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Is affordable housing on Hornby Island important to you?
Do you, your friends, your family or your employees need somewhere safe and secure to live?

The development at Beulah Creek, envisioned to create 26 units of affordable rentals for individuals, couples and families is set to do just that– but IT NEEDS YOUR HELP NOW.

WRITE A LETTER AND EXPRESS YOUR SUPPORT for this project and send it by mail or email to the addresses below. If you need ideas on what to write, I have attached a template.

Thank you for doing your part bringing affordable housing to Hornby!

Send a letter by mail:

BC Housing Chief Executive Officer, Shayne Ramsay sramsay@bchousing.org

Shayne Ramsay

CEO BC Housing

1701-4555 Kingsway

Burnaby, BC V5H 4V8

Send a letter by e-mail:

BC Housing Chief Executive Officer, Shayne Ramsay sramsay@bchousing.org

BC Housing Malcom McNaughton mmcnaughton@bchousing.org

BC Housing Kirsten Baillie kbaillie@bchousing.org

Mid-Island Pacific Rim MLA Josie Osborne josie.osborne.MLA@leg.bc.ca

HIHS hornbyislandhousing@gmail.com

cc:

Minister David Eby, Minister Responsible for Housing AG.minister@gov.bc.ca

Courtenay-Alberni MP Gord Johns gord.johns@parl.gc.ca

Hornby Island Local Trust Committee (Grant Scott, Alex Allen, Sue Ellen Fast) gscott@islandstrust.bc.ca aallen@islandstrust.bc.ca sfast@islandstrust.bc.ca northinfo@islandstrust.bc.ca

CVRD Director Daniel Arbour reachme@danielarbour.ca

M’akola Housing Society CEO- Kevin Albers – kalbers@makola.bc.ca

Beulah Creek Project Support Letter Template.docx

At a pre-meeting held before the Hornby Island Housing Society AGM on October 20^th, 2021, the team working on Beulah Creek gave a project update. Attending guests, via Zoom, were:

• Lindsay Monk and Graham Burns from M’akola Development Services, the project’s development consultants
• Kevin Albers from M’akola Housing Society, the organization that will take on the construction and operation of the Village
• Kirsten Baillie from BC Housing (BCH)
• Alan Fletcher from AFC, providing pre-construction services 

Sixty-two members of the Hornby community were also on the Zoom.

Lindsay Monk led the presentation. She described the work that has taken place on the project since the community open house last February 2021. She highlighted the site features and the challenges they present.

She explained that the current budget estimate creates an ongoing operating subsidy that is higher than BC Housing can support. A subsidy from BC Housing will be required because the projected rents will not be able to cover both the operating costs and the mortgage payments. Thus a subsidy will be needed for the duration of the 35-year mortgage period in order to keep the rents affordable.

The high cost of this project was described as due to a number of factors:

• the increase in material costs since the project was first costed
• the challenge of transporting materials and/or workers to the island
• the cost of the infrastructure on a very challenging site with a creek, wetlands and a high water table.
• the cost of the road building and site remediation due to the road cutting through a riparian area
• the cost of storm management requirements again due to the regulations regarding riparian areas

The guests from BCH and M’akola Housing all reaffirmed that they are committed to building affordable housing on the island and that they understand that the cost for doing so will be considerably higher than building elsewhere.  They believe strongly in people being able to live in their community and will do what they can to achieve that goal on Hornby.

The current construction plan under discussion is to build onsite using as much local labour as possible, as the cost building with pre-fabricated units was higher than anticipated.  M’akola, BCH and AFC are continuing to work collaboratively, and being as creative as possible, to reduce the costs of the project enough for it to meet BCH’s funding approval.

Once the budget is finalized, the project plan will be brought to the community, as part of the Development Permit process with Islands Trust, hopefully in early 2022.

 Question/Comments: 

Looks like this project is dead in the water, that the requirements from Island Health may have killed it.  What are the chances that this project will be underway within the next year?

