housing development in london exploring new … · housing development in london exploring new...
TRANSCRIPT
![Page 1: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/1.jpg)
HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS
September 23, 2013
Carling Heights Optimist Community Centre
London, ON
![Page 2: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/2.jpg)
Agenda
TIME ITEM
8:30 – 9:30 a.m. Registration and Networking
9:00 – 9:15 a.m. Greetings and Opening Remarks: City of London, CMHC
9:15 – 9:30 a.m. Overview and Context: SHS Consulting, City of London
9:30 – 10:15 a.m. Setting the Stage
10:15 – 10:30 a.m. BREAK
10:30 – 11:15 a.m. Presentation: Wood Buffalo HDC, Bryan Lutes, President
11:15 – 12:00 p.m. Presentation: Other Canadian and US Experiences, John Fox, Robins
Appleby & Taub
12:00 – 12:30 p.m. Panel Discussion, Questions and Answers
12:30 – 1:00 p.m. LUNCH
![Page 3: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/3.jpg)
Agenda
TIME ITEM
12:30 – 1:00 p.m. LUNCH
1:00 – 2:00 p.m. Guided Stakeholder Roundtable Discussions
2:00 – 2:15 p.m. Report Back
2:15 – 2:30 p.m. Wrap-Up and Next Steps
![Page 4: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/4.jpg)
OVERVIEW AND CONTEXT SHS CONSULTING
![Page 5: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/5.jpg)
Today’s Session: Purpose
To introduce and discuss with the London community the potential of establishing a municipal
(“HDC”) in the City.
![Page 6: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/6.jpg)
Today’s Session: Objectives
• To from HDC models from other jurisdictions
• To potential opportunities and challenges
for the HDC
• To the community on the progress and
next steps of the project
![Page 7: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/7.jpg)
Exploring the Establishment of a Housing
Development Corporation: Background
• City of London’s interest: “
” (The Housing Market and Canada’s Economic Recovery, FCM
Report, 2012)
– To help achieve social, community development, and
environmental goals
• The HDC has the potential to: give the City a vehicle
to directly achieve key local goals and objectives
– Greater potential capacity than the municipality itself for using a variety of financial instruments and operational
approaches
![Page 8: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/8.jpg)
Exploring the Establishment of a Housing
Development Corporation: The Team
![Page 9: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/9.jpg)
• To into best practices
• To related local environment
• To the business case and implementable
work plan supporting a new HDC in London
– Consolidating the necessary tools and services to advance
housing development within Council’s policies and
interests
– Inclusive of affordable housing
Exploring the Establishment of a Housing
Development Corporation: Project Goals
![Page 10: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/10.jpg)
Exploring the Establishment of a Housing
Development Corporation: Work Plan
Conduct foundational research
Conduct in-depth research of MVP 1
Revise MVP (to construct MVP 2)
Formalize the business plan
![Page 11: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/11.jpg)
Engagement: How to get involved!
11
Webinar Series
National Housing Day
Interviews and Stakeholder Meetings
TODAY!
![Page 12: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/12.jpg)
SETTING THE STAGE: OVERVIEW OF APPROACH TO DESIGNING A POSSIBLE
HDC FOR THE CITY OF LONDON NORM TASEVSKI
![Page 13: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/13.jpg)
Our Goal for Today…
To start a discussion with the London
community on the potential for establishing
a housing development corporation
(“HDC”) in the City of London
13
![Page 14: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/14.jpg)
Not Our Goal for Today…
To “pitch” the idea of an HDC
14
![Page 15: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/15.jpg)
To begin...
15
![Page 16: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/16.jpg)
What is a Municipal Housing
Development Corporation?
An independent incorporated entity,
typically positioned to work with the private
sector and with the government sector to
advance housing development strategies
and actions within a geographical region.
16
![Page 17: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/17.jpg)
What Can/Can’t HDCs Do?
