Open Collections

UBC Theses and Dissertations

UBC Theses Logo

UBC Theses and Dissertations

The role of the municipal, provincial and federal governments in the acquisition, development and disposition… Matthieu, Germain Jean 1974

Your browser doesn't seem to have a PDF viewer, please download the PDF to view this item.

Item Metadata

Download

Media
831-UBC_1974_A4_6 M38.pdf [ 5.12MB ]
Metadata
JSON: 831-1.0099884.json
JSON-LD: 831-1.0099884-ld.json
RDF/XML (Pretty): 831-1.0099884-rdf.xml
RDF/JSON: 831-1.0099884-rdf.json
Turtle: 831-1.0099884-turtle.txt
N-Triples: 831-1.0099884-rdf-ntriples.txt
Original Record: 831-1.0099884-source.json
Full Text
831-1.0099884-fulltext.txt
Citation
831-1.0099884.ris

Full Text

THE ROLE OF THE MUNICIPAL, PROVINCIAL AND FEDERAL GOVERNMENTS IN THE ACQUISITION, DEVELOPMENT AND DISPOSITION OF RESIDENTIAL SERVICED LOTS IN THE GREATER VANCOUVER REGIONAL DISTRICT  by GERMAIN JEAN MATTHIEU B.CCM.,  LAVAL UNIVERSITY, 1969  A THESIS SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF SCIENCE  i n the Department of Commerce and Business A d m i n i s t r a t i o n  Ue accept t h i s  t h e s i s as conforming to the  standard  THE UNIVERSITY OF BRITISH COLUMBIA APRIL,  197«*  required  In presenting  t h i s thesis i n p a r t i a l fulfilment of the requirements for  an advanced degree at the University of B r i t i s h Columbia, I agree that the Library s h a l l make i t freely available for reference  and study.  I further agree that permission for extensive copying of t h i s thesis for scholarly purposes may by h i s representatives.  be granted by the Head of my Department or  It i s understood that copying or publication  of t h i s thesis for f i n a n c i a l gain s h a l l not be allowed without my written permission.  Germain Jean Matthieu  Department of  Cammerce and Business  The University of B r i t i s h Columbia Vancouver 8, Canada  Date  Administration  ii  ABSTRACT  T h i s study  i s an attempt to determine i f  of s e r v i c e d b u i l d i n g  lots,  for  development of s i n g l e  i n the Lower Mainland of B. C , lots,  exists  assembly,  relative  family  to the demand f o r  development and d i s p o s i t i o n of s e r v i c e d l o t s  such the  i n the M e t r o -  a shortage of supply of s e r v i c e d  building  a t h e o r e t i c a l market a n a l y s i s of supply and demand p r o -  v i d e s a framework f o r to the supply  duellings  area.  To determine i f lots exists,  supply  and to determine the r o l e of the p u b l i c s e c t o r i n  p o l i t a n Vancouver  the examination of e m p i r i c a l f i n d i n g s  and demand f o r housing u n i t s  Population figures a'' l e v e l of demand. figures  a shortage of  in Metropolitan  i n M e t r o p o l i t a n Vancouver are used to Supply i s  Vancouver.  establish  determined a c c o r d i n g to e x i s t i n g  based on census data and d u e l l i n g u n i t s t a r t s  g o r i e s of d u e l l i n g u n i t s  related  for  all  stock cate-  i n M e t r o p o l i t a n Vancouver betueen 1967 and  1973 as compiled by C e n t r a l Mortgage and Housing C o r p o r a t i o n .  Given  the p r o j e c t e d p o p u l a t i o n grouth and housing f o r m a t i o n and the p r o d u c t i o n of d u e l l i n g u n i t s ,  the a n a l y s i s demonstrates that  total the  supply i s f a l l i n g behind the demand. To determine i f  the p u b l i c s e c t o r could p l a y a r o l e  i n c r e a s e of supply of r e s i d e n t i a l b u i l d i n g  lots,  relevant  reducing the supply p r o d u c t i o n process are  identified.  in  factors  A review of m u n i c i p a l powers i s undertaken to determine participation palities  i n the development process i s p o s s i b l e .  are s e l e c t e d to i d e n t i f y  their  the  if  Three m u n i c i -  p o l i c i e s with regard to  the  iii development o f t h e i r  land h o l d i n g s  categorized inventory of t h e i r  far r e s i d e n t i a l  land h o l d i n g s  the amount of undeveloped lands under t h e i r  purposes.  i s made to control  the amount of undeveloped lands i n the M e t r o p o l i t a n i s p o s s i b l e to conclude that their  holdings  for  marginal p a r t f o r  future  determine  in r e l a t i o n  to  Vancouver.  It  those m u n i c i p a l i t i e s r e t a i n most of  p l a n n i n g c o n s i d e r a t i o n and dispose of a  p r o f i t purposes o n l y .  change, the D i s t r i c t  If  such p o l i c i e s  do not  M u n i c i p a l i t i e s of Burnaby and North  w i l l a f f e c t the housing s i t u a t i o n undeveloped l a n d s u i t a b l e  A  Vancouver  as they own 63% and E>k% o f  f o r r e s i d e n t i a l development w i t h i n  all  their  boundaries. A review of the powers and the p o l i c i e s o f the p r o v i n c i a l f e d e r a l governments i n the p r o d u c t i o n process of r e s i d e n t i a l lots  i n d i c a t e s that  the p r o v i n c i a l  pete with the p r i v a t e interested  sector  which want to develop i t s  The p r o v i n c e  of m u l t i p l e d w e l l i n g  peoole who'are not reached by the p r i v a t e f e d e r a l government p r o v i d e s  building  government does not want to com-  i n such a r e a s .  i n the p r o d u c t i o n  and  sector.  units  i s more  for  the  However,  the  f i n a n c i a l a s s i s t a n c e to any m u n i c i p a l i t i e s  land h o l d i n g s  for r e s i d e n t i a l  Such a s s i s t a n c e has not been used so f a r due to the l a c k of p r o v i n c i a l  in Metropolitan  co-ordination  and a l s o the  purposes. Vancouver strict  requirements o f such a s s i s t a n c e . Such a n a l y s i s o f the three that t h e i r  different  residential serviced existing  policies lots  l e v e l s of government  i n regard to the p r o d u c t i o n process  have not c o n t r i b u t e d  shortage of r e s i d e n t i a l b u i l d i n g ,  Vancouver.  demonstrates  lots  to r e d u c i n g in  the  Metropolitan  of  iv  TABLE OF CONTENTS Chapter I  Page INTRODUCTION  1  The Problem The S i g n i f i c a n c e of the Problem Hypotheses L i m i t a t i o n s of the Study Concepts and d e f i n i t i o n of terms Procedure i n development of t h e s i s II  SUPPLY AND DEMAND FOR HOUSING ANALYSIS..  .  THEORETICAL 6  Summary of Supply and Demand E f f e c t of S u r p l u s Demand on Land P r i c i n g . . . . E f f e c t of S u r p l u s Demand on t h e . S u p p l y of Housing U n i t s to the Market III  SUPPLY AND DEMAND FOR HOUSING IN VANCOUVER  THE SUPPLY OF SERVICED RESIDENTIAL DUELLING SITESAN EXAMINATION OF THE FACTORS DETERMINING QUANTITATIVE EXPECTATIONS OF INCREMENTS TO EXISTING HOUSING STOCK THROUGH THE DEVELOPMENT OF SERVICED RESIDENTIAL DUELLING SITES S t a t i c A n a l y s i s of the R e s i d e n t i a l D u e l l i n g Unit Supply Process Dynamic A n a l y s i s of the R e s i d e n t i a l U n i t Supply Process  V  THE MUNICIPAL ROLE IN THE ASSEMBLY, DEVELOPMENT AND DISPOSITION OF LAND FOR RESIDENTIAL PURPOSES L e g a l Powers Municipal P o l i c i e s A. B. C.  (selected municipalities)  Surrey Burnaby North Vancouver  Implications.  9 11 15  METROPOLITAN  Demand f o r Housing as a F u n c t i o n of Income.. Demand f o r Housing as a Function of Population The Supply of Housing i n M e t r o p o l i t a n Vancouver IV  1 1 1 2 3 3  District  19 20 2k 27  37  37 kk  51 51 53 54 58 62 67  V  Chapter UI  Page THE PROVINCIAL AND FEDERAL ROLE IN THE ACQUISITION, DEVELOPMENT AND DISPOSITION OF LAND FOR RESIDENTIAL PURPOSES The P r o v i n c i a l A. B. C. D.  Role  74  L e g a l powers Policies E s t a b l i s h m e n t of a P r o v i n c i a l Inventory  75 77 Land  Implications  80 81  The F e d e r a l Role  85  A. B. C.  VII  74  Background E v o l u t i o n of F e d e r a l P a r t i c i p a t i o n . A n a l y s i s of the F e d e r a l Land Holdings D. Inplications SUMMARY AND CONCLUSIONS Summary of the T h e s i s L i m i t a t i o n s and Weaknesses P o l i c y Recommendations.. I m p l i c a t i o n s f o r Further Study  BIBLIOGRAPHY  85 87 89 91 94 94 96 98 99 101  APPENDIX A  R e s i d e n t i a l Lots s o l d by North  Vancouver  District  104  B  The Department of Housing Act E f f e c t s  106  C  Canadian Housing P o l i c y  108  D  F e d e r a l Land Holdings  E  Undeveloped Lands A v a i l a b l e f o r Uses Dwelling S t a r t s i n M e t r o p o l i t a n 1966-1973  F  -  A Chronology  i n B.C  Ill Residential 113 Vancouver 115  vi  LIST OF TABLES  Table 1  2  Page E x i s t i n g d u e l l i n g stack price through time  rises  E f f e c t of leverage on r e s i d e n t i a l site  12 duelling  prices  13  3  E f f e c t of leverage on rau land p r i c e s  14  4  Negative  15  5  The p r i c e of homes i n M e t r o p o l i t a n Vancouver r e l a t i v e to average incomes of i n d u s t r i a l workers i n B . C . 1963-1973 Household formation and d u e l l i n g u n i t s t a r t s i n M e t r o p o l i t a n Vancouver 1961-1976  6 7 8  9  10  11  12  leverage  Residential Building activity - duelling i n M e t r o p o l i t a n Vancouver 1967-1973  21 27  starts 28  Residential building a c t i v i t y - single family d u e l l i n g s t a r t s i n M e t r o p o l i t a n Vancouver 1967-1973  29  R e s i d e n t i a l b u i l d i n g a c t i v i t y - multiple dwelling s t a r t s i n M e t r o p o l i t a n Vancouver 1967-1973  30  Cost of c o n s t r u c t i o n of s i n g l e f a m i l y d w e l l i n g s i n M e t r o p o l i t a n Vancouver 1960-1973  33  Average cost of a t y p i c a l GVRD 1964-1973  34  serviced lot  in  The cost of housing i n GVRD i n terms of b u i l d i n g c o s t s and s e r v i c e d land p r i c e s 1964-1973  35  uii  LIST OF FIGURES Figure  Page  1  I n t e r a c t i o n of supply and demand f o r  2  F e r t i l i t y rates  24  3  Diagram of s t a t i c a n a l y s i s of r e s i d e n t i a l d u e l l i n g u n i t supply process  38  P i c t o r i a l r e p r e s e n t a t i o n of dynamic a n a l y s i s of r e s i d e n t i a l d u e l l i n g u n i t supply process  45  4  housing  10  ACKNOWLEDGMENTS  I would l i k e to express my a p p r e c i a t i o n to Dr. S . Hamilton f o r a t i o n of t h i s  h i s suggestions and c o u n s e l throughout thesis.  the  U.  prepar-  I would a l s o l i k e to thank Mrs. G. R o l l o  f o r her a s s i s t a n c e i n the c o r r e c t i o n of t h i s t h e s i s .  Finally,  I  the  am g r a t e f u l  to my wife f o r her understanding during  p r e p a r a t i o n of t h i s  thesis.  CHAPTER  I  INTRODUCTION  The Problem This  study  is  of s e r v i c e d b u i l d i n g  an attempt to determine i f lots,for  development of s i n g l e  i n the l o u e r mainland of B. C , exists  and to determine the r o l e  provincial  relative  of such s e r v i c e d  lots  supply  duellings  to the demand f o r  i n the assembly,  of  family  of the p u b l i c s e c t o r  and f e d e r a l governments)  and d i s p o s i t i o n  a shortage  such  lots  (municipal, development,  i n the louer mainland of  British  Columbia.  The S i g n i f i c a n c e  of the Problem  The s i g n i f i c a n c e available for  housing,  units is  for  of t h i s  housing c o n s t r u c t i o n , the r e s u l t  the s t a n d i n g  adequate, u i l l r e s u l t  The i n c r e a s e d market p r i c e  land are i n a p o s i t i o n  land r e l a t i v e  to the demand f o r  i n the p r i c e  levels  for  serviced  1  is  duelling Since  levels  stock uhich are levels  of  housing u i l l  l a n d , as vendors  uhere there  land can a f f o r d to pay more money f o r  in density.  determines the p r i c e  i n c r e a s e i n the p r i c e of raw and s e r v i c e d serviced  of the number of  increments to the e x i s t i n g i n an i n c r e a s e  as l e s s land i s made  to the i n c r e a s i n g demand  stock or an i n c r e a s e  stock of housing that  housing i n the market,  that  relative  u i l l be a r e d u c t i o n  added to the e x i s t i n g  stock.  problem i s  a shortage  of in-  standing cause an of raw or  of  serviced  land and purchasers of  this  it  land as the i n c r e a s e  this in  2 the market p r i c e of housing u i l l serviced land.  permit an i n c r e a s e i n the p r i c e  In e f f e c t the shortage of supply of s e r v i c e d land  places i n c r e a s i n g p r e s s u r e on the p r i c e of land f o r ment.  A further  e f f e c t may be that the b u i l d e r  immediate d e v e l o p -  of a home on the more  expensive s e r v i c e d land may b u i l d the most p r o f i t a b l e most expensive d u e l l i n g u n i t p o s s i b l e to take f u l l  and u s u a l l y  maximizing h i s b u i l d e r ' s  profit.  Thus the r e l a t i v e  louer p r i c e d homes may be reduced u n t i l  the  advantage of the  highest market p r i c e as determined by the market of e x i s t i n g  satisfies  of  stock,  supply of the  the supply of expensive homes  the demand.  Hypotheses The hypotheses t h a t u i l l  be i n v e s t i g a t e d ,  focus on the problem  of a shortage of supply of r e s i d e n t i a l b u i l d i n g l o t s  i n the Greater  Vancouver r e g i o n u i t h r e f e r e n c e to the r o l e some m u n i c i p a l i t i e s played by r e l e a s i n g some of t h e i r ally,  h o l d i n g s to i n c r e a s e the s u p p l y .  Addition-  r e f e r e n c e i s made to the r o l e of the p r o v i n c i a l and f e d e r a l  government i n c o n t r i b u t i n g The f i r s t  touards the i n c r e a s e of such a s u p p l y .  h y p o t h e s i s to be analysed asks the q u e s t i o n :  there a shortage of r e s i d e n t i a l b u i l d i n g l o t s r e l a t i v e for r e s i d e n t i a l b u i l d i n g l o t s  to the demand  i n the Greater Vancouver area?  The second h y p o t h e s i s proposes that the p u b l i c s e c t o r , its  pouers,  its  holdings,  building  Is  uith  land h o l d i n g s and p o l i c i e s r e l a t e d to the development of  lots  can play a d i r e c t i n the market.  role  i n the supply of  However,  the d i f f e r e n t  residential p o l i c i e s adopted  by the three l e v e l s of government i s one of the causes of the shortage of b u i l d i n g  lots.  3 L i m i t a t i o n s of the  Study  T h i s t h e s i s does not deal with a l l the powers a v a i l a b l e the p u b l i c s e c t o r  for  to  accommodating the ever i n c r e a s i n g urban growth  such as the r e g u l a t i o n  and the t a x a t i o n  that these are important  It  is  recognized  c o n s t r a i n t s on the t h e s i s and the r e s e a r c h  conducted here w i l l r e f l e c t  Concepts and d e f i n i t i o n  of l a n d .  