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AFFORDABLE
HOUSING
STRATEGY
City of Fredericton
Affordable Housing Strategy
Final Draft: 05/30/2022
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T A B L E O F C O N T E N T S
INTRODUCTION
4
STRATEGY APPROACH
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2.1 Principles & Goals
7
2.2 Objectives
8
RECOMMENDATIONS
3.1 Improve Municipal Housing Expertise, Policy,and Regulation
10
3.2 Seed and Grow the Community Housing Sector
15
3.3 Establish a Mission-Driven Housing Entity
19
3.4 Advocacy & Partnerships
26
IMPLEMENTATION
29
APPENDIX
31
5.1 Mission Driven Housing Entity Case Studies
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1.INTRODUCTION
A growing number
of households
who used to be
adequately served
by the housing
market, but are
now unable to find
affordable housing
as their incomes
have not kept pace
with prices.
1 INTRODUCTION
Origin
In fall of 2021 the Greater Fredericton Housing Needs Assessment was released. The report tied together the results
of extensive data analysis, community survey responses, stakeholder consultation, and collaboration with municipal
staff and the Affordable Housing Committee to describe recent trends and current conditions across the housing
ecosystem. At a high level, the assessment identified numerous housing challenges, characterised by:
» A pace of housing construction that had lagged growth in population
» A tightening in the rental housing market making apartments hard to find, and pushing up rents
» A lack of non-market alternatives for those no longer able to afford market-rate options
» A sudden and significant increase in demand for owner-occupied housing resulting from the complex impacts of
the COVID-19 pandemic
» Longstanding rates of core housing need among renters, especially households led by single parents, Indigenous
people, and many other households living on limited income for various reasons
» An improving but still insufficient housing response to homelessness, partly bottlenecked by insufficient
transitional housing to help people move on from crisis shelter to longer-term solutions
» A deficit of social-purpose housing such as domestic abuse shelters or long-term supportive housing for those
with special needs
The Three Crises
While housing issues have become prominent in the media and around kitchen tables across the country, there
is much confusion and oversimplification of what is happening. For some in Fredericton, housing affordability and
availability are sudden and alarming challenges, for others they are a deepening of familiar struggles which have
persisted for a much longer time. In summary, the assessment describes three housing crises in Fredericton:
A decades-long
crisis of core
need, particularly
among renters and
heavily impacting
those earning
below-average
incomes or in
need of housing
with other support
services attached.
An increasing number
of households seeing
themselves as vulnerable
for the first time or
concerned about
declining quality of
life as housing options
available to them
become less abundant,
or further into the future
than they had planned.
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C I T Y O F F R E D E R I C T O N A F F O R D A B L E H O U S I N G S T R A T E G Y
1.INTRODUCTION
Strategy Development
This strategy was developed by a consulting team
working in collaboration with municipal staff following
the completion of the needs assessment in late 2021.
Its recommendations are informed by the findings of
the assessment, additional precedent and best practice
research undertaken for this project, and the general
experience and expertise of the consulting team.
Additionally, recommendations were sourced, tested,
and refined through a public engagement program
including several workshops held with key community
stakeholders, facilitated discussions with individuals
who have experienced homelessness, direct interviews
with numerous housing developers and operators in
both the for-profit and non-profit sectors, and a final
review survey for the general public.
What to Expect
Communities across Canada are experiencing housing
challenges, and for many of the same reasons at
play in Fredericton. Housing is local, but it is heavily
affected by national and international factors which
are beyond the ability of local government to control.
As a result, it cannot be expected that full and
successful implementation of this strategy's
recommendations will solve Fredericton's housing
challenges completely, or quickly.
Similarly, this strategy recognises that the existing
approach to affordable housing provision, which relies
heavily on the private sector to provide dwellings as
a spinoff of market-rate development projects, has
not been successful in responding to growing housing
needs. This approach will become even more inadequate
as market conditions continue to put pressure on the
affordability of older housing stock, and construction
cost trends make it more difficult for new development
projects to deliver lower priced dwellings. The private
sector has an important role to play, especially as
a resource of expertise and experience in housing
provision, but the reality is that Fredericton's most
severe and long-standing housing challenges require a
non-market solution.
The housing affordability challenges we experience
today have built up over many years, and truly
addressing them will require concerted efforts
over a long period of time. Housing does not get built
quickly and much upfront work is required before
shovels hit the ground. This does not suggest that taking
action is futile, quite the opposite in fact. The solutions
will take time to implement and have an effect, and it is
therefore critical to get those processes started as
soon as possible.
The hope for this strategy is to chart a new course that
leads Fredericton to a more inclusive and affordable
housing ecosystem over the long-term, while enabling
the community to do what it can in the short-term
to improve housing availability and affordability, to
minimise the impact of continuing challenges and
forces beyond its control. Though there is much that
Fredericton can do to improve housing outcomes for the
community, it ultimately cannot fully solve these issues
given its expertise, fiscal capacity, and jurisdictional
constraints. Therefore, an important strategic benefit
of this Plan is also to help Fredericton take greater
advantage of opportunities and supports from higher
levels of government as they change their
responses as well.
The best time to plant a tree was
20 years ago. The second-best
time is today.
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2.STRATEGY APPROACH
2 STRATEGY APPROACH
Housing policy is complex, and housing strategies
at the local level vary depending on the types
of challenges they are addressing, as well as
the experience and capacity of the community
implementing them. Housing has become a prominent
local issue in Fredericton, but there is little existing
capacity or experience to build from as the municipality
has historically acted only in its role as a zoning
regulator, or supporter of others.
This strategy lays out a new vision for the
municipality's role, one that is more interventionist
and based on a stronger leadership position. This
means Fredericton is venturing into unfamiliar
territory and needs to be focussed on setting up
the conditions for long-term success to the same
degree it is focussed on achieving short-term
progress. Fredericton's role in this strategy does
not replace the role of the provincial or federal
governments - it is intended to compliment their
efforts. It also recognises and emphasises the role of
the community; including both community housing
organisations that will provide a broader spectrum
of housing types and tenures, as well as private
citizens who will have greater opportunity to expand
the housing options provided by their own properties.
With that in mind, this strategy was drafted with the
following priorities:
» Emphasis on initiatives that have potential to
actually move the needle
» Limit recommendations to a manageable number
that can be acted on quickly
» Clear and concise communication, with a focus
on action rather than explanation
Beyond these, the strategy approaches the issue of
housing affordability based on the following identified
Principles, Goals, and Objectives. These describe
the "big picture" of how Fredericton understands
the issues at play and the values that it should
maintain in its response. They are, by nature, general
statements. The recommendations of this strategy
describe the more concrete actions and outcomes
that flow from this understanding, and represent
how the Principles, Goals, and Objectives are carried
forward to outcomes.
Emphasis on initiatives that
have potential to actually
move the needle
Limit recommendations
to a manageable
number that can be
acted on quickly
Clear and concise
communication, with a
focus on action rather
than explanation
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OUR
APPROACH
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2.STRATEGY APPROACH
2.1 PRINCIPLES & GOALS
Perpetual Solutions
Housing affordability is not an issue
that can be solved once. It is the
outcome of a system, requiring an
ongoing effort to monitor trends
and respond to changing conditions
and challenges. This requires
long-term thinking and financial
models that are not subject to the
shifting whims of politics. Building
sustainable solutions is the best
way to ensure housing challenges
are effectively addressed now, and
managed proactively in the future.
Holistic Affordability
Affordability cannot be measured
only by the price of rent; it must
consider how housing options
influence the total cost of living
and quality of life. This means both
the cost of occupying the home in
terms of maintenance and utilities,
as well how its location affects
transportation costs, provides
access to economic opportunities,
and facilitates inclusion within a
broader community. Actions taken
under this strategy must maintain
this perspective of affordability.
Prioritise By Need
There are many different forms
of housing need in Fredericton.
While they are all deserving of a
response, they are not equal in the
length of time or depth to which
they affect households. Municipal
priorities and resources should be
allocated accordingly, which means
some forms of housing need will
receive more attention than others.
HOUSING
PRINCIPLES
A F F O R D A B L E
$
Direct Intervention
Municipalities are the closest and most accessible
level of government for citizens, and where
community concerns are heard first and most clearly.