Short Answer: it depends
17
![Page 18: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/18.jpg)
HDC Mandates
• Range in scope: narrow to broad
18
Narrow
Mandates
Broad
Mandates
Role of HDC is restricted to 1-2 very specific policy objectives
Role of HDC expanded to encompass multiple policy objectives
![Page 19: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/19.jpg)
HDC Mandates: Some Examples
19
• Main “customer”: nonprofit property managers,
private developers
• Primary “value proposition”: real estate sale,
financing/fund management, mortgages
“The goals of the Nova Scotia Housing
Development Corporation are to foster healthy
communities through innovative housing solutions,
and ensure access to a supply of safe,
appropriate, affordable and sustainable housing”
![Page 20: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/20.jpg)
HDC Mandates – Some Examples
20
• Main “customer”: low income home buyers/renters,
property developers/managers)
• Primary “value proposition”: financial products
(mortgages, mortgage insurance, bonds/debt)
“The HDC seeks to increase the supply of multi-
family housing, stimulate economic growth and
revitalize neighborhoods by financing the creation
and preservation of affordable housing for low,
moderate and middle income New Yorkers”
![Page 21: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/21.jpg)
HDC Mandates – Some Examples
21
• Main “customer”: first time home buyers,
nonprofit/for-profit property owners, BIAs,
government departments
• Primary “value proposition”: rental housing, real
estate management and sales, policy
development, neighborhood development
“To make Boston the most livable city in the
nation by working with communities to build
strong neighborhoods through the strategic
investment of public resources” Department of
Neighborhood
Development
![Page 22: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/22.jpg)
HDC Mandates – Some Examples
22
“To provide affordable quality housing,
management and maintenance and other
housing related services to meet the needs
of low income families in a proactive and
caring manner”
• Main “customer”: individuals/families that can’t
afford private rental housing
• Primary “value proposition”: subsidized rental
housing
![Page 23: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/23.jpg)
How do we set the Mandate of an
HDC?
Well…
23
![Page 24: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/24.jpg)
Core Principles Informing an HDC
Feasibility Assessment
• Housing development in isolation of broader
community and economic development is not
desirable
• An HDC for London must balance competing aims -
advancement of social/cultural priorities alongside
financial priorities
• For an HDC to be successful in London, it MUST be
designed from scratch and accommodate
London’s unique social, geographical and
economic strengths, gaps, and interests
![Page 25: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/25.jpg)
Why an HDC (why not the status quo?)
• Renewed Focus on City Building – An HDC can be a
conduit for many local and regional development
initiatives
• A Healthy New Dynamic – HDC becomes a partner
to government and to community/economic
groups and can engage all stakeholders in a new
way
• Increased Opportunity for Creativity – new financial
instruments and operational approaches can be
deployed that may not be open to government
directly
![Page 26: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/26.jpg)
The MVP Development Process
26
![Page 27: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/27.jpg)
What is a “Minimum Viable Product”
(MVP)?
• A technique for market testing a new product or
business before the product/business is fully built
• Popularized by Eric Ries (“Lean Startup”)
27
Lean Startup Approach (micro strategies, big launch, rapid iterations)
![Page 28: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/28.jpg)
What is a “Minimum Viable Product”
(MVP)?
• An MVP…
– Has only those elements that allow a product/service to be tested, and nothing else
– Is tested with the “early adopters” (i.e. potential first
customers, stakeholders, partners)
– Is utilitarian (i.e. collect the most amount of customer/stakeholder/partner feedback with the least
amount of time/monetary investment)
28
![Page 29: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/29.jpg)
An Example
29
![Page 30: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/30.jpg)
Why use MVP to design a Housing
Development Corp?
30
• Reduces risk and complexity (especially important when there are many potential moving parts)
• Maximizes stakeholder feedback and buy-in (stakeholders are engaged from day one)
• Increases likelihood of success (as the HDC’s “offer” is tested, the market becomes primed for it)
![Page 31: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/31.jpg)
Hearing From the London Community
31
![Page 32: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/32.jpg)
How do we plan to engage the London
Community?