Response:  Island Health is only one of the many agencies involved and all have requirements including BC Housing.  All of the projects that M’akola is working on are experiencing the same challenges with rising costs while trying to provide achievable, affordable and sustainable housing in their communities.   It was acknowledged that this is a tough situation given the constraints of the site and reaffirmed that all involved are committed to working on it.

Question/Comments: 

What is the percentage of the possibility of this project being started within the next year?

Response:

The budget considerations need to be resolved first and then the project can be brought to the Islands Trust in early 2022.  There are some processes that are outside the control of BCH and M’akola such as the approval process for the Development Permit and they will take as long as they take.

It is common that there are challenges with this scale of project.  The pre-fab construction was more expensive than anticipated and costs have been reduced by planning to use onsite building with local crews.  The local politicians are very supportive and all involved really want this to go ahead with the design that was presented to the community in the Spring.

     Question/Comments: 

How does the cost per unit compare to other projects?

     Response:

AFC estimates that it costs about 35% higher to build on Hornby than in the city due to the lack of infrastructure and the cost of transporting labour and materials to the island.  Some of that higher cost can be addressed through using local labor and the landing barge to transport materials.  The costs due to the challenges of the site itself are estimated at an additional $60,000 per unit.    

     Question/Comments: 

What makes up the soft costs? 

 Response;

Soft costs include the design consultants, inspectors, appraisals, civil engineering, environmental assessment and reports, surveying, BC Hydro, contingency, and the various permit fees.

Question/Comments: 

If the current Beulah Creek property were to be sold and if a similar property could be found that did not have all the infrastructure challenges, would our costs go down?

Response:

That option was considered but there would probably not be any savings at this point because of all the pre-development work that has been done.  There may be savings on the civil work, but those savings would be used to repeat all the pre-work that has been done for the current site.

Question/Comments: 

What is the highest cost per square foot that BCH has approved in the past?

Response:

The concern is not so much about the capital cost but the cost due to the operating subsidy that BCH will provide for the duration of the 35-year mortgage.  BCH is committed to developing on the islands but is experiencing funding pressures province-wide due to Covid 19, the rising cost of materials and the lack of availability of some materials.   BCH understands that a design that would work well in the city will not work here, nor do they want to do that.  At the same time, the costs have to be reduced further.  The team has done a great job already significantly reducing the original budget proposal.

The highest exact cost per square foot that BC Housing has approved is not known to us, however capital costs are unique to each project and community. The team is working to reduce the costs, while being mindful of the specific characteristics and complexities of the site and project, as well as the current building climate.

      Question/Comments: 

Is BCH likely to increase the budget at all?

     Response:

Although BCH has not formally committed to this project at this time, they have committed the Pre-Development costs which are significant.   BCH understands that the building costs have increased since the first proposal in 2018.   The project team is looking at other options to secure additional funding.  This will help to drive down the ongoing subsidy amount reducing the financial risk to BCH over the duration of the mortgage.

Question/Comments: 

How much over the acceptable BCH subsidy is the current cost?

Response:

The finances are complex as the project cost includes capital, soft and operational expenses including the ongoing subsidy from BCH for the duration of the mortgage.   Part of costing the project includes forecasting the mortgage interest rate.

The difference between where the subsidy is at the current cost of the project and where it needs to be is 20 to 25% over what BCH will approve.

Question:

If part of the project cost depends on forecasting the mortgage rate, are you waiting for a better time before taking out a mortgage?

Response:

The rate available for construction financing is one element; the take-out mortgage comes into play when the project is deemed completed and ready for occupancy. We are using rates forecasted by BC Housing.

Question/Comments: 

Who will cover the cost of the Pre-Development no interest loan if the project does not go ahead?

Response: 

The Pre-Development funding gets wrapped up into the mortgage. It would be at BC Housing’s discretion to forgive any Pre-Development funding if the project did not move ahead.