There is a need now for Fredericton to go beyond
its historic role and directly intervene in the housing
ecosystem. This will ensure some action is taken,
and will position the community to more quickly
implement support from other levels of government if
and when it is provided.
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2.STRATEGY APPROACH
2.1 OBJECTIVES
Municipal Leadership, Capacity & Partnerships
The act of developing a housing strategy is pointless if it is not followed with action. To take action on these
issues, Fredericton will have to become comfortable with assuming a proactive and leading role while
continuing to support others working toward the same end goals. This requires both a cultural shift in the
municipality's own perception of its responsibilities for housing, and a shift in internal resources and capacity
to live up to those ambitions.
Building the Third Option
Housing in Fredericton is dominated by two sectors. The largest, by far, is the private sector which owns
and manages the majority of the existing housing inventory and is responsible for virtually all production
of new housing. The second largest is the public sector, including government provided social housing,
and government subsidised market housing. For a variety of reasons, the housing market has been moving
beyond the means of more and more Frederictonians. Traditional forms of government-provided housing
alternatives have not grown to address this need.
An alternative to both is needed. The community housing sector can provide this third option, filling the
growing gap between market and social housing. In the context of this strategy, community housing
refers to a broad variety of housing forms and tenures. At it's simplest, it includes non-market options
such as non-profit or co-operative housing that serve as more affordable alternatives to the market. It
also comprises more complex housing options that are targeted towards vulnerable populations and are
often combined with a social service delivery model, such as independent and empowering living options
for those with physical, mental, and intellectual disabilities, supportive housing for those living with
temporary or permanent social service needs, and crisis housing for those seeking protection from abuse or
homelessness. The Third Option provided by the community housing sector can come about through both the
activities of existing groups such as non-profit providers with improved support from government, as well as
from new entities with a more direct and enduring relationship to the municipality.
Maximizing the Market
The vast majority of housing in Fredericton is built and operated by the private sector, and is accessed
via the housing market. This housing is created through the entrepreneurial activity of the real estate
development industry, and despite worsening conditions in recent years, still adequately houses the majority
of citizens. It does this at minimal cost to taxpayers. Some housing issues in Fredericton require a non-
market solution, and the private sector's for-profit model of development is not the right tool to use in
these cases.
However, by ensuring the market accommodates as many citizens as it reasonably can the scale of issues
that must be addressed with other means is minimised. Actions that improve the ability of the housing
market to respond to growing demand, lower the viable price of new development, and relieve pressure on
existing lower-priced housing stock, will generally assist non-market housing projects that are subject to
the same policies and regulations, and will make the process of addressing other housing challenges more
manageable overall.
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STRATEGY APPROACH
Adopting an Affordability Lens
All matters of public policy and governance involve trade-offs and compromises. Housing affordability
has been a long-standing challenge for some, but only in recent years has it emerged as a prominent
community-wide concern. As a result, municipal policy making has historically paid little attention to
affordability as one of the priorities to be balanced, and less weight has been given to those concerns
relative to other goals.
Several recommendations of this strategy are based on the idea of examining existing policies and processes
with more consideration given to their impact on housing affordability. These highlight the importance of
placing a higher priority on housing affordability and the housing needs of future residents across all areas
of municipal policy development going forward. It also highlights the need to adopt a more definitive and
expansive language to define what is "affordable" which includes varying tiers of affordability which can then
be matched to the appropriate intensity of incentives and regulations.
Beyond the specific recommendations of this strategy, Fredericton must work to include a housing
affordability lens across many areas of current and incoming municipal operations and policy. Beyond
the planning office, there are implications for housing affordability in building inspection, fire protection,
engineering and operations, parks and recreation, as well as other looming priorities such as municipal
action on climate change and environmental protection. The municipality should be thorough and ruthless
in finding opportunities to support housing affordability in all areas of operation, and consider new policy
directions carefully to understand the compromises that may be inherent. Overall, the existing balance of
priorities must change in step with the needs of the community.
Reaffirming the Mayor's Task Force on Homelessness
In 2015, Fredericton adopted "Paving the Road Home", the final report of the Mayor's Task Force on
Homelessness. It contained a number of recommendations, resources, and next steps for implementing a
Housing First model for eliminating homelessness in Fredericton. This strategy recognises both the
progress that has been made to date, but also the challenges that have been experienced and work that
remains undone.
This strategy should be understood as complementary to Paving the Road Home; it does not replace this
report nor negate any courses of action already underway. Instead, it recognises this existing plan as the
best guidance regarding action on homelessness, and that current challenges relate more to execution
than planning. In many instances, this strategy builds on the ideas and solutions explored by the Mayor's
Task Force on Homelessness to address a broader spectrum of housing challenges. Success in eliminating
homelessness is part and parcel of success in addressing housing affordability writ large.
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3.RECOMMENDATIONS
3 RECOMMENDATIONS
The recommendations of this strategy are organised into four categories of action, starting with those most readily
implemented and closely related to existing powers and activities of the municipality:
The third category contains only a single recommendation, but is explored in detail as it is a significant undertaking
and is the centrepiece of this strategy. All other categories contain several recommendations which are described
more succinctly.
3.1 IMPROVE MUNICIPAL HOUSING EXPERTISE, POLICY, AND REGULATION
Anticipated growth and an unexpected increase in demand from both local and outside sources
have disrupted trends in Fredericton with respect to the overall need for housing and the
processes by which it is built. Vacancy rates in the rental market have been declining for several
years, and now sit at 1.3% which is driving rapid increases in rents. Owner-occupied housing has
very recently experienced a boom in buyer demand during the pandemic which is also driving
up market prices. Both trends have left the industry scrambling to ramp up housing production,
while also being squeezed by escalating costs for material and labour. The municipality has a
significant role in directing the location and form of housing that can be created, and governing
the processes by which it is approved, but it is not used to playing this role in the context of a
sustained housing crisis that has rearranged public priorities.
CONNECTION TO THE NEEDS ASSESSMENT
Growing the community
housing sector overall
by helping existing groups
scale up, seeding
new capacity,and
supporting projects.
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Creating an entity to take
the lead in creating and
maintaining a portfolio of
non-market housing
throughout Fredericton
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Advocating with other community and to higher levels of government to keep the profile
of housing issues high, make more tools and resources available in the future, and push for
actions the municipality cannot directly implement.
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Improving municipal
capacity and policy to
support more
affordable housing
across all sectors.
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3.RECOMMENDATIONS
WHY?
As Fredericton takes a greater role in addressing
housing issues, additional capacity and expertise
is required in the form of a dedicated staff
position. This will be crucial for implementing
the strategy over the short and long term. It
will also improve the municipality's ability to
integrate housing expertise into other areas
of policy development, engage stakeholders
and other governments on housing issues, and
monitor housing conditions in the community
going forward.
RECOMMENDATION #1
Add dedicated capacity within the
municipality for housing matters
HOW?
Housing matters cannot effectively be handled by
tasking existing staff with additional responsibilities.
An Affordable Housing Development Specialist staff
position is required to undertake a number of roles and
support the municipality by providing housing-specific
expertise. This position should be action-oriented, and
requires a practitioner's perspective as the ultimate
goal is to support the creation of new affordable
housing units through any available channel; the
mission-driven entity, the community housing sector,
and the broader housing industry.
DETAILS:
The Affordable Housing Development Specialist
position will focus on;
» Implementing the Affordable Housing Strategy overall
and playing a direct role in many of its specific
recommendations.
» Working directly with housing project proponents to
identify and coordinate support, and otherwise assist
them in delivering affordable housing units in whatever
form they may take.
» Maintaining strong connections with groups across
the housing ecosystem to continuously monitor
and understand issues and trends affecting housing
construction and operation.
» Evaluating outcomes of the strategy as different ideas
are tested and as broader conditions evolve, to identify
necessary changes and improvements over time.
» Undertaking regular data collection, stakeholder
engagement, and other research to keep senior staff
and Council apprised of housing conditions throughout
Fredericton.
» Assisting other municipal departments and staff in
considering housing affordability in their areas of
responsibility to put an affordability lens on all major
areas of municipal operation.
