REQUEST FOR EXPRESSION OF INTEREST (REOI) 17-037 DEVELOPMENT OF AN AFFORDABLE RENTAL HOUSING PROJECT ON THE PRAIRIE AVENUE SITE

Greater Vancouver Regional District (“the Corporation”) invites Expressions of Interest from non-profit housing providers (with or without partners) interested in the Development of an Affordable Rental Housing Project on Corporation owned lands located at 2115-2127 Prairie Avenue and Flint Road in Port Coquitlam.

The Corporation wishes to invite Expressions of Interest from non-profit housing providers qualified to provide this type of service.

Intent

Subsequent to receiving and reviewing these Expressions of Interest, it is anticipated the Corporation may develop a procurement process that may result in the issuance of a Request for Qualification, Request for Proposal, or Invitation to Tender. In any event, the Corporation reserves the unfettered right to determine the next steps in the process which may include: issuing a Request for Qualification, an Invitation to Tender, Request for Proposal, Notice of Intent to Contract (NOIC), collapsing this process entirely; or pursuing a different selection process altogether.

This is not an invitation to tender or request for proposal. By participating in this REOI, each Respondent expressly agrees that no contract of any kind is formed under, nor any legal obligations whatsoever arise out of this REOI.

Background and General

The Metro Vancouver region is at a critical juncture from a housing perspective. The demand for housing, and in particular for affordable rental units, is greater than current supply, a situation that will continue unless a greater supply is achieved. Estimates by Metro Vancouver show that approximately 54,000 additional rental housing units will be required in the region over the next ten years in order to meet anticipated demand. Of these, over 34,000 are projected to be needed by households in the very low to low income brackets, representing households with incomes under $50,000 per year.

Metro 2040: Shaping our Future, the regional growth strategy, identifies a key Metro Vancouver mandate to develop complete communities that are characterized by diverse and affordable housing choices. As part of this mandate, Metro Vancouver staff have worked with member municipalities to complete a new Regional Affordable Housing Strategy 2016. RAHS proposes five goals and associated strategies / actions in order to provide leadership on regional housing issues; the shared actions are to be implemented by a range of housing stakeholders across the region, including Metro Vancouver. Metro Vancouver’s role also includes supporting the

administration of the Homelessness Partnering Strategy, and being the sole shareholder of the Metro Vancouver Housing Corporation (MVHC), which owns and manages mixed-income housing units.

On October 28, 2016, the Metro Vancouver Board passed the following resolution:

That the GVRD Board direct staff to establish clear requirements for development of affordable housing on the GVRD-owned land located at 2115-2127 Prairie Avenue, including that the sale of the property is not contemplated, and to issue a formal call for Expressions of Interest for development of the four contiguous properties with civic address of 2115-2127 Prairie Avenue, legally described as Lots 17-20, Block 1, Plan 1189, DL 465 Prairie Avenue and Flint Road in Port Coquitlam.

This Request for Expressions of Interest is intended to identify organizations and/or partnering organizations that meet the qualifications for, and are interested in, developing affordable rental housing on the Prairie Avenue site. It is anticipated that the properties will be leased for a 60-year term for a nominal amount. This is not an MVHC project, nor will the MVHC submit an expression of interest under this process.

2115-2127 Prairie Avenue Site

Located on the north side at the corner of Prairie Avenue and Flint Road in the City of Port Coquitlam, the four single-family lots owned by the Corporation total 49,632 square feet, or 1.139 acres. The properties were purchased by the Corporation in December 2001, with the intent of pursuing a proposed joint venture affordable housing development. Construction funding was to be provided under a BC Housing program that existed at the time. However, the project did not proceed and the BC Housing funding program expired. Appendix A provides site statistics.

20349074 REOI No. 17-037 Development of an Affordable Rental Housing Project on the Prairie Avenue Site Page 2 of 7

The land titles remain registered to the Corporation and the lands are currently vacant. An appraisal conducted by Collingwood Appraisals Ltd. states that while the properties currently have a split zoning, the Official Community Plan designation of ‘residential townhouse’ more accurately reflects the municipality’s goals for multi-family residential development in the area.

The subject site is located in the residential Glenwood Neighbourhood. This area is currently experiencing change as many of the older single family detached homes are being replaced with townhouses. Three townhouse projects have recently been completed and another is under construction. The site is well located with respect to transit, schools, shops, trails and parks. A planning study lays out some of the other site opportunities and constraints, including a potential high water table (see Appendix B).

Three parcels are zoned single residential (RS1) and one is zoned Residential Duplex (RD). The site is designated Townhouse Residential (RT) in the OCP. City staff have indicated that there is potential to rezone the site, that a CD zone might be appropriate, and that a Housing Agreement will likely be required as part of the rezoning approval process. The site also falls within a Development Permit Area.

20349074 REOI No. 17-037 Development of an Affordable Rental Housing Project on the Prairie Avenue Site Page 3 of 7

Local Housing Needs

As of June 2016, there were 191 households, composed primarily of families (73) and seniors (57), on BC Housing’s waiting list for social housing in Port Coquitlam. In addition, Metro Vancouver estimates that 800 additional rental units will be needed in Port Coquitlam between 2016 and 2026 to meet growing demand, with more than half of that estimated demand (or 470 units) arising from very low income households earning under $30,000 per year. About two-thirds of estimated additional rental demand is expected to be for very low income senior one-person households, and 20% is estimated to be for families.