these  limitations.  of terms  Housing p o l i c i e s :  this  term r e f e r s  to l e g i s l a t i o n or  passed or adopted by governmental bodies i n the f i e l d of P u b l i c land h o l d i n g s : the m u n i c i p a l , p r o v i n c i a l  this  resolution  housing.  term w i l l apply to land h e l d by  and f e d e r a l governments.  It  will  exclude  a l l land h e l d by Crown C o r p o r a t i o n s or other government a g e n c i e s . Development p r o c e s s : division  servicing  this  term r e f e r s  to the assembly, s u b -  and d i s p o s i t i o n of land by a p u b l i c or  private  developer.  Procedure i n Development of  Chapter II and demand.  Thesis  i n t r o d u c e s a t h e o r e t i c a l market a n a l y s i s of  This provides  a framework f o r  the examination of e m p i r i c a l  f i n d i n g s r e l a t e d to the supply and demand f a r housing u n i t s politan  supply  in Metro-  Vancouver. In Chapter III  the demand and supply  for  dwelling  units  in  M e t r o p o l i t a n Vancouver are analyzed s e p a r a t e l y i n terms of demand and supply of s i n g l e  family dwellings.  used to e s t a b l i s h a l e v e l of demand. to e x i s t i n g  stack f i g u r e s  P a p u l a t i o n and income f i g u r e s  are  Supply i s determined a c c o r d i n g  based on census data and d w e l l i n g  unit  starts  for  a l l categories  of d u e l l i n g  units  in Metropolitan  Vancouver  betueen 1967 and 1973 as compiled by C e n t r a l Mortgage and Housing Corporation.  Single family duelling unit starts  t i v e of the m a j o r i t y lots.  are assumed i n d i c a -  of the supply of s e r v i c e d r e s i d e n t i a l  T h i s m a t e r i a l i s r e l a t e d to the h i s t o r i c a l  house p r i c e s  in Metropolitan  dynamic a n a l y s i s i n order be a t t r i b u t e d  t r e n d of  of supply  and demand.  the supply of housing to a s t a t i c to determine the r e l e v a n t  i n the dynamic process of  Three  The assembly of rau land  2)  The m u n i c i p a l approval  3)  The c o n s t r u c t i o n process u i t h regard to the of d u e l l i n g s i t e s .  process servicing  Chapter V makes an a n a l y s i s of the m u n i c i p a l r o l e subdivision,  servicing  and d i s p o s i t i o n  d e n t i a l purposes i n the G r e a t e r Vancouver  the development process i s p a s s i b l e .  Firstly,  Secondly,  three  purposes.  for  Thirdly,  of t h e i r  land h o l d i n g s  i s made to determine the amount of Finally,  to conclude t h a t m u n i c i p a l i t i e s r e t a i n most of t h e i r and dispose of part  of i t  of in  municipalities  land h o l d i n g s  lands uhich i s under m u n i c i p a l o u n e r s h i p .  resi-  a revieu  p o l i c i e s u i t h regard to the  residential  the  such p a r t i c i p a t i o n  of t h e i r  planning c o n s i d e r a t i o n s  in  of land f o r  area.  m u n i c i p a l pauers i s undertaken to determine i f  are s e l e c t e d to determine t h e i r  criti-  supply.  1)  assembly,  and  f a c t o r s t h a t may  to r e d u c i n g the supply p r o d u c t i o n p r o c e s s .  c a l areas are i d e n t i f i e d  average  Vancouver betueen 1967 and 1973 to  determine the present market c o n d i t i o n s Chapter IV r e l a t e s  building  it  development an i n v e n t o r y  undeveloped  uas p o s s i b l e  land h o l d i n g s  far p r o f i t  for  purposes  only. Chapter VI  relates  to the p r o v i n c i a l  and f e d e r a l r o l e  in  the  5 p r o d u c t i o n of s e r v i c e s part,  lots  for r e s i d e n t i a l purposes.  the powers and the p o l i c i e s of the p r o v i n c i a l  In the second p a r t ,  housing matters i s b r i e f l y  first  government are  reviewed and an a n a l y s i s of the Department of Housing i s out.  In the  carried  the f e d e r a l government involvement  in  reviewed and an i n - d e p t h a n a l y s i s  of  s e c t i o n k0-k2 of the N a t i o n a l Housing Act i s c a r r i e d o u t .  Such s e c t i o n s  are the main involvement of the s e n i o r government i n the assembly, servicing  and d i s p o s i t i o n of land f o r  Chapter UII topics for  further  r e s i d e n t i a l purposes.  summarizes g e n e r a l c o n c l u s i o n s and i n d i c a t e s study.  CHAPTER  II  ^SUPPLY AND DEMAND FOR HOUSING THEORETICAL ANALYSIS  A n a l y s i s of the supply of r e s i d e n t i a l d u e l l i n g u n i t s must begin u i t h  an a n a l y s i s of the supply  as a u h o l e .  In c o n t r a d i s t i n c t i o n  and demand f o r  to many o t h e r  the housing s t o c k  consumer goods,  sumers of housing can choose betueen buying e x i s t i n g u h i c h are up f o r r e s a l e , r e n t i n g  duelling units,  duelling  con-  units  or buying a neu  unit. At any given t i m e , the uhole of the e x i s t i n g latently  up f o r  s a l e or r e n t as u e l l as the t o t a l i t y  to the housing s t o c k .  If  price  g o r i e s of h o u s i n g , s u f f i c i e n t induced i n t o  differ  betueen the tuo  h o l d e r s of e x i s t i n g  a sufficient  If  the p r i c e  difference  levels  be  other  be induced to  once again the  are approaching e q u a l i z a t i o n .  At any one t i m e , the e x i s t i n g g r e a t e s t bulk of the housing market. normally range from tuo to four p o t e n t i a l s e l l e r s of e x i s t i n g eight  cate-  o l d homes so  i n the  number of neu home buyers u i l l  pass up neu homes i n favour of o l d e r ones, u n t i l , price  stock u i l l  is  is  o f neu a d d i t i o n s  the market to buy neu homes and s e l l t h e i r  as to e q u a l i z e p r i c e s . direction  levels  housing s t o c k  housing s t a c k makes up the Increments  to the housing s t o c k  per cent per annum.  housing make up n i n e t y  Therefore, six  per cent of the p o t e n t i a l market at any one t i m e .  to  ninety  Neu housing  *It may be argued t h a t only a s m a l l percentage of the e x i s t i n g s t o c k may be up f o r s a l e at any one given t i m e . T h i s does not take i n t o account t h a t i f t h e r e uere major p r i c e d i f f e r e n c e s , more e x i s t i n g housing uould come onto the market.  6  -  7  makes up only tuo to Four per c e n t . sellers i s considerable. existing housing.  The numbrjr of a c t u a l and p o t e n t i a l  In most cunes, i n d i v i d u a l f a m i l i e s own  Each f a m i l y s e l l s i t s oun u n i t at the p r i c e  it  can o b t a i n without reference to any p r i c e f i x i n g agreements betueen sellers.  Edmund P r i c e p o i n t s out that there are approximately 650  b u i l d e r s i n the Greater Vancouver area.'''  Each b u i l d e r a c t s as an  independent agent i n s e l l i n g h i s p r o d u c t .  Richard Moore  intervieued  s i x t y three developers s u p p l y i n g e i t h e r r e s i d e n t i a l b u i l d i n g s i t e s 2 and/or r e s i d e n t i a l d u e l l i n g s to the r e g i o n a l market.  In terms of  *  the economists' d e f i n i t i o n of pure competition , i t appears that the market f o r . t h e housing s t o c k , as a u h o l e , approaches pure c o m p e t i t i o n i f r e s i d e n t i a l d u e l l i n g s can be considered as l i v i n g space p u r e l y ** and s i m p l y . The housing stock and the i n t e r a c t i o n s of supply and demand for the housing stock can be diagrammed roughly as i n d i c a t e d below. Occupants of e x i s t i n g stock  +  Met i m m i g r a t i o n / emigration + net household formation  [ E x i s t i n g housing stock 100% If  +  ^  Number of p a r t i c i p a n t s who can f i n a n c e p u r chase of r e n t a l or r e s i d e n t i a l dwelling units Net a d d i t i o n s to housing stock (2% to k%)  =  index number  the index number i s 1 - r e s i d e n t i a l u n i t p r i c e s w i l l s t a b i l i z e (assu-  ming no change i n 'the propensity to consume, of the p a r t i c i p a n t s ) .  If  *  "Pure competition i s defined by the economist as a t e c h n i c a l term: ' p e r f e c t c o m p e t i t i o n ' e x i s t s only i n the case where no farmer, b u s i n e s s man or l a b o r e r i s a b i g enough part of the t o t a l market to have any personal i n f l u e n c e on market p r i c e . " 3  **  The point should be made, however, that d w e l l i n g u n i t s are not normally considered as purely and simply l i v i n g space. Each d w e l l i n g u n i t has a c e r t a i n l o c n t i o n u i t h l i n k s to or p r o x i m i t y to places of employment, shopping, s c h o o l s , r e c r e a t i o n f a c i l i t i e s and d e s i r a b l e neighborhoods. Such s p e c i f i c l o c a t i o n s d i f f e r e n t i a t e to some degree the r e s i d e n t i a l d w e l l i n g u n i t market.  8 the i n d e x number i s g r e a t e r than 1 p r i c e s r i s e u n t i l  either  i)  net i m m i g r a t i o n / e m i g r a t i o n balance  changes,  ii)  rate of net haushold formation d e c l i n e s - u s u a l l y t h r o u g h d o u b l i n g up o f h o u s e h o l d s ,  iii)  number o f p a r t i c i p a n t s a b l e t o f i n a n c e e n t r y i n t o the market d e c l i n e s e i t h e r t h r o u g h t h e e s c a l a t i o n of the r e n t a l p r i c e index o r the e s c a l a t i o n of the p r i c e s o f homes (neu and e x i s t i n g ) ,  iv)  s u f f i c i e n t number o f new h o u s i n g u n i t s ( r e n t a l o r s a l e ) e n t e r market t h r o u g h i n c r e a s e d pace o f c o n s t r u c t i o n ,  v)  any c o m b i n a t i o n o f t h e above e i t h e r d e c r e a s e s demand or i n c r e a s e s s u p p l y .  I f t h e i n d e x number i s l e s s t h a n 1, then p r i c e l e v e l s u i l l  fall  such t i m e as some c o m b i n a t i o n o f t h e above o u t l i n e d f a c t o r s  until  either  i n c r e a s e s demand o r r e d u c e s s u p p l y . Filtering  occurs throughout the housing s t o c k .  Owners o f  e x i s t i n g h o u s i n g s e l l t h e i r homes and buy neu o r used h o u s i n g o r move tD r e n t a l a c c o m o d a t i o n . e x i s t i n g homes.  O c c u p i e r s o f r e n t a l accomodation  Filtering  buy neu o r  p a t t e r n s n o r m a l l y , a l t h o u g h not a l u a y s ,  f o l l o w the r e l a t i v e a b i l i t y o f the i n d i v i d u a l p a r t i c i p a n t s t o f i n a n c e the a c q u i s i t i o n o f a d u e l l i n g u n i t .  As t o t a l n e t d i s p o s a b l e income  a l l o c a t e d to housing o f the i n d i v i d u a l p a r t i c i p a n t ( s ) i n c r e a s e s r e l a t i v e to other p a r t i c i p a n t s ) the p a r t i c i p a n t u i l l  n o r m a l l y upgrade  his  t h a t as i n d i v -  housing accomodation.  I t s h o u l d be n o t e d houever  i d u a l incomes i n c r e a s e a s m a l l e r p r o p o r t i o n o f income i s s p e n t on housing.  The income e l a s t i c i t y  as 1.5 t o 2  f o r demand has been measured as h i g h •  by R e i d ( 1 9 5 8 ) ^ however t h e r e i s more c o n c l u s i v e e v i d e n c e  to suggest t h a t income e l a s t i c i t y  i s c l o s e r t o a range o f .5 t o 1.  Oksanen (1966) has found t h a t h o u s i n g s t o c k e l a s t i c i t i e s  f o r income  5  range from .3 t o .5 and f l o w e l a s t i c i t i e s a r e below 1.  U h l e r (1968)  a l s o s u p p o r t s t h i s a n a l y s i s a3 he has found income e l a s t i c i t i e s •Such s t u d i e s are based on normal not c u r r e n t incomes.  range  9 tatueen .34 and . 5 7 . ^  Lee (1964) supports these f i n d i n g s  that income e l a s t i c i t y  is  concluding  l e s s than u n i t y hence the p r o p o r t i o n  of  7 i ,come s p e n t ' o n housing f a l l s  as income r i s e s .  _  The w i l l i n g n e s s ij  and/or a b i l i t y  of p a r t i c i p a n t s  to  or down through the accomodation spectrum i s o f t e n  "filter"  influenced  by a s p i r a t i o n s and needs, such a s , s i z e of f a m i l y and need f o r Ez=ce;  f a m i l y and neighborhood a s s o c i a t i o n s and t i e s ;  i-portance  of s t a t u s to the i n d i v i d u a l ;  income l e v e l s ;  pursuit  of l i f e  styles  expectations  psychological as to  future  which l e a d to a l l o c a t i n g  funds  g iz  other consumer goods and a c t i v i t i e s .  of the i n d i v i d u a l ' s  willingness  process i s h i s e x p e c t a t i o n s participant escalate,  is  One important  to p a r t i c i p a t e  as to f u t u r e  in this  a r e s i d e n t i a l dwelling  housing p r i c e s .  use any means at h i s  unit  "now" r a t h e r  of t h i s phenomenon i s the t r a n s f e r 5^-mary o f Supply and Demand  given i n the p r e v i o u s  than w a i t .  of f u t u r e  s e c t i o n s , while  In F i g u r e D=i-and by D j ^ * there  s~2ll relative i-  the  The net  demand to the  to  effect  present.  housing s t o c k  l a c k i n g i n same d e t a i l s and i n  does present a working model of the f a c t o r s  strumental to a n a l y s i s .  If  If  d i s p o s a l to purchase  The overview o f the supply and demand f o r  F. .  filtering  convinced t h a t the p r i c e of housing w i l l c o n t i n u e  he w i l l l i k e l y  refinement,  determinant  that  are  in-  These f a c t o r s are d e p i c t e d i n F i g u r e 1 .  1 , current At one p o i n t  supply i s  d e p i c t e d by S-^Sg and c u r r e n t  i n t i m e , the p r e v a i l i n g  i s a s m a l l i n c r e a s e i n the supply to the number of e x i s t i n g  demand, p r i c e s would f a l l to P^,  z'.her hand, demand i n c r e a s e d to D D ?  units  to S^S^ t h a t in stock,  a small decrease. p  while  p r i c e would be  supply  If,  is  quite  and no change on the  i n c r e a s e s to  S S , 9  9  ID Figure 1 I n t e r a c t i o n s of Supply and Demand f o r Housing  Source:  H a m i l t o n , S . L J . , P u b l i c Land Banking - R e a l or I l l u s i o n a r y Benefits? Report f o r the Urban Development I n s t i t u t e of O n t a r i o , 1974, p. 1 0 .  11 prices u i l l  rise  P^- J  to  As there are p h y s i c a l =.