DocumentsStaff ReportApr 6, 2020Pages 32–33
Staff Report: Bylaw No. 1898 - Amendment to Housing Agreement
Planning staff report seeking Council authorization (by bylaw) to replace an existing affordable housing agreement on title with an updated form as part of a resale process; includes new purchase price calculation.
Key facts
- Bylaw No.1898 authorizes replacement of housing agreement for a property in the Affordable Housing Program
- New purchase price example provided: $176,000 (based on original price plus $2,000 per full year after first five years)
- Options for Council: give 1st, 2nd and 3rd reading to Bylaw No.1898 or take no action
Staff Report: Bylaw No. 1898 - Amendment to Housing Agreement
Staff Report to Council
Date: April 6, 2020
Department: Planning
Subject: Bylaw No. 1898 - Amendment to Housing Agreement
2nd Floor · 877 Goldstream Avenue · Langford, BC Canada · V9B 2X8
T · 250-478-7882 F · 250-478-7864
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 agreement to be registered on title must be authorized by Council via bylaw. Staff have received direction from the owner of a property within the Affordable Housing Program to commence the resale process, and as such have brought forward Bylaw No. 1898 to authorize the replacement of the existing housing agreements with the updated version.
The new housing agreement also states the new purchase price which is based off of the original purchase price plus $2,000 for every full year after the first five years of ownership. The new purchase price of the home is $176,000.
Options
- Give first, second, and third reading to Bylaw No. 1898
Or
- Take no action at this time in regards to Bylaw No. 1898
Respectfully submitted
Submitted by:
Julia Buckingham, Planner I
Concurrence:
Adriana Proton, Manager of Legislative Services – Email Approved
Concurrence:
Matthew Baldwin, MCIP, RPP Director of Planning – Email Approved
Concurrence:
Michelle Mahovlich, P.Eng, P.Geo, Director of Engineering – Email Approved
Concurrence:
Leah Stohmann, MCIP, RPP, Deputy Director of Planning – Email Approved
Concurrence:
Michael Dillabaugh, CPA, CA, Director of Finance – Email Approved
Concurrence:
Braden Hutchins, Director of Corporate Services – Email Approved
Concurrence:
Darren Kiedyk, Chief Administrative Officer – Email Approved
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