Dockside Green

In Summary:

Dockside Green is living up to its commitment, as outlined in the Master Development Agreement (MDA) by:

• Creating a broad mix of residential units that allows for seniors housing, live/work, work/live and larger units for families.
• Contributing $3million into housing affordability within the community of Dockside Green.
• Working with the Dockside Housing Affordability Advisory Committee to establish a Dockside Green Housing Affordability Strategy.
• Providing 26 units of market affordable units for ownership, targeting incomes between $30,000-$60,000.
• Targeting 49 rental units, 70 per cent of which are 2-3 bedrooms to accommodate the community need for family accommodation.
• Identifying a lead partner, the Capital Regional Housing Corporation, to implement the Dockside Green Housing Affordability strategy.
• Committing to seek out additional funding to assist in implementing the strategy.

Background:

“Affordable Housing” is defined in the Master Development Agreement as:

housing which costs (rent or mortgage plus taxes and including 10% down payment) 30% or less of a household’s gross annual income, targeting households with an income of $30,000 to $60,000, as increased from time to time by the increase in the Consumer Price Index (All Items) for Greater Victoria from the date of this Agreement to the date when any relevant determination under the Affordable Housing provisions of this Agreement must be made. (MDA 1.1)

Dockside Green is targeting to provide affordable housing in two formats:

• Non-Market (Rental), sold by the Developer “to one or more non-profit housing organizations (NPOs) to be held by them for rental to low-income persons (MDA 9.2(a)); and
• Market Affordable (Ownership), in which the Developer agrees to market and sell the units at “the actual cost of the Unit (including land acquisition costs and hard and soft costs, as verified by a quantity surveyor) plus 13% profit” (MDA 9.3(b)). 

Dockside Green’s commitment:

• Vancity and Windmill Developments recognized the ongoing importance of affordable housing and therefore made a commitment to address housing affordability within the community of Dockside Green as part of their proposal.
• Dockside Green has pledged an Affordable Housing Contribution of $3 million plus accumulated interest (as outlined in the MDA) for the development of affordable ownership and rental units at Dockside Green.
• Additionally, the City of Victoria will contribute 20% of building permit fees (approximately $500,000 for the entire development) to affordable housing on site.
• In total, 75 units of affordable housing is the target set by Dockside Green.
• The strategy’s primary goal is to help meet the community’s need for family sized (2-3 bedrooms) units and units that are affordable to households in the $35,000 to $47,000 income range (in 2006 dollars) for non-market (rental)  units, and in the $35,000 to $51,000 income range (2006 Dollars) for market affordable (ownership) units.
• 70% of the non-market units (rental) are proposed to be larger, family units.
• The goal set by Dockside Green is that approximately 35% of the units will be integrated into market unit buildings and 65% delivered in stand alone buildings.
• In addition, units will be built in accordance with the City’s Adaptable Housing Guidelines.

Types of affordable housing at Dockside Green

• As agreed to in the MDA, Dockside Green will feature two types of affordable housing on site:
• Non-market (rental) housing: Dockside Green has laid the foundation to make a significant contribution to non-market housing geared to households in the $35,000-$47,000 income range at Dockside Green, including identification of a specific building site in the heart of the Dockside Green community, and allocation of approximately $2.2 million (adjusted over time) to subsidize the sale price of non-market units to a non-profit organization, which will rent out the units. Additional capital from partner organizations will be required to achieve the planned 49 units.
• Market Affordable (ownership) housing: Dockside Green will allocate approximately $800,000 (approximately $30,800 per unit) to create 26 units of Market Affordable housing geared to households in the $35,000-$51,000 income range in Phases 1 and 2 of Dockside Green. Initially, units will be sold at the actual cost of the unit (including land acquisition costs and hard and soft costs) plus 13% profit.
• Price restrictions and covenants, managed by an independent third party, will govern resale values of the units to ensure these units remain affordable.
• It is also Dockside Green’s goal that affordable rental and ownership units will be substantially integrated into the development; with approximately 35% of the units integrated into market unit buildings and 65% in separate buildings.

To Date:

• The Dockside Housing Advisory Committee has approved the allocation of $800,000 for 26 units of market affordable (ownership) units in Synergy and Balance - Phases 1 and 2. Each unit will also have a restrictive covenant, which will ensure that in the future these units continue to be sold below market and remain affordable within the community. 
• As well, a number of Market Affordable units will be made available to households making the jump from subsidized rental housing to ownership by working with Vancity and its Springboard (zero-down payment) mortgage program.  
• In response to a Dockside Housing Advisory Committee’s recommendation that Dockside Green examine the possibility of a purpose built wood frame building to address rising construction costs, Dockside identified two buildings in the heart of the community. These buildings would meet the recommendations set out by the committee and potentially provide 49 units of rental accommodation for families in the income range of between $35,000 and $47,000.
• Dockside focused on larger, two bedroom units to help meet community needs for affordable housing for families. 
• It is important to note that these buildings will require the balance of Dockside Green’s $2.2 million housing affordability contribution as well as additional funding sources to be built.
• The Capital Region Housing Corporation (CRHC) has been chosen as the lead partner for implementing the Dockside Green Affordability Strategy, and will: 
• administer the restrictive covenant on behalf of the eventual purchaser of a  market affordable unit.
• be involved in the design and construction of the 49 non-market (rental) units and be the eventual owners of these units.

Other affordability highlights of Dockside Green

• The Dockside Green Housing Affordability Committee will continue to meet as part of the commitment to providing affordable housing within the community.
• In addition to the $3-million fund, Dockside Green will provide free initial car share membership (maximum value $500), a bicycle (maximum value $200) ad a bus pass subsidy of $15/month for three years for up to 75 non-market and market affordable units.
• A number of Market Affordable units will be made available to households making the jump from subsidized rental housing, working with Vancity and its Springboard (zero-down payment) mortgage program. 
• The sustainable nature of Dockside Green offers long-term affordability to all of its residents through money-saving green technology.  For example, every Dockside Green unit will offer significant, long-term energy savings.

For more information on Dockside Green, people may go to www.docksidegreen.com

Media contact:
Deirdre Campbell, Tartan Group
Tel: 250-592-3838 or 250-882-9199
E-mail: This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

Press Release - Housing Affordability Strategy December 13 2006