= l i m i t s  limits  to i n c r e a s e s i n supply  to the number o f r e s i d e n t i a l  process u i l l  approve,  duelling  the i n c r e a s e s i n supply  sites  for  has been the c a s e ,  ir;=jor p o r t i o n  rises  of the p r i c e  it  planning  Canadian urban  centres has been l e s s than the i n c r e a s e s i n demand. LT . Hamilton p o i n t s o u t , ^  the  as u e l l  If  this,  as  u o u l d account f o r a  i n Canadian housing i n the  past  Decade. "The problems o f supply o f housing and b u i l d i n g l o t s , as s e r i o u s as they may b e , are not as c r i t i c a l as the changes i n demand. Grouing p o p u l a t i o n , r a p i d l y r i s i n g incomes, demand f o r b e t t e r h o u s i n g , and i n c r e a s e d c o n c e n t r a t i o n i n a f e u urban areas are c r e a t i n g i n s a t i a b l e demand f o r housing and l a n d . Over the past ten y e a r s , incomes and d i s p o s a b l e incomes have r i s e n more r a p i d l y than housing e x p e n d i t u r e s , and the c o n c e n t r a t i o n o f p o p u l a t i o n i n t o urban areas has c o n t i n u e d . In a d d i t i o n , important neu i n c e n t i v e s , i n the form of s p e c i a l income tax s t a t u s f o r p r i n c i p a l r e s i d e n c e s , has b o l s t e r e d the a l r e a d y e x t e n s i v e demands f o r h o u s i n g , e s p e c i a l l y o u n e r ship. S i r n i l a r i l y , improved mortgage terms and p r o v i n c i a l f i n a n c i n g f o r second mortgages have a l l c o n t r i b u t e d to the i n c r e a s e d demands. " H E f f e c t o f S u r p l u s Demand on Land P r i c i n g Given t h a t  an excess of demand v i s - a - v i s  stock as a whole u i l l  raise  price  levels  naming on s t r e a m , dramatic changes u i l l for  serviced duelling  TTcre dramatic p r i c e  for  supply  for  the housing  the neu housing  occur i n the p r i c e s  stock, paid  s i t e s through the a c t i o n o f l e v e r a g e . changes u i l l  take p l a c e f o r  Even  r a u land due to  the  e f f e c t o f compounded l e v e r a g e . Table 1 s e t s out some assumptions about the average levels of e x i s t i n g The b u i l d e r zf  housing as these p r i c e uill  take h i s  pricing  changes occur through t i m e . c l u e from the average  comparable houses i n comparable l o c a t i o n s  ia b u i l d .  Instinctively,  he knous that  price  to the one he i s  he cannot i n f l u e n c e  price  going  the  12  Table 1.  Existing  Year 1  D u e l l i n g Stock P r i c e R i s e s Through  Year 2  Percentage Change Year 1 to 2  Year 3  Average Price L s v e l of Existing Comparable rouses i n Comparable $ $ $ Locations 26,000 30,000 38,000  overall price  of housing f o r  in any one year i s only stock. prefer if  He knous that existing  his price  tuo to f o u r  if  his price  level  is  too l o u ,  a crafty  i s too h i g h , not s e l l .  the s p e c u l a t o r .  also i n s t i n c t i v e l y  on a v e r a g e ,  pay a premium f o r  as improved d e s i g n , l o u e r  existing uill  He a l s o knous sell  knous t h a t  to  buyers  neu housing due to such costs,  influence  better  fin-  ancing terms and the i n c r e a s e d s t a t u s of ouning a neu home. The e f f e c t of the b u i l d e r ' s rn the maximum p r i c e s t h a t cuslling sites rare  he u i l l  pricing pay f o r  i s demonstrated i n Table 2 .  f a r h i s house from year to y e a r ,  the l o t .  The a c t u a l p r i c e  sale  residential  Clearly,  if  he r e c e i v e s  he can a f f o r d to pay more  he pays u i l l  "nouse, l e s s the c o s t s of c o n s t r u c t i o n  o f h i s house f o r serviced  be the end p r i c e  and p r o f i t .  r i s e more on a percentage b a s i s than c o n s t r u c t i o n  If  that  existing  at an immediate ' p r o f i t '  maintenance and r e p a i r  stock  the buyer  speculator u i l l  product  uill,  + 46%  increment to housing  housing to buy the b u i l d e r ' s The b u i l d e r  Percentage change Year 1 to 3  + 27%  per cent o f the t o t a l  housing and h i s u n i t u i l l  level  Percentage Change Year 2 to 3  + 15%  the aggregate  Time.  far  house  costs r i s e  for  his prices on a  13 percentage b a s i s , then p o s i t i v e as Tsble 2 demonstrates, i f costs go up by 20%, l o t Negative  leverage w i l l r e s u l t .  house p r i c e s r i s e  by 27% while  i s also a d i s t i n c t  costs rose by 20%, from $20,ODD to $23,000,  P r i c e of home b u i l t by builder  construction  p r i c e s would  Maximum Residenti a l Duelling S i t e Price  Year 2  Year 3  Percentage change Year 1 to 2  Percentage change Year 2 to 3  Percentage change Year 1 to 3  + 15%  + 27%  + 46%  23,000  27,600  + 10%  + 20%  + 33%  9,200  11,500  16,200  + 25%  + 41%  + 76%  The b u i l d e r  p u b l i c or p r i v a t e , takes h i s p r i c i n g  comparable h o u s i n g .  from the maximum r e s i d e n t i a l The p r i c e  that  i s part  of the  level  The developer t a k e s h i s p r i c i n g dwelling  site  price  for  clue  level.  the developer pays f o r raw l a n d i s  the p r i c e p a i d f o r  pricing  c l u e from the p r i c e  i n the same way as the p r i c e t h a t b u i l d e r s If  Prices.  20,800  The d e v e l o p e r , process.  drop  a 23% d e c r e a s e .  $30,000 $34,500 $43,800  Building costs & Profit  sites.  lot  Assume  E f f e c t of Leverage on R e s i d e n t i a l D w e l l i n g S i t e  Year 1  existing  building  possibility.  that house p r i c e s remained c o n s t a n t at $30,000 while  Table 2.  instance,  p r i c e s w i l l e s c a l a t e by 41%.  leverage  from $9,200 to $7,000 -  For  leveraged  pay f o r s e r v i c e d  dwelling  a s e r v i c e d s i t e - i n c r e a s e s more on a  14 percentage b a s i s than the s e r v i c i n g l e v e r a g i n g on the p r i c e p a i d f o r e s c a l a t e more r a p i d l y serviced s i t e s ,  c o s t s the e f f e c t u i l l  raw l a n d .  If  be upward  the s e r v i c i n g  than the percentage p r i c e  increase  the e f f e c t w i l l be downward l e v e r a g i n g  costs  for  on the  prices  p a i d for raw l a n d . '  Table 3 .  E f f e c t of Leverage cm Raw Land P r i c e s .  Year 1 P r i c e paid by b u i l d e r for serviced building site $ 9,200 Servicing costs + municipal imposts + profits  5,200  Maximum raw land p r i c e per site  4,000  Percentage change Year 1 to 2  Percentage change Year 2 to 3  Year 2  Year 3  11,500  16,200  + 25%  + 41%  . + 76%  6,300  9,100  + 21%  + 45%  + 75%  + 30%  + 37%  + 78%  5,200  7,100  Note t h a t Table 3 a l s o demonstrates n e g a t i v e transition  i n raw land p r i c e s from year 2 to year 3 .  costs i n the h y p o t h e t i c a l to $9,100 i n year 3 .  In  from $11,500 to $ 1 6 , 2 0 0 . i s negative  leverage  in  the  Servicing  example have r i s e n from $6,300 i n year 2 the same y e a r ,  for serviced b u i l d i n g s i t e s  per s i t e  Percentage change year 1 to 3  the p r i c e  p a i d by the  builder  i n c r e a s e d by a l e s s e r percentage of 41%  The e f f e c t on the maximum raw land p r i c e  leverage.  The p r i c e  paid for  a raw l o t  only 37% from $5,200 t o $7,100 w h i l e the p r i c e p a i d f o r  increased  a serviced  lot  i n c r e a s e d by 41%.  paid for  raid l o t s  by a much lower  Table 4 .  if  C o n s i d e r the i m p l i c a t i o n s f o r  the p r i c e  percentage.  Negative  p a i d by the b u i l d e r  Table 4 p o i n t s  the  price  had o n l y  out n e g a t i v e  risen  leverage.  Leverage.  Year 2 P r i c e p a i d by b u i l d e r for serviced building site  Percentage change  Year 3  111,500  13,225  + 15%  Servicing costs + m u n i c i p a l imposts + profits  6,3DTJ  9,100  + 45%  Maximum raw l a n d p r i c e per s i t e  5,200  4,125  - 21%  E f f e c t of S u r p l u s Demand on the Supply of Housing U n i t s  If  the p r i c e o f e x i s t i n g  unusually r a p i d r a t e ,  housing s t o c k i s  the b u i l d e r u i l l  develop  to the Market  c l i m b i n g at an  'expectations'  the p r i c e t h a t he may be a b l e t o o b t a i n f o r h i s p r o d u c t i f If  the expected increment i n p r i c e  is  he w a i t s .  c o n s i d e r a b l y more than h i s  holding costs for  the f i n i s h e d house, he w i l l tend to w i t h o l d  from the market.  He w i t h h o l d s  simply p r i c e s thereby future  at' expected f u t u r e  The b u i l d e r p e r i o d of t i m e . effect,  p r e s e n t supply  the b u i l d e r  has to  future  price  levels  at p r e s e n t market p r i c e s  He to b e ,  into  market p r i c e s .  w i l l not o f t e n w i t h h o l d  Firstly,  supply  i n a very s i m p l e f a s h i o n .  the house at what he expects  transferring supply  supply  as to  supply  for  any c o n s i d e r a b l e  the h o l d i n g c a s t s are too o n e r o u s . f i n a n c e the e n t i r e  c a s t of  the l o t  In plus  - a cost o f c o n s t r u c t i o n o f the house at c u r r e n t ecandly,  interest  rates.  the b u i l d e r needs h i s c a p i t a l to buy another l o t  1= c o n s t r u c t i o n process  over a g a i n .  Price  and s t a r t  (1972) p o i n t e d out  that  12 _ i l d e r s are c h a r a c t e r i s t i c a l l y -= b u i l d e r  under c a p i t a l i z e d .  Thirdly,  i s always concerned about temporary s e t b a c k s i n  =rkst even though the g e n e r a l d i r e c t i o n i s upwards. •JUS  r  The b u i l d e r  that temporary s e t b a c k s i n p r i c e add to h i s c a r r y i n g  educing the p r o f i t the house.  l e v e l t h a t he w i l l r e c e i v e  Fourthly,  the b u i l d e r  irticularily  if  is usually  he i s to s e l l  In summary, i t  .11 tend to w i t h h o l d  i s not to be expected t h a t  if  of  the b u i l d e r  will  long p e r i o d s of time but he  the s h o r t term p r i c e  levels  are i n c r e a s i n g  On the o t h e r hand, the b u i l d e r w i l l tend to a c c e l e r a t e  i9 s u p p l y i n g of houses to the market i f akness i n p r i c i n g f o r  existing  rat h i s c a r r y i n g c o s t s are too  he p e r c e i v e s s h o r t  housing s t o c k .  ts from the market i f  heavy.  for serviced dwelling s i t e s . from the market f o r  me problems as the b u i l d e r . required for nd to w i t h h o l d  the s h o r t  l e v e r a g e on the  Normally,  Carrying  rises  price  the developer  long as he i s  will  f a c e d with the  c o s t s are too high and c a p i t a l  the purchase of raw l a n d . if  serviced  he p e r c e i v e s t h a t the s h o r t term p r i c e  r e x i s t i n g s t o c k are e f f e c t i n g p o s i t i v e  lots  time  The b u i l d e r knows  The developer w i l l a l s o tend to w i t h h o l d supply o f  t withhold  lots,  direction.  t h h o l d h i s product from the market f o r  ructure  the  he p e r c e i v e s the l e v e r a g e a c t i o n on the p r i c e in  in  aware that he w i l l  the proceeds i n p u r c h a s i n g more s e r v i c e d  ; r v i c e d l o t s to be p o s i t i v e  •=matically.  casts  from the e v e n t u a l s a l e  irn a h i g h e r r e t u r n on h i s c a p i t a l i n v e s t e d i f •use and r e i n v e s t  the  The d e v e l o p e r w i l l  term p r i c e r i s e s are d r a m a t i c .  only  17 The h o l d e r of raw land a l s o has e x p e c t a t i o n s future price  levels  particularly ing p o s i t i v e l y land p r i c e s . uill  for  raid l a n d .  These e x p e c t a t i o n s u i l l  the be  f u e l e d uhen the e f f e c t of compounded leverage both on the p r i c e o f s e r v i c e d l o t s The l a n d h o l d e r i n these p e r i o d s  double i n value next y e a r .  to s e l l .  as to  Furthermore,  u a i t for f u r t h e r that h i s c a r r y i n g  that h i s  quite  increases.  c o s t s are very l o u ,  position  in  from f u r t h e r  relationship uindfall  gains.  The l a n d h o l d e r tends to u i t h h o l d rau land from the market periods of abnormal p r i c e  increases.  assembly o f r a u l a n d more d i f f i c u l t i n land assembly reduce the q u a n t i t y i n t o the supply p r o c e s s f o r Collectively, uithholding  in  Such u i t h h o l d i n g makes the and more time consuming.  Delays  of rau l a n d u h i c h may be f e e d  eventual conversion into  landouners are u o r k i n g i n t h e i r  l a n d from the m a r k e t .  to  The landouner knous  particularily  to the amounts t h a t he expects to r e c e i v e  land  reluctant  the l a n d h o l d e r i s i n an e x c e l l e n t  abnormal p r i c e  uork-  and a l s o on rau  'knous'  The landouner i s  is  duelling  units.  oun best i n t e r e s t  by  is Footnotes  Edmund V. P r i c e . "The House B u i l d i n g Industry i n Vancouver", Unpublished M a s t e r ' s of Business A d m i n i s t r a t i o n t h e s i s , the U n i v e r s i t y of B r i t i s h Columbia, Vancouver, 1 9 7 0 .  2 R i c h a r d A. Moore. "Development P o t e n t i a l Model f o r the Vancouver M e t r o p o l i t a n A r e a " , Unpublished M a s t e r ' s of B u s i n e s s A d m i n i s t r a t i o n t h e s i s , The U n i v e r s i t y of B r i t i s h Columbia, Vancouver,  1972.  "'P. A. Samuelson, Economics: An I n t r o d u c t o r y A n a l y s i s . T o r o n t o : M c G r a u - H i l l Company of Canada L t d . , 1 9 6 6 , p. 4 6 .  l+ M. G. R e i d , " C a p i t a l Formation i n R e s i d e n t i a l Real E s t a t e " , J o u r n a l o f P o l i t i c a l Economy 6 6 : 1 3 1 - 1 5 3 , 1 9 5 8 . 5 E . Oksanen, "Housing Demand i n Canada, 1 9 4 7 - 1 9 6 2 : Some P r e l i m i n a r y E x p e r i m e n t a t i o n " , Canadian J o u r n a l o f Economics and P o l i t i c a l Science, 32: p.312, 1966. ^R. A . U h l e r , "The Demand f o r Housing and Inverse P r o b a b i l i t y Approach", The Review o f Economics and S t a t i s t i c s 5 0 : p . 1 3 3 , 1 9 6 8 .  7 T . H. Lee, "The Stock Demand E l a s t i c i t i e s o f IMon Farm H o u s i n g " , The Review o f Economics and S t a t i s t i c s 4 6 : p . 8 8 , 1 9 6 4 .  g G r e a t e r Vancouver R e g i o n a l D i s t r i c t , "The Housing I s s u e " A D i s c u s s i o n Paper f o r the G r e a t e r Vancouver R e g i o n a l D i s t r i c t , prepared by the GVRD P l a n n i n g Department (Vancouver: The Greater Vancouver R e g i o n a l D i s t r i c t , F e b . 1 3 , 1 9 7 4 ) , p. 4 .  g S . U. H a m i l t o n , P u b l i c Land Banking - Real or I l l u s i o n a r y Report of the Urban Development I n s t i t u t e of O n t a r i o , 1974, p. 9 .  