DocumentsAppendixFeb 22, 2023Pages 49–52

Attainable Home Ownership Program Policy (POL-0166-PLAN) — Policy Attachment

The formal Attainable Home Ownership Program policy (POL-0166-PLAN) documenting eligibility, unit specifications, administrative requirements, occupancy/resale restrictions and grant amounts.

9.1 Attainable Housing Policy

Key facts

Maximum purchase prices by unit type: 1-bed $399,000; 1-bed+den $425,000; 2-bed $450,000; 2-bed+den $475,000; 3-bed $499,000 (including GST)
Grant amounts tiers tied to household income (policy outlines up to 75% of 5% down payment for lower income band)
Rezoning requirement: new rezoning applications for buildings >4 storeys to provide 5% of units for sale through Program (or cash alternative)
Resale restrictions: cap on resale price for first five years (e.g., 105% of first sale price if within 3 years; 110% if after 3 years)

Attainable Home Ownership Program Policy (POL-0166-PLAN) — Policy Attachment

2nd Floor · 877 Goldstream Avenue · Langford, BC Canada · V9B 2X8
T · 250-478-7882 F · 250-478-7864

Policy Name: Attainable Home Ownership Program Policy

☐ New ☒ Amendment
DEPARTMENT: Planning

SP Governance/Corporate Policy and Planning/Policies and Procedures

POLICY NO: POL-0166-PLAN

The purpose of this policy is to assist Langford residents with a household income of less than $150,000 who can afford a mortgage but cannot save enough for the full 5% required down payment to achieve home ownership at an attainable price point. A range of unit sizes will be included in each participating building such that different household types can have the opportunity to purchase a home that meets their needs. As home ownership is increasingly out of reach for a significant portion of our community, each participating building will reserve up to 30% of their units for sale through this Program. This will allow multiple buildings in different neighborhoods to participate in the Program as well as encourage the construction of additional home ownership opportunities in Langford.

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1. Criteria for Applicants

a. The maximum household income shall be no more than the applicable amount as follows, having regard to the unit type:

i. One-bedroom unit: $125,000;
ii. One-bedroom (with den) unit: $130,000;
iii. Two-bedroom unit: $140,000;
iv. Two-bedroom (with den) unit: $145,000;
v. Three-bedroom unit: $150,000;

b. The minimum household composition shall be as follows, having regard to the unit type:

i. One-bedroom unit: Individual;
ii. One-bedroom (with den) unit: Individual;
iii. Two-bedroom unit: Minimum two (2) person household, one of which may be a dependent;
iv. Two-bedroom (with den) unit: Minimum two (2) person household, one of which must be a dependent;
v. Three-bedroom unit: Minimum two (2) person household, one of which must be a dependent;

c.

Applicant(s) shall be a resident, as determined in accordance with section 67 of the Local Government Act, of the City of Langford for at least 6 months immediately before the date that such person applies to the City to become a Qualified Buyer or are members of the Canadian Armed Forces posted in Victoria or are members of the RCMP posted in the Westshore or have been employed for at least 6 months by a City of Langford business;

d.

Applicants shall not own, and whose spouse or partner, by marriage, common law or otherwise, if any, shall not own, either directly or indirectly through a trust, business asset or otherwise:

i. Any interest in real property anywhere in the world, from the time that such person applies to the City to be a Qualified Buyer until such individual completes the purchase of a Housing Unit; and
ii. Combined assets and other property of any kind (including investments and cash) having a total value greater than $50,000.

e.

Applicants do not have any other sources for their down payment, and the total down payment including the City’s grant will not exceed 5% of the mortgage;

f. Applicants shall provide a pre-mortgage approval as follows, having regard to the unit type:

i. One-bedroom unit: $399,000;
ii. One-bedroom (with den) unit: $425,000;
iii. Two-bedroom unit: $450,000;
iv. Two-bedroom (with den) unit: $475.000
v. Three-bedroom unit: $499,000;

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2. Construction Requirements and Specifications for Unit Types

a. One-bedroom units:

i. Unit size – minimum gross floor area of 525 square feet;
ii. Minimum of one (1) bathroom;
iii. Maximum purchase price - $399,000 (including GST);

b. One-bedroom plus den units:

i. Unit size – minimum gross floor area of 575 square feet;
ii. Minimum of one (1) bathroom;
iii. Maximum purchase price - $425,000 (including GST);

c. Two-bedroom units:

i. Unit size – minimum gross floor area of 750 square feet;
ii. Minimum of two (2) bathrooms;
iii. Maximum purchase price - $450,000 (including GST);

d. Two-bedroom plus den units:

i. Unit size – minimum gross floor area of 800 square feet;
ii. Minimum of two (2) bathrooms;
iii. Maximum purchase price - $475,000 (including GST);

e. Three-bedroom units:

i. Unit size – minimum gross floor area of 900 square feet;
ii. Minimum of two (2) bathrooms;
iii. Maximum purchase price - $499,000 (including GST);

f. Minimum bedroom size for all unit types:

10 ft by 10 ft (excluding closets);

g. Construction standards:

i. Each Housing Unit shall be constructed as a self-contained dwelling unit designed and constructed for residential use by a single household, and contain, each in a separate room, a kitchen, bathroom (including a sink, toilet, and shower/bathtub), eating area, living room and bedroom(s);
ii. Each Housing Unit shall be fully equipped with appliances, including fridge, stove, dishwasher, micro-wave and washer dryer;
iii. Each Housing Unit will be completely finished to the same standards, and equipped with appliances of the same type and quality, as the other residential units contained in the building; and

h.