The position will support housing initiatives in
Fredericton by;
» First and foremost, taking an action-based approach
to affordable housing. There are many existing and
proposed venues for discussion, engagement, and
collaboration between stakeholders; this position must
focus on connecting those dots and driving actual
outcomes.
» Possessing and expanding knowledge of housing
subject matter, including various forms of housing
development and ownership structures, housing policy
research and tools, and key contacts within other
organisations.
» Developing a comprehensive understanding of various
funding programs (federal, provincial, municipal, and
third-party), and familiarity with their application
process and evaluation criteria to inform policy
development and maximise the financial support to
housing projects in Fredericton.
» Being a champion for housing issues in Fredericton
and leading partnership and advocacy discussions as
it's representative.
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3.RECOMMENDATIONS
WHY?
Currently, "affordable housing" is defined in the
zoning bylaw as dwellings built under provincial
or federal Affordable Rental Housing Program.
This is too narrow as it excludes a number
of other potential pathways to the creation
of affordable units, as well as strategies that
make use of existing housing. This limits the
effectiveness of other tools, such as density
bonusing, which rely on it to qualify the
applicability of policies.
Additionally, the Zoning Bylaw regulates
"occupancy" through several clauses which
describe the number of persons allowed in
a dwelling based on their relationships to
each other. This approach impacts those
in the growing number of non-traditional
family structures, larger multi-generational
households, as well as those who simply
desire the ability to share shelter costs over
RECOMMENDATION #2
Revise inflexible or outdated
Zoning Bylaw definitions
a larger number of roommates. These clauses are
unnecessary as occupancy is already regulated
through the building code, and therefore duplicate
this regulatory approach. They also venture into
questionable legal territory as planning regulations are
meant to govern land uses and structures, not people.
HOW?
The definition should be broadened either by
specifically including a wider suite of affordable
housing arrangements in the definition itself, or by
making the wording more open-ended to allow for
greater flexibility and discretion. Consideration should
be given to developing multiple sub-definitions to
cover differing levels of affordability which would
allow for objective evaluation of affordability and
help align incentives with benefits. Definitions around
occupancy should be removed from the Zoning Bylaw
all together.
DETAILS:
» Include projects that achieve affordability through
program supports (funding, financing, or in-kind)
offered at the federal and municipal level, as well as
from third-parties such as the Federation of Canadian
Municipalities or philanthropic organisations.
» Include units operated on a non-profit basis or in other
forms of tenure such as co-operative, regardless of
funding supports or specific agreements.
» To allow for targeting of more intensive policy support,
add a definition specific to dwellings which offer
deeply affordable prices (e.g. affordable at minimum
wage, rent-geared-to-income, or at a substantial
discount to median market rent) or are reserved for
vulnerable populations and those with special needs.
Potential price-based definitions could be;
» Attainable Housing: Dwelling units owned by
community or non-market entities (e.g. co-operative,
non-profit) regardless of price, or otherwise offered at
a price set at 10% below market rates, for at least 15
years.
» Affordable Housing: Dwelling units offered at prices
that reflect 30% of gross household income for those
earning 85% of median income for the area, for at
least 15 years.
» Deeply Affordable Housing: Dwelling units offered on
the basis of rent geared to income (RGI) where prices
are set at 30% of household gross income, for at least
15 years.
» Remove occupancy definitions and rely on the
building code to regulate occupancy for health and
safety purposes, and enforcement other bylaws (i.e.
noise, property condition) to manage nuisances that
occupancy restriction are often intended to address.
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3.RECOMMENDATIONS
WHY?
Planning policy and regulation often has to balance
many competing priorities, and over recent
decades the cost of new development has not
been highly prioritised in that process. Given the
housing conditions in the community, the public
interest has shifted and a new balance should be
considered. Increasing the number of opportunities
for additional housing throughout Fredericton,
and reducing barriers and risk to approvals will
expand the amount and variety of housing options
available, as well as increase competition with
the markets for development land and residential
housing. This will help improve housing availability
and mitigate price escalation. Strategically reducing
project requirements, whether in the design of
the project itself or in the approval process it
undergoes, can lower the cost of development for
any housing provider and make it possible to create
new housing units at a lower price to occupants.
RECOMMENDATION #3
Review and amend Zoning Bylaw regulations
to enable more and faster housing
HOW?
Increasing the variety of housing projects can be achieved
through a combination of broad but modest density
increases, as well as more substantial changes in key
targeted areas. Lowering the minimum feasible price of
new housing can be supported by increasing the use of
as-of-right approval processes, eliminating unnecessary
complexity and duplicated approval requirements, and
providing greater flexibility in areas that can be major
cost-drivers, such as on-site parking, building design
guidelines, or engineering requirements. Direct municipal
costs on new development, such as permit application
fees, are likely of limited potential as these are already
low in Fredericton. These types of fees are currently
waived for projects addressing homelessness, and while
there is no harm in providing similar benefits to a broader
range of affordable housing projects, this is more of a
symbolic support than something that will materially
impact housing affordability.
DETAILS:
Improve housing availability and development rates, and
lower cost barriers to new housing by:
» Removing limitations on basement apartments and
allow 2 dwelling units as the lowest maximum density
across Fredericton.
» Allowing 4 to 6 units as the lowest maximum density in
broad sub-areas of the city, such as within areas of the
North and South Urban Core and City Centre.
» Permitting more than one main building on a lot in
urban mixed-use nodes.
» Reviewing areas of Fredericton, such as major transit
corridors or centres close to services and amenities,
for opportunities to significantly increase permitted
densities and move approvals from discretionary to
non-discretionary processes.
» Especially where growth is happening as intended in the
municipal plan, actively seek out and reduce application
requirements for site specific studies which do not
provide meaningful insight (i.e. traffic impact studies in
areas intended for densified redevelopment).
» Conducting ongoing consultation with housing providers
across all sectors to identify duplicated or overly
burdensome process requirements for opportunities to
reduce regulatory overhead and cost reduction.
» Conducting regular consultation with building
development, design, and construction professionals
to identify and adjust other regulatory requirements
when necessary to reduce unnecessary cost- drivers
(e.g. overly aggressive on-site parking requirements)
and enable new construction methods or materials
(i.e. slight adjustments to maximum building heights
in order to allow the same number of building storeys
when using construction methods that require larger
floor thicknesses).
» Advocate for similar changes to other levels of
government when identified burdens fall within their
jurisdiction.
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3.RECOMMENDATIONS
WHY?
Density bonusing and Inclusionary Zoning are two
of the few local planning policy tools available to
the municipality that can lead to direct provision
and support for affordable housing. In the case
of Inclusionary Zoning, this tool has only recently
been enabled by the Province, and additional
regulations are required. Further, a number of major
municipalities in New Brunswick are working together
to examine various Inclusionary Zoning approaches
to better understand how they can be successfully
implemented in the local context.
Density Bonusing requires public benefits (including
but not limited to affordable housing) in exchange for
higher density in a project, and can therefore create
a net benefit for new development if well designed.
Inclusionary Zoning is simply a regulation that requires
a certain proportion of dwelling units in a project
to be provided at a below-market price, and does
not automatically provide any offsetting incentive.
Together, they can form a "carrot and stick"approach
to generating affordable housing support through the
activities of the for-profit development sector.
RECOMMENDATION #4
Develop a coordinated approach to Density
Bonusing and Inclusionary Zoning
HOW?
These policies are not viable as a main source
of affordable housing creation, but they can
be a helpful support if properly designed and
implemented. Density Bonusing should be used
most extensively, with Inclusionary Zoning
viewed primarily as a tool to support housing
availability rather than affordability.
A review of the current Density Bonusing policy
should be undertaken to find ways to increase its
output with respect to new affordable housing.
Following the already-planned examination of
Inclusionary Zoning, develop a policy approach
that applies this tool in areas where affordable
and mixed-income housing is lacking, but
opportunities to add this housing through other
means are limited. To minimise the risk of
unintended consequences for housing production,
Inclusionary Zoning should be coordinated with
other policy adjustments that can provide an
offsetting benefit.
(e.g. in the downtown core where land
ownership and existing development limit
options for a community housing project).
DETAILS:
The current Density Bonusing policy should be reviewed to:
» determine whether the current policy is attractive
to developers given changing market trends and
construction costs.
» look for ways to increase the impact of this policy by
increasing its effect in areas it already applies, and
expanding its application to new areas.