Benefits,  "^Ibid.,  p. 9 .  Ibid.,  p. 9 .  1 1  12  E.  Price,  Op.  cit.  CHAPTER  III  SUPPLY AMD DEMAND FOR HOUSING IN METROPOLITAN VANCOUVER  Chapter II  dealt uith  - E o r e t i c a l terms. antention that  the supply  and demand f o r  housing  A n a l y s i s o f the GVRD housing market v e r i f i e s  the demand f o r  =gion exceeds the  residential  duelling  units  in  or b e t t e r  "Growing  populations,  rapidly  rising  housing and i n c r e a s e d c o n c e n t r a t i o n s  raas are c r e a t i n g i n s a t i a b l e r e a t e r Vancouver larly single  demands f o r  Regional D i s t r i c t  family d u e l l i n g s ,  a column 5, Table 1).  this  It  population  incomes, demand  i n a feu l a r g e  housing and land"'''  the p r i c e s of h o u s i n g ,  may be argued t h a t  the p r i c e of  consumer of housing  urchase the same house he bought tuo years  urban In  (Refer  housing cannot  ago i n t o d a y ' s  market,  = the i n c r e a s e s i n c o s t s of housing have exceeded the i n c r e a s e i s gross income r e q u i r e d to s a t i s f y or mortgage f i n a n c i n g . However,  hat the demand f o r  this  the c o n v e n t i o n a l  The f o l l o w i n g  housing s h o u l d d e c r e a s e .  as an A brief  this  a n a l y s i s of  the argument that  s a strong demand i n the housing market i n the  19  con-  indication  33ic economics of the housing market and the f u n c t i o n of routh as a cause of demand w i l l c l a r i f y  in  qualifications  a n a l y s i s supports  may not be i n t e r p r e t e d  the  partic-  have b e e n . i n c r e a s i n g r a p i d l y  3 r e a c h i n g a p o i n t where the t y p i c a l  lusion.  the  supply.  Demand f o r housing may be measured as a f u n c t i o n o f nd income.  in  G.V.R.D.  the  papulation there  20 Demand For Housing as a F u n c t i o n of  Income  The i n d u s t r i a l workers of B r i t i s h Columbia composed 42% o f the t o t a l labour f o r c e of 1,000,045 i n J u l y  1971.  Table 5 i n d i c a t e s  the gross monthly income o f the average i n d u s t r i a l worker 1963 and 1973 and r e l a t e s these f i g u r e s existing  to the average p r i c e s  and new homes i n the G r e a t e r Vancouver R e g i o n a l  and the d o l l a r and 1973.  between of  District  i n c r e a s e i n the p r i c e s o f these homes between 1963  These f i g u r e s  are r e l a t e d to the i n c r e a s e i n the amount of  the monthly payments r e q u i r e d to amortize a mortgage at the average annual i n t e r e s t  r a t e over a p e r i o d D f t w e n t y - f i v e years with a 5%  and 25% down payment.  Column 9 i n d i c a t e s that i f  the average worker  purchased the average p r i c e d home i n the GVRD i n 1973 with a 25% down payment h i s monthly p r i n c i p a l and i n t e r e s t higher than they would have been f o r is  payments would be $56.84  a home i n 1972 and t h i s  increase  $21.84 g r e a t e r than the i n c r e a s e i n h i s gross monthly income  f o r the same p e r i o d .  P r i o r to 1973 the monthly i n c r e a s e s i n  income have been g r e a t e r  gross  than the i n c r e a s e i n monthly i n t e r e s t  and  p r i n c i p a l payments r e q u i r e d t o f i n a n c e the purchase o f a new home even i n the case where t h e r e was a 5% down payment.  If  an i n d u s t r i a l  worker i n B . C . purchased an average p r i c e d home i n the GVRD i n 1971 f o r $26,471 (column 5 , T a b l e 5) w i t h a down payment o f $6,617  (25%)  the monthly mortgage payments at the p r e v a i l i n g r a t e of 10% i n 1971 on a debt o f $19,853 would be $177.59 of p r i n c i p a l and i n t e r e s t amortized over 25 y e a r s .  The maximum debt p e r m i t t e d with a 30% debt  s e r v i c e r a t i o would have been $198.24 (column 4, Table 5 ) .  The debt  s e r v i c e i s below the r e q u i r e d income. If  one c o n s i d e r s the purchase o f an average e x i s t i n g home  i n the Greater Vancouver R e g i o n a l D i s t r i c t  i n 1973 a c c o r d i n g to  the  TBble The  Price  of  1 Monthly Gros3 income of a v e r age worker in 8.C.  $ 3 9 0 . £43 407.81 436.41 455.49 495.17 523.29 560.52 597.87 660.83 713.72 71*8.92  Homes I n 2  Dollar change in income  B a s e d on to  6  812,637 13,203 13,965 15,200 17,836 20,595 23,939 24,239 26,471 29,714 38.561  $117.13 122.34 130.92 .139.65 148.85 155.99 168.16 179.36 198.2ft 214.18 224.68  4.5% 7.0 6.7 6.6 5.5 7.1 6.7 10.5 8.0 4.9  the  of  average  prices  P u b l i s h e d by  the  to  Average Dollar price change of in singlB price family dwellings in Metro Vancouver  Canadian  $566 762 1335 2636 2759 3344 1300 2232 3243 8847  Average  single  family  of  Industrial  Workers  §  2  Average annual interest rates  The a n n u a l increase in in mortgage d e b t uith a 2 5 % down payment  The m o n t h l y increase in mortgage payments o f principal and i n terest with a 2 5 % down payment  7% 7 7/8 3/8 7/8 7/8: 1/4 3/8  dwellings  in  B.C.  1963-1973  19  i L The m o n t h l y i n crease i n mortgage payments of p r i n c i p a l and i n t e r e s t w i t h a 5% down p a y m e n t  The a n n u a l increase in mortgage debt w i t h a 5% down payment  i  $424 511 1001 1917 2059 2508 915 1614 1432 6635  6 7 7 8 9' 10 10 9 1/8 9 1/2  S t a t i s t i c a l Review,  S t a t i s t i c a l Survey  Incomes  7  $  $ 537 723 1258 2504 2621 3116 1235 2120 3030 8404  2.99 3.47 7.24 14.36 16.61 21.11 8.28 14.32 20.08 56.84  3.78 4.85 9.05 18.89 21.32 26.19 11.04 18.79 25.93 72.34  Historical  in  the  committee of  GVRD d e r i v e d the  Greater  from Real Estate  Vancouver  Trends  Real Estate  in  Board  Metropolitan Association  1973.  (7)  Real Estate  (8)  The  annual  (9)  The  monthly  (10)  The  annual  (11)  The  monthly  payment  Relative  5  S t a t i s t i c s Canada,  Vancouver. 1953  Vancouver  if  % change Maximum i n income amount o f monthly income to s e r vice a mortgage debt based on 30% debt service ratio  $17.38 28.60 29.08 30.68 27.12 32.23 33.35 62.95 53.09 35.00 on  (5)  Metropolitan 3  5  of  Trends  in  increase increase increase increase 5%.  Metropolitan  in in in in  the  mortgage the the  Vancouver  required  loan  payments  required mortgage  to  1963-1973. purchase  of  mortgage payments  a home i n M e t r o p o l i t a n  principal loan to of  and i n t e r e s t  purchase  principal  Vancouver  amortized  a home i n  and i n t e r e s t  over  with  25 y e a r s  Metropolitan  a 2 5 % down with  Vancouver  amortized over  25 y e a r s  payment.  a down  with with  payment  a 5% down a  down  of 25%.  payment.  22 c r l t s r i a n used i n Table  5 u i t h a 25% dciun payment of $9,640 the  iTc-thly payments of p r i n c i p a l and i n t e r e s t  $:Z5,920 would be approximately $241.30. criumn 4, i f  on the remainder of  the average worker wished to o b t a i n a mortgage from a  c n v e n t i o n a l lender who used a 30% debt s e r v i c e • a.'-ants g r e a t l y  exceed those p e r m i t t e d ,  ratio,  $224.68).  the monthly  T h i s very e l e m e n t -  ary a n a l y s i s excludes the monthly c a l c u l a t i o n o f p r o p e r t y wi-ild be added to the p r i n c i p a l and i n t e r e s t  tax  the  Hr-sver,  is  i s obvious  t h a t the average i n d u s t r i a l  worker  capable of purchasing the average p r i c e d home i n the Greater Regional  debt. not Vancouver  District.  One may argue t h a t the purchaser may t u r n to s.jrces  which  payments when c a l c u l -  ating the minimum r e q u i r e d 30% of gross income to s a t i s f y it  5,  R e f e r r i n g back to Table  alternative  o f f i n a n c e which do not c o n s i d e r the debt s e r v i c e  major f a c t o r granted.  ratio  i n d e t e r m i n i n g the amount of the mortgage t h a t  Credit  Unions w i l l p r e s e n t l y  c o u l d be  l e n d at 75% o f the market  value o f a home c h a r g i n g a s l i g h t l y h i g h e r a s l i g h t l y higher  as a  debt to s e r v i c e r a t i o .  interest In  average p r i c e d home i n the GVRD i n c r e a s e d by  rate  permitting  1973 the c o s t of an  $8,847.  A  25% down payment  requires  $2,211 cash i n a d d i t i o n to the amount r e q u i r e d f o r a home  ir. 1972.  The average i n d u s t r i a l worker would have to generate an  arritional  $2,211 i n s a v i n g s or would have to save approximately 24%  D f h i s gross income f o r a n a l y s i s merely g i v e s  1973.  It  should be noted t h a t the p r e c e d i n g  an i n d i c a t i o n of the r e l a t i o n s h i p  irromes of a l a r g e p o r t i o n of the labour f o r c e and t h e i r finance homes purchased i n 1973. t r s t have not been c o n s i d e r e d . e .en i f  this  between the capacity  There are many important  variables  A most important c o n c l u s i o n i s  argument i s a c c e p t e d , there  is s t i l l  to  that  a s t r o n g demand .  23 f o r housing which w i l l keep p r i c e s  high.  An economic a n a l y s i s of the housing market r e q u i r e s n i t i o n of a very important economic c o n d i t i o n t h a t housing market i n a unique a n a l y t i c a l s i t u a t i o n . supply of housing account f o r supply.  family dwellings  the year of 1971.^  housing s t o c k i n 1971 i n the form of s i n g l e approximately  5,674 or approximately  the  Additions  a very s m a l l p o r t i o n  The t o t a l s t o c k of s i n g l e  estimated to be 215,445 f o r  puts  recog-  of the  to  the  total  i n the GVRD i s  The a d d i t i o n to  family dwellings  2% o f the net s t o c k .  the  was  Approx-  imately 6,726 u n i t s were added i n 1972 and 5,525 i n 1973, y i e l d i n g a stock of 227,698 s i n g l e housing demand, t h i s  family dwellings.  aspect o f the market  is.critical.  S i n c e t h e r e are so few housing u n i t s the t o t a l housing s t o c k ,  LJhen c o n s i d e r i n g  created in r e l a t i o n  to  the amount o f demand r e q u i r e d to absorb the  a d d i t i o n s to the s t o c k are not t h a t  great.  The average  industrial  worker who purchased a home i n the GVRD at the average p r i c e  of  $26,471 a c c o r d i n g . t o T a b l e 5 with a mortgage of $20,000 can s e l l house f o r $38,561 i n 1973. approximately  After  paying h i s mortgage o f f ,  It  i s q u i t e p a s s i b l e t h a t he  may have saved funds ta buy a more expensive s e r v i c e the debt given h i s i n c r e a s e d e q u i t y  home and t h a t he c o u l d position.  Combining the  o f home owners who have r e a l i z e d a tremendous e q u i t y  and those who are e n t e r i n g  the market t o d a y ,  the p r o c e s s of  takes place and the a d d i t i o n s to the s t o c k of housing are absorbed.  he has  $18,000 cash which he would use as a down payment  towards the purchase of another home.  activities  his  gain  filtering  quickly  24 Demand f o r Housing as a F u n c t i o n of  S i n c e the a d d i t i o n s demand f o r  to the housing are not  housing does not r e q u i r e  purchasers to g i v e i t that  Population  strength.  a significant  prices  great  the  number of  A demographic a n a l y s i s u i l l  i n c r e a s e s i n p o p u l a t i o n and p r o s p e c t i v e  GVRD has c r e a t e d a s u f f i c i e n t  that  home buyers  in  reveal the  demand i n the housing market to keep  high. Analysis of b i r t h r a t e s ,  mortality  i n d i c a t e s a steady p a p u l a t i o n grouth 1971 and produces a b a s i s f o r p o p u l a t i o n i n the f u t u r e . o f grouth p r o v i d e s  r a t e s and m i g r a t i o n  i n the GVRD betueen 196S and  forecasting significant  A brief  rates  increases  in  c o n s i d e r a t i o n of each component  a goad i n d i c a t i o n  of the impact t h i s  grouth  uill  have on the housing demand. Statistics  Canada i n d i c a t e  that  the f e r t i l i t y  rate uhich  taken to be the number o f c h i l d r e n born to a female during her reproductive the f o l l a u i n g  life  span i s  levelling  off.  In r e l a t i o n  comments may be made r e g a r d i n g  fertility  entire  to F i g u r e 2 rates  according  to S t a t i s t i c s Canada. Figure 2 Fertility  Rates  4.2 High 2.4 ~~ -  2 I960  Source:  1965  Population projections Canada 1970.  1970  for  1975  1980  Lou  1985  Canada 1969-1984,  is  Statistics  25 -  There e x i s t s  to approximately  a marked d e c l i n e i n t o t a l  fertility  from 3 . 9  2.4 i n the 196Q's but an a c h i e v e d l e v e l l i n g  out  around 1969. -  C o n s i d e r i n g the p r o j e c t e d ranges to 1984, the most p r a c t i c a l  r a t e i s the medium and u i l l the  be used as no evidence i s  available  to  contrary. -  The a r r i v a l  f a m i l y ' s need f o r second c h i l d ;  of a t h i r d c h i l d does not g e n e r a l l y  f a m i l y housing as does the a r r i v a l  therefore,  the p r o j e c t i o n s  the move from an apartment to a s i n g l e usually  alter  a  of the f i r s t  to 1984 have l i t t l e  and  effect;  f a m i l y or a row d u e l l i n g  is  i n i t i a t e d by the f i r s t or second c h i l d . -  If  a high f e r t i l i t y  be s i g n i f i c a n t  rate p r e v a i l s  say to 2 . 8 , then t h e r e  p o p u l a t i o n e f f e c t s but i n terms of the household these  u i l l not be a f f e c t e d u n t i l  the l a t e  1980*s.  A r e v i e u of an a n a l y s i s by the G r e a t e r Vancouver District  uill  Regional  on p o p u l a t i o n grouth c o n f i r m s these c o n c l u s i o n s by b a s i n g  f o r e c a s t on the f a c t t h a t the number o f b i r t h s than the expected number of b i r t h s  its  i n the GVRD was 10% l o u e r  u s i n g the knoun r a t e s f o r  all  of  5 B.C.  Thus,  the t r e n d of p a p u l a t i o n grouth i n t h i s  area s h o u l d be r e -  duced. Death r a t e s a c c o r d i n g to S t a t i s t i c s people per 1000 of p o p u l a t i o n . to be f a i r l y  Canada approximate 7 . 4  The GVRD a n a l y s i s has found t h i s  rate  constant.  M i g r a t i o n r a t e s are the most important  i n an a n a l y s i s  of  the GVRD. M i g r a t i o n r a t e s are most important the GVRD.  Approximately  in a papulation a n a l y s i s  of  76.5% of the p o p u l a t i o n i n c r e a s e betueen 1966  and 1971 i s accounted f o r by m i g r a t i o n . ^  66% of  the t o t a l number of  26 migrants (103,592) were between the ages o f 20 and 29 and 28% were 7 between the age o f 30 and 3 9 .  