T.R.C.A. - Sustainable Communities Committee - Oct. 14, 2005

The Committee received a presentation by Jamie James Environmental Consultant, Tridel as to their initiatives with regards to green building strategies for high rise residential development. In light of the fact that condominium high rises have the highest energy usage due to common spaces etc. Mr. James identified a number of strategies that Tridel has been investigating to be incorporated in 6 new buildings in the GTA. Their goal is to receive LEED certification as well as a reduction in 25% of energy usage. Initiatives involve energy efficient appliances, motion activated lighting as well as selecting materials etc. to meet the goal. By reducing the energy use in these buildings it is estimated that 3500 tons of carbon dioxide will be avoided annually which would equal 750 cars being removed from the road. Tridel feels that the market is receptive to these initiatives and will provide information in their sales office regarding the energy efficient initiatives so that buyers can compare with other buildings. The savings in energy costs will benefit the consumer, however it creates higher capital costs to the developer. They have devised a method of dealing with these incremental costs without raising the purchase price. The developer will pay the increased costs during construction. Upon occupancy of the building the Toronto Atmospheric Fund will finance the increased costs which the condominium corporation will repay over a 7 year period. It is expected that the savings in energy costs will more than offset the loan payment. Tridel are talking to major banks to enlighten the large financial institutions regarding mechanisms that can assist developers to build green buildings.

Regional Council - Oct. 26, 2005

Pay Assurance

A motion requesting staff to prepare a clause that would be included in subdivision agreements whereby the Region would hold letters of credit posted by the developer in order to ensure payment to water and sewer contractors was defeated on a recorded vote of 13 to 10 with 5 absent. A Notice of Motion was received that this issue be reconsidered at the next meeting.

Advice from the Commissioner of Finance state that it is staff’s opinion that the intent of pay assurance does not serve any mandated function or core responsibilities of the Region and that there are potential increased administrative costs. Legal advice from the Regional Solicitor outlined the potential risk of placing the Region as a third party to contractual agreements between contractors and developers. Treasurers from local municipalities do not support pay assurance for similar reasons and there is concern that if the Region were to set precedent by including this clause in their agreements pressure would then be placed on local municipalities to do likewise.

Affordable Housing Program

The Region supported in principle to participate in the Affordable Housing program in order to secure Durham’s allocation of $11.2 million for 160 rental housing units and $2.35 million for housing allowance units subject to release of the details of the program and conducting a business case analysis.

In August of 2005 the federal and provincial governments announced changes to program criteria for the Canada Ontario Affordable Housing Program. Programs have been developed to assist with funding for the development of construction of new affordable housing, and housing allowances for existing market units.

In new capital construction the province will now match federal funding. The combined contributions amounting to an average of $70,000.00 per unit are to achieve a rent that must be 20% or less of the CMHC market rent. The Province has indicated that indemnification requirements will be addressed with a more balanced risk sharing between participating Service Managers (Region) and the Province. The new program requires that property tax units created under the program be set at the single residential rate. Other municipal contributions while encouraged are not mandatory.

The housing allowance program is a federally funded initiative that will help offset market rent changes in private or non profit rental units for a period of up to five years, Participating landlords will be selected through an open competitive process. Funding will be flowed directly to landlords based on agreements between the landlords and the Service Manager. Service Managers are asked to develop a target plan to provide 10% of the housing allowance units to victims of domestic violence. Service managers are also encouraged to consider targeting recipients of Ontario Works or Ontario Disability Support Program. It is expected that an exit strategy will be developed for tenants housed through this program.

Currently over 4000 people are on the waiting list for affordable housing in Durham. Durham has been identified as one of twelve high need communities. The funding allocations have been based on a formula based on the percentage of households meeting the Canada Mortgage and Housing Corporation’s "core need criteria." This measure considers the number of households paying more than 30% of their income for housing costs and households living in inadequate, overcrowded or unsuitable living conditions.. Population growth has also been factored into the formula to recognize communities like Durham who anticipate significant growth.