THE HOUSING CRISIS ON HORNBY ISLAND:

THE HOUSING CRISIS ON HORNBY ISLAND:

THE NEED FOR LAND - GOVERNMENT SUPPORT REQUIRED

Background

Hornby Island is a small, unincorporated Gulf Island within the jurisdiction of the Islands Trust and the Comox-Strathcona Regional District. Land available for housing is scarce: about a third of the land base is protected, about a quarter is in the Agricultural Land Reserve; there are very few parcels with subdivision potential; small lots can have difficulty in attaining adequate on-site water supply and waste disposal. Hornby has become a very popular resort destination with a high demand for residential properties used for recreational purposes, second homes and future retirement. This has contributed to a housing crisis for residents of all ages, including young families who are key to community survival and to providing needed services.

The Housing Crisis

· The median income on Hornby Island is less than $20,000.

· The cheapest residential property on the market today is $249,000.

· Year-round rentals are scarce; property owners can derive higher returns from short-term vacation rentals.

· Young families are leaving the Island; the school population has gone from 143 students to 48 students in the past twelve years.

· Businesses have lost employees due to housing unavailability.

The role of a Community Land Trust such as ISLA

· The availability and price of land is a significant factor in establishing housing where real estate values are increasing at a much higher rate than incomes.

· A Municipal Housing Authority cannot be established in an unincorporated area.

· A Community Land Trust can acquire and retain ownership of land while granting its use to third parties; this enables the price of land to be removed from housing costs.

· Community Land Trusts can ensure that housing remains affordable by limiting the resale value of homes

· ISLA ( “Islanders' Secure Land Association”) is a non-profit Society established to hold land as a community land trust for Hornby and Denman Islands.

· Housing construction would likely be carried out in partnership with another entity;

ISLA is in contact with Habitat for Humanity as one possible partner.

Challenges in acquiring land

There are four main ways in which a community land trust such as ISLA can acquire land for housing purposes.

1. Purchase: The price of land makes this an unrealistic option considering the enormous fund-raising that would be involved.

2. Amenity zoning: Although the Hornby OCP provides for amenity zoning (whereby provision of land as an amenity would be required in conjunction with granting additional development rights), a) there are few potential opportunities for this to occur, and

b) amenity zoning proposals are frequently controversial.

3. Donation: Tax implications could be a significant dis-incentive to donating land in some situations.

4. Crown land: Although the Hornby OCP designates a significant area of Crown land for public use (including community housing):

a) the land is not yet zoned for community housing;

b) the provincial Free Crown Grant / Nominal Rent Tenure

program does not provide for community housing;

c) the ministry responsible for housing does not have funding

to sponsor such applications.

The need for federal, provincial and local government support

Donations of land and the use of Crown land are the most promising ways for ISLA to acquire land for community housing purposes. There are ways in which all three levels of government can help make this happen:

Federal A few years ago, after extensive lobbying, the Government of

Canada established an Ecological Gift program which provides

tax benefits with respect to gifts of land with ecological value.

The Minister of National Revenue could be lobbied to set up a

similar program for gifts of land to establish affordable

non-market housing.

Provincial The Minister of Agriculture and lands could be lobbied to amend the

Free Crown Grant and Nominal Rent Tenure Program to enable land

to be acquired for community housing.

The Minister Responsible for Housing could be lobbied to establish

funding to sponsor Crown land applications for community housing.

Local The Hornby Island Local Trust Committee could be lobbied to implement OCP policy 6.2.7 by amending the Land Use Bylaw to allow community housing on Crown land in the Public Use area.

Tony Law

Box 13, Hornby Island, BC, V0R 1Z0

250-335-1155 tetz_law@mars.ark.com

Hon. Carol Skelton,MP

Minister of National Revenue,

Connaught Building, 7th floor,

555 MacKennzie Ave,

Ottawa, Ontario, K1A 0L5 9 February 2006

Dear Minister Skelton:

re: Tax reform to support affordable housing

I encourage you to consider amending the present taxation regime which creates a dis- incentive to people donating land for affordable or special needs housing.