If  one assumes a m i g r a t i o n of  approx-  imately 20,000 per year and that  approximately  the age b r a c k e t of 20 to 28 t h i s  aspect of p o p u l a t i o n growth should  have an e f f e c t on demand f o r  housing.  of these people would q u a l i f y market, however, rate.  since this  One c o u l d argue t h a t  single family dwellings. homes at v a r i o u s p r i c e  for  It  60% of these are  i s not known what  percentage  f i n a n c i n g of the homes i n the  age group i s o n e with the h i g h e s t these people would a f f e c t  levels  is  present  fertility  v  It  in  the demand f o r  important to note t h a t they may purchase  i n the housing market a b s o r b i n g  the  homes vacated by those moving i n t o more or l e s s expensive homes. The f o r e c a s t f o r  future  growth i n the GV/RD i n d i c a t e s t h a t  u l a t i o n s h o u l d i n c r e a s e by 141,678 from 1,028,345 i n 1971 to i n 1976.  The p a p u l a t i o n i n c r e a s e f o r e c a s t f o r  1,169,923  those aged between 20  and 29 s h o u l d be approximately 7,347 per annum of 25.8% of the t o t a l p o p u l a t i o n i n c r e a s e of 2 8 , 3 3 5 .  pop-  average  The age group between 30 and 39  w i l l have a p o p u l a t i o n i n c r e a s e of approximately  6,202 per annum which  i s 21% o f the t o t a l p o p u l a t i o n i n c r e a s e per annum. The p o p u l a t i o n s t a t i s t i c s significant  c o n f i r m the f a c t  expected growth r a t e i n p o p u l a t i o n p a r t i c u l a r l y  b r a c k e t most l i k e l y a n a l y s i s of t h i s  to e n t e r the housing market.  of the market.  There- i s s u f f i c i e n t  that the demand f o r maintain i t s  the demand s i t u a t i o n  dwelling units  high l e v e l  of t h i s  i n the age  family  dwellings  particular  i n f o r m a t i o n a v a i l a b l e to as a whole i s  i n the f u t u r e .  is a  The e n t i r e demand  chapter has c o n c e n t r a t e d on s i n g l e  i n order to i n t e r p r e t  sector suggest  very s t r o n g and  A review of s t a t i s t i c s  by C e n t r a l Mortgage and Housing C o r p o r a t i o n Statistics  that there  D i v i s i o n o f Canada c o n f i r m t h i s  provided  and the Economics and fact.  uill  27 Table 6 r e l a t e s household formation to the t o t a l number of d u e l l i n g s t a r t s between 1961 and 1976.  Table 6 .  Household Formation and Dwelling Unit S t a r t s i n M e t r o p o l i t a n Vancouver 1961 - 1976. D u e l l i n g Unit  Household Formation Family  IMon Family  Total  1961  - 1966  23,900  19,700  43,600  46,391  1966  - 1971  42,100  22,400  64,500  69,851  1971 - 1976  55,400  35,600  91,000  98,280  Source :  Starts  CMHC, Canadian Housing S t a t i s t i c s y e a r l y a d d i t i o n s and K i r k l a n d , J . S . ,, Demographic Aspects of Housing Demand to 1986 CMHC, Economics and S t a t i s t i c s D i v i s i o n , 1971.  The Supply of Housing i n M e t r o p o l i t a n Vancouver Household formations averaged 8,720 a n n u a l l y f o r h a l f of the 1 9 6 0 ' s .  the  Housing s t a r t s were 9,278 a n n u a l l y .  first  Between 1966  and 1971 the annual average of d w e l l i n g u n i t s was 1 3 , 9 7 0 .  The average  number of household f o r m a t i o n s were 12,900 f o r the same p e r i o d .  The  estimated household formation based on census data between 1971 and 1976 i s approximately 18,200 per y e a r .  Approximately 20,000  dwelling  u n i t s per year w i l l be r e q u i r e d to meet the estimated r a t e of housing formation.  Since 1971 d w e l l i n g u n i t  of the p r o j e c t e d demand.  s t a r t s have been f a l l i n g  In 1971 there,were  were 14,126 and i n 1973 there were 14,953 9 provide  (reference  a d e t a i l e d breakdown of s t a r t s ) .  short of the p r o j e c t e d d w e l l i n g u n i t r e q u i r e d to s a t i s f y  starts  housing f o r m a t i o n .  15,553 s t a r t s ,  This  short  i n 1972 there  to Tables 7, 8 , and  figure  i s 4,703 u n i t s  of 1971-1976 per annum  Thus given the p r o j e c t e d popu-  l a t i o n growth and housing formation and the t o t a l p r o d u c t i o n of  duelling  Table 7 .  R e s i d e n t i a l B u i l d i n g A c t i v i t y - Duelling S t a r t s i n Metropolitan Vancouver 1967-1973  Single detached  1967  1968  1969  1970  1971  Total  1972  1972*  1973  5,980  5,146  4,763  4,482  5,283  25,654  5,625  7,300  6,726 -  348  512  402  350  391  2,003  368  368  6,328  5,658  5,165  4,832  5,674  5,993  7,668  7,088  208  311  580  839  1,057  2,995  1,635  945  7,085  9,721  11,945  7.762  8,822  45,335  6,896  6,920  7,293  10,032  12,525  8,601  9,879  A2 .48,330  8,103  8,531  7,865  13,621  15,690  17,690  13,433  15,553  75,987  14,096  16,199  14,953  Semi Detached and Duplex  Row Apartments  T o t a l Annual Starts  A l . 27,657  .  362  *  Includes Langley, Maple Ridge and P i t t Meadows Source:  CMHC  no CD  Table 8 .  R e s i d e n t i a l B u i l d i n g A c t i v i t y - S i n g l e Family Duelling S t a r t s 1967 - 1973  Vancouver Burnaby Neu Westminster North Vancouver West Vancouver  Coquitlam Port Coquitlam Port Moody  Richmond Surrey White Rock Delta  Miscellaneous T o t a l Metro-Vancouver Langley - C i t y Langley - M u n i c i p a l i t y Lions Bay Maple Ridge P i t t Meadous  1967  1968  1969  1970  1971  595 523 42 531 268  528 558 15 514 242  393 498 6 454 155  405 330 8 412 118  1,959  1,857  1,506  819 599 168  428 341 113  1,586  i n Metropolitan Vancouver  Total  1972  1973  595 596 22 539 114  .2,516 2,505 93 2,450 897  601 496 21 438 139  699 544 19 524 165  1,273  1,866  8,461  1,695  2,131  231 413 63  206 310 42  248 305 46  1,932 1,968 432  350 289 23  52 28 3  882  707  558  599  4,332  662  83  507 870 120 1,389  516 729 117 1,570  590 738 115 1,551  610 859 157 1,583  2,735 4,025 628 7,360  718 1,070 108 1,729  1,529 1,158 77 1,502  2,727  2,886  2,932  2,994  3,207  14,748  3,625  7,020  56  33  20  7  116  11  39  6,328  5,658  5,165  4,832  27,657  5,993  512 829 119 1,267  '  5,674  l  l  k  1,174 19 2 9 0 3 8  •Includes duplexes Source:  CMHC  1,635  1 7 3  1,197 29 4 8 3  153 2,011  Table 9 .  Residential Building Activity -.Multiple  Coquitlam Port Coquitlam Port Moody  Richmond Surrrey White Rock Delta  M e t r o p o l i t a n Vancouver  19G7 - 1973  1968  1969  1970  1971  Total  1972  1973  3 ,649 1 ,310 914 713 217  4,626 1,628 1,106 . 1,170 133  6,106 1,320 673 1,449 163  1,290 2,116 344 884 340  2,716 2,124 133 868 197  18,387 8,498 3,170 5,084 1,050  1,936 1,119 149 943 183  2,610 1,027 742 675 707  6 ,803  8,663  •9,711 .  4,974  6,038  36,189  4,330  5,761  241 59 102  503 130 158  837 231 134  516 140 370  482 426 75  555 64  -  168 64 78  402  791  1,202  1,026  619  330  _  10 72 6  69 379 26 104  696 595 189 131  1,424 469 159 549  845 1,575 95 3.43  3,034 ' 3,029 541 1,133  996 1,420 347 96  336 989 492 21  88  578  1,612  2,601  2,858  7,737  2,859  7 ,293  10,032  12,525  8,601  9,879  48,330  7,808  1967 Vancouver Burnaby New W e s t m i n i s t e r North Vancouver west Vancouver  Duelling Starts  Miscellaneous Langley - C i t y Langley - M u n i c i p a l i t y Lions Bay Maple Ridge P i t t Meadous Source:  CMHC  983 .  2,579 986 839 . 4,404  :  1,838 7,865  295 354 8 66  264  723  370  106  31 units  the supply A brief  duelling costs,  is  F a l l i n g behind the demand.  a n a l y s i s oF the tuo major components oF s i n g l e  Family  the l a n d and the c o s t oF labour  uill  and m a t e r i a l s ,  put the case oF the cause oF i n c r e a s e d c o s t s of housing i n and u i l l costs.  indicate  areas of i n t e r e s t  Tables 10 and 11 p r o v i d e  and the c a s t s a f c o n s t r u c t i o n p e r i o d of 1964-1973. provides  regarding  a list  of p r i c e s  of s e r v i c e d  deriving  lots  for  the  are assembled i n Table 12 u h i c h  a breakdown of the r e l a t i o n s h i p  between the c o s t o f  land and  an e s t i m a t e d c o s t of a home.  1964 and 1973 the percentage o f t o t a l r e l a t e d to the cost o f c o n s t r u c t i o n to 49% i n 1973.  to reduce housing  based on m a t e r i a l and labour  These f i g u r e s  the cast of c o n s t r u c t i o n  policy  perspective  cost of a s i n g l e  steadily  family  Between dwelling  d e c l i n e d from' 71% i n 1970  The p r i c e o f s e r v i c e d land as a percent o f the  total  c o s t o f housing has i n c r e a s e d from 29% i n 1964 t o 51% i n 1973. most s i g n i f i c a n t 1973.  i n c r e a s e i n the c o s t o f a home was between 1972 and  The amount of the i n c r e a s e i s  attributable  to l a n d w h i l e  to the i n c r e a s e d c o s t o f  only  labour  that one note these f i g u r e s cost of a s i n g l e  The  $12,965.  29% of t h i s  71% o f t h i s  increase i s  and m a t e r i a l s .  It  have no r e l a t i o n s h i p  family dwelling.  increase  attributable  i s most  important  to the market  These f i g u r e s  is  value  merely i n d i c a t e an  e f f e c t of the market and not a c a u s e . This  c o n f i r m s the t h e o r e t i c a l  analysis  are a f u n c t i o n o f new house v a l u e s which, mainly, building  by the p r i c e  of e x i s t i n g  c o s t s or l a n d c o s t s ,  to h o u s i n g .  in turn,  This  important  are  logical  costs,  than the  either  current  conclusion is  realization  land  determined  a f f e c t the  the housing stock i s much l a r g e r  Relating this  the c o s t s of  Construction  cannot m a t e r i a l l y  general l e v e l o f market p r i c e s . to the f a c t t h a t  housing.  that  related increment  to the cost  figures  determined i n Table 12 the supply problem i s put into a t o t a l l y neu perspective.  33  Telle  10.  Cast a f C o n s t r u c t i o n o f S i n g l e Family D u e l l i n g s M e t r o p o l i t a n Vancouver 1964-1973  Cast/sq. f t . s t d 1200 f t . bungalou  Year  1554  Material and l a b o r cost  10 .60  12,720  11 .67  14,004  1557  12 .49  1553  Annual Dollar Change  in  Annual % Chang e  Cost Index  1%  104 . 3  1,284  7%  113 .2  14,988  984  7%  116 . 8  13 .55  16,260  1, 272  s%  128 . 1  1559  14 .64  17,568  1,308  s%  141 . 0  1570  1^ .37  17,224  334  -2%  137 . 5  1571  14 .45  17,340  116  1%  138 .2  1972  16 .02  19,224  1,884  11%  153 . 3  1973  19 .22  23,064  3,840  20%  183 . 0  15SS  '  Source:  :  -  Real E s t a t e Trends i n M e t r o p o l i t a n Vancouver by the S t a t i s t i c a l Survey Committee a f the G r e a t e r Vancouver R e a l E s t a t e Board A s s o c i a t i o n 1961 - 1973.  Table 1 1 .  Average Cast cif a T y p i c a l  P r i c e of S e r v i c e d Lot  S e r v i c e d Lot  i n Gl/RD ( i 9 6 4 - 1 9 7 3 )  Annual D o l l a r Change  1964  5,061  1966  5,810  1967  7,710  1,900  32%  1968  9,600  1,890  24%  1969  11,500  1,900  19%  1970  11,520  20  0%  1971  13,200  1,680  14%  1972  14,708  1,508  11%  1973  23,833  9,125  . 62%  Source:  +  Annual % Change  411  -8%  749  14%  Determined from Table IX The Housing Issue the P l a n n i n g Department of the Gl/RD 1 9 7 3 .  prepared by  Table 12.  The Cast of Housing i n GvHU i n Ternii Of Ouildlng Ousts Bt'iij Oe.rvluBr.1 Loud Prices 19G4-1973  Year  T o t a l Cost serviced land + labor + materials  Material & Labour B S a % of T o t a l Cost  Land as a % of Total Cost  Annual Percent change in total cost  Annual Dollar Change in Total Cost  %  Change due to mat. & l a b o r cost  Change due to l a n d c o s t  Dollars %  Dollars  1964  17,760  . 71%  29%  1966  19,814  70%  30%  11%  2,P54  66%  1355.64  34%  698.36  1967  22,698  66%  34%  14%  2,884  34%  980.56  66%  1,903.44  1968  25,860  62%  38%  13%  3,162  40%  1264.80  60%  1,897.20  1969  29,068  . 60%  40%  12%  3,208  40%  1283.20  60%  1,924.80  1970  28,744  59%  41% . - 1%  324  100%  1971  30,540  56%  44%  6%  1,796  6%  107.76  94%  1,688.24  1972  33,932  56%  44%  11%  3,392  55%  1865.60  45%  1,526.40  1973  46,897  49%  51%  , 38%  12,965  29%  3755.65  71%  9209.35  Source:  Tables  -  - 324  -  -  10 and 1 1 .  U1  36  Footnotes  X  S.  U. H a m i l t o n , Dp. c i t ,  p.  9.  2 The Canadian S t a t i s t i c a l Review, August 1971 and August 1973, S e r i a l #11-003. Employment E a r n i n g s and Hours, August 1971 and August 1973 S e r i a l #72002. ^The Greater Vancouver R e g i o n a l D i s t r i c t , The Housing Vancouver: A Report by the S t a f f o f the G r e a t e r Vancouver D i s t r i c t P l a n n i n g Committee, p. 1 2 . C e n t r a l Mortgage and Housing C o r p o r a t i o n S t a t i s t i c s 1971, 1972, 1973.  Single  Issue Regional  Family  Duelling  5 The G r e a t e r Vancouver R e g i o n a l D i s t r i c t , Vancouver GVRD P l a n n i n g Department 1973. ^Population Forecast,  Op.  Cit.  Population Forecast,  Op.  Cit.  Population Forecast,  Op.  Cit.  7 fl  Population  Forecast  CHAPTER IV  THE SUPPLY OF SERVICED RESIDENTIAL DUELLING SITES - AN EXAMINATION OF THE FACTORS DETERMINING QUANTITATIVE EXPECTATIONS OF INCREMENTS TO EXISTING HOUSING STOCK THROUGH THE DEVELOPMENT OF SERVICED RESIDENTIAL DUELLING SITES S h o r t f a l l s of the supply of r e s i d e n t i a l duelling s i t e s have been documented c l e a r l y .  The increases i n the size of the e x i s t i n g  housing stock have not been s u f f i c i e n t to meet the demand expectations generated by net family formations region.  and net migration into the  It i s i n s t r u c t i v e nou to look at the supply side of the  supply/demand equation  i n order to gain some insights into the a b i l i t y  of the suppliers (private developers  and/or public agencies) to meet  the demands for r e s i d e n t i a l duelling units u i t h i n s p e c i f i e d time horizons.* S t a t i c Analysis of the Residential Duelling Unit Supply Process Vieued as a s t a t i c program frozen at any given point i n time, the p o t e n t i a l supply of r e s i d e n t i a l duelling units i n the region may be compared to mathematical sets (see Figure 3). These sets on l i m i t a t i o n s are p a r t i c u l a r to the region under consideration. l i m i t a t i o n s may or may not occur i n other regions.  