readings to Bylaw No. 1813 and give first, second, and third readings to Bylaw No. 1815
Or
- Take no action at this time with respect to Bylaw No. 1813 and Bylaw No. 1815
Respectfully submitted,
Submitted by:
Julia Buckingham, Planner I
Concurrence:
Matthew Baldwin, MCIP, RPP Director of Planning
Concurrence:
Leah Stohmann, MCIP, RPP, Deputy Director of Planning
Concurrence:
Michael Dillabaugh, CPA, CA, Director of Finance
Concurrence:
Braden Hutchins, Director of Corporate Services
Concurrence:
Darren Kiedyk, Chief Administrative Officer
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