Canada in general and Vancouver in particular has a severe affordability crisis. It is a multi-dimensional problem. How can we build the additional 3.5 million units needed by 2030 to resolve the affordability crisis?
The challenges are finance, high cost of land, the time constraints due to prolonged permitting and approvals as well as escalating construction costs and labour shortages.
There are three surveys in the menu above please choose the ones that fit your needs.
THE SOLUTION
The solution is to fund and build more affordable housing at scale. Simply; more units, more quickly with low interest money.
To help address the funding problem we have designed a market research program to determine the market acceptance of Affordable Housing Bonds and whether homeowners will buy into the Secondary Suite Incentive program where they can receive $40,000 for putting an affordable rental suite on their property.
Community Outreach. We will set up a community booth at prominent locations throughout the fall and our volunteer Affordability Ambassadors will engage with the community and share the Four Pillars approach to affordable housing development. The goal is to get 50,000 respondents to our surveys.
Teams will set up at plazas, church and shopping mall parking lots and indoor community booths, Farmers Markets and other venues. throughout the summer. The team will also hold Lunch & Learn events to further spread the word about ‘Building Solutions to the Housing Crisis’.
Four Pillars
I Invest in Housing was created by Four Pillars Community Housing CCC Inc. A Community Contribution Company that in its articles commits to distributing at least 60% of all profits to qualified entities (i.e. Non-Profit Housing Providers).
We have developed a model that can help communities start ‘Building Solutions to the Housing Crisis’. The four pillars of affordable housing are: Zero cost lan, Below Market Financing, Expedited Delivery and Revenue Generation.
The First Pillar – Zero Cost Land
There are numerous sources of zero cost land:
Non-Profit Housing Providers, faith groups and service clubs.
Homeowners that can now add secondary suites or multiplex developments on their property.
Companies that have landholdings that could be joint ventured to include affordable housing.
Municipal, provincial and federal land
The Second Pillar – Below Market Financing
Canadians have trillions in RRSP and TFSA accounts. If one percent of that money was leveraged for new, affordable housing we can build our way out of the crisis. Our target bond rate is two percent and we project that half of the bond purchasers will donate the interest back to the issuer.
The Third Pillar – Expedited Delivery
Modular and prefabrication systems and technologies as well as accelerated permitting and approval processes from municipalities can speed up delivery and provide significant cost reductions
The Fourth Pillar – Revenue Generation
Unfortunately even with the first three pillars it is almost impossible to deliver affordable housing in our major urban centres without revenue generation. New approaches and new models need to be deployed to insure that affordable housing projects can cash flow and be sustainable over the long-term.
Problem: Non-Profits have billions of dollars land and property that can be redeveloped at much higher densities but the problem is where do you house tenants displaced during redevelopment?
Solution: Create a model for Interim Residences (100-200 units) that can house existing tenants during redevelopment. One third of the units at below market, one third at mid and near market and the last third to generate revenue to ensure sustainability. Revenue generation will be different for each development but could include, for example, an Indigenous Arts & Culture Hotel, workplace and student housing, office and community space rentals and short/medium term executive rentals.
With the new housing legislation allowing for gentle density on residential property there are tens of thousands of potential sites to add secondary suites, Auxillary Dwelling Units (ADU -laneway/carriage homes), duplex and/or multiplex homes in Vancouver alone.
First Step: ‘I Invest in Housing’ is a market research and community outreach campaign to determine community bond rates and terms as well as homeowner interest in placing an ADU on their property. We are building a Coalition of the Concerned and are seeking supporters and sponsors to fund this campaign. Please reach out to us by email or call Joseph at: 778-835-5801.
Redevelopment Challenge
Redevelopment of properties that require the temporary displacement of tenants presents an ongoing challenge. In some cases social housing providers adopt a strategy of keeping units vacant in other properties in preparation for a redevelopment but that can’t address the whole problem and also it is not an ideal solution as it decreases the availability of affordable housing.
A long-term solution requires a strategy for funding and creating sufficient units to provide the least disruption as possible over extended (redevelopment) periods. One possibility is to purpose build ‘transitional or interim buildings’ to house displaced tenants during redevelopment.
To provide the level of affordability required for these transitional units the best path is to secure land at zero cost. Existing non-profit housing providers, faith groups, service organizations etc. could earmark a piece of land for this purpose. Municipalities could provide leased land for, say, 60 or more years for free.
An innovative solution would be to create a specific housing bond to fund the development of laneway or carriage housing on privately owned property in exchange for a commitment to maintain below market rents for a set period (i.e. five years). This could leverage the $40K forgivable loan through the BC Housing Secondary Suite Incentive Program that applies to renovations and new construction.
Another possibility is that in the case of strip mall re-development and/or the development of workforce housing a percentage of new units could be used for limited period to help address this problem.
Besides determining an acceptable bond rate and preferred term(s) the community engagement program will gauge community interest and support for affordable housing solutions like the Secondary Suite Incentive Program from BC Housing.
Solutions
Recent research has shown that 2/3 of Vancouverites are comfortable with new, mixed use, mixed-income, multi-family developments.
A combination of community housing trusts, land trusts, non-profit housing development corporations, social housing providers and workplace housing initiatives will benefit from single source, below market funding and a shared logistical/financial set of tools and procedures to scale approaches to ‘Building Solutions to the Housing Crisis’.