Such  Perhaps a s t r i k i n g  •These expectations do not take into account the limited expansion possible of the process of conversion of r e s i d e n t i a l duelling s i t e s to actual r e s i d e n t i a l duellings. Even i f an unlimited number of r e s i d e n t i a l duelling s i t e s i s available, there i s a f i n i t e capacity of the construction industry to build homes due to i n c i p i e n t shortages of materials, labor management and c a p i t a l . 37  38  FIGURE 3 Diagram,of Static Analysis of Residential Duelling Unit Supply Process  39 example of such d i f f e r e n c e s uould be Houston, Texas,  where the n o n -  use of zoning by-laws p r e c l u d e s the c r e a t i o n of development a r e a s . The major s e t i s the r e g i o n , either  the supply of urban d e s i g n a t e d land w i t h i n  at any given t i m e .  T h i s would be the acreage of  land  zoned f o r urban r e s i d e n t i a l useage or land which the m u n i c i p a l  •r p r o v i n c i a l  authorities  urban r e s i d e n t i a l l a n d .  w i l l permit e v e n t u a l l y  to be rezoned  into  A s p e c i f i c example of the land w i t h i n  this  major est would be the acreage d e s i g n a t e d as non a g r i c u l t u r a l l y  frozen  land designated by the i n d i v i d u a l m u n i c i p a l i t i e s as s u f f i c i e n t each m u n i c i p a l i t y ' s 1978.  urban needs f o r  for  the f i v e year p e r i o d from 1973 to  These a r e a s , as approved by the Land Commission a d m i n i s t e r i n g the  Act on b e h a l f of the Province of B r i t i s h  Columbia s e t s the l i m i t s  yond 'dnich development cannot proceed w i t h i n the f i v e unless leakages occur i n the c o n v e r s i o n of  year time  " f r o z e n " farm land  be-  horizon,  into  urban l a n d . The l a r g e s t is sufficiently  subset would be that  c l o s e to trunk sewer so as to permit development on an  economically sound b a s i s . the m u n i c i p a l i t y  Someone, e i t h e r  concerned must underwrite  v i d i n g l a t e r a l sewer l i n k s , consideration.  acreage of urban land which  water  the c o s t s i n v o l v e d  Although c o n s i d e r e d as a s t a t i c supply f o r  between l o t  As l o t p r i c e s r i s e , land f u r t h e r  developers  it  prices,  servicing  as a d i r e c t  pro-  away from the e x i s t i n g  of  the  c o s t s and raw land c o s t s .  infrastructure  s e r v i c e s to that  the sake  result  may become more f e a s i b l e to buy l e s s  higher c o s t s of p r o v i d i n g  in  and/or  l i n e s and roads to the land under  of t h i s a n a l y s i s the number of acres v a r i e s relationship  the p r i v a t e  land.  expensive  and to occur Within t h i s  this  set,  the supply of e c o n o m i c a l l y f e a s i b l e land w i l l vary with the p r i c e l o t s 'jjhich i s i n t u r n a f u n c t i o n of the r e l a t i v e  of  shortage of supply  in  40 the existing and incremental effective demand.  housing stocks in relationship to  Thus, within this set, the economic forces of the  market could be at work: - the supply of serviceable land u i l l i n crease in relationship to the prices paid for the product, serviced land.  This analysis does not take into account the e x t e r n a l i t i e s  which may  accompany this development of land further away from this  existing infrastructure.  Examples of such e x t e r n a l i t i e s would be  the provision of schools, longer a r t e r i a l roads and increased community services. The set of land which i s economically feasible to service i s further limited through the creation of a further subset or subsets of land within the set of land which i s economically f e a s i b l e .  Munici-  p a l i t i e s in the region designate "development areas" i n which the municipalities w i l l permit development to take place normally.  These  are circumscribed areas set out by the municipal planners in consultation with the municipal council. may  Furthermore such development areas  be given time horizon p r i o r i t i e s by the municipality concerned.  For example, a municipality w i l l designate an area as Development Area 1 in which a certain l e v e l of i n f i l l i n g and development must be achieved before applications w i l l be considered for Development Area 2. Such Development Areas usually, but not always, coincide with the municipality's scheme for providing the necessary infrastructure to that area - p a r t i c u l a r l y sewage treatment of these development areas may  or may  facilities.  not be f i n i t e .  The  boundaries  In certain i n -  stances, certain of the municipalities in the region may  consider and  approve applications for development from holders of parcels adjacent to or completely outside these development areas. developers and/or landowners may  It may  be that  be able to convince Council that the  vantages to t h i s  municipality  cf tying  the n o n - d e s i g n a t e d  dsr c o n s i d e r a t i o n to the i n f r a s t r u c t u r e vantages to the m u n i c i p a l i t y . duced i n the r e g i o n ,  may outweigh  due to the s p l i n t e r i n g  ip p a t t e r n s which make assembly of a s u f f i c i e n t = t i f y the a d d i t i o n a l o f f - s i t e in tying  isting  infrastructure. It  is  of land  to p o i n t  l a r g e p a r c e l to  the designated area i n t o  out that  the number of acres  uded w i t h i n the subset of designated urban areas i s not the tarminant of the number of r e s i d e n t i a l p p l i e d from the land i n t h i s nt permitted w i l l a f f e c t supplied.  Such o v e r a l l  subset.  The o v e r a l l  multiple  which may be  density  of  of an  densities;  dwelling  sole  densities  are the s u b j e c t  others w i l l consider  For i n s t a n c e ,  units  if  single  could  approving  upon e x i s t i n g  zoning  zoning  changes  family  density  concerned, then the number  potentially  s u p p l i e d would be  f a m i l y or mixed d e n s i t y  were  Assumed Density Factor  Supply of Land  develop-  interaction  and the m u n i c i p a l i t y  l y were p e r m i t t e d by the m u n i c i p a l i t y residential  in-  u n i t s that  rough land use c o n t r a c t s .  than i f  units  Some m u n i c i p a l i t i e s w i l l r e l y s o l e l y  designate o v e r a l l  jer  dwelling  the  the number of r e s i d e n t i a l  tween developers proposing p r o j e c t s valopments.  owner-  c o s t s which would be i n c u r r e d by the  the p a r c e l o u t s i d e  important  dis-  The i n c i d e n c e s of such leakage are  however,  valoper  the  parcel  considerably  permitted. P o t e n t i a l number of r e s i d e n t i a l units  ngle'Family  1000 acres  x  4/acre  4000 u n i t s  xed  1000' acres  x  a/acre  8000 u n i t s  1000 acres  x  12/acre  density  Itiple  family  12000 u n i t s  Given the set of acreage i n c l u d e d w i t h i n t h i s valopment a r e a ( s ) r m i t t e d i n that  times the average o v e r a l l  area,  consideration  Due to l i m i t a t i o n s  ea there  i s a subset of land u i t h i n  expected d e n s i t y  should be given to the  ions to the p o t e n t i a l number of r e s i d e n t i a l pplied.  duelling units  to land assembly u i t h i n , the  This  sanitary  Frictions factors.  service  the  unwillingness for  sanitary  and storm  amongst these f a c t o r s uould b e :  and b e t t e r  than s i n g l e  use than that  their  family.  tan may have been generated from o b s e r v a t i o n s a zoning category  -  to s e l l due to misplaced e x p e c t a t i o n s  a higher  r m u l t i p l e f a m i l y use r a t h e r  of  land i s  desig-  suitable  Such e x p e c t a t i o n s " l e a k a g e s " from  to another as promoted by developers  and f o s t e r e d  municipality.  Landouner r e l u c t a n c e  to s e l l out to t h e i r  p r e f e r e n c e to c o n -  the use to uhich the land i s p r e s e n t l y  a lure of monetary r e u a r d s .  ny farmers wish to continue  put i n s p i t e  of  For i n s t a n c e , many s m a l l e r acreages are  i d by o l d e r people who want to  ntrol.  to some degree,  area.  For i n s t a n c e , ouners o f t e n f e e l that  nue enjoying  i s much s m a l l e r ,  the road p a t t e r n s ,  Instrumental  at land may be e l i g i b l e  the approving  and/or  i n the assembly process a r i s e from a number o f  Landowners'  ted.  area(s)  seuer pumping s t a t i o n s must be l o c a t e d on these  r e e l s to e f f i c i e n t l y  fferent  to be  developers  an assembly area are o f t e n i n t e r r e l a t e d  ny p a r c e l s are "key" i n that uers,  limit-  subset of assembled land may be as l a r g e as  = developable a r e a s , but i n most i n s t a n c e s i t reels uithin  to be  specified  the set of development  i c h i s the land which can be assembled by p r i v a t e b l i c agencies.  designated  " l a s t out t h e i r  days on the l a n d " ,  farming on the land p r e s e n t l y  under  their  Presently, h use that  the use of a p a r t i c u l a r  the developer  cannot b r i n g  the same use because the demand f o r st.  tract  at an o v e r a l l  particularly ser V a l l e y  this  vexing  high use does not most commonly, an  p e r m i t t i n g economic development.  problem i n the G r e a t e r Vancouver and Lower  r e g i o n i s the predominance o f expensive vexing  Landowners i n f l a t i o n a r y id price  properties  homes may p r e c l u d e assembly of an  price  ! two acre s i t e s . . ( e s p e c i a l l y  all,  the s u r r o u n d i n g  For i n s t a n c e , a c h i c k e n farm or m o t e l , o r ,  ansive or s e r i e s of expensive :ire  p a r c e l may be a f such a  to the  homes on one  developer).  e x p e c t a t i o n s have been f u e l e d by the  i n c r e a s e s i n the r e g i o n .  R e l u c t a n t to s e l l t h e i r  land  landowners o f t e n p r i c e the l a n d at l e v e l s which d i s c o u n t  :tionary  expectations  far  into  Landowners o f t e n d i s t r u s t lustry.  the  future.  participants  These landowners adopt the a t t i t u d e  i n the r e a l  estate  of  their  "burying  the sand" and r e f u s e to even d i s c u s s the p o s s i b i l i t y  of  The c o i n c i d e n c e o f these p a r c e l s w i t h h e l d r i s e s rically  with the number of  a given a r e a .  the assembler knows t h a t he w i l l  m ten s e p a r a t e l a n d h o l d e r s than i n p u t t i n g r t y a c r e p a r c e l h e l d by three  together  thirty  owners.  structures  may be t h a t  usually  rises  significantly  =s may be on the comparable t h i r t y  the  only  three  acre p a r c e l .  the combined e f f e c t of s p l i n t e r e d  'or h o l d o u t s are c o n s i d e r a b l y  In  there are ten or more homes p l a c e d  acre p a r c e l h e l d by ten landowners w h i l e  In a g g r e g a t e ,  acres  a comparable  n a g r e a t e r number of l a n d h o l d e r s h o l d a given a c r e a g e .  the t h i r t y  sale.  almost g e o -  i n t o many times the r e s i s t a n c e i n g a t h e r i n g t o g e t h e r  vious example, i t  head  landowners whose land was to be assembled  In p r a c t i c a l terms,  The value o f e x i s t i n g  in-  landholdings  important when c o n s i d e r i n g  the  kk P o t e n t i a l supply of r e s i d e n t i a l It  duelling units  w i t h i n the  may be p o s s i b l e w i t h i n a l i m i t e d time h o r i z o n  =v=n a s i g n i f i c a n t =.r = a, b u t ,  if  portion  -punced i f  to assemble a l l  w i t h i n a designated urban  such i s not the c a s e , the r e s i d e n t i a l  p i p e l i n e becomes c o n s t r i c t e d the m u n i c i p a l i t y  at the o u t s e t .  psvelopments from o u t s i d e  or  development dwelling  The e f f e c t  holds the boundaries of the  =.r = a constant and do not permit s i g n i f i c a n t  region.  supply  i s most p r a development  " l e a k a g e s " of  potential  the development a r e a s .  Z /namic A n a l y s i s of the R e s i d e n t i a l U n i t Supply Process Given the pool of p o t e n t i a l r e s i d e n t i a l i n d i c a t e d by s t a t i c  analysis,  it  dwelling  s i t e s as  i s now necessary to t u r n to. a dynamic  a n a l y s i s of the p r o d u c t i o n  process over time to determine the  E f f i c i e n c y or i n e f f i c i e n c y  of t h i s production process.  amongst the c r i t e r i a  Foremost  by which to judge the process w i l l be the time  r e q u i r e d to b r i n g r e s i d e n t i a l in numbers of d w e l l i n g  dwelling  units  t o market and the  i s one t h i n g  for  r  igure  serviced building  these raw acreages t o be t r a n s -  s i t e s ready f o r  residential  the c o n v e r s i o n of raw land i n t o  r e s i d e n t i a l s i t e s can vary c o n s i d e r a b l y i n the r e g i o n .  from m u n i c i p a l i t y  The time taken to b r i n g  serviced  p u i l d i n g s i t e s t o market can a l s o vary c o n s i d e r a b l y pality into  construction.  k s e t s out the dynamic process i n s i m p l i f i e d d i a g r a m a t i c form. The time taken f o r  pality  horizons.  developers and/or p u b l i c agencies t o have raw land  in inventory and q u i t e another f o r "crmed i n t o  attrition  u n i t s i t e s which never can came to market or  iihose p r o d u c t i o n w i l l be delayed beyond normal expected time It  relative  from decade t o decade.  time spent on three  t o municiresidential  within a munici-  Time taken can be broadly  functions:-  serviced  broken down  45 FIGURE 4 P i c t o r i a l Representation of Dynamic A n a l y s i s of R e s i d e n t i a l D u e l l i n g U n i t Supply Process  Duelling  unit  construction  A  Subdivision and/or s i t e  construction servicing  A  A  -p  XI  co cn  CO •H n -P cn  cnx: c cn  •rH 3 rH D n rH FH QJ x : 3 -P XI  cn 03 cn cn  CO 03 Q.  n  E -P Z)  C c  •H  V  c  03  E  cx  a  rH  cn cn cn > a 03 7  (H  C -P  -p •n  •  c  CO CJ ZI  cn cn cn  :ars  E  03 O cn - H cn  cn ra  ZJ  XJ  time  rH C • u~ a • •p c -H • c •H • -p a. ai 03 c u -H C rH •H rH  Guiding the development through the m u n i c i p a l approval process  A  03  E 3 O XI  f-l  c  o  03 x : . y cn  CO - H -P C 03  E  • -P  _J XJ  Assembly of rau  land  46 1.  The assembly of raw land  2.  The municipal approval process  3.  The construction process uith regard to servicing the duelling s i t e .  Assembly of Rau Land Rau land assembly i s a process that may  happen quite quickly  or i t nay be drawn out over a considerable period of time.  