THE CORPORATION OF THE CITY OF NELSON REQUEST TO APPEAR AS A DELEGATION DATE: September 29, 2020 Committee of the Whole TOPIC: Regional Housing Needs Assessment Report PROPOSAL: Presentation by M’akola Development Services PROPOSED BY: Staff _____________________________________________________________________ ANALYSIS SUMMARY: M’akola Development Services, engaged by the Regional District, recently completed the Regional Housing Needs Assessment Report. Sandy Mackay from M’akola is presenting information with regard to the Report and its findings. BACKGROUND: The Regional District undertook a Regional Housing Needs Assessment in collaboration with the eight of its member municipalities (Nelson, Salmo, Creston, Kaslo, Nakusp, Silverton, Slocan, and New Denver) and eleven rural Electoral Areas. The purpose of a Housing Needs Report is to describe current and anticipated housing needs in a community by collecting data and analyzing trends to better inform and understand the kind of housing most needed. The development of a Housing Needs Assessment recently became a requirement pursuant to the Local Government (Housing Needs Reports) Amendment Act, 2018 which requires local government bodies to develop a Housing Needs Report every five years. These reports are required to contain the following, based on an analysis of the information collected: • Statements about key areas of local need, including: affordable housing, rental housing, special needs housing, seniors housing, family housing, and shelters and housing for people at risk of homelessness; • The number of housing units required to meet current and anticipated housing needs for at least the next five years, by housing type; • The number and percentage of households in core housing need and extreme core housing need. BENEFITS OR DISADVANTAGES AND NEGATIVE IMPACTS: The presentation is for Council and the public’s information. LEGISLATIVE IMPACTS, PRECEDENTS, POLICIES: The City’s participation in the Regional Housing Needs Report satisfies the City’s legislative requirements to conduct a Housing Needs Report by April 2022. COSTS AND BUDGET IMPACT - REVENUE GENERATION: There is no cost associated with this presentation. Notably the City of Nelson contributed $17,500 to the Regional District Housing Needs Assessment, which was funded from the Affordable Housing Reserve Fund. The Regional District’s proposed project costs were budgeted at $147,572 and funding was received from UBCM in the amount of $150,000. IMPACT ON SUSTAINABILITY OBJECTIVES AND STAFF RESOURCES: The Housing Needs Report supports Council’s ‘Healthy Neighborhoods’ sustainability objective by providing a better understanding of the kinds of housing most needed in our community as well as in the region by identifying existing and projected gaps in housing supply. OPTIONS AND ALTERNATIVES: 1. Receive and thank the presenter ATTACHMENTS: PowerPoint Presentation. RECOMMENDATION: That the presentation from Sandy Mackay of M’akola Development Services be received for information. AUTHOR: REVIEWED BY: _______________________________ ___________________________ DEPUTY CORPORATE OFFICER CITY MANAGER Regional District of Central Kootenay Housing Needs Report Nelson Council Presentation – 29 September 2020 Agenda RDCK Housing Needs Assessment About the Project/Report Key Findings Moving Forward Questions & Discussion 2 About the Project and Report Participants RDCK Housing Needs Assessment Partnership between the Regional District and 8 local Municipalities: With consulting support from: 4 Project Area RDCK Housing Needs Assessment GREATER CRESTON & GREATER CASTLEGAR & EAST KOOTENAY LAKE KOOTENAY COLUMBIA Town of Creston RIVERS Electoral Area A City of Castlegar Electoral Area B Electoral Area I Electoral Area C Electoral Area J Yaqan Nukiy NORTH ARROW LAKES KOOTENAY LAKE Village of Nakusp Village of Kaslo Electoral Area K Electoral Area D GREATER NELSON & SLOCAN WEST ARM KOOTENAY LAKE VALLEY City of Nelson Village of Slocan Electoral Area E Village of Silverton Electoral Area F Village of New Denver Electoral Area H SALMO RIVER Village of Salmo Electoral Area G 5 Housing Needs Reports RDCK Housing Needs Assessment New legislation and regulations specify requirements for local governments related to housing needs reports. These requirements include: • Collecting information to identify current and projected housing needs, • Using that information to prepare and publish an online housing needs report which shows current and projected housing needs for at least the next five years, and • Considering the most recently collected information and housing needs report when amending official community plans and regional growth strategies Required for all municipalities and electoral areas. Must be completed by April 2022 and every five years thereafter. Funding through UBCM for individual communities or regional projects. 