32
The Process
1. Conduct foundational research (initial consultation, best
practice data, data on social finance, impact investment, private/public sector opportunities and constraints)
2. Construct “Minimum Viable Product”(MVP) (customer segments, value proposition, key channels and relationships, key resources and activities, key partners)
3. Conduct in-depth research on MVP (potential revenue sources and cost drivers, primary/secondary research to validate customer segments, value proposition, key channels/relationships/resources/activities, review by advisory panel)
4. Revise MVP (i.e. Construct MVP 2) (consultation with London
staff, consultation with advisory panel members, revise MVP details, construct detailed financial model, integrate legal considerations)
5. Formalize Business Plan (background materials, business description,
cost/benefit analysis, mandate/strategic objectives, bylaw recommendations, sole shareholder agreement, financial requirements, sustainability model, funding sources, governance and organizational model, legal/risk management considerations, preliminary service delivery approach, 3 year cash flow projections)
![Page 33: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/33.jpg)
Our Tool
33
Business Model Generation Canvas
![Page 34: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/34.jpg)
MVP: Key Questions for Today…
Community input is sought to inform the following
components of the model:
• Customers
• Value Proposition
• Key Partners
![Page 35: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/35.jpg)
BREAK
![Page 36: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/36.jpg)
WOOD BUFFALO HOUSING DEVELOPMENT CORPORATION
BRYAN LUTES
![Page 37: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/37.jpg)
AFFORDABLE HOUSING IN A BOOMING ECONOMY
City of London
September, 2013
![Page 38: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/38.jpg)
AFFORDABLE HOUSING IN A BOOMING ECONOMY
City of London
September, 2013
![Page 39: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/39.jpg)
AT WOOD BUFFALO HOUSING & DEVELOPMENT CORPORATION
WE BUILD COMMUNITIES
![Page 40: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/40.jpg)
THE REGIONAL MUNICIPALITY OF WOOD BUFFALO
![Page 41: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/41.jpg)
FACTS AND FIGURES
• The Regional Municipality of Wood Buffalo is big in every way – from a physical expanse of natural beauty that covers 66,361 km2 (making it the second largest municipality in Canada), to a thriving industry that sees $2.2 billion in investments annually from the third largest proven oil reserve on earth.
• Fort McMurray is surrounded by Crown land.
![Page 42: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/42.jpg)
FACTS AND FIGURES
• RMWB is larger than two Canadian provinces and over 100 countries.
• Wood Buffalo has had an average annual population growth rate of 7.1 per cent for the past decade – the total population growth of 125% has made it one of the fastest growing communities in Canada.
• The Regional population has increased by 10 per cent, just since 2012.
![Page 43: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/43.jpg)
FACTS AND FIGURES
• Average annual household income is over $210,000
• Wood Buffalo residents enjoy incomes 103% higher than the national average
• Residents, on average, have a $30,000 annual discretionary income
![Page 44: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/44.jpg)
FACTS AND FIGURES
• Nearly 86 per cent of households in Wood Buffalo have an income over $100,000
• The average age in RMWB, at 32.2 years old is 7 years younger than the national average
• The 3.5 per cent unemployment rate in the Wood Buffalo region continues to be the lowest in Canada
![Page 45: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/45.jpg)
CANADA’S MOST EXPENSIVE CITY
Over the last decade, the average price of a single-family dwelling in Wood Buffalo experienced an average annual growth rate of 12.24 per cent.
Fort McMurray’s housing prices are the highest in the country, passing Toronto in 2006.