Construction requirements that deviate from those described in this Section may be considered by Council.

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3. Administrative Requirements

a.

The developer shall register a Housing Agreement on title of the property to secure the number of Housing Units to be provided for sale through this Program as well as to secure the requirements outlined by this Policy;

b.

All new rezoning applications to create buildings with more than four residential storeys shall provide either:

i. a minimum of 5% and no more than 30% of the total number of residential units within the development for sale through this Program, which shall be an appropriate mix of unit types dispersed throughout the building and with 50% of the units having 2 or more bedrooms; or
ii. a cash contribution to the City’s Affordable Housing Reserve Fund of $75,000 per attainable unit for up to 50% of the units required pursuant to (i) above, provided that the remaining 50% of the units are provided for sale through this Program as described in (i) above;

c.

Applications subject to the Attainable Home Ownership Program will qualify for:

i. Refunds of the General Amenity and Affordable Housing Reserve Fund contributions required by Affordable Housing and Amenity Contribution Policy No. POL-0011 PLAN for each attainable unit sold through this Program; and
ii. Preferential processing of rezoning application;

d.

The building must be subdivided by deposit of a strata plan under the Strata Property Act that creates each Housing Unit as a separate strata lot and include strata bylaws that do not prohibit occupants from having pets;

e.

The Housing Units secured by the Housing Agreement shall only be available for purchase by, and may only be sold to, a Qualified Buyer who has applied to the City and has been approved, in writing, by the City as meeting the Qualified Buyer criteria;

f.

The purchase price shall include payment for the Housing Unit and all fixtures, furnishings, appliances and other things in the Housing Unit as well as the number of parking spaces required for the unit as per Langford Zoning Bylaw; and

g.

A deposit of no more than $5,000 shall be provided by a Qualified Buyer to the developer, with no more than $1,000 of that deposit payable on contract signing and the balance on removal of all conditions precedent under the Purchase and Sale Agreement.

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4. Occupancy and Resale Restrictions for the First Five (5) Years of Ownership

a.

The Housing Unit may only be occupied as a permanent residence by a Qualified Buyer, together with one or more members of their family;

b.

The Housing Unit may not be rented or leased, or occupied by way of a tenancy, license or other occupancy agreement of any kind, except with the prior written approval of the City, which may be provided in circumstances of hardship such as the death or divorce of the Qualified Buyer who owns the Housing Unit;

c. Subsequent Sale – Following the sale or transfer to the first buyer, the Housing Unit:

i. May only be sold or transferred to a buyer who is at Arm’s Length to first buyer;
ii. Shall not be sold or otherwise transferred for a sale price that exceeds the applicable amount below:
- I. 105% of (the Maximum Price First Sale paid by the First Buyer), if registration in the LTO of the transfer to the buyer occurs within 3 years following the First Sale Date; or
- II. 110% of (the Maximum Price First Sale paid by the First Buyer), if registration in the LTO of the transfer to the buyer occurs more than 3 years after the First Sale Date.

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5. Grant Amounts

a.

The City will provide to Qualified Buyers a grant as follows at the time of the completion of their purchase of a Housing Unit:

i. Household Income of less than $119,999: 75% of the 5% down payment;
ii. Household Income of between $120,000 and $134,999: 50% of the 5% down payment; and
iii. Household Income of between $135,000 to $150,000: 25% of the 5% down payment.

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6. Attainable Home Ownership Program Application Process

a.

Completed application and supporting documents are received by the City of Langford;

b.

Applications undergo review to ensure completeness, accuracy, and compliance with program criteria;

c.

Qualified Buyer(s) are issued letters of acceptance confirming the down payment assistance grant amount and are added to the Qualified Buyers list;

d.

As Housing Units in participating developments become available, applicants on the Qualified Buyers list will be notified; and

e.

Qualified Buyer(s) will enter into Purchase and Sale Agreements with the developer with regards to an available Housing Unit on a first-come first-served basis.

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7. Reporting

Summary reports outlining high level statistics of successful Qualified Buyers and grant expenditures shall be provided to Council upon the completion of each participating building.

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8. Review

Household income thresholds, maximum purchase prices and other construction requirements may be reviewed annually and adjusted if deemed appropriate by Council.

Adopted by Council
Meeting Date:
CERTIFIED CORRECT

Administrator Date:

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Extracted from: Agenda(97 pages total)