6 Housing Needs Reports RDCK Housing Needs Assessment In this Report: • What is Happening: local and regional Information on demographics, households, incomes, economy, and housing affordability. • Who it’s Happening to: engagement data, affordability analysis, which income groups are struggling. • Additional: assessment of energy poverty. Not in this Report: • Where new housing should go, or the form or density it should take. • Each local government will decide how to act on the information in the report to support their communities (egg. through OCP or zoning bylaw updates, partnership development, community education, etc.) 7 Process RDCK Housing Needs Assessment • January to September 2020 • Approximately 700 community members and organizations provided input through engagement • Data gathered from several sources including: • CMHC • BC Stats / Statistics Canada • Local / Regional Government Data • BC Assessment • AirDNA • Custom Data Set And more… • 8 How to use the Report RDCK Housing Needs Assessment Report has four key components: 1. Regional Report 2. Sub-Regional Reports 3. Community Summary Infographics 4. Engagement Summary Report All four work together to build a complete picture of housing in your community. 9 Key Findings Population RDCK Housing Needs Assessment The population of Nelson is growing and aging. 11 Population RDCK Housing Needs Assessment Household size is declining, meaning growth rate in demand for homes will exceed population growth rate 2016 2025 People 11,045 +8% 11,910 Households 5240 +13% 5900 12 Rental Housing RDCK Housing Needs Assessment Rental housing is more expensive and harder to find: • Median rents (with inflation removed) were generally stable until 2016 • Prices have escalated in more recent years, and vacancy is low (<1%) 13 Renter Households RDCK Housing Needs Assessment The number of renters is increasing across nearly all age cohorts. Renters are less likely to be able to meet their housing needs than owners. Renter Household Median Income: $36,647 Owner Household Median Income: $68,896 14 Housing Costs RDCK Housing Needs Assessment Owner-occupied housing is more expensive: • Median house prices (without inflation) were generally stable until 2015 • Prices have escalated most in denser, ground-oriented housing types (semi-detached & townhouses) 15 Owners and Renters RDCK Housing Needs Assessment Renters and owners are both challenged by the current housing market. • Concern that people are being pushed out of expensive markets • Increased “hidden homelessness”, usage at food banks • People renting further away from services and commuting further • Accessing housing is more difficult for everyone, not just equity- seeking groups “Can't afford to buy or rent “I love Nelson and I have lived her anything in or around the area. for over 10 years, but with it being So sad because I am a 3rd such a struggle to find affordable generation Nelsonite but I can't rentals I am not sure I will be able to afford to live here anymore” stay and it is breaking my heart.” 16 Housing Affordability RDCK Housing Needs Assessment Core Housing Need in 2016 Households spending >30% of before-tax income on shelter, and have no reasonably affordable alternative. “Extreme” need is >50% of income. • 16.3% of Nelson households in Core Housing Need • Owners – 7.7% • Renters – 30.7% • 8.2% of RDCK households in Extreme Core Housing Need • Owners – 4.0% • Renters – 15.3% A decrease from rates in 2006, but likely to increase in the next Census given price trends since 2016. 17 Owners and Renters RDCK Housing Needs Assessment 22% 46% 19% of all survey respondents of renter respondents of renters were unsure. indicated that they are indicated that they are considering moving out of considering moving out of their community due to their community due to housing issues. housing issues. Highlights a need for: • More dedicated, affordable, and appropriate rental options • Integrated supports for older residents and closer to services • More non-market housing 18 Non-Market Housing RDCK Housing Needs Assessment Need for More Non-Market, Supportive, and Emergency Housing Options. “Constant fear of being evicted. Constant letters with negative, bullying language about everything. 143+ Constant smoking (I and my child Unit wait list for non- are allergic) in building, which is Numbers of people living in ignored by manager. Cannot have market housing. RVs, “couch surfing”, or any pet for my son (fish, lizard, gerbil, hamaster, cat or bird).” staying with family/friends. “I work full time plus part time to make ends meet even though I have Many respondents reporting a good education… I do not want