![Page 46: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/46.jpg)
ACCORDING TO THE 2012 MUNICIPAL CENSUS
• 25% of families could use assistance with housing
• 55% of the Region’s population earns less than the average income
• 25% or approximately 6,000 households in the RMWB are able to qualify for gap housing
![Page 47: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/47.jpg)
AVERAGE HOUSE SELLING PRICE
*as per 2013 Fort McMurray Labour Market Information
![Page 48: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/48.jpg)
ABILITY TO PURCHASE
0
100000
200000
300000
400000
500000
600000
700000
800000
$40,000$50,000
$60,000$70,000
$80,000$90,000
$100,000
$110,000
$120,000
$130,000
$140,000
$150,000
Detached @$784,961 Modular w. Lot @ $478,250 Multi-family @ $385,639
*as per 2013 Fort McMurray Labour Market Information
![Page 49: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/49.jpg)
RENTAL RATES & VACANCIES
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
5.0%
Bachelor 1 Bedroom 2 Bedroom 3 Bedroom +
0
500
1000
1500
2000
2500
3000
Private Market Rents ($) Private Apartment Vacancy Rate (%)
![Page 50: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/50.jpg)
ABILITY TO AFFORD RENTS
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
$100,000
$110,000
$120,000
$130,000
$140,000
$150,000
Rent @ 30% Monthly
$100,840 for 3 BR @ $2,521/mo $89,160 for 2 BR @ $2,229/mo $69,440 for 1 BR @ $1,736/mo
![Page 51: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/51.jpg)
MEDIAN INCOMES – 2012
Couple Families
Lone-Parent Families
Non-Family Persons
Canada $76,950 $37,050 $24,680
Alberta $93,820 $40,150 $32,650
Fort McMurray $190,470
![Page 52: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/52.jpg)
WOOD BUFFALO HOUSING & DEVELOPMENT CORPORATION
VISION STATEMENT
A region where all citizens have access to affordable housing
MISSION STATEMENT
• WBHDC Purposes • Shareholder Value • Funding Sustainability • Land Availability • Community Infrastructure • Competitive Market Positioning • Staff Engagement
We will provide affordable housing alternatives to citizens within the
Regional Municipality of Wood Buffalo
STRATEGIC GOALS
![Page 53: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/53.jpg)
WOOD BUFFALO HOUSING & DEVELOPMENT CORPORATION
• WBHDC is a Part IX not-for-profit housing developer and property manager created in 2001 by the Regional Municipality of Wood Buffalo Council to address the Region’s affordable housing needs.
• WBHDC is able to offer a continuum of housing options from Homeless Shelter transitioning through several levels of Rental (including Seniors) into Affordable Home Ownership.
![Page 54: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/54.jpg)
AVAILABLE OWNERSHIP PROGRAMS
• Second Mortgage Program
• Second Mortgage with Employer Assistance
• Lot sales to Small Business Employers
![Page 55: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/55.jpg)
AFFORDABLE HOME OWNERSHIP PROGRAM
• Program began in 2004
• 275 families and individuals have realized their dreams of owning a home
QUALIFYING CRITERIA
• Applicants must:
• Be a resident of Fort McMurray for at least one year
• Have a gross family income less than maximum
• Be a first time homeowner in Municipality;
• Be able to qualify for the first mortgage amount from a lender.
![Page 56: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/56.jpg)
AFFORDABLE HOME OWNERSHIP PROGRAM
• Financing – Purchase price is based on appraised market value;
– Purchase price divided into two parts:
• First Mortgage
– This amount is provided by a conventional lender and effectively recovers WBHDC’s costs to construct.
• Second Mortgage – Used to assist in the purchase
– Held by WBHDC and further divided into the Equity Loan and Affordability Loan;
![Page 57: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/57.jpg)
AFFORDABLE RENTAL PROGRAM
• In partnership with essential services – Nurses, Teacher, RCMP and Municipal Employees.
• Partners put up $20,000 per door for access to affordable rents.
![Page 58: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/58.jpg)
AFFORDABLE
• 1060 Units, apartments and townhouses
CURRENT WAIT LIST
• Affordable Housing 520
PARTNERS
• Canada Mortgage & Housing (Grants)
PUBLIC SECTOR PARTNERS
• Fort McMurray Catholic School Board
• Fort McMurray Public School Board
• Northern Lights Health Region
• Province of Alberta (Grants)
• R.C.M.P
![Page 59: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/59.jpg)
• Although WBHDC receives grant funding from the Province for its GAP rental developments, the Corporation continually strives to become self-sustaining.