» review the public benefits required in exchange for
added density with an eye for directing more of its
effect toward affordable housing by making it a required
component of any public benefit package.
» Allowing 4 to 6 units as the lowest maximum density in
broad sub-areas of the city, such as within areas of the
North and South Urban Core and City Centre.
» Where affordable housing is provided under a public
benefits package, adding the option to collect equivalent
cash-in-lieu will provide flexibility for projects where
directly delivering affordable housing is challenging,
and can be a valuable revenue source to fund other
initiatives of the strategy.
i
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3.RECOMMENDATIONS
Details regarding the use of Inclusionary Zoning are
premature, however best practice research recognises
that Inclusionary Zoning can be made more effective
when other incentives are coordinated around it to
offset its cost impacts. In particular, coordinating
significant upzoning or property tax relief with
application of IZ requirements can mitigate its negative
effect on development feasibility, and potentially enable
more aggressive policy.
» In formulating future Inclusionary Zoning requirements,
include flexibility so that it can be selectively withheld
in cases where projects support affordability under
other initiatives of this strategy and would be rendered
infeasible if required to meet it (e.g. co-operative
housing projects).
3.2 SEED AND GROW THE COMMUNITY HOUSING SECTOR
A broad spectrum of vulnerable households were identified as underserved in the Needs
Assessment; those experiencing homelessness or transitioning out of it, those requiring housing
in combination with support services to heal from abuse, addictions, or illnesses, those requiring
specific design and location considerations to accommodate physical and intellectual needs, as
well as those who simply require prioritisation for more affordable options such as the urban
indigenous population or single parent families. The community housing sector currently provides
for many of these needs, but not all, and not to an adequate degree. It is eager to do more, but
requires support to achieve those aspirations.
CONNECTION TO THE NEEDS ASSESSMENT
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3.RECOMMENDATIONS
WHY?
To encourage more housing options in Fredericton there
needs to be a variety of groups pursuing more community
housing projects. However, as senior government funding
support for community housing projects has been limited
for decades, there is currently a lack of capacity in this
sector in terms of the number of active groups, and the
ability of existing groups to grow. By providing resources
and supports, Fredericton can help expand the sector and
increase its footprint in the housing inventory.
RECOMMENDATION #5
Help seed and support community
housing organisations
HOW?
Help jump-start the growth of community
housing groups and the deepening of
connections between them, develop resource
materials to provide guidance, provide direct
support or funding to assess organisational
growth potential, and provide support
capacity through staff and the Affordable
Housing Committee to test ideas and give
early advice.
DETAILS:
» Host events to encourage networking and connections
between existing community housing provides as well
as individuals interested in getting involved or forming
new groups.
» Create guidance documents to provide information on
different approaches to community housing (e.g. co-
operative, non-profit) and the practical steps required to
establish one in the Fredericton context.
» Provide grant funding to assist existing community
housing groups with evaluating their growth potential
from an organisational and asset-base perspective.
» Subsequently, retool funding support to assist with
early start-up costs for newly formed housing groups.
» Provide navigation support to help groups identify and
access other funding programs which support further
capacity building.
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3.RECOMMENDATIONS
WHY?
Both new and existing community housing organisations
typically do not have significant or recent experience with
the process of building new housing. Funding support
exists for predevelopment activities, but often this is
not available at very early stages of project conception.
For existing programs, competition from other Canadian
regions with more active community housing sectors
limits the funding that ultimately makes it to the local
community. Further, a high level of understanding greatly
assists groups in making the best use of predevelopment
funding support when it becomes available. Once a
concept is identified, an early review from experienced
eyes can help housing groups understand the possibilities
and limitations of their project, speed up its evolution from
idea to reality, and set it up for success in the next steps of
the predevelopment process. All of this will help increase
RECOMMENDATION #6
Incubate and accelerate
community housing projects
the amount of housing support funding
flowing into Fredericton by increasing the
number and quality of project applications,
and improving their win rate.
HOW?
A graduated predevelopment support
program would help community housing
projects make the transition from an
initial idea to a potential project that can
submit strong applications to other funding
programs and make the best use of those
funds when received. Projects would go
through a coordinated process that provides
more significant levels of support as projects
become more refined and realistic.
DETAILS:
» Make municipal staff with housing, planning,
engineering, and design expertise available to provide
guidance on project site characteristics, project
concepts, development processes, and potential
funding opportunities.
» When ready, bring project concepts to the Affordable
Housing Committee for further review and peer
support.
» As determined by the Committee, provide qualified
projects with access to additional expertise by creating
an industry mentor network of individuals with
experience in residential development and operations
(including associated professions such as architecture
or construction), and matching them with potential
projects for further review, advice, and coaching.
» When ready, provide municipal staff assistance to
confirm relevant funding programs and assist in the
application process.
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3.RECOMMENDATIONS
WHY?
There are currently a number of programs at the
provincial and federal levels to support the development
and construction of affordable housing projects, but very
little support exists to acquire a project site in the first
place. This can create a significant barrier as would-be
affordable housing proponents often lack the resources,
experience, and carrying capacity required to secure a
project site and hold it through the lengthy development
period. By reducing barriers to site control and acquisition,
Fredericton can greatly increase the potential for
housing groups to secure and maximise other sources of
project funding, as well as enhance the uptake of other
recommendations made under this strategy.
HOW?
Municipalities are often owners of underutilised land and
have the ability to acquire real estate through voluntary
transactions and expropriation. While Fredericton has
a limited amount of surplus land immediately available
for housing purposes, it can review its holdings to
identify new opportunities, as well as introduce housing
development as a potential use of the municipality's
Strategic Land Fund.
By reviewing existing land holdings and strategically
acquiring new property, Fredericton can create suitable
RECOMMENDATION #7
Kick-start projects
through provision of land
development sites which in turn can be
provided to the mission-driven housing entity,
or other community or affordable housing
proponents to carry forward. The approach
on the municipality's side should be tactical
and focussed on the short to medium term.
It should look for opportunities to create
attractive development sites quickly, rather
than engage in long-term land assembly.
The goal should be to undertake this activity
on a cost-neutral basis over the long term,
focussing on mixed-income projects or
those serving diverse needs, and recognising
that there may be lengthy periods between
acquiring a site and ultimately being
reimbursed by a project proponent when
their access to other funding is secured.
The municipality could consider providing
sites at or below-market cost on a case-
specific basis in instances where it feels the
public value of a project warrants it. Further,
land could also be provided in exchange for
project equity where the potential benefits
are overwhelming and there is a reasonable
likelihood of being able to remove that equity
at an appropriate point in the future.
DETAILS:
» Review existing unused land holdings and undeveloped
lands held for future public purposes, such as
undeveloped park lands, for their suitability as potential
housing sites.
» Review developed properties, such as municipal
facilities, to identify underutilised lands which could
be dedicated to housing without impacting the current
function of the property.
» As they come up for sale, acquire properties that are
well located and suitable for a housing project, or are
strategically located to add to existing holdings.
» Look for opportunities to include lands for housing as a
secondary outcome to acquisition programs for other
municipal purposes, or when collaborating with senior
levels of government when they are engaged in site
acquisitions (e.g. new schools). Immediate potential
opportunities include the NBEX lands, lands on Cliffe
St., and Cuffman St. adjacent to the school.
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3.RECOMMENDATIONS
» When senior levels of government approach the
municipality in their process of selling surplus land,
review and evaluate the potential acquisition from a
housing perspective.
» In extenuating circumstances, consider all tools
available to acquire critical lands or address constraints
such as land title conflicts.
» Connect project sites with the mission-driven housing
entity or other potential housing proponents either as
coordinated through the project incubation process,
or via an open tender with accompanying affordability
requirements.
3.3 SEED AND GROW THE COMMUNITY HOUSING SECTOR
Many issues identified in the Needs Assessment stem from the lack of options other than market-
rate housing or the limited inventory of government-run social housing. Core Housing Need was
experienced by 24% of all renters across the Greater Fredericton Area, and there was a waitlist
for social housing units that represented 129% of the entire stock. With price pressure increasing
in the lower-cost end of the private housing market, more and more Frederictonians are finding
themselves vulnerable in a way they never were before, leading them to doubt their future in the
community. Overall, 29% of survey respondents in the Needs Assessment indicated they were
considering leaving due to housing-related issues, with a much higher proportion reported by
those in their 20s. A sizable inventory of housing that is not subject to market forces is needed to
provide a stable alternative.
