The purpose of this Attainable Housing Strategy ["Report"] is to provide recommendations to assist the County of Wellington ["The County"] with its attainable housing shortage. The scale of this issue is significant, especially for the County’s workforce. The lack of attainable housing is making it difficult for local employers to attract and retain workers, with some employers incurring costs in order to house or transport their workers. This problem is further influenced by the County’s geographic location, which is in close proximity to major economic centres in the City of Guelph, Waterloo Region and the Greater Toronto and Hamilton Area [GTHA]. It is anticipated that this economic pressure will attract residential activity from outside the County, increasing the development of low-rise housing forms, which are not attainable.

The dominant form of housing in the County is single detached dwellings which is a type of housing that is no longer affordable for moderate income households. Current data regarding housing supply indicates that the total number of newly constructed units is not on the rise, while housing prices are increasing. In addition, the rental market is experiencing similar challenges with respect to attainability. The County’s vacancy rate of 1% is also making acquiring rental housing difficult.

This Report was initiated from a need to develop recommendations to address the shortage of attainable housing for the County’s workforce but has expanded in scope to focus more broadly on establishing strategies appropriate for all low and moderate-income households across the County. The term attainable, for the purposes of this Report, refers to housing provided for purchase or for rent and subject to public intervention at the time of purchase or construction. Public Intervention takes many forms and can include:

• Deletion of exclusionary policies from the Official Plan to enable a range of housing types.
• Inserting permissive policies in the Official Plan to require range of market housing types in specific locations.
• Provide incentives such as eliminate or diminish development charges, education levies, parkland dedication levies, building permit fees, planning application fees and realty taxes.
• Apply for Federal and Provincial housing grants or loans to assist with purchase and construction of attainable housing and/or land acquisition.
• The County may provide grants or loans to enable land acquisition or assist in dwelling purchase.
• The County may provide covenants to assist in land acquisition, dwelling purchase, and/or construction financing.
• The County may waive property taxes for a specified period.

The solution requires the implementation of various strategies, not only financial tools but County initiatives and land use planning mechanisms to increase the production of attainable housing units which meet the needs of different households. Land use planning regulations which lack flexibility can play a key role in inhibiting the creation of lower-cost housing by the private sector. To establish a list of action-oriented recommendations, a policy analysis and public consultation process were undertaken.

A Pilot Project considering the option of a Community Land Trust [CLT] and an Attainable Housing Options Portfolio focused on built form and construction methods, accompany the Report as appendices.

Provincial policy plays a role in the delivery of attainable housing as it creates a framework for managing growth and provides policy direction to guide land development. As part of this Report, the Growth Plan [2019] and the Province’s Housing Supply Action Plan [2019] were reviewed. Through this review, it was uncovered that recent changes being implemented by the
Province’s Bill 108, More Homes, More Choice Act, 2019 [Bill 108] are aimed at increasing housing affordability. Bill 108 introduces beneficial amendments related to second units such as allowing two second units on one property, by permitting two residential units in a main residence [single detached, semi-detached or rowhouse] and one in an ancillary structure.

At the County level, an analysis of the County’s Official Plan was conducted to identify the strengths and weaknesses of the existing policy framework. The Report also reviewed and compared the County’s policies to those of Dufferin and Perth County, which are both counties of a similar population size and character.

The intention of this review was to assess differences in how each County addresses housing supply and affordability from a policy perspective. This review was also helpful for comparing and understanding potential implementation policies which can be put in place to encourage the
development of attainable units.

The policy analysis indicated that the housing and affordability policies in the County’s Official Plan are adequate but from an implementation perspective, the Official Plan lacks policies to incentivize the development of attainable housing. Density bonusing is one tool, present in both the Dufferin and Perth Official Plans, which the County does not include. This land use planning tool would allow the County to increase attainable housing units as a community benefit in exchange for greater heights and densities for new developments.

The County Official Plan also includes  language  which  places  emphasis on the dominance of single detached dwellings as a primary built form expected to continue. This language is problematic as it is counter-intuitive to diversifying the built form of the existing housing stock, which is critical to improving housing affordability.

Through the simulated Community Land Trust [CLT] Pilot Project, particularly the cost analysis component, it was determined that public intervention by way of incentives are mandatory to provide housing at a price substantially lower than current market prices.

The Community Engagement Strategy was informative for revealing what the public believes are some of the key challenges associated with developing attainable housing units. Stakeholders responses suggested that some of the leading reasons are unsecure/lengthy development approval processes and property limitations. The availability of serviced land is another road block for inhibiting the development of attainable housing.

There is no one recommendation which will remedy the County’s attainable housing shortage. A comprehensive approach incorporating different types of strategies is needed. This Report established three types of recommendations categorized as: policy-based recommendations, financial incentives and County action-oriented initiatives. The timing for implementation varies per recommendation, with the policy-based recommendations being more long-term in nature. The County will be undertaking a review of their Official Plan through a Municipal Comprehensive Review [MCR] process in the near future. The timing of this Report aligns well with the County’s upcoming MCR process as it provides an opportunity for the County to receive comments on its Official Plan policies and consider potential changes to be made to support the development of attainable housing.

The implementation and success of these  recommendations  relies  on  the support of multiple parties including County Staff and Council, key stakeholders, the development industry and the willingness of the community to embrace change. Outlined below are the recommendations suggested for the County to consider in order to increase their attainable housing supply.

1. The Establishment of an Attainable Housing Growth Target.
2. Density bonusing.
3. Streamlining of the planning approvals process [i.e. implementing a Development Permit System].
4. Strengthening and updating the Official Plan policies regarding second units.
5. Amending the Official Plan’s existing Community Improvement Planning policies.
6. Amending policies in the Official Plan to support a greater diversity of building typologies and construction methods [such as modular].
7. Conducting a review of the local Zoning By-laws to reduce regulatory barriers such as minimum lot size requirements, minimum setback requirements and parking requirements. A reduction in the amount of land required for construction greatly lowers the cost of land acquisition and housing construction.
8. The use of Secondary Planning to address local issues.

1. Development Charge reductions or exemptions.
2. A reduction in Parkland Dedication requirements.
3. Planning Application and Building Permit fee reductions and/or exemptions.

1. Encouraging the creation of a Community Land Trust [CLT].
2. Incorporating discussions surrounding attainable housing development in Pre-Application Consultation Meetings with builders/developers.
3. Passing Demolition Control By-laws to assist in the preservation of rental units.
4. Locating existing publicly held sites such as school sites or underutilized hotels/motel sites which would be appropriate to convert for rental units.
5. Developing a Public-Private Partnerships Task Force and obtain CMHC. funding to undertake detailed research about innovative building forms and construction methods. The Task Force would also be responsible for locating areas in the County to support this type of innovative housing.
6. The establishment of Communal Workforce Housing as a short-term strategy.
7. Conducting an analysis of servicing availability in the County, both existing and future capacity, and developing a database to compile this data.