• Prospect Pointe
• 100 acre parcel which was divided into 330 +/- lots
• Profits on sales were used to build The Shores and Cascades – a total of 78 new affordable rental units
• WBHDC developed an eco-industrial park just north of Fort McMurray. Monies gained from the sale of the serviced lots is being used to create additional affordable housing units for residents of the RMWB.
SUSTAINABILITY
![Page 60: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/60.jpg)
SUSTAINABILITY
• TaigaNova Eco-Industrial Park
• 65-acre parcel subdivided into 27 commercial and industrial lots, ranging in size from1 to 5 acres, incorporating green initiatives.
• Profit from sales will be used to build a Maintenance Shop for the Corporation and for future affordable housing.
• WBHDC looks for future viable sustainability opportunities.
![Page 61: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/61.jpg)
THE REVITALIZATION EQUATION AND OTHER LESSONS FROM AN
INNOVATIVE JOURNEY… JOHN FOX
![Page 62: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/62.jpg)
Bumps on the Road…
Nobody’s Journey is seamless or smooth.
We all stumble, we all have set backs. Its
just life’s way of saying: “Time to Change
Course”
- Oprah
62
![Page 63: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/63.jpg)
Agenda
1. The Revitalization Equation
2. Layering Resources for economic development
3. Considerations when Partnering with the Private
Sector
• Getting the Vocabulary Right
4. Public Builders and Accountability
5. Corporate Models
• Some Pros and Cons
6. Some Key Questions for Deliberation
![Page 64: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/64.jpg)
Profile: John Fox
• Partner, with expertise in:
– Housing
– Financing
– Construction
– Procurement
– Brownfield development
• Former VP Development and General Counsel
(Development), Toronto Community Housing
• Former CEO, Batawa Development Corporation,
industrial revitalization in the Belleville-Trenton Area
• Chair, Laidlaw Foundation
![Page 65: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/65.jpg)
The Revitalization Equation
project revenues ≥ project costs
![Page 66: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/66.jpg)
The Revitalization Equation: Regent Park
The Vision
• Revitalize 2,000 units of housing on 70 acres of land
– Using excess density as a source of revenue
![Page 67: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/67.jpg)
Other Objectives
• Stimulate economic activity
• Reduce energy consumption in TCH buildings
• Maintain good relations with stakeholders
• Diversity of Architecture
• Build partnerships – Developer
– Commercial tenants
– Arts and culture
• Similar to London’s “strong economy, sustainable infrastructure, and vibrant and diverse communities”
The Revitalization Equation: Regent Park
![Page 68: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/68.jpg)
The Revitalization Equation
project revenues ≥ project costs
subsidy + (market units * profit per unit) ≥
rental units * cost per unit
or
subsidy + land sale ≥ rental units * cost per unit
![Page 69: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/69.jpg)
The Revitalization Equation: The Variables
• What influences these variables?
• Over which variables does the builder have
control?
Market units = Density (Planning Policy objective)
Profit per unit = Land value (location, location, location)
Rental units = What you need to replace (Housing Policy objective)
Cost per unit = Construction cost per unit
Subsidy = Other revenues (e.g. AHP subsidy, borrowing against energy savings, cancelled or deferred taxes, etc.)
![Page 70: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/70.jpg)
• Rental units * cost per unit = money you need to do
what you want
• Different policy objectives have different costs:
– Replacement of existing social housing
• $200,000 per unit
– Affordable rental (defined as a function of CMHC average
market rent for the area)
• $120,000 per unit
– Affordable ownership
• $50,000 per unit, depending on depth of ownership
The Revitalization Equation: Policy Objective
![Page 71: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/71.jpg)
• Profit per market unit = fair market value
• Determined by local factors and local market
• Needs an analysis of comparable buildings or land
sales in the area
• Limited control: a well-articulated program can, in
theory, increase market value
• Equally critical for private builders
The Revitalization Equation: Land Value
![Page 72: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/72.jpg)
• Market units = density
• Whether staying “in” or doing a land sale, the
amount of buildable area impacts the revenue
• Often the last variable determined because the
others are set, resulting in the question:
– How high is my building?