My community is in housing crisis due, in large part, to real estate values escalating at a rate that far exceeds that of incomes attainable in a rural/resort community. Median incomes are less than $20,000 per year. The cheapest lot on the market today is priced at $249,000.

Donations of land to a recently-formed community land trust could be crucial in creating the affordable housing required for young families and others if this community is to survive. However, the taxes payable on land that has significantly increased in value since it was first owned is a significant dis-incentive to potential donors.

I very much support the ecological gifts program which reduces taxes payable on land that is donated to protect identified ecological values. I believe that a similar approach should be taken with respect to land donated to a housing authority or to an approved registered charity in order to provide badly needed housing.

I look forward to hearing from you about how you will approach this issue.

Yours truly,

Tony Law

enc: info on the Housing Crisis on Hornby

cc: Catherine Bell, MP

Tony Law

Box 13, Hornby Island, BC, V0R 1Z0

250-335-1155 tetz_law@mars.ark.com

Hon. Jean-Pierre Blackburn, MP

Minister of Labour and Housing,

Place du Portage, Phase II, 11the Floor,

165 Hotel de Ville St,,

Gatineau, Quebec, K1A 0J2 9 February 2006

Dear Minister Blackburn:

re: Tax reform to support affordable housing

I encourage you to work with the Minister of National Revenue to amend the present taxation regime which creates a dis- incentive to people donating land for affordable or special needs housing.

A few years ago the Government of Canada introduced the ecological gifts program which reduces taxes payable on land that is donated to protect identified ecological values. I believe that a similar approach should be taken with respect to land donated to a housing authority or to an approved registered charity in order to provide badly needed housing.

I look forward to hearing from you about how you will approach this issue.

Yours truly,

Tony Law

enc: info on the Housing Crisis on Hornby

cc: Catherine Bell, MP

Tony Law

Box 13, Hornby Island, BC, V0R 1Z0

250-335-1155 tetz_law@mars.ark.com

Catherine Bell,M,P

House of Commons,

Ottawa,

Ontario K1A 0A6

9 February 2006

Dear Catherine Bell:

re: Tax reform to support affordable housing

I enclose copies of letters to Ministers Skelton and Blackburn in which I encourage them to address the present taxation regime which creates a dis-incentive to people donating their land for affordable housing purposes.

Here on Hornby, there is a housing crisis due, in large part, to escalating land prices. A community land trust has been formed to hold land for housing purposes. However, long-term Hornby propertyowners would likely be faced with significant capital gains taxes if they wanted to donate land to the community land trust.

I was involved in the ultimately successful lobbying effort to achieve the present Ecological Gift Program. It seems to me that something similar is required with respect to land being gifted for affordable and special needs housing purposes.

I would be interested in any help you can provide in pursuing this and any suggestions you have for appropriate approaches.

Thank you.

Yours truly,

Tony Law

Tony Law

Box 13, Hornby Island, BC, V0R 1Z0

250-335-1155 tetz_law@mars.ark.com

Hon. Rich Coleman, MLA,

Minister Responsible for Housing,

PO Box 9049, STN PROV GOVT,

Victoria, BC V8W 9E2 9 February 2006

Dear Minister Coleman:

re: Availability of Crown land for affordable housing

I encourage you to take steps to make Crown land more available for affordable and special needs housing in communities that are in housing crisis.

A community land trust has been formed to hold land on Hornby and Denman Islands for affordable housing purposes. Housing would be created in partnership with another entity, such as Habitat for Humanity. However, obtaining land is a real challenge. A non-profit society cannot afford to purchase land at current market value. The tax regime discourages donations of private land. There are few possibilities for amenity zoning or other planning tools to be used in conjunction with development proposals. Hornby is an unincorporated area which means that a municipal housing authority cannot be formed.

Hornby does have a significant area of Crown land which has been designated in the Official Community Plan for public use (including community housing). However, the Free Crown Grant and Nominal Rent Tenure program does not readily facilitate the availability of Crown land to a community land trust for community housing purposes.