Housing Continuum
Affordable Rental and Affordable Homeownership
A key principle for affordable housing development is that a primary focus be on affordable rental (as defined by the 30% rule to be deemed affordable) but projects can include deep rental subsidy, near-market, and market rental as well as market sales as part of the mix. A key concept includes affordable homeownership (AHO) achieved through a covenant on the property where if someone purchases a home at a discounted rate (i.e. 35-50% below market) they have to sell it at the same discounted rate.
Private developers generally make between 16-20% on development costs and sometimes +25 %. The market requires a new player, the Non-Profit Housing Developer (NPHD) that will be key in creating a secondary housing market. Besides removing profit from the equation additional cost reductions can be achieved through reduced DCCs/Permit costs, negotiated fee reductions from professionals (architects, engineers) and through contract negotiations with constructors and sub-trades for materials and labour. Marketing costs can be significantly reduced due to the highly attractive nature of affordable housing. Additionally, affordable housing projects are eligible for significant density bonuses that can be translated into more affordable housing.
Land Trusts and Perpetual Covenants
In developments where the land can be brought in at zero costs housing affordability can be dramatically increased. Land trusts and perpetual covenants on deeds will guarantee affordability for future generations. What is needed is a market solution that allows low/mid income earners to enter an overheated market and begin building equity. This is not social housing; this is market housing where the difference between the market price and the discounted price is held by a trust or covenant holder.
Workplace Housing and Co-development
Businesses in Vancouver are having a difficult time attracting and keeping talent. It is simply too expensive to buy or even rent in Metro Vancouver. One solution is for NPHDs to partner with companies whose management and staff are in need of affordable housing. Solutions can include affordable rental and covenanted affordable homeownership.
Another batch of low hanging fruit are older strip malls that could be parlayed into new community developments that not only would revitalize the property but provide opportunities for delivering affordable housing. This is where some innovative tax strategies would come into play to offset capital gains exposure by donating a portion of land to an affordable housing provider.
ADUs, Laneway Homes and Secondary Suites
BC Housing has launched an innovative program ‘Secondary Suites Incentive Program’that offers homeowners a $40,000 forgivable loan to create a secondary suite or Laneway home on their property in return for a five year commitment to rent it out at (proscribed) affordable rates.
Housing Continuum
Canada’s social housing system is stagnant with hundreds of thousands on waiting lists. Demand far exceeds supply and so when someone is fortunate enough to secure a unit they stay put.
With only 7% of purpose built rentals being affordable for the lowest income earners and 54% of lowest income earners paying more than 30% of their income on rent the only way to address this situation is to build more purpose-built, affordable rental property while creating a means for low and moderate income individuals and families a means to enter the housing (equity) market and build for the future.
Creating movement along the housing continuum is essential and affordable homeownership (AHO) can get things moving for when someone moves from a subsidized unit into an AHO unit that creates space for someone to move up on the waiting list or to move into a subsidized unit from a supportive housing unit which in turn provides a supportive space for someone in transitional/temporary housing or a homeless person.
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Canada is ready for a solution: A recent survey conducted by the Haskayne School of Business at the University of Calgary for Vancouver Native Housing Society revealed that there is market acceptance for mixed-use, multi-family, mixed-income developments in Metro Vancouver. Two-thirds of respondents were comfortable with new types of developments in their neighbourhood.
ADU Advocacy
ADU manufacturers face several key challenges that hinder their ability to scale up and meet growing demand:
Capital Investment Barriers
Scaling ADU production requires significant upfront capital for facilities, equipment, and workforce expansion. Many manufacturers struggle to secure the necessary financing to increase capacity.
Demand Inconsistency
The ADU market experiences fluctuations in demand due to changing regulations, economic conditions, and consumer preferences. This unpredictability makes it difficult for manufacturers to plan production and maintain consistent operations.
Regulatory and Logistical Hurdles
Varying local zoning laws, building codes, and permitting processes across jurisdictions create complexity for ADU manufacturers. Transportation and on-site assembly logistics also pose challenges.
Market Perception Issues
Some potential customers still view prefab/modular ADUs as lower quality compared to traditional construction. Overcoming this perception requires education and demonstration of value.
Specialized Expertise Needs
Designing and producing ADUs at scale requires specialized knowledge in areas like modular construction techniques, transportation logistics, and local code compliance. Finding and retaining skilled workers can be difficult.
Four Pillars’ Advocacy Strategy
To help ADU manufacturers overcome these obstacles, Four Pillars is focusing on the following initiatives:
1. Securing consistent demand through partnerships with non-profit housing developers and homeowners
2. Advocating for streamlined regulations and standardized approvals via the REALTOR™ network
3. Educating stakeholders on the benefits of modular ADU construction
4. Lobbying for government and private investment in the ADU industry
5. Proposing demonstration projects like an “ADU mall” to showcase designs
6. Exploring repurposing of closed sawmills as ADU production facilities
7. Researching community bond financing for “Made in BC” ADU manufacturing
By addressing these key areas, Four Pillars aims to position modular ADU manufacturers for growth and enable them to play a larger role in tackling housing shortages and affordability issues.