It may  be  that the developer and/or public agency has s u f f i c i e n t land in inventory L-hen the creation of a development area i s announced by the municipality.  It may  be that an experienced assembler  can put to-  gether a parcel s u f f i c i e n t l y large for development within a matter of weeks. SIDU,  In most instances, however, land assembly i n the region i s a  frustrating task which takes at least several months and even  last far years. Competition between the developers i s intense. developers may  be working on an area simultaneously.  A number of  Each may  acquire  c r u c i a l "key" parcels, f r u s t r a t i n g the attempts of the others.  Often,  long periods of intensive negotiation betueen the developers u i l l  de-  termine uhich developer(s) end up uith the developable package. A l l assemblies are subject to the time consuming problem of dealing with "holtinuts".  It may  be i n the end, that t h e i r e f f o r t s come to naught.  Competition amongst the developers i s not of interest for the c r u c i a l question i s the number of raw s i t e s which may gether in aggregate by a l l the p a r t i c i p a n t s . that there may  be gathered to-  The point to note i s  be considerable delays encountered  by the participants  in assembling the.land due to competition among themselves. The Municipal Approval Process The time taken to guide subdivisions and/or multi-family  b u i l d i n g s i t e s through the m u n i c i p a l a p p r o v a l process i s the element i n the time taken to convert sitEs.  The number of i n t e r a c t i o n s  municipality  are s t e a d i l y  rau land i n t o  serviced  critical building  betueen the developer and the  i n c r e a s i n g and the i s s u e s are becoming more  complex as urban areas expand and encounter problems inherent grouth.  uith  The s u b d i v i s i o n a p p r o v a l process o f the Borough o f S c a r b o r -  ough = 3 o u t l i n e d by Andre Derkouski''" i n d i c a t e s that  there are 90  agencies t h a t may have a v o i c e i n the process of development a p p r o v a l . The process of approval i s being c o n s t r a i n e d by the m u l t i t u d e  of  issues uhich a r i s e i n the cases of equating s o c i a l c a s t s u i t h  private  costs. it  It  i s unfortunate  that u i t h i n  the complexity  of the process  i s only the developer uho r e p r e s e n t s the consumer of housing as  various agencies i n v o l v e d  are g e n e r a l l y  those concerned u i t h the impost  of a d d i t i o n s to housing s t o c k i n the e x i s t i n g  housing stock and the  t r a d E - a f f of the i n c r e a s e d c o s t s of development imposed upon the m u n i c i p a l i t y vs the b e n e f i t  Df municipal population  grouth.  The f i n a n c i a l p o s i t i o n of m u n i c i p a l i t i e s and the r o l e of p r o v i n c i a l government has an important impact upon the time i n process of a p p r o v a l . capable of i n c u r r i n g  the  required  In cases uhere m u n i c i p a l budgets are not  a d d i t i o n a l development the i n c e n t i v e  m u n i c i p a l i t y to reduce the time r e q u i r e d f o r  of  the  a p p r o v a l does not  exist.  In s0.713 cases the time c r e a t e d by a s l o u approval process i s an asset to the m u n i c i p a l i t y  i n the r e s p e c t that i t  may r e q u i r e  a d d i t i o n a l time to determine the o p t i m a l type of development its  the given  f i n a n c i a l p o s i t i o n or succeed i n impressing the p r o v i n c i a l  ment that a s e r i o u s m u n i c i p a l f i n a n c e s i t u a t i o n  exists.  The planner a l s o has an important r a l e r e g a r d i n g of the dynamics of the a p p r o v a l p r o c e s s .  govern-  the  efficiency  A comprehensive plan r e l a t e d  48 to the f i n a n c i a l position of the municipality and the optimal development situation required in order to s a t i s f y the municipal budget provides the superstructure his  in which the planner may  introduce  concepts regarding the services that are required in the develop-  ment of a municipality.  The approval process must function within  the general framework outlined by the planner.  If the objectives and  goals of the municipality are not well established in a comprehensive plan the micro economics of the approval process cannot function properly.  I f the engineer or school board or other various author-  i t i e s involved in the approval process are not cognizant  of an  overall municipal planning policy uith s p e c i f i e d objectives the approval process i s burdened as various authorities attempt to relate their function of approval to the undetermined p o l i c y . The  l o c a l p o l i t i c i a n also has an important function  the time required for approval process.  regarding  There i s a very important  trade-off between the technical assets or disadvantages of a development and i t s impact in the p o l i t i c a l environment in the community. The primary concern of the l o c a l p o l i t i c i a n . i s to observe that the ratepayer  i s not being harmed by a development in respect that public  and social costs created by a development do not exceed the benefit tD the community as a uhole.  Some of the considerations that the  p o l i t i c i a n uould take into account are: 1.  Tax burden to existing residents;  2.  Resistence  3.  Environmental costs;  4.  Desire of residents to upgrade the quality of r e s i d e n t i a l units by encouraging consumers of a high income scale;  5.  Resistence  of residents to grouth in population;  to increased density (multi-family p r o j e c t s ) .  49 These are a feu of the c o n s t r a i n t s of housing u n i t s The d i r e c t  uiould be a decrease i n the number of  construction  constricting  M a t e r i a l shortages are however,  at t h i s  is  of land can conditions.  a problem at c e r t a i n t i m e s .  No  no d u e l l i n g s i t e s uould be  lost  stage. Construction  Duelling unit construction critical.  duelling units  usually  Completion p e r i o d s  shortages of l a b o r and m a t e r i a l s . residential  time l a g s do occur but are not  Residential duellings  nine months to complete.  can be lengthened  to through  stage.  i n the assembly, development and d i s -  p o s i t i o n of s e r v i c e d r e s i d e n t i a l analysed i n the f o l l o u i n g  take from three  No a t t r i t i o n i n the number of  occurs at t h i s  The p u b l i c s e c t o r r o l e  larly  Servicing  to s i x months given normal  i n supply occur i n that  D u e l l i n g Unit  unduly  approval.  stage of the dynamic process  i n terms of t i m e .  be accomplished i n three  attritions  residential  Construction  The s u b d i v i s i o n  usually  supply  approval.  on and i n c r e a s e s i n the time taken to o b t a i n  Subdivision  not unduly  can be imposed on the  i n the dynamic process of s u b d i v i s i o n  results  u n i t s brought  that  duelling chapters.  sites u i l l  be more p a r t i c u -  Footnotes  Andre D e r k o u s k i , R e s i d e n t i a l Land Development i n O n t a r i o , a r e p o r t prepared by the Urban Development I n s t i t u t e of O n t a r i o , November 1972.  CHAPTER \1  THE MUNICIPAL RDLE IN THE ASSEMBLY, DEVELOPMENT AND DISPOSITION OF LAND FOR RESIDENTIAL PURPOSES  Although assembly, s u b d i v i s i o n been c a r r i e d out by p r i v a t e a l s o become i n v o l v e d ally  developers,  role  new r e s i d e n t i a l s u b d i v i s i o n s ,  role  However,  this  various  reasons.  has been to provide  services  and, more p a r t i c u l a r l y , thesis u i l l  role  previously  have  Traditionto  the  to approve  and not  mentioned.  M u n i c i p a l powers w i l l be b r i e f l y  reviewed,  and p o l i c i e s  garding the development process w i l l be s t u d i e d more c a r e f u l l y the m u n i c i p a l i t i e s of S u r r e y , as w e l l as t h e i r  Burnaby and North Vancouver  land h o l d i n g s .  such  be mainly concerned with the *  the m u n i c i p a l i t i e s played i n the development process  the t r a d i t i o n a l  usually  certain municipalities  i n the process f o r  the m u n i c i p a l i t i e s '  subdivisions.  and development have  Finally,  p o l i c i e s w i l l be d i s c u s s e d i n r e l a t i o n  rein  District,  i m p l i c a t i o n s of such  to the e x i s t i n g  housing  shortage.  L e g a l Powers Under s e c t i o n 92(8) of the B r i t i s h  North America A c t ,  governments became Dne of the r e s p o n s i b i l i t i e s The range of powers, the m u n i c i p a l u n i t s  responsibilities  municipal  a s s i g n e d to the  provinces.  and revenue sources a s s i g n e d to  e s t a b l i s h e d i n each province  are set out  in  *The assembly, development and d i s p o s i t i o n of land f o r immediate and f u t u r e p r i v a t e u s e s , p a r t i c u l a r l y i n regard to h o u s i n g .  51  52  provincial  legislation.  As Crawford  states:  " . . . . I t i s important to remember that the l e g a l competence of a c o r p o r a t i o n to act i s l i m i t e d to the pouers given i n i t s charteT or other source of i n c o r p o r a t i o n and c o n v e r s e l y that pouers uhich are not so e x p r e s s l y granted are beyond its legal capacity." Chapter 255 of the P r o v i n c i a l S t a t u t e s ,  the M u n i c i p a l Act  of  B r i t i s h . Columbia, d e s i g n a t e s the pouers and d u t i e s of a l l m u n i c i p a l i t i e s of the P r o v i n c e ,  except those of the C i t y of Vancouver.  Among  tn= pouers and d u t i e s  are many u h i c h ,  affect  directly  tr,= f i e l d of h o u s i n g , such as zoning pouers subdivision  regulations  434) and f i n a l l y , r e a l property A.  (s.  711-713),  pouers f o r  (s.  or  indirectly,  702-710),  land  assessment and t a x a t i o n  acquisition  (s.  ( s . 367-  465) and d i s p o s i t i o n  ( s . .471, 477 and 477 a ) .  A c q u i s i t i o n and development of  land  S e c t i o n 465 c o n f e r s upon C o u n c i l the pouer to develop L'.ndar m u n i c i p a l ownership ray,  for  r e s i d e n t i a l purposes.  i n accordance with a b y - l a w or r e s o l u t i o n ,  purposes, namely r e s i d e n t i a l  development.  In  acquire land for  Finally,  C o u n c i l may a c q u i r e l a n d by e x p r o p r i a t i o n .  runicipalities rential  E. C. M u n i c i p a l A c t ,  r_rposes. rrivate  Furthermore,  in  However,  Consequently,  the m u n i c i p a l i t i e s are empowered t o . e n t e r l e v e l s of government  s e c t i o n 216 p r o h i b i t s  such  Council, the resi-  under s e c t i o n s 214 and 215 of  agreement with any other  Council  i n accordance with  have a l l the necessary powers to c a r r y out any  development.  partnership  land  addition  = by-law and with the a p p r o v a l of the L i e u t e n a n t - G o v e r n o r tie  of  such p a r t n e r s h i p  for  the  into a housing  with any  developer.  "..-awer granted i n 1958 by an amendment to the B. C. M u n i c i p a l A c t .  53 B.  D i s p o s i t i o n of Land  S e c t i o n 471 empowers the m u n i c i p a l i t i e s •r otherwise  any m u n i c i p a l land which i s not r e s e r v e d or  tD p u b l i c u s e s .  suitable for r e s i d e n t i a l latter  is  (s.  mentioned e a r l i e r ,  leased for  land through  in  However,  the purpose  limiting  of  the  the c o u n c i l i s  not  an o p t i o n agreement; as  a l l d i s p o s i t i o n of m u n i c i p a l land i s done  through  process.  the p o l i c i e s of three  Municipal P o l i c i e s  have a l l the necessary powers, to a c t i v e l y  publicized matter.  To f u l l y  par-  a p p r e c i a t e such powers,  s e l e c t e d m u n i c i p a l i t i e s w i l l be a n a l y s e d .  (selected  municipalities)  The f a c t that m u n i c i p a l i t i e s However,  are l a n d h o l d e r s  due to a c c i d e n t a l  m u n i c i p a l i t i e s own l a r g e p o r t i o n s  i s not a h i g h l y  circumstances some  of undeveloped lands w i t h i n  their  A major p a r t o f those l a n d h o l d i n g s was a c q u i r e d during  the depression y e a r s .  In the e a r l y  to dispose of land as f a s t position.  of the m u n i c i p a l i t i e s .  The only r e s t r i c t i o n  i n the development p r o c e s s .  boundaries.  Certain conditions  c o n t a i n e d i n s e c t i o n 470 whereby  Municipalities ticipate  477).  the l a t i t u d e  477a).  allowed to dispose of i t s  the bidding  (s.  do not apply when land i s  housing  municipalities  dedicated  a term not exceeding 99 years any land  purposes  section limit  those c o n d i t i o n s providing  auction  The m u n i c i p a l c o u n c i l may a l s o pass a by-law  enabling them to l e a s e f o r  this  to s e l l by  as they  years,  their  main concerns were  c o u l d to i n c r e a s e t h e i r  R e a l i z i n g the p o t e n t i a l worth of t h e i r  holdings,  financial munici-  Power granted i n 1964 by an amendment to the B. C. M u n i c i p a l  Act.  54 p a l i t i a s began to e s t a b l i s h p o l i c i e s and g u i d e l i n e s .  Such p o l i c i e s  followed by these s e l e c t e d m u n i c i p a l i t i e s over the years i n to t h e i r  land h o l d i n g s , u i l l A.  regard  be examined.  Surrey  The D i s t r i c t  Municipality  p o t e n t i a l worth of i t s  of Surrey  holdings u n t i l  d i d not c o n s i d e r  1965.  planning department of the•• m u n i c i p a l i t y  At that t i m e ,  issued a report  the  the  d e a l i n g with  c o n t r o l of urban growth.  One of the p o l i c i e s recommended to  Council  was i n regard to the r o l e  that the lands under m u n i c i p a l ownership  2 could play i n the c o n t r o l of growth.  The r e p o r t  states:  " . . . . ( t h e y should r e t a i n ) l a r g e p a r c e l s of land i n p u b l i c ownership as a means of postponing or hastening d e v e l o p ment i n given a r e a s . " Consequently, pality  this  recommendation seems to i n d i c a t e that the m u n i c i -  was going to w i t h h o l d  than f o r development. past p o l i c y , vices,  land f o r  The f o l l o w i n g  particularly  division  and c o s t l y  to s e r v i c e .  i n the f i f t e e n  land i n Surrey  reasons were g i v e n :  As a r e s u l t  had been s u b d i v i d e d i n a manner which l e f t planned, c o - o r d i n a t e d ,  development.  