May 1, 2018

Town of East GwillimburyFees and Charges Applied to Habitat GTA projects

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Executive Summary• Habitat GTA is struggling to make affordable housing

projects viable with rapidly increasing land costs, Development Charges, HST, and other financial pressures.

• Our organization is requesting Council’s consideration for a new policy mechanism or By-law which grants deferral of all fees and charges, including Development Charges, applied to future affordable housing units produced by Habitat GTA.

• All deferral funds will be repaid to the Municipality once the term of Habitat’s mortgage is complete or upon sale of the home. These funds will be repaid with a rate of return. The deferral will be secured on title in the form of a collateral mortgage.

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Who We Are• Habitat for Humanity Greater Toronto Area was

formed in 2014, after amalgamation with three affiliates: Brampton Caledon, Toronto and York.

• The organizations mission is to break the cycle of poverty by producing affordable homeownership opportunities for working lower-income families.

• To-date, Habitat GTA has produced 360 homes, with another 54 under development.

• Our goal is to work closely with East Gwillimbury and other municipalities in York Region to achieve a significant increase in the number of Habitat builds in the coming years.

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Who We Serve

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Habitat partner families are made up of hard‐working individuals who provide critical services to communities like Newmarket

Occupation Salary 

High School Teacher $62,000

Bus Driver $43,200

Dental Assistant $36,000

Optician $45,200

Roofer $56,000

** Two minimum wage earners $45,600

Source: https://www.livingin‐canada.com/work‐salaries‐wages‐canada.html

How We Make It Work

We remove the barriers to home ownership for families through…500 hours “sweat equity”

instead of cash down paymentZero interest mortgagesMortgage payments

adjusted to 30% of household income

We lower the cost of building homes through…

Volunteer labourDonations of cash, building

materials and servicesCreative arrangements with

municipalities relating to land acquisition and feesProceeds from ReStores

which pay all of our administrative and fundraising overheadMortgage payments from

Habitat homeowners

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Habitat GTA Home Ownership Model

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(1) We identify eligible 

homeowners…

(2) We help them build 

their homes…

(3) Their home is purchased…

(4) Their 20 year interest‐free mortgage…

(5) We reinvest all mortgage payments… …and prepare them for 

homeownership

…with donated funds, materials and labour and their own “sweat equity”

…at full market value based on external appraisal at time of sale

…is structured so that their shelter costs do not exceed 30% of their income.

…into building more homes.

The Economics of Habitat for Humanity Builds in the Town of East Gwillimbury

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When the Town provides support to Habitat, the value of these contributions are fully recovered through mortgage payments by our homeowners, and reinvested in the next home….. and the next home…..

$$$ / Support

Other Multiplier Benefits from the initial investment Low income rental unit freed up for next family

New property tax revenues to Newmarket 

Reduced reliance on social programs

2nd and 3rd generation benefit as cycle of poverty is broken 

York Region Historical Context – Homes Built

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Occupancy Year Region Town Address # of units Type of unit

2003 York Newmarket 687 Gorham St., Newmarket, ON  1 Single2003 York Georgina 287 Kenwood Avenue, Keswick, ON L4P 2X6 1 Single2004 York Georgina 289 Kenwood Avenue, Keswick, ON L4P 2X6 1 Single2005 York Newmarket 45 Bolton Avenue, Newmarket, ON L3Y 2X3 1 Single2007 York Georgina 220 Church St., Keswick, ON L4P 1J8 1 Single2007 York Newmarket 284 Tom Taylor Crescent, Newmarket, ON L3X 3E9 1 Townhouse2008 York East Gwillimbury 158 Hammil Heights, East Gwillimbury, ON L0G 1M0 1 Single2008 York Newmarket 237 Tom Taylor Crescent, Newmarket, ON L3X 3E9 1 Townhouse2010 York Georgina 262A Terrace Drive, Keswick, ON L4P 2Y8 1 Single2010 York Markham 41 Bittersweet St., Markham, L6B 0R2 1 Single2013 York Georgina 5 Robert St., Keswick 1 Single2014 York Aurora 15943 Bayview Avenue, Unit 9, Level 2, Aurora, ON  1 Apartment Condo2014 York Georgina 23 Hawkins St., Sutton 1 Single2014 York Georgina 676 Lake Drive, Keswick 1 Single2014 York Georgina 275 Orchard Beach Road, Keswick  1 Single2015 York Georgina 2030 Metro Road North, Jackson's Point, ON L0E 1L0 1 Single2015 York East Gwillimbury 3 Walker Road, East Gwillimbury, ON L9N 1L5 1 Single2016 York Newmarket 302 Andrew St., Newmarket, ON L3Y 1H3 1 Single2016 York Whitchurch‐Stouffville 6554 Main St., Stoufville, ON L4A 7W5 1 Single

*Highlighted cells indicate activity post‐amalgamation

While past Habitat builds have been predominately single detached dwellings, our future focus is on multi‐unit developments

Homes Built – By Area

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19 homes

3 south of Newmarket• Aurora• Stouffville• Markham

9 in Georgina

5 in Newmarket

2 in East Gwillimbury

Region or MunicipalityApproximate Dev charges per unit *

Development Charges Waived?

Approximate other permit Fees  **  

Other permit Fees waived?

Region of York $ 40,000 Charges waived, standing agreement

Not Applicable Not Applicable

Georgina $20,000 Charges deferred upon delegation

$10K–$20K Deferred

East Gwillimbury $20,000 Charges deferred upon delegation, not guaranteed for future

$10K–$20K Waived

Newmarket $20,000 

New Council‐adopted policy which defers fees, upon request, with possibility of waiver in 10 years if ownership is still held in project

$10K–$20KNew Council‐adopteddeferral and waiver policy

Aurora $20,000  Unknown $10K–$20K UnknownKing $20,000  Unknown $10K–$20K Unknown

Whitchurch Stouffville $20,000 

Charges have been waived upon delegation, not guaranteed for future

$10K–$20K Unknown

Vaughan $20,000  Unknown $10K–$20K UnknownRichmond Hill $20,000  Unknown $10K–$20K UnknownMarkham $20,000  Not waived $10K–$20K Not Waived

NOTES:

*        Charges depend on type of building, bedroom count, generally assumed as multiple/row.  Does not include school board fee

**      Fees depend on size of development.  Includes build permit & site plan applications; park land dedication; finance, legal & eng costs;  conservation authorities, transportation, education 10

York Region Fees and Charges - Status

Habitat GTA - Development Charge Deferral Framework• Deferral of all fees and charges applied to Habitat

GTA projects would provide the following three major benefits:

1. It would be revenue neutral for the Town as the Town will be fully repaid with a rate of return.

2. It would assist in increasing the stock of affordable housing units in a cost effective manner.

3. It would provide Habitat GTA with certainty to proceed with projects, creating proactive opportunities for affordable housing.

• Deferred fees and charges will be secured through a mortgage loan on title.

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• Habitat GTA is committed to being an active and growing affordable housing partner with East Gwillimbury and York Region.

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Daniel GerVice President, LandHabitat for Humanity Greater Toronto Area155 Bermondsey Road, Toronto, ON M4A 1X9Daniel.Ger@habitatgta.caT: 416 755 7353 x229