• A natural tension between planners and housing
officials
72
The Revitalization Equation: Density
![Page 73: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/73.jpg)
• Objective: replace 40 social housing units using only
density
• Assumptions:
73
The Revitalization Equation: Application
Profit per market unit = $25,000 (to public partner)
Rental units = 40
Cost per unit = $200,000
Subsidy = $0
![Page 74: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/74.jpg)
subsidy + (market units * profit per unit) ≥
rental units * cost per unit
$0 + (market units * $25,000) ≥ 40 * $200,000
market units ≥ 40 * $200,000/$25,000
market units ≥ $8,000,000/$25,000
market units ≥ 320
74
The Revitalization Equation: Application
![Page 75: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/75.jpg)
Community Economic Development: Layering
Resources
Multiple Partnership and development opportunities
brought together and focussed…
- City: Employment Counselling
- Post Secondary Institutions: Continuing learning
- Commercial Tenants: Local Employment
- Construction Partners: Local Employment
- Province: Affordable Housing grants
- Restaurants: Many possibilities (Example: Paintbox –
a B- Corporation Restaurant)
- Developers: Expanding the pie
75
![Page 76: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/76.jpg)
Partnering
• Financial reasons – Create value you could not create on your own
– Increase profit per unit
• Pool talents – To be able to leverage combined assets, skills, and
knowledge to achieve your goal
• Mutual respect – Each partner sees value in the contributions of the other
• Risk management – Spread the risk
• Values – A shared purpose at the partnership level
76
![Page 77: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/77.jpg)
Partnering: Agreement
The Partnership Agreement Establishes…
• Land value: transfer if required
• Proportionate share of ownership
• Equity investments: get credit for advance work
• Responsibilities of partners:
– May differ according to expertise
– May include fees
• Management of the partnership:
– Typically a committee with set responsibilities
• Distribution of proceeds
77
![Page 78: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/78.jpg)
Partnering: Agreement
Key Items to Remember
• Understand the role you are playing in the
partnership
• Understand how the money flows
– Value of land
– Fees
– Distribution of proceeds
• It’s all negotiable!
– Proceeds, for example, can “waterfall”
– Partners may retain some unilateral rights
78
![Page 79: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/79.jpg)
Public-Private Partnerships in Housing
“A cooperative venture between the public and private sectors, built on the expertise of each partner which best meets clearly defined public needs through the appropriate allocation of resources, risks, and rewards.” (CCPPP)
79
![Page 80: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/80.jpg)
The Case For…
• Private sector innovation and expertise
• On time
• On budget
• Alignment of interests
But…
• Cost • Finance cost: not cheaper in the private sector
– Brampton Hospital cost $200M more per AG
• Profit: adds a private cost
• Complexity: partnering and sharing risk is always complex – This is a multi-party negotiation
• Failure: what happens really if the private sector fails? – The service must still be delivered
80
Public-Private Partnerships in Housing
![Page 81: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/81.jpg)
The I/O Value for Money Approach
81
Public-Private Partnerships in Housing
![Page 82: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/82.jpg)
Key Points To Remember
• For the private sector partner, it’s about the return
• There is a cost to transferring risk
– This is where “value for money” calculations come in
• Most 3P in Canada relate to:
– Health care (Brampton Civic Hospital)
– Recreation (arenas)
– Transportation (Confederation Bridge)
– …Not a lot of housing!
• The legal structure is a means to an end, not an end
in and of itself
82
Public-Private Partnerships in Housing
![Page 83: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/83.jpg)
Partnering: A Brief Roadmap
What you Should Consider Before Partnering
• Know your objectives – E.g. replace units, economic development, etc.
• Assemble your team – Financial, legal, etc.
• Consider existing community – How will they benefit?
• What risks will you take? – Environmental, construction costs, market risk, etc.
• Decide on the role the public wants to take – E.g. will the public stake ride to the end of the development process?
• Know the internal approvals you will need and when
• Design the RFP competition for a partner carefully – Once it’s done, it’s done!