Question/Comments: 

I live in an apartment block now and it is wonderful.  The idea of single homes is expensive.  Apartment blocks can be good. Would the project team look at building an apartment block on the island?

Response:

We are trying to keep the flavor of the current design however, an apartment block would save money.  There is a community feel in the current design and that is preferred.  On a personal note, AFC just completed the new school and would love to continue with another project that is unique and interesting that adds to our community.

Not at this time.  There could come a time when there needs to be a hard conversation, maybe at some point, but not now.

 

 

 

2021 Hornby Island Housing Society AGM

President’s Report – JoAnn Harrison,  October 20, 2021

The Beulah Creek housing project continued to be a large focus of the work of the Board of Directors on behalf of the Society. [A summary of the Beulah Creek update that preceded the AGM will be posted in this blog.]

Through this fiscal year:

• The Islands Trust mapping had not been updated to match the R3A rezoning of the Beulah Creek site previously accomplished; our local Island trustees Alex and Grant and planner Heather Kauer expedited that housekeeping amendment to update the map from R3 to R3A. First and Second reading of bylaw 163 to amend the map was completed in June 2020, and Third reading in September 2020.
• A major focus was planning and implementing an agreement with M’akola Housing Society that would have that organization take on the responsibility for constructing and operating the future Beulah Creek Village. Through the summer of 2020 the Board developed a “Conditions of Offer” document to establish the terms of such an agreement. Director Angela Hudson, with her experience as Executive Director of St. Vincent de Paul Housing for Vancouver Island, was very valuable in that exercise. Thank you Angela. At the end of September, the Society held an Extraordinary General Meeting for the membership to consider and pass a motion to enter into a lease agreement with M’akola Housing Society to be formulated on the basis of the “Conditions of Offer.” The motion was approved by 89% of the 56 people present at the meeting. Subsequently a lease was prepared and reviewed by lawyers, and the final version was registered in March 2021.
• On February 7, 2021, a community information meeting was held to share the Beulah Creek Village plan as it had evolved to that point. The presentation is available for viewing elsewhere on the website.
• Work continued through the balance of the fiscal year to complete the civil plan for the supporting infrastructure, wastewater plan, landscape plan, design refinement, etc., to bring the project to the point it could be fully costed. M’akola Housing Society developed and refined its operating budget.

As a thirty-year old Society on Hornby, the Board has a number of areas of focus. The Board organizes with a range of committees.  They include:

• Elder Village management of buildings, infrastructure and grounds,
• Village Residency relations
• Policy, that encompasses governance issues
• Communications
• Long term planning – focused for the last three years on Beulah Creek,
• Advocacy

It’s a handful, and we couldn’t manage it all without our true wizard of an administrator, April Lewis, to keep all of us and the details on track.

At the Elder Village, Board members contribute a large number of volunteer hours, supported by a very able and dedicated group of contract workers. Leslee will report on this Covid-19 year’s work as landlords and property managers there. Leslee herself shoulders the huge role of overseeing all of applications for residency and heading up the selection process. Barbara, who also takes responsibility for a lot of time-consuming work, is going to report on Governance, Communications, and the focus on advocacy for the creation of more affordable housing on Hornby and other gulf islands.

Through the fiscal year Janet LeBlancq was our able treasurer, we’re sorry to lose her to her new Campbell River adventures; Ian, Larry, Lynda, – the hands-on team coordinating the property management of the Elder village, so valuable; Michael with your focus on Beulah Creek; Sadie – so great – she brings her energy and experience to advocacy and communications; and Cliff on the Residency Selection committee. Thank you to this strong team. And for sure, a big thank you Gary for all the work you do for the Village, including the many volunteer hours you offer.

Village Report 2020/2021 ~ Presented by Leslee Richards

Before we begin the Elder Village Report, we would like to recognize and thank the people who work in the background to keep the Village and our Society running. What would we do without them? We couldn’t!