Table 1 - 10 Year Housing Demand Estimates 2016-2026 – Additional Growth

All rental Very Low Low Moderate Above High Demand Income Income Income Moderate Income Households Households Households Income $100,000 (Under ($30,000 – $50,000 - $75,000- plus $30,000) 50,000) 75,000 100,000 Metro 54,000 23,500 11,200 8,700 4,800 5,800 Vancouver Port 800 470 160 70 50 30 Coquitlam Source: Metro Vancouver Regional Affordable Housing Strategy 2016.

Port Coquitlam’s Housing Action Plan identifies a number of directions and actions to meet future housing demand, including expanding opportunities for housing within residential neighbourhoods, and encouraging social housing projects.

Affordability

Reflecting these needs, the rental units developed for the Prairie Avenue site should be affordable for households with a family income up to $88,000 per year (Statistics Canada 2014 Taxfiler Median Family Income). In addition, a minimum of 30% of the units should be subsidized units and affordable to households earning under $50,000 per year.

Site Program

The identification of a detailed program for the site, including densities, unit numbers and types, demographic orientation, amenities, and other factors, will be developed through an Integrated Planning Workshop and process. This will involve participation by the Corporation’s staff, BC Housing, Port Coquitlam staff, and other experts and organizations as relevant. Inputs to this process may reflect input from responses received through submissions to this Request for Expressions of Interest.

20349074 REOI No. 17-037 Development of an Affordable Rental Housing Project on the Prairie Avenue Site Page 4 of 7

Minimum Requirements

The Corporation is seeking information from non-profit housing providers (with or without partners) able to meet the following minimum eligibility criteria:

a) Non-profit, cooperative or charitable organization or a partnership with a non-profit cooperative or charitable organization which is: • Registered in good standing under the Society Act or Canada Not for Profit Corporations Act; • Has a stated purpose of providing affordable housing; • Demonstrates a record of experience with delivering non-market rental housing development and operation in BC.

Submission Requirements

Expressions of interest should be arranged as follows:

Title Page: Showing REOI number, closing date, time, Respondent name, address, telephone number, and contact person.

Letter of Introduction: One or two pages, introducing the firm. Also include a contact name, telephone number, address and email address.

Response: Maximum of 5 pages (not including corporate brochures) describing the following:

a) Demonstration of interest in and ability to undertake the project, both from a development and from an operational perspective; b) Proposed operational model, partners, and roles and responsibilities; c) Description of previous relevant experience / projects; d) Information demonstrating financial capability of the organization(s) to undertake this project, including current financial statements and a proposed project financing model; e) Proposed funding model to protect affordability over the life of the project, including provincial and/or federal funding expected; f) Other relevant financial information deemed to be useful; g) Anticipated level of affordability for the development (submission should demonstrate ability to meet needs of very low and low income rental 20349074 REOI No. 17-037 Development of an Affordable Rental Housing Project on the Prairie Avenue Site Page 5 of 7

households in Port Coquitlam and the Tri-Cities area). The Corporation recognizes that submissions may include a mix of very low, low, and moderate household incomes to aid in financial viability; h) Contribution(s) the organization can provide; i) Thoughts about how the proposed project could integrate and potentially add value to the surrounding neighbourhood; j) Any other information that can support the organization / partnership’s interest in and ability to undertake the project.

Submissions in triplicate, including all attachments and enclosures and clearly marked 'REOI No. 17-037 – Development of an Affordable Rental Housing Project on the Prairie Avenue Site’ will be received up to end of business, January 17, 2017 at:

Purchasing & Mail Reception Metro Vancouver, 5th Floor, 4330 Kingsway, Burnaby, BC V5H 4G8

Purchasing’s hours of business are 8:00 a.m. to 4:30 p.m., Monday through Friday.

Enquiries shall be directed to: Ahmed Bahgat, Buyer Metro Vancouver, Purchasing Department 4330 Kingsway, Burnaby, BC V5H 4G8 Email: [email protected]

All submissions received will be reviewed by, and merits determined at, the sole discretion of the Corporation.

20349074 REOI No. 17-037 Development of an Affordable Rental Housing Project on the Prairie Avenue Site Page 6 of 7

Appendix A – Site Statistics

Civic Address 2115, 2119, 2123 and 2127 Prairie Avenue, Port Coquitlam, BC Legal Description Lots 20 District Lot 465 Group 1 New Westminster District Plan 1189 Lots 19 District Lot 465 Group 1 New Westminster District Plan 1189 Lots 18 District Lot 465 Group 1 New Westminster District Plan 1189 Lots 17 District Lot 465 Group 1 New Westminster District Plan 1189 Site Size (4) 66.0 ft x 188.0 ft, .46 ha, 1.139 ac, or 49,514 sq ft Registered Owner Greater Vancouver Regional District Occupancy Vacant Current Zoning/FSR RS1, RS1, RS1 and RD (single family and duplex) Allowable RS1 - 0.5 FSR RD - 0.55 FSR OCP Land Use Designation Townhouse Residential Permits 3 townhouse zoning designations Assessed Value 2015 $685,000 each lot x4=$2,740,000

Market Value Aug 10, $4.1 million valuation date Aug 10, 2016 2016

20349074 REOI No. 17-037 Development of an Affordable Rental Housing Project on the Prairie Avenue Site Page 7 of 7