CONNECTION TO THE NEEDS ASSESSMENT
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3.RECOMMENDATIONS
The Municipal Plan outlines eight Community
Goals which describe the vision for the community
Fredericton wants to be. Two goals -- Welcoming
and Supportive, and Complete Neighbourhoods and
Distinctive Places -- speak directly to the need for
affordable housing choices for residents regardless of
their income. Housing that is affordable for residents is
integral to the health and sustainability of any city and
directly affects its livability and economic growth.
Developing and sustaining quality affordable housing
is not simple and rarely occurs naturally in growing
cities. Housing development requires careful planning
and ongoing attention to ensure there is adequate
housing for all household incomes and sizes. While
high-to-mid income households normally find suitable
housing in the private sector, affordable housing for
demographics with lower incomes requires dedicated
providers, on-going support, and strategic alignment
of public and private resources. Typically, affordable
housing provision for the most vulnerable in society
has been championed by community housing service
providers. Such organisations play a vital role in the
housing ecosystem and their housing stock is an
invaluable asset to any city.
Housing affordability is a growing issue nationally.
This was recognized federally with the creation of
the National Housing Strategy (NHS) and subsequent
provincial bi-lateral agreements to increase the supply
of affordable housing in communities across the
country. Although traditionally a provincial mandate1,
the past few decades has seen an emergence of
municipal leaders in the housing sector2. Municipalities
have an array of planning tools and incentives
at their disposal to encourage affordable housing
development and preservation that can be
established through new bylaws and plan revisions.
1 During the devolution of housing from the federal government to provinces in the late 1990's, some provinces transferred the responsibility of housing to municipalities. Housing remains
the responsibility of most provinces in Canada.
2 This varies province to province, housing entities in British Columbia such as the Capital Region District in Greater Victoria or Metro Vancouver Housing in British Columbia have been in
operation since before the 1970s.
3 Moncton's Community Implementation Plan for Affordable Housing. (2019). https://www5.moncton.ca/docs/Implementation_Plan_Affordable_Housing.PDF
However, given the current housing crisis, cities are
acknowledging the need for bold action to address a
growing problem. In addition to municipal tools and
incentives, an emerging model has been to establish
a municipally-supported housing entity tasked with
increasing the supply of a quality affordable housing
stock. Such entities across the country sit at different
levels of government and are structured to provide a
variety of services given the community need. Rather
than a service provider -- who are typically focused
on providing client services to a specific demographic,
such as women and children fleeing domestic violence
-- a housing entity focuses on the expertise and
resources needed to develop and sustain affordable
housing for diverse households.
The City of Fredericton does not need to look far
for inspiration. In 2020 Moncton City Council voted
to allocate $6 million to Rising Tide Community
Initiative (RTCI) over a three-year period to create
125 affordable housing units. This came in response
to one of the six goals in the Moncton's Community
Implementation Plan for Affordable Housing (2019)
to 'Increase the supply of affordable, adaptable, and
inclusive housing options in Moncton'. To achieve this,
the plan commits to creating a business case for a
housing entity in Moncton with 'the core mandate
of stimulating the development and sustainability
of affordable housing throughout the City' (p.19)3.
Following Council's bold commitment to RTCI, it was
then doubled by the province and supported by the
federal government.
RECOMMENDATION #8
Establish a Mission-
Driven Housing Entity
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3.RECOMMENDATIONS
Establishing a Housing Entity
Before establishing a housing entity, several variables should be considered including funding, structure, powers, and
eligible activities. It is likely the case that many of these factors will be better understood as a result of the municipality
initiating or implementing other recommendations of this strategy first. This includes exploring whether the entity
should be created from scratch, or built-up from an existing housing group or partnership. Governments should also
identify the relationship a housing entity will have to municipal government and where the organisation should be
placed. Local legislation may affect the structure of a housing entity, degrees of separation, and permitted activities.
This can range from establishing a housing entity within government, such as the Non-Profit Housing Division in St.
John's Newfoundland1, to the Ottawa Community Housing Corporation which operates at an arm's length from the
City of Ottawa2. Where the housing entity ultimately sits will influence its powers to act independently and how it is
perceived by the public. In a competitive real estate market, it is crucial that the entity has adequate financial resources
and is able to make effective and timely decisions -- notably related to real estate financing, revenue generation,
and partnerships.
The housing entity should be seen as a permanent contribution to housing affordability in Fredericton; a body intended
to grow with the city and it's changing population rather than a short-term Band-Aid. Working in unison with the
existing Fredericton Growth Strategy, a long-term comprehensive plan would guide the housing entity to address
housing market gaps. In such a model, a local housing entity provides a dignified alternative to the bottom end of the
market and is less reliant on other levels of government or the private sector. Entity independence includes:
Withstanding changing political agendas and annual budget reviews, and focusing on increasing affordable housing
supply that is financially self-sufficient.
Agency to make financial decisions, such as leveraging assets, and responding to market conditions.
Ability to enter into partnerships with all levels of government, the private and non-profit sector.
The Local Governance Act3 (the Act) does not have any direct language around housing powers of the municipality. The
municipality is able to enter into a partnership with a senior level of government for acquisition or development of land
for housing purposes, however this doesn't give full independence for the municipality to act freely. Natural Person
Powers may provide the municipality justification to establish various structures and relationships for a housing entity
that meets Fredericton's needs. The Act lists various Municipal Purposes of local government, including to "develop
and maintain safe and viable communities" and "foster the economic, social and environmental well-being of its
community"4. It would be reasonable to suggest a housing entity whose mandate is to provide quality and sustainable
affordable housing for residents would contribute to this end and be consistent with the purpose of a local government.
Furthermore, the Act goes on to state the powers of a local government should be interpreted broadly to provide
comprehensive authority so that Council may respond to issues and govern as appropriate. A local government may
also establish a corporation to acquire or hold securities to undertake economic development activities. In the context
of local and national trends in housing costs, the ability to offer affordable housing for all is a competitive economic
advantage which will support population growth, entrepreneurship, and generate savings for other municipal and
provincial services.
1 Case Study: www.stjohns.ca/living-st-johns/city-services/non-profit-housing
2 Case Study: www.och-lco.ca/
3 Local Governance Act, SNB 2017, c 18, canlii.ca/t/54wq1> retrieved on 2022-01-14
4 www.canlii.org/en/nb/laws/stat/snb-2017-c-18/182961/snb-2017-c-18.html
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3.RECOMMENDATIONS
There are pros for both establishing a housing entity within government or at an arm's length; the decision varies
from municipality to municipality.
An essential first step for any municipality is developing a business plan for the entity which maps out and establishes
many of the key considerations, including funding, anticipated activities and growth strategy. Developing a business
plan would be at the direction of Council.
Housing Entity Within Government
Housing Entity At-Arm's Length
-
Lending capacity of the
municipality.
-
Direct access to municipal
expertise and resources (staff,
technology)
-
Integrated within municipal
decisions and policies
-
Leverage power as a government
authority
-
Ability to leverage public assets
-
Make independent decisions from
municipality
-
Flexibility to respond quickly to
real estate opportunities
-
Integrated with the community
housing sector
-
Ability to enter into partnerships
-
Develop capacity independent
from political agendas
Activities
The housing entity would be focused on developing a sustainable affordable housing stock that addresses current
needs while steadily growing to adapt to demographic changes. This would include a range of activities such as
purchasing existing housing, new development, conversion, and rehabilitation.
The growth path, including unit sizes, location, and affordable rent levels should be guided by the Housing Needs
Assessment (2021) and Fredericton's Growth Strategy. The city is intended to accommodate projected growth --
bringing the population to over 90,000 residents -- throughout the urban core and four new identified residential
neighbourhoods. The housing entity functions should operate in harmony with this strategy and work to accomplish
these objectives.
