Yorkton Council were given a brief look at the impact currently planned entry level housing projects will have on the local market at their regular meeting Aug. 22.
"The Housing Needs Assessment Study identified low-cost entry-level housing was not being met by the private sector. The city has attempted to address this category by completing the engineering on two properties designated for single-family residential; C.J. Houston and York Colony. A third site is designated for multi-family residential and is available for construction to begin immediately," detailed a report presented at the meeting.
The report included a graph of housing currently on the market in the city.
"There are sixty-five single family dwellings valued at less than $225,000 in the City. Between the city and the private sector, up to sixty single-family residential dwellings and up to 52 multi-family dwellings could be developed within the next 12 to 18 months. This would be in addition to the existing listings for single-family and multi-family dwellings," detailed the report.
As a result of the housing market impact the report suggested a phasing in of new projects.
"Past experience shows the market cannot absorb the number of proposed residential units. If the city desires to proceed with entry level housing then it is prudent to begin with the C.J. Houston property. This is a relatively small project that can allow entry level lots to be developed very quickly at a relatively small impact to the city's financial position. This is an inner city project that could benefit schools in the area as well as the general neighbourhood with more families or accommodation for students. The Good Spirit Crescent multi-family development could also be constructed in phases as interest occurs. It would serve a different market niche than the private sector developments," it stated.
The housing is still required to have a municipal element based on the fact it services a niche in the marketplace.
"These additions address a portion of the housing continuum that is currently not serviced by builders. There are existing dwellings that are listed within the same price range as the proposed dwellings. The city previously developed land because there was no interest from the private sector. There is now some interest in building on privately-held land. There may be some synergy between the city and the developer in developing the C.J. Houston property in that both will address different aspects of the affordable housing market. It may be in the interest of both parties to discuss how the joint development of the C.J. Houston property could address the housing continuum," stated the report.
In terms of helping stimulate development there are City initiatives in place.
"The city has the Rental Housing Incentive Program (RHIP) to encourage the development and supply of new rental units. This program offers either a two or a five-year tax exemption to the developers for building multi-family rental units so long as they remain as a rental for a period of five to 10 years. This program also offers a five-year tax exemption for the developers of condominiums so long as the units are owned by one owner or entity," detailed the report.
However there has been very little interest in the incentive program since implementation in 2009.
The City will continue to play a role in housing development where it fits.
The city should continue to work with other levels of government, the private sector, and community organizations and focus its resources and efforts in the middle of the housing continuum - particularly on affordable and entry-level housing in both rental and home ownership markets. The C.J. Houston property and the properties along Good Spirit Crescent allow the city to put that focus into action.
The city has several strengths that can be utilized to provide entry level housing:
Land holdings in various areas of the city;
Expertise in undertaking large-scale projects or higher risk projects;
Leadership and investment experience in public-private housing partnerships and joint venture approaches, and;
Promotion of innovative approaches to reduce up-front building costs.