Contractors:

April Lewis – our Administrator extraordinaire

Gary Burtinsky – carries out supervision and maintenance of the Village infrastructure, buildings, and water system; Gary is highly skilled and so much appreciated by everyone. He donates hours of volunteer work at the Village each and every month of the year.

Robyn Richards – our extremely capable bookkeeper

David Mills – for his long time dedication to the Village landscape maintenance and the lawns

Kevin Peacock – for being our diligent and careful Recycling and Garbage collection contractor during this COVID era

Lindsay Allen – for assisting residents as a Volunteer for the Better At Home Program, and thanks to the Better At Home Program itself

Steve Carbelleira  – for assisting us to prepare our septic plans and donating half his fee

Rick Morrit – for assisting us for years with the monthly test of our water supply

Thank you!

In spite of COVID concerns, and some new safety measures put in place to protect residents, the Village continued to run smoothly and with full occupancy throughout this past year. Thank you to the residents for their care, both for themselves and for each other!

Board member Ian Maclean oversees Village Building maintenance including all necessary maintenance and repairs for our eleven units. One unit was refurbished this year as a resident moved to be near family in Alberta, and a new resident was pleased to move in. Lynda Parrington very ably supervised the care and maintenance of the Grounds again this last year, organizing all the varied aspects that involves. And Larry Smith took care of Infrastructure matters, coordinating the creation of a plan to upgrade the Village septic capacity. We are very grateful to all three of our Village committee chairs, Ian, Lynda, and Larry, for their contribution to keeping everything in the Village running so well.

Lynda and Larry are leaving the board this year, not seeking re-election. We are sorry to see them go, but we are so grateful to them both for their years of work on the board, and all that has been accomplished in that time. We will miss them!

The Selection Committee, chaired by me, works with several community members and another board member to select a new resident whenever a unit becomes available.  A few new applications have come in this year, and a few people who were on the list found other accommodations so our registry remains at 40 applications. In general, the Village is a very stable community.

The Residents’ Relations Committee, which I also chair, handles any issues or concerns that may arise in the Village. The Communication Committee, chaired by Barbara, writes a monthly (or almost monthly) newsletter as a way to keep the board and the Village Residents in touch with each other.

The usual annual fire safety check took place, this time with COVID precautions. The check includes replacing batteries in every smoke alarm. Servicing and safety checks of every propane appliance in the Village are also carried out on an annual basis.

All in all, and in spite of COVID, it was a good year for the Village.

HIHS Governance, Communication, and Advocacy Committees  Report to the AGM 2021 ~ Presented by Barbara Baird

A governance committee functions in a supervisory role towards the board itself. It should ensure that the processes and policies of the board are clear and coherent, are being effectively applied, and will support all of the goals of the Society. This last year, the Governance Committee made sure that all committees now have Terms of Reference. April, our able Administrator, helped us to review and revise the Village contracts to make sure that they are consistent. And a Bullying and Harassment Policy was put into place. Work continues on a Policy Handbook for the Society.

The Communication Committee continued to write articles for the First Edition, covering issues to do with affordable housing in general and giving updates on the Beulah Creek Project whenever we could. As well, a monthly Village Board Brief goes out to our Elder Village residents. The HIHS website has featured many posts, with updates and information on the progress of the Beulah Creek Village and affordable housing issues. It now links to Canada Helps which allows HIHS to receive donations online.

The Advocacy Committee has become more active, now that most of the responsibility for the Beulah Creek Project has been passed to BC Housing and M’Akola Housing. Even if Beulah Creek is successful, it will not answer all of the need for affordable housing on Hornby Island. The Advocacy Committee is working to identify barriers and trends that influence the number or quality of rental housing units on the island and to encourage local and provincial government to enact policies that can increase access to affordable housing. We find this work interesting, challenging, and engaging. We hope it bears fruit.