To be financially sustainable, the housing entity must either secure operating subsidies from government or operate a
mixed-income portfolio. One of six priorities of CMHC's National Housing Strategy is economic sustainability. Applicants
are responsible to demonstrate how their project will remain sustainably viable while practicing responsible property
management including contributing to a healthy reserve fund and accounting for vacancy loss and bad debt. Unless
the project has a committed government operating agreement, there must be a mixed-income portfolio so the project
is self-sufficient with a positive net operating income. The City of Fredericton could adapt a similar approach when
considering local projects to ensure viability. However, it is important to stress the housing entity will require start-up
and core funding for some time before it becomes self-sufficient.
In the short-term, special consideration could be given to acquiring existing affordable housing units in the private
market rather than new construction. Acquisition of older existing properties, typically owned by small landlords with
low to moderate rent, is a reoccurring threat to the availability of low-cost housing in the private market. As market
value increases, smaller landlords are likely to sell to capitalize on the profit. Investors make capital improvements to
the building and gradually increase rents to improve the cash flow and rate of return. Affordable units are typically lost
in this transaction as purchasers renovate units and increase rents or demolish the existing asset altogether.
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3.RECOMMENDATIONS
Lower-end of market units serve a vital purpose, it represents the vast majority of low-cost housing in the community,
but these buildings are vulnerable to market conditions. Most cities do not have a public or non-profit housing sector
that is positioned to absorb hundreds of households that are displaced from the private sector, so it is imperative this
housing stock in the low-cost end of the private market is maintained.
Not only does purchasing existing units in the market save affordable units from being demolished or renovated, it
immediately creates a housing stock for the housing entity in both an efficient and cost-effective way. Acquisition
avoids the time associated with new construction and the growing costs at approximately ~ $250,000 - $300,000 a unit
(and likely to rise with increasing supply issues due to Covid-19).
New Construction
Acquisition
6 units at $300,000 per unit:
6 x $300,000 = $1,800,000
6 units roughly $125,000 per unit:
6 x $100,000 = $750,000
FUNDS
TAXES
FEES
ADDITIONAL
General fund
Capital improvement
project fund
Public benefit fund
Density bonusing
Document recording tax
Property transfer tax
Hotel occupancy tax
Permit fee
Local impact fee
Developer fee
Condominium
conversion fee
Rent revenue
Investments
Consultancy
Government grants/
Operating Agreements
A housing entity must also consider how the portfolio is managed and operated. This will determine what staff is
needed and where partnerships with the non-profit and private sector is beneficial.
Funding
To ensure the housing entity is a sustained and permanent organisation, it requires a commitment of on-going funding.
This means funding that is not subject to annual review and changing government interests. Funding for housing
entities can come from an array of sources. For on-going operations, municipal housing entities typically have at least
one fixed source of income committed to meet annual funding targets (in addition to rental revenue) that is no longer
subject to annual revision, such as the operating agreements for the Ottawa Housing Corporation. The Tofino Housing
Corporation receives annual project revenue through an agreement for Municipal and Regional District Tax funds.
Additional funding streams can always be added through annual review as activities expand and demand increases.
Examples of common government sources include:
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3.RECOMMENDATIONS
There may be many other resources or support mechanism that the municipality can use to establish the entity. For
example, the City of Fredericton has significant unused borrowing capacity which represents an opportunity to finance
housing projects for the housing entity as a contribution from the municipality. For start-up, the borrowing power
should be in addition to an operating agreement as the new entity will require immediate cash flow (staff wages, office,
pre-development work, etc.).
A municipal housing entity also has the opportunity to leverage funding from different levels of government, such
as with RTCI in Moncton and many municipal housing corporations in British Columbia from BC Housing. Given
that government partnership is a common eligibility criterion for several funding programs, including the NHS Co-
Investment Fund and the Community Housing Transformation Center, an application from a municipal entity would be
well suited. New construction projects can strategically stack various programs limiting investment as some financing
programs can go as high as 95%1. By accessing other funding programs, the housing entity can seek to extend their
equity among several projects. Centretown Citizens Ottawa Corporation (CCOC) was able to strategically capitalized on
opportunities from all levels of government to expand their stock since the 1970's. Today the CCOC owns and operates
over 1600 units.
The degree of affordability a housing entity can provide -- at least at the beginning -- hinges heavily on operating
agreements secured from government. Although the long-term goal could be a mixed-income portfolio that is
independently sustainable, operational funding is required from the onset to get the entity up and running. The more
financial support, the greater the level of affordability, and the faster an entity can scale and achieve self sufficiency.
Stakeholder Engagement
The Housing Entity should work in collaboration with the existing community housing sector and integrate the existing
knowledge and expertise. Ultimately, all affordable housing providers are working towards the same goal to house
those most vulnerable in society. Similar to CCOC or the plans of RTCI in Moncton, the housing entity could pursue
opportunities to partner with existing community housing and service providers to maximize skillsets and expertise.
Traditionally in many areas across the province, providers are specialists in social services but do not have real-estate
development and property management expertise. A partnership with a housing entity focused on housing supply
would allow social service providers to focus on their clients and expertise to provide wrap around supports. This can
include developing partnerships with local agencies to support individuals with mental illness, physical disabilities, and
addictions. This could also be expanded, working with groups representing vulnerable populations in an advocacy role
rather than service provision, to integrate their needs into the Entity's own projects; for example providing distributed
housing opportunities across the Entity's portfolio as an inclusive alternative to congregate living. Some housing
entities sign master leases with service providers who support a specific demographic such as women and children,
immigrants, and Indigenous Peoples. Although each master lease is different, typically the service agency takes on
responsibility for the building and tenants and pays a monthly rental amount to the property owner (housing entity).
The design of a housing entity for the City of Fredericton should consider the community housing sector and partners
including the private sector. Support and collaboration from various partners will be integral to its success. Housing
providers within this sector have been operating for decades and have invaluable expertise and knowledge that should
be integrated into the housing entity and its functions. At a minimum, these stakeholders should include the Fredericton
Non-Profit Housing Corporation and New Brunswick Non-Profit Housing Association, the John Howard Society, the
Fredericton Association for Community Living, the Co-operative Housing Federation, Skigin-Elnoog Housing Corporation,
United Way Housing First, Habitat for Humanity, and Fredericton Homeless Shelters.
1 High levels of affordability, energy efficiency, and accessibility must be attained in projects to receive a 95% loan-to-cost.
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3.RECOMMENDATIONS
Next Steps
As a first step, a costed business plan needs to be developed that outlines the immediate and long-term objectives, and
the functioning of the housing entity, such as mandate, policies and procedures, financial accountabilities and reporting,
staffing, etc.
Short-Term Activities
» Develop a business plan for the housing entity, with thorough costing.
» Determine whether the entity should be created from scratch, or by reforming or partnering with an existing organisation.
» Determine where the housing entity will be placed (legislative power), and what relationship it will have to government.
» Determine the most suitable activities for a housing entity to take on in the City of Fredericton.
» Identify on-going sources of funding that can be committed to the housing entity.
Once established, there may be several long-term objectives the City may want to consider for the housing entity to
extend beyond initial activities. Long-term considerations could include:
Long-Term Considerations
» Explore potential partnerships with existing community housing sector groups where there is a mutual benefit in having
the entity assume ownership or stewardship of their real estate assets.
» Collaboration with social service providers to assist with property they currently own, or provide the housing necessary
for their service delivery model.
» Potentially take over the community housing sector support roles from Fredericton (as outlined in Section 3.2) and
provide enhanced services to the sector as the entity's capacity and resources grow (e.g., seed funding grants, consulting
services).
» Identify diverse streams of revenue for the entity to enhance its stability and permanence.
» Undertake expanded mixed-market housing development to generate profits that can cross subsidise other dwellings in
the portfolio, or support faster portfolio growth.
Case Studies
While not common, the establishment of these types of housing entities is not unprecedented. A selection of case
studies can be found in the appendix.
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3.RECOMMENDATIONS
3.4 ADVOCACY & PARTNERSHIPS
Funding support is critical to most housing solutions and is generally the role of senior levels of
government who look for communities to bring options forward. Many important aspects of both
market and non-market housing are not within local jurisdiction to affect, and require advocacy
to those with power to bring positive change. The forms of housing in most critical need, such as
transitional housing, often require a complex partnership between multiple parties and levels of
government to bring all the pieces together. Housing issues can also have significant impacts or
benefits to other areas of government service provision, such as healthcare, social supports, and
justice. The Needs Assessment survey identified numerous ways in which households' interaction
with their community and other government services were negatively affected by housing
availability and affordability challenges.
