Habitat for Humanity Hamilton’s proposal finds inspiration in an initiative led by the organization’s counterpart in Waterloo Region. Housing Now, a partnership with private builders, involves roughly 1,000 affordable homes, 70 per cent ownership and 30 per cent rental, on 25 acres of donated municipal land.
City of Waterloo
Priced-out Hamilton residents could see 2,400 new affordable homes built on city land, thanks to two new major proposals from local non-profit groups aiming to tackle the housing crisis.
Hamilton is Home, a coalition of affordable housing providers, envisions 2,200 rental and ownership units in a mixed-income community near transit services.
It would cover the “full spectrum” of affordability in a range of housing types, save for single-detached homes, says Graham Cubitt, chair of the alliance.
“It’s functionally building a small village,” said Cubitt, who’s also director of projects and development for Indwell, a local non-profit that builds affordable and supportive housing.
City lands have been discussed as example properties, but no site has been nailed down yet, he said, noting the 2,200 count is a “placeholder” that could change.
“It’s a generic enough proposal that can work on any municipal lands where we could find the quantity in the sense of opportunity.”
Habitat for Humanity Hamilton, meanwhile, wants to build 200 homes to help people break into the ownership market.
“Habitat Hamilton has only finished 50 homes in our history, so to me the impact is huge,” CEO Sean Ferris said.
Both proposals are highlighted in an annual update by the city’s housing secretariat that’s before councillors Wednesday.
The secretariat is tasked with evaluating funding applications allocating financial support, including land, to housing providers.
The Habitat proposal finds inspiration in an initiative led by the organization’s counterpart in Waterloo Region.
Housing Now, a partnership with private builders, involves roughly 1,000 affordable homes — 70 per cent ownership and 30 per cent rental — on 25 acres of donated municipal land.
In Hamilton, Habitat plans to build condos in mid-rise buildings, Ferris noted.
Donated city land, waived development charges and a private builder paid to cover costs, but not realize profits, are the mechanisms to cut home prices by at least half.
Now is an optimal time to pursue the project with developers struggling through a severe downturn in the market for new homes, Ferris said.
“Their staff gets paid and they get to deliver some meaningful housing. They’re also creating the next generation of their customer base by getting people into ownership and giving them an opportunity to build equity.”
That results in a “win-win for all involved,” Ferris said.
A steady rise in home prices over the years, despite recent dips, has put ownership out of reach for many in Hamilton.
In September, the average home price in Hamilton was $753,300, with corresponding monthly mortgage payments of $3,857, Ratehub.ca reports in its latest analysis.
That would demand a household income of $158,550, factoring in a mortgage rate of 4.47 per cent and a stress test rate of 6.47 per cent.
Ferris describes the Habitat homes as “workforce housing,” noting nurses, teachers and other middle-class earners are increasingly stretched to buy in Hamilton.
Habitat hasn’t yet established the eligibility criteria for the project, Ferris said.
The secretariat report notes “two viable” city-owned sites “have been identified,” but doesn’t specify their locations.
Coun. Ted McMeekin, a fan of the Waterloo approach, says the model appropriately involves collaboration, including private builders.
“So I’m keen,” he said. “It’s a good model.”
Rents in Hamilton have also climbed significantly in recent years, eroding affordability.
A Canadian Centre for Policy Alternatives report in September noted a local resident needs to earn $26.16 per hour, or about $60,652 a year — to comfortably rent a one-bedroom apartment in the city.
In October, the average rent for one-bedroom apartments and condos in Hamilton was $1,799, according to Rentals.ca.
The Hamilton is Home proposal also takes a page from a project in another Ontario city, the secretariat report says. In London, coalition member Indwell is a partner in a nearly 700-unit mixed-income redevelopment of former hospital lands.
The Hamilton proposal overlaps with the federal government’s move to a revamped national housing strategy led by a new agency called Build Canada Homes, set up with an initial $13-billion to spend on residential developments.
So far, the approach includes developing housing on federal land with a focus on 4,000 “factory-built” homes on six sites in Ottawa, Toronto, Winnipeg, Edmonton, Longueuil, Que., and Dartmouth, N.S.
Cubitt noted Build Canada Homes prioritizes larger developments or co-ordinated portfolios of projects, signalling a need to “scale up” plans.
“So I think the city is looking at its land resources to see how those might be positioned so that community housing could attract federal investment in new ways.”
The joint proposal is in addition to projects Hamilton is Home already has on the go.
For instance, the coalition says its members can deliver roughly 1,300 affordable units across 19 projects in three years, depending on how Build Canada Homes unfolds.