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Old 12-14-2018, 12:35 PM   #1
temple5
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Default Question on how Affordable Housing works in Calgary/Alberta

Gawd I cant believe I typed this much, who is going to read all this crap - probably no one.

Being a sort of City Planning nerd (had I knew this at 18 I would have studied it in Uni, sadly at 40 its a bit to late for a change especially when I am still gainfully employed) I have seen alot of videos and read alot of articles regarding affordable housing.

After hearing about this issue for over a decade and seeing no real progress from a government only solution I think its time to really determine why this is such a difficult issue and if government isnt able to address this then how can we incentive builders to take this on.

I dont know any planning details, building codes, or how things work in the City/Province so I figured I would ask strangers on the Internet because if I ever bring this up within my social group the eyes start to glaze over. They think me attending a city event about a proposed apartment in Sunnyside is crazy when I dont live anywhere close to floodsville.

On with the questions.

(1) Is there one organization who currently manages affordable housing and say a list of applicants in need. I know you have to meet certain financial restrictions to be on the list but are there multiple agencies that do this or just one? If there is just one are there restrictions on the type of properties they can manage, do they have to be 100% owned by the agency, can they own a few properties in a privately operated structure etc.

(2) For building codes or development process, lets say a developer wants to build 2x 11 (ground floor + 10 residential floors) story Condo near Franklin LRT Station or on 17th Ave SE between 48 and 52 street near the new BRT. Available less expensive land, near ammenities and public transit. Are there currently any incentives for the developer to include a few affordable housing units in the buildings? Is there a documented process in the city that makes redeveloping single story commercial land into multi family residental allowable if there is a affordable housing component.

* Example, lets say the developer includes floors 2 and 3 as affordable (or a number of units, say 50 for the building so as to not create slum floors but instead disperse throughout the building) housing units has the city in the past or are there current rules that would say ok if you include 2 floors as affordable housing then you can add 5 more floors.
* In the above example lets assume such a thing is possible, obviously in a condo the developer wouldnt want to manage the rentals post opening so how would such a thing work?
* Would the "homes affordable housing agency" (lets call them HAHA for short) purchase the units at an agreed upon price (lets say these units are specifically furnished and designed for low cost of ownership (less expensive furnishings etc) then manage the units and pay the associated condo fees?
* Would the developer have to own the condo and then allow HAHA to manage the rentals and any income is then paid to the developer?
* How does HAHA set the rental rates? 2 Adults making minimum wage should be able to afford $1200ish in rent (based on 30% of income). Does the agency force singles to share a 2 bedroom vs a 1 bedroom?

I am sure there are more questions but I guess those are the easiest. I think its now in common agreement that creating low income towers is a terrible idea and its much better to integrate them into a larger setting (1 affordable housing unit per 15 market units staggered among all floors) since you get the neighborhood policing effect.

Great video from TV-O Agenda with Steve Paiking (great show for these types of issues) with what seems like a sensible solution for getting these built and also reduces a large barrier for developers.
https://tvo.org/video/programs/the-a...rdable-housing

The question of integration then becomes about property values in a condo for the other owners and just the terrible upfront costs associated with an apartment building. The strongest affordable housing advocates always seem to be your classic commi type person who balks at any type of private partnership and yet cannot admit that the current system isnt working or would just say that we need more public money.

Andres Duanny had a great youtube video in how to integrate social housing the benefits of such.

I personally think that if there is a HAHA type agency that they should have nothing to do with the development of buildings but instead manage units in private buildings and should be the ones who screen and prioritize the list of needy renters. Perhaps instead of developing units they instead could be the owners of certain city owned property which developers would then bid on how to develop those lands. The City would still make money on the sale of the land but also add to the affordable housing stock in the city. This of course would require the city to have an integrated strategy in relation to affordable housing so to encourage this type of development. Of course this would mean the city will take in less money in land sales etc but if affordable housing is important then we have to be realistic on what it would take.

Last edited by temple5; 12-14-2018 at 12:42 PM.
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Old 12-14-2018, 06:02 PM   #2
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I don’t know about the specifics, but there is an organization here called Attainable Homes and it’s for that purpose. They allow for home ownership for people who otherwise would have a hard time making that happen. Like I say, I’m not familiar with the exact mechanics, but they basically allow you to own with $2000 for the down payment. There are restrictions on when you can sell and things like that, but it’s a path to ownership for some people. They’re a non-profit and run through the City of Calgary.

www.attainyourhome.com
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Old 12-14-2018, 06:40 PM   #3
Cecil Terwilliger
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Depends on what you mean by “affordable”.

Attainable homes is not affordable housing. They sell condos/townhouses right around market rate. Mostly in the $220k to 350k range.

They have one purpose, to help people come up with a down payment by essentially gifting you the down payment and then taking a cut of your profit when you sell. Buyers still need to qualify for a mortgage like any other buyer. They get no breaks or subsidies on their actual housing payments.

However they’ve been hurt big time by the new mortgage rules because of their income cap on who qualifies for their program. Basically only couples can qualify now.
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Old 12-14-2018, 07:13 PM   #4
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I think he's talking about affordable as in subsidized or housing for people with low incomes.

I can tell you that if you call 211 you can get a full list of these housing agencies because there is absolutely more than one. And some have specific criteria, such as those for seniors as an example. 211 likely won't be able to give you anything more than the names, numbers, and criteria for each agency. For the other info you require you're going to have to find it another way, unfortunately.
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Old 12-15-2018, 12:57 AM   #5
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The province has a bunch of different ways of funding affordable housing.

They subsidize renters directly
They subsidize unit owners
They own individual apartments
They own entire buildings

Lots of different methods are used.

https://www.alberta.ca/affordable-housing-programs.aspx
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