CONNECTION TO THE NEEDS ASSESSMENT
Renters in Fredericton are far more likely than owners
to experience housing need, and despite recent
changes, property taxes still disproportionately affect
rental-tenured housing due to provincial property tax
exemptions for owner-occupiers. This significantly
higher tax burden limits the overall supply of rental
housing, provides a significant source of cost-pressure
on housing operators, and can help accelerate the loss
of older more affordable market-rate housing units
when the market gets tighter. This inequitable tax
treatment of housing based on tenure is a well-known
issue, and Fredericton should advocate for its reform
as a long-term approach to improving the market
supply of rental housing.
The economic feasibility of rental housing is heavily
influenced by the operating costs it is expected to
have. As a result, the ability to discount recurring
expenses, like property tax, can be a powerful
incentive to combine with affordable housing policy
requirements. Municipalities in New Brunswick have
limited ability to modify the property tax structure
in their communities or offer targeted discounts
and credits. Fredericton should advocate for greater
flexibility and precision in levying taxes on residential
property, for example, the ability to classify a tax
designation specifically for affordable or community
housing properties that could be used to apply lower
tax rates, or for undeveloped building lots which
are currently treated to the full combined municipal
and provincial rates, limiting the supply of shovel-
ready housing sites. Where possible, connecting tax
advantages to an affordable housing obligation or
policy, such as Inclusionary Zoning, would give the
municipality a significant ability to incentivise their
effect with virtually no direct impact to budgets.
RECOMMENDATION #9
Advocate for property tax reform
and request tax-related policy tools
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3.RECOMMENDATIONS
Housing is officially provincial jurisdiction in New
Brunswick so it is reasonable for the Provincial
government to support actions taken by local
government on issues of housing affordability,
especially in the context of a significant and sustained
housing crisis. As Fredericton acts on this strategy,
it should seek all opportunities to invite provincial
collaboration and funding support. This is particularly
important with regards to the establishment of a
mission-driven housing entity as this is a long-term
initiative which is greatly helped by a reliable funding
stream, and can easily accelerate its progress if well
funded early on. There are many communities across
the province engaged in local housing issues, including
Moncton and Saint John. Fredericton should continue
to partner with municipalities across the province
and look for ways to more strongly coordinate their
combined advocacy efforts for greater provincial
support on local housing initiatives.
Greater financial support directly to community
housing projects is crucial. While there are a number
of funding programs available to assist with housing
projects, they often present coordination issues for
community housing proponents. Using these resources
creates a need to manage different, and sometimes
conflicting, timelines and milestones for when various
pools of money are unlocked and paid out. As a result,
community housing projects can fail despite having
substantial funding potential, because they cannot
overcome cashflow issues during periods where funds
are not yet unlocked. The ability to easily and quickly
access cheap, short-term financial support in order to
smooth out cashflow and sustain project development
through lean phases would significantly improve the
success rate of affordable and community housing
projects, but it is not a form of support that can be
provided at the municipal level. Fredericton should
advocate for the Province to provide this support
instead.
More broadly, Fredericton should partner with
other municipalities and the Province to explore
the possibility of reforming the existing approach to
allocating grant and subsidy programs for affordable
housing. Currently, individual project proponents
apply and negotiate with the Province on a case-by-
case basis to secure affordable units in market-rate
housing projects. This approach can result in low
program uptake as it introduces an additional approval
process into the project which is uncoordinated with
planning and building approvals, is unpredictable
and opaque for applicants, and generally takes too
long relative to other project development timelines.
As the form of government closest to the creation
of new housing, municipalities could play a more
direct function in securing affordable housing through
provincial programs. For example, if given committed
funding and dwelling unit quotas from the Province,
municipalities could take over the role of project-
specific negotiations as an integrated part of the
development approvals process.
Request financial support
from the Province
RECOMMENDATION #10
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RECOMMENDATIONS
Current provincial legislation provides few tools for municipalities to use in support of affordable housing
development. The only municipal housing agreements currently permitted by New Brunswick legislation are those
between municipalities and senior levels of government. This limits Fredericton in its ability to offer incentives
and apply other policies strategically in exchange for affordable housing because there is no tool available to
enforce affordability requirements going forward. This is not the case across Canada, for example Section 483
of British Columbia's Local Government Act enables municipalities to enter into housing agreements with private
parties which give them the ability to define how housing is provided in terms of tenure, price, management, and
reservation of dwelling units for identified classes of persons.
The provincial government maintains jurisdiction over residential tenancies. Renter households have been
disproportionately impacted by housing need for decades, and are the most impacted by current escalation
of costs in the housing market. Longstanding issues, such as discriminatory leasing practices which exclude
households with children, keep vulnerable populations in housing insecurity. Though some positive actions have
recently been taken by the Province, the ongoing housing shortage has amplified the impact on households
and undoubtedly plays a role in the increasing rate of homelessness. Fredericton should advocate for greater
renter protections to address these challenges in the short term, and engage with tenant advocates and housing
providers continually over time to advocate for further changes to tenancies legislation and processes that
improve the stability and security of housing for renters and those that manage rental housing.
Request legislative changes to enable
affordability agreements with private parties.
RECOMMENDATION #11
Advocate for enhanced
renter protections.
RECOMMENDATION #12
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4.Implementation
Given conditions across the province and country, many municipalities are exploring and engaging with housing
issues at the local level. Collaboration with other municipalities has already been suggested on some specific
recommendations, but Fredericton should regularly engage and partner with other communities to share insights,
identify issues, work together on solutions, and advocate more forcefully to senior levels
of government.
At the time of writing, the City of Moncton has an affordable housing plan and is working on its implementation,
the City of Fredericton is finishing its strategy, and the City of Saint John is starting to develop its own. These
communities should engage with each other frequently to identify opportunities to combine efforts. For example,
the idea of a rental registry to track available vacancies for renters and provide better market information to the
municipality was identified during stakeholder consultation for this strategy. Such a system is not feasible at the
scale of Fredericton, but Moncton's 2019 affordable housing plan calls for the creation of a similar database, and
Saint John's forthcoming plan may as well. Together, such a resource may become feasible, or with combined
advocacy, a New Brunswick-wide system may be established in collaboration with the provincial government.
Collaborate with other
municipalities on shared priorities
RECOMMENDATION #13
4 IMPLEMENTATION
In addition to the specific recommendations of this strategy, there are several factors to keep in mind overall as the
municipality moves forward with successful implementation:
Stakeholder Consultation & Further Analysis
These recommendations are a starting point, but most require additional information and consultation to finalise their
details and move to implementation. Additional consultation on housing issues generally, and on specific initiatives
of the strategy is expected and required for effective outcomes. For example, the early stages of establishing a
housing entity should include outreach to similar existing groups in Canada to gain a detailed understanding of the
opportunities and challenges, and help identify the best path forward. Consultation with local community housing
groups is required to flesh out the details of various support initiatives envisioned for that sector. Development
industry stakeholders can provide valuable insights into specific incentive programs or policy or regulatory changes.
And overall, public engagement and additional analysis and expertise from consultants will likely be required to
support reviews of existing policy tools, and the design of newly enabled ones.
Advocate, Educate, Champion & Defend
Solutions take time to work so there needs to be a sustained public support for their implementation over the long
term. Beyond the specifics of this strategy, Fredericton should seek to maintain an active dialogue about housing
issues in the community, and provide resources to inform the community on the necessity and benefits of affordable
housing. As the municipality designs and implements various initiatives, there is likely to be concern or opposition
from various parties. Within the context of a fair and democratic process, Fredericton should actively champion and
defend the affordable housing initiatives it undertakes.
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4.Implementation
Be Mindful of Overhead
Creating and maintaining housing is a complex activity, and affordable housing projects are more complex due to
the number of funding arrangements and partnerships involved. As Fredericton seeks to improve affordable housing
outcomes, it should make a point to minimise the additional overhead its interventions create for all housing providers.
In particular, the duplication of application or approval requirements is a common challenge for projects, taking
attention and resources away from core development activities. Fredericton should always look for opportunities to
rely on material that has already been prepared, or approvals provided under other programs, in rendering its own
decisions. Overall, the intent should be to minimise the burden on those working to improve housing affordability and
availability in the city.