• Consider including the full contract in the RFP
• Consider whether a “Fairness Advisor” is warranted
83
![Page 84: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/84.jpg)
Housing Development: Procurement
Development has unique procurement issues…
1. Contracting for Construction
• The lowest price should not be the law
– “If you pay peanuts, you might get monkeys.”
• General contracting vs. construction management
– “One procurement moment vs. countless procurement
moments
• The dangers of due diligence
– The “haircut”
84
![Page 85: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/85.jpg)
Housing Development: Procurement
2. The Holy Trinity of Public Procurement
Accountability, Transparency, and Value for Money
• Do they walk together?
• If not, how are these to be balanced?
85
![Page 86: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/86.jpg)
Housing Development: Legal Structures
Many possible legal structures for carrying out development… 1. Housing Development Corporation
2. Local Housing Corporation
3. Not For Profit Development
4. Co-Ops
5. Community Land Trust
6. Municipal Contract Out and Turnkey
7. “Build” Model
8. Others?
• Caution: legal form follows function; it is premature to settle on organizational models
86
![Page 87: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/87.jpg)
Housing Development: Legal Structures
Housing Development Corporation
• A subsidiary of the municipality
• Governed by a knowledgeable board of directors
• Restricted by the shareholder through a direction or unanimous shareholder agreement
• Attracts specialized development talent
• Creates some liability barrier
Issues • Is it a commercial enterprise under the Municipal Act?
• Is there enough work to keep a full development complement occupied?
• If disconnected from the provider, will units delivered meet housing specs?
87
![Page 88: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/88.jpg)
Housing Development: Legal Structures
Local Housing Corporation
• Established in accordance with the Housing Services Act
• Not a commercial activity for Municipal Act purposes
• Business Corporations Act Company
• Minister may intervene in setting by-laws, etc.
• Creates some liability barrier
Issues
• Is there enough work within the Local Housing
Corporation?
88
![Page 89: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/89.jpg)
Questions that Caused Debate
1. Are you willing to be a partner in a real estate development, or do you want to get land value out of excess land immediately?
1. Risk/return evaluation
2. How much accountability is appropriate in the tendering process
3. Are we keeping construction risk?
4. Are we keeping subsurface risk?
5. Are you willing to provide an HDC with cash or land as an equity
infusion?
6. How much latitude is afforded for non-housing investments, such as an arts and cultural centre for example?
7. Are you willing to create a pay structure that reflects private development firms?
8. Are you willing to put a municipal guarantee in place to assist the HDC?
9. If the HDC is owned by the City, is there an impact on the City’s ability to borrow?
10. How much political control?
89
![Page 90: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/90.jpg)
PANEL DISCUSSION QUESTION AND ANSWER PERIOD
![Page 91: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/91.jpg)
LUNCH
![Page 92: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/92.jpg)
GUIDED STAKEHOLDER ROUNDTABLE DISCUSSIONS
![Page 93: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/93.jpg)
Discussion Questions
93
![Page 94: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/94.jpg)
REPORT BACK
![Page 95: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/95.jpg)
WRAP UP NEXT STEPS
![Page 96: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/96.jpg)
Upcoming Webinars
1. Housing Development Corporation Model 1 – Friday, September 27th – Primer to housing development corporations and case studies
from the US and Canada
2. Housing Development Corporation Model Two – October – Overview of available tools, include brief overview of social
finance, plus a summary of some of the other tools
3. Project Update and Draft Model Presentation - November – This webinar will take place after the November 25th CPS
meeting
4. Implementation of HDC - January – This webinar will focus on HDC implementation
96
![Page 97: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/97.jpg)
Evaluation Form
97
![Page 98: HOUSING DEVELOPMENT IN LONDON EXPLORING NEW … · HOUSING DEVELOPMENT IN LONDON EXPLORING NEW FRONTIERS September 23, 2013 Carling Heights Optimist Community Centre London, ON](https://reader033.vdocument.in/reader033/viewer/2022041900/5e5fc86577a02220b4004a3d/html5/thumbnails/98.jpg)
THANK YOU!