I therefore encourage you to:

1) Work with the Minister of Agriculture and Lands to amend the FCG/NRT program

so that it specifically provides for the availability of Crown land for affordable and special needs housing to appropriate non-profit organizations.

2) Create a budget in your Ministry to sponsor applications for Crown land by such

organizations.

I look forward to hearing how you will pursue this issue.

Yours truly, enc: info on the Housing Crisis on Hornby

cc: Stan Hagen, MLA,

Doug Routley, MLA

Kim Benson, Chair, Islands Trust

Tony Law Carol Quin, Area K Director, CSRD

Tony Law

Box 13, Hornby Island, BC, V0R 1Z0

250-335-1155 tetz_law@mars.ark.com

Hon. Pat Bell, MLA,

Minister of Agriculture and Lands,

PO Box 9043, STN PROV GOVT,

Victoria, BC V8W 9E2 9 February 2006

Dear Minister Bell:

re: Availability of Crown land for affordable housing

I encourage you to take steps to make Crown land more available for affordable and special needs housing in communities that are in housing crisis.

I therefore encourage you to: work with the Minister Responsible for Housing to amend the FCG/NRT program so that it specifically provides for the availability of Crown land for affordable and special needs housing to appropriate non-profit organizations.

I look forward to hearing how you will pursue this issue.

Yours truly,

Tony Law enc: info on the Housing Crisis on Hornby

cc: Stan Hagen, MLA,

Doug Routley, MLA

Kim Benson, Chair, Islands Trust

Carol Quin, Area K

Tony Law

Box 13, Hornby Island, BC, V0R 1Z0

250-335-1155 tetz_law@mars.ark.com

Doug Routley, MLA,

Opposition Critic for Housing,

Room 201, Parliament Buildings,

Victoria, BC V8V 1X4 9 February 2006

Dear Doug Routley:

re: Availability of Crown land for affordable housing

I enclose copies of letters to Ministers Coleman and Bell in which I encourage them to make Crown land more readily available to meet housing needs in communities in crisis.

I would like particular note to be taken of the potential role of community land trusts in holding land for community housing purposes in unincorporated areas that are in housing crisis.

I would appreciate hearing about any initiatives of the Opposition in pursuing this issue.

Thank you.

Yours truly,

Tony Law

Tony Law

Box 13, Hornby Island, BC, V0R 1Z0

250-335-1155 tetz_law@mars.ark.com

Hornby Island Local Trust Committee

Islands Trust,

700 North Road,

Gabriola Island,

BC V0R 1X3 9 February 2006

Dear Local Trust Committee:

re: Availability of Crown land for affordable housing

I encourage you to proceed with amending the Hornby Island Land Use Bylaw so that community housing becomes a permitted use within the are designated in the Official Community Plan as “public use”.

Policy 6.2.7 provides for “seniors, affordable or special needs housing” in this area. However, under the current Land Use Bylaw (s.9.14.1), this is not a permitted use. The Draft Amendments referred to the Advisory Planning Commission in November 2005 includes “community housing” as a permitted use in the “Public Use 2” zone. Draft regulations provide for “a maximum of 5 community housing units per hectare to a maximum of 20 per lot”. This is the same density provided under the existing “Institutional Residential” zone in the current Land Use Bylaw. It should be noted that area designated as Public Use is within an Environmental Protection Development Permit Area to protect the groundwater recharge function of the land, which should provide reassurance to those concerned about possible hydrological impacts of development.

It is my understanding that the Local Trust Committee is reviewing how to address amendments to the Land Use Bylaw, with the possibility of proceeding with separate amendments. I encourage the LTC to include this particular amendment among those that are being given priority for implementation.

I also encourage the members of the LTC to lobby the provincial government to make appropriately zoned Crown land more readily available for community housing purposes.

Thank you.

Yours truly,

Tony Law

cc: Hornby Island Advisory Planning Commission

Islanders Secure Land Association

Elder Housing Society

Hornby and Denman Community Health Care Society

Hornby Island Community Economic Enhancement Society