Similarly, housing providers often find themselves in a challenging situation where multiple support programs are
available, but require some manner of existing support as a risk-management strategy. This creates frustrating
catch-22 situations where funding support from multiple programs is withheld from a project because no one wants
to be the "first money in". To the maximum extent possible, Fredericton should not hold the approval or participation
of others as a prerequisite for its own interventions. In supporting initiatives and projects on their merits alone, the
municipality can even help alleviate these challenges by being the initial demonstration of support that unlocks others.
Prioritization
This strategy provides a targeted list of recommendations that together form a coordinated approach to supporting
affordable housing in Fredericton. It is not a laundry list of pro-housing ideas, and therefore implementation of all
recommendations is important. However, some recommendations must be acted on first to support those that follow,
and some are more important than others in terms of their impact. To guide the order of operations and decisions on
resourcing, the following table provides a high-level overview of each recommendation's impact in the short term, and
the scale of contribution it will make towards an affordable housing ecosystem in Fredericton over the long term.
RECOMMENDATION
SHORT TERM IMPACT
LONG TERM IMPACT
#1 Add Staff Position
HIGH
HIGH
#2 Revise Bylaw Definitions
MEDIUM
LOW
#3 Regulations to Enable More & Faster Housing
LOW
MEDIUM
#4 Density Bonusing & Inclusionary Zoning
LOW
MEDIUM
#5 Support Community Housing Organisations
LOW
HIGH
#6 Support Community Housing Projects
MEDIUM
MEDIUM
#7 Provide Land
MEDIUM
LOW
#8 Housing Entity
LOW
HIGH
#9 Property Tax Changes & Tools
HIGH
MEDIUM
#10 Request Financial Support
HIGH
HIGH
#11 Legislative Changes for Affordability Agreements
LOW
MEDIUM
#12 Enhanced Renter Protections
HIGH
MEDIUM
#13 Collaborate with Other Municipalities
LOW
LOW
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5.APPENDIX
Monitor Conditions and Strategy Progress
It is important to monitor the initiatives of this strategy for progress, successes, and challenges as they are
undertaken. It is also important to monitor conditions in the housing ecosystem over time as the strategy is
implemented. This will allow staff and Council to monitor the effectiveness of their efforts, and identify when
adjustments are required due to changing conditions or unforeseen issues. This will also keep the municipality
accountable to the public and demonstrate the value of its efforts.
Monitoring activities can be undertaken by the dedicated housing staff position, and should include reporting of
measurable program outcomes and other housing data (e.g. CMHC Rental Market Survey) alongside the current
practice of reporting development permit statistics.
The municipality should plan to update its housing needs assessment, ideally scheduled to correspond closely to the
release of new data. This would suggest a complete reassessment in the fall of 2027 to account for insights from
the 2026 census, and perhaps an abbreviated update to the current needs assessment in the next 2 years to provide
updated figures from the 2021 Census on key metrics like projected population growth and rates of core housing need.
Overall, the timing of updates is less important than ensuring the updates happen in the first place. To encourage
a systematic approach, review and update of the needs assessment and housing strategy should be connected to
broader planning processes, such as reviews of the Municipal Plan. In establishing the requirements to undertake
municipal housing needs assessments, the Province of British Columbia directed that they be updated on a 5-year
cycle, and crucially, linked the ability to update official community plans to the existence of an up-to-date assessment.
5 APPENDIX
In addition to the specific recommendations of this strategy, there are several factors to keep in mind overall as the
municipality moves forward with successful implementation:
5.1 MISSION-DRIVEN HOUSING ENTITY CASE STUDIES
The formation of a municipally-associated housing entity for the purposes of developing affordable housing options is not
unprecedented. A few examples are provided below to highlight existing organisations that reflect the end goal of this
recommendation and illustrate the variety of structures and financial models that exist for consideration in Fredericton.
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5.APPENDIX
ORGANIZATION
RISING TIDE COMMUNITY INITIATIVE INC. (MONCTON)
Website
TBD
Age
0
Governance
One non-profit established in 2020 as a result of the Community Action Plan for Affordable Housing.
Partners for establishment included: Moncton business community; Greater Moncton Homelessness
Steering Committee Harmonized Assessment Review Team.
Volunteer Board of Directors
Main Activities
Supply 160 in the next three years (2023) through renovations (acquisition) or new construction
Funding
Municipality: $6,000,000 - from reserves and/or delay of capital projects as approved by Council
Province: $6,000,000
Federal government: $3,400,000
Comments
Moncton Community Implementation Plan for Affordable Housing (2019) lists 'preparing a business
case for the establishment of a Moncton housing entity with a core mandate of stimulating the
development and sustainability of affordable housing throughout the City' as an action.
Moncton received $45,000 from the Community Housing Transformation Centre Local Project Stream
to establish the governance framework for Rising Tide Community Initiative.
Rising Tides plans to partner with community service providers such as the YWCA and Harvest House
to provide on-site supports for tenants.
ORGANIZATION
CITY OF ST. JOHN'S NON-PROFIT HOUSING DIVISION
Website
www.stjohns.ca/living-st-johns/city-services/non-profit-housing
Age
40 years, created in 1982
Governance
Division of the municipal government
Main Activities
Responsible for the management of 476 residential rental units throughout the city. Houses and
apartments vary in size from one to four-bedroom units and are available for rent to low-income
earners based on family net income.
Funding
Municipal Capital and Operating: approximately $12.7 million allocated for operation,
maintenance, and administration in Budget 2021.
Comments
Partners with other levels of government to access land and develop affordable housing.
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5.APPENDIX
ORGANIZATION
OTTAWA COMMUNITY HOUSING CORPORATION (OCH)
Website
www.och-lco.ca
Age
20 years, formed in the 2000s, amalgamation of two organisations, City Living and Ottawa
Housing Corporation
Governance
Arm's-length organisation owned by the City of Ottawa. The City of Ottawa is the sole shareholder in
OCH. Organisation has a BOD comprised of city Mayor and Councillors, and community representatives
Main Activities
Be a leader in providing safe and affordable homes to enable OCH tenants to fully participate in
the socio-economic opportunities of the City.
Supplies approximately 15,000 homes to over 32,000 tenants.
Funding
Subsidies and grants represent 42% of total OCH revenue. Rental income represents 53% of total
revenue.
In 2008 OCH signed Operating agreement with the City of Ottawa to stabilize operational budget.
In 2021 capital reserve constructions were an estimated $14.9 million. $14 million was
contributed by the City of Ottawa (stipulated in operating agreement).
Comments
Second largest social housing provider in Ontario.
In 2002 Council voted to transfer assets from City Living to what is today known as OHC to transition
to a single City-owned housing corporation. Through the Ontario Business Corporations Act the City
through unanimous shareholder agreement can direct the OCH board. It is the cities sole publicly-
owned housing corporation. A shareholder document between PHC and the City of Ottawa clearly
defines both parties' relationship to each other.
ORGANIZATION
TOFINO HOUSING CORPORATION (THC)
Website
https://tofinohousingcorp.ca
Age
Incorporated in 2005, but dissolved in 2012. Reinstated in 2017
Governance
Private corporation owned in full by the District of Tofino
Main Activities
Housing development, funding, communications, advocacy.
Funding
The THC receives annual project revenues from the District through an agreement for Municipal
and Regional District Tax funds. The amount is in the range of $250,000 to $275,000. Additional
revenue comes from government grants and loans. The THC business model currently also
depends on District-owned land donated to the THC for housing.
Comments
The THC is owned and controlled by the district. The majority of their Board of Directors are comprised
of District representatives, but at an arm's length from Council. After 7 years, the district dissolved the
THC in 2012 due to lack of progress and activity.
Current business model:
- THC - land steward/housing facilitator
- Catalyst Community Developments Society - third party, non-profit housing developer
Most developments are still supported largely by BC Housing capital grants. Tofino is building their
rental portfolio, but is also focused on affordable ownership.
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5.APPENDIX
City of Fredericton
397 Queen Street
Fredericton NB E3B 1B5
506-460-2020
[email protected]
www.fredericton.ca