the r e t e n t i o n  possible)  ser-  of i n d i s c r i m i n a t e  large p a r c e l s a v a i l a b l e f o r  financially  of  s c a t t e r e d development which was  years subsequent to World War II,  Consequently,  rather  Surrey's  i n r e g a r d to zoning and p r o v i s i o n  had r e s u l t e d i n an extremely  difficult  planning considerations  sub-  much of  the  very few  comprehensive  and the a c q u i s i t i o n  (if  of l a r g e underdeveloped p a r c e l s of land would  p r e v e n t such s c a t t e r e d development.  To achieve that  g o a l , the  states:^ " . . . . a t l e a s t f o r a few y e a r s , a c e r t a i n percentage of the budget (should be set a s i d e ) , f o r the express purpose of land a c q u i s i t i o n of a range and degree which w i l l enable i t to c o n t r o l the pace of s u b d i v i s i o n a c t i v i t y i n s e l e c t e d areas of the m u n i c i p a l i t y . "  report  55  It  was d i s c o v e r e d  considered f o r  acquisition  that only  two l a r g e p a r c e l s of land were  following  the r e p o r t ' s  The f i r s t p a r c e l was adjacent  to a l a r g e m u n i c i p a l h o l d i n g known as  "Sunnyside A c r e s " ( 4 5 3 . a c r e s ) . and i t  It  contains  was owned by White Rock Waterworks  a c q u i s i t i o n was not completed f o r  acquisitions. of s u i t a b l e left  153 acres (mare or  Limited.  However,  undisclosed reasons.  p a r e s ! known as "Green Timbers S i t e " acquired i n 1969.  recommendations.  (approximately  The second  430 a c r e s ) was  They were v i r t u a l l y  land a v a i l a b l e  for  the only  a large  large  consolidated parcels  s c a l e comprehensive  development  Even though there were l a r g e  underdeveloped and badly s u b d i v i d e d land under p r i v a t e  areas of  or m u n i c i p a l  no l a n d c o n s o l i d a t i o n was c o n s i d e r e d due to a l a c k of  and e x p e r t i s e . ability  the  S e v e r a l reasons were given f o r making so few  w i t h i n the m u n i c i p a l i t y .  ownership,  less)  However,  the main c o n s t r a i n t  was the f i n a n c i a l  staff  in-  to c a r r y  out such an a c q u i s i t i o n  program.  As there  i s no c l a s s i f i e d i n v e n t o r y of s m a l l m u n i c i p a l land 4  holdings  i n the m u n i c i p a l i t y ,  a m u n i c i p a l land use map  was used to.  a s c e r t a i n the amount of undeveloped m u n i c i p a l land h o l d i n g s . counting the two l a r g e p a r c e l s of mentioned above, control. less),  it  However,  land under m u n i c i p a l  Dis-  ownership  was d i s c o v e r e d that 762 acres were under m u n i c i p a l few of those p a r c e l s ,  namely 200 acres (more  or  were w i t h i n the designated urban growth areas e s t a b l i s h e d by  Council.  However,  subdivision  further  land c o n s o l i d a t i o n was r e q u i r e d to get a  approval.  R e a l i z i n g the f i n a n c i a l p o t e n t i a l of such h o l d i n g s , C o u n c i l h i r e d a former developer  to c a r r y  out the development  m u n i c i p a l h o l d i n g s w i t h i n the designated urban growth a r e a s . development would be p r o f i t - o r i e n t e d  i n 1973, of Such  and no c o n s i d e r a t i o n would be  56 given to the e x i s t i n g  housing s i t u a t i o n .  p o l i c y o u t l i n e d by C o u n c i l r e g a r d i n g holdings under m u n i c i p a l ownership  As there  i s no  definite  the development of s m a l l  i n the near f u t u r e ,  ment p r o p o s a l would be judged on i t s  each d e v e l o p -  own m e r i t .  The l a c k of a c l a s s i f i e d i n v e n t o r y w i l l o b l i g e  the land d e -  partment to get the approbation o f many m u n i c i p a l d i v i s i o n s starting  the development of any given p a r c e l of l a n d . *  the planning department w i l l e x e r c i s e development,  prior  Furthermore,  a t i g h t c o n t r o l on any m u n i c i p a l  namely because such m u n i c i p a l undertaking would  influence  the type of development t h a t would be r e q u i r e d by any p r i v a t e Consequently, especially  the process i s going to be very cumbersome and  i n the immediate  The other such development; authority  developer. lengthy,  future.  constraint as there  to  w i l l be the l a c k of money to c a r r y  i s no r e v o l v i n g  fund e s t a b l i s h e d ,  out  the  to borrow such money w i l l have to be o b t a i n e d from the  provincial  government.  In  a d d i t i o n to these problems, the  i s ha-pered by a lack of q u a l i f i e d s t a f f  to enable l a r g e  municipality  scale  develop-  ment to take p l a c e . However,  at the end of 1973 C o u n c i l approved the  of 4C acres of m u n i c i p a l land f o r r e s i d e n t i a l set the framework f o r procedure was adopted:  a policy  purposes.  of land d i s p o s i t i o n .  the m u n i c i p a l i t y  The  disposition Such  project  following  analysed one p a r t i c u l a r  site,  completed the assembly, obtained a l l the necessary approvals and o f f e r e d through the t e n d e r i n g  process,  had to come up with a value on that plan of  that  p a r c e l of  land.  The  bidders  p a r c e l of land coupled with a  development.  *As there i s no land c l a s s i f i c a t i o n a l l the departments, such as parks and s c h o o l branches, r e q u i r i n g land f o r p u b l i c purposes, w i l l have to be c o n t a c t e d .  57 As the land uas undeveloped but zoned for single family duellings, the municipality had to approve the bidder uho offered a reasonable price for the parcel of land.  The planning  department  recommended to council the bidder uhich had, i n their opinion, the best plan of development.  Such procedure enabled the municipality  to obtain immediate cash f a r i t s parcel of land and retained control on.the type of development that uould take place. By using such a policy, the municipality did not s e l l i t s parcel of land unconditionally; i t forced the buyer to proceed uith the development i n a r e l a t i v e l y short period of time. no municipal  financing required, unless the municipal  large enough to permit such development.  Also, there i s land i s not  In that project, the munici-  p a l i t y had to borrou for a short period of time an amount of $4QD,0DD from the p r o v i n c i a l government to acquire additional land.  In that  s p e c i f i c project, the municipality sold the parcel of land for $1.1  m i l l i o n dollars r e a l i z i n g a p r o f i t of six hundred thousand *  dollars. F i n a l l y , i t should be pointed out that the municipality benefit from that project i n two uays.  A portion of the p r o f i t  realized u i l l serve to establish a land development fund. no p r o v i n c i a l borrouing jects.  uill  Consequently,  u i l l be necessary to-carry out s i m i l a r pro-  Secondly the type of development uhich u i l l take place  create additional revenues to the municipality when completed.  uill From  the private developer's point of view, there s t i l l exist some advantages .because the hassle of land assembly i s avoided, and, there is no municipal  approval  to obtain; such approvals were granted prior  •Approximate p r o f i t after paying back the loan and deducting the administrative costs incurred during the land consolidation.  58  to the t e n d e r i n g of the l a n d .  Also,  generate through the s e r v i c i n g  and the d i s p o s i t i o n o f s e r v i c e d  In summary, i t the land p o l i c y  there  is s t i l l  must be emphasized t h a t  i n the D i s t r i c t  Municipality  profit  to lots.  the main p o i n t s  Df Surrey  for planning  of  are:'  -  retention of large holdings  control;  -  l a c k of comprehensive p o l i c y u i t h r e g a r d to development of s m a l l h o l d i n g s not r e q u i r e d f o r p u b l i c  purposes;  - a very l i m i t e d number o f l a n d h o l d i n g s i n the  existing  d e s i g n a t e d urban growth areas to enable a l a r g e  involve-  ment i n l a n d development.  B.  Burnaby  1)  Background  As w i t h most of the other m u n i c i p a l i t i e s , Municipality on l a n d f o r years.  o f Burnaby a c q u i r e d i t s tax payment d e f a u l t ,  At one p o i n t ,  land w i t h i n i t s  through  e s p e c i a l l y d u r i n g the  the D i s t r i c t  boundaries.  land holdings  the' D i s t r i c t foreclosure  depression  had a c q u i r e d c l o s e to k0% o f  Over the years the C o u n c i l p o l i c y  dispose of most o f the p a r c e l s of l a n d which were s e r v i c e d , as a p p l i c a t i o n s to purchase were  as  the was to rapidly  received.  A l l the undeveloped lands under m u n i c i p a l ownership were in a reserve  until  further  dispose o f .  However,  land c o n s o l i d a t i o n made i t  d u r i n g the 1 9 6 0 ' s ,  possible  C o u n c i l became more  to approve d i s p o s i t i o n of undeveloped l a n d s , because p r i v a t e were r e a l i z i n g As a r e s u l t ,  too l a r g e  a profit  the m u n i c i p a l i t y  ownership of e x i s t i n g  through  to  reluctant developers  development of such l a n d s .  considered i t  land h o l d i n g s  kept  more a p p r o p r i a t e  as w e l l as a c q u i r i n g  to  retain  additional 5  land.  In December 1968, C o u n c i l passed a r e s o l u t i o n  to that  effect:  *Dther reasons being a change i n the method of land d i s p o s i t i o n and new municipal p o l i c i e s .  59 The m u n i c i p a l i t y u i l l  undertake a gradual a c q u i s i t i o n of  land adjacent to e x i s t i n g it  is possible,  uithin  its  Firstly,  m u n i c i p a l land h o l d i n g s and u i l l ,  a c q u i r e the remaining s t r a t e g i c  boundaries.  uas d r a s t i c a l l y  uhenever  undeveloped h o l d i n g s  Tuo reasons uere given f o r such  the source of m u n i c i p a l h o l d i n g s ,  through f o r e c l o s u r e ,  undeveloped  policy:  namely, land a c q u i r e d  d i m i n i s h i n g , but the cost of neu  land a c q u i s i t i o n s uas i n c r e a s i n g very r a p i d l y .  Secondly,  as the  m u n i c i p a l i t y wanted to o b t a i n c o n t r o l of a l l undeveloped p a r c e l s land as an a d d i t i o n a l p l a n n i n g t o o l to curb growth, were needed to achieve such a g o a l . the zoning power.  a d d i t i o n a l funds  T h i s argument shows the weakness of  To c o n s o l i d a t e e x i s t i n g  land h o l d i n g s ,  agreed to devote 2-3 m i l l s out of the m u n i c i p a l budget. C o u n c i l passed a r e s o l u t i o n  i n June 1970^ to r e s e r v e  on the d i s p o s i t i o n of tax s a l e lands as e x c l u s i v e l y same o b j e c t i v e . to achieve i t s 2)  Consequently,  of  the  Council  Furthermore,  a l l the monies- r e a l i z e d as p o s s i b l e to  the m u n i c i p a l i t y was f i n a n c i a l l y  that  able  land c o n s o l i d a t i o n program.  M u n i c i p a l land h o l d i n g  To e s t a b l i s h p r i o r i t i e s  analysis  in their  land a c q u i s i t i o n program,  the p l a n n i n g department c a r r i e d out a thorough a n a l y s i s of each municipality and f u t u r e  owned p a r c e l of land and determined the type of  present  uses i n accordance with the o v e r a l l community needs.  The 7  report  uas r e l e a s e d i n 1971 and i n c l u d e d the f o l l o u i n g recommendations. The r e p o r t  i n d i c a t e d that 3,325 acres uere under m u n i c i p a l  ounership  (approximately  pality):  that 2,214 acres should be r e t a i n e d pending  of s e r v i c e s  and f u r t h e r  conditionally, that  subject  14.8% of the t o t a l acreage of the m u n i c i -  subdivision:  that  availability  1,D10 a c r e s shoudl be s o l d  to consolidation and m u n i c i p a l guide  12 acres should be s o l d c o n d i t i o n a l l y  subject  to  lines:  consolidation:  60 that 4 acres should be s o l d s u b j e c t  to e x i s t i n g  From the a n a l y s i s of the r e p o r t , municipality's  policy  seems e v i d e n t  was to r e t a i n most of i t s  a v i t a l p l a n n i n g t o o l to r e a l i z e m u n i c i p a l growth.  it  short  To supplement t h i s  by a survey c a r r i e d out i n January  land uses.  holdings  that  f o r use as  and long term c o n t r o l affirmation,  1974,  that the  it  over  was demonstrated,  municipality  owned 3,664 a c r e s of undeveloped lands (of which 500 acres i s served f o r p u b l i c  e s t a b l i s h e d that the r e s o l u t i o n  existing  i s s u e d i n 1971, i t  passed by C o u n c i l i n 1968 was  namely the a c q u i s i t i o n of undeveloped land to  municipal holdings  of s e r v i c e s .  Consequently,  t e n t i o n of l a r g e t r a c t s of the m u n i c i p a l i t y However,  re-  uses).  By r e l a t i n g that survey to the r e p o r t  very c l o s e l y ,  the  and i t s  retention  the p r o v i s i o n  pending  of s e r v i c e s  was  followed  consolidate  availability and the  re-  of undeveloped land are the two major t o o l s •  to ensure o r d e r l y  the m u n i c i p a l i t y  d i s p o s i t i o n of l a n d ; such p o l i c y  development.  adapted a p o l i c y  r e l a t e d to  the  a f f e c t s only m a r g i n a l s m a l l h o l d i n g s  which are not r e q u i r e d by the m u n i c i p a l i t y C o u n c i l passed i n 1970 the f o l l o w i n g  for  central  development.  r e s o l u t i o n which i s s t i l l  in  force  today:^ -  The best i n t e r e s t s  of the m u n i c i p a l i t y w i l l be served by a  c o n t i n u a t i o n of the s a l e p o l i c y  for a l l r e s i d e n t i a l  which may be decided to be p l a c e d i n a s a l e -  If,  and when, any l a r g e t r a c t  position;  of land scheduled f o r  e n t i a l development becomes a v a i l a b l e ,  lands  the C o u n c i l at  residthat  time s h a l l re-examine the s i t u a t i o n to c o n s i d e r the p o s s i bility  of l e a s i n g the e n t i r e  site;  61 -  Under- no circumstances u i l l concept f o r  Such p o l i c y ipality  individual  the f a l l o u i n g r e a s o n s .  lots.  The muni-  assembling land f o r p l a n n i n g c o n t r o l .  a r g i n a l land unnecessary f o r  Any  that purpose can be s o l d i n order  " c r e a s e the f i n a n c i a l revenues of the m u n i c i p a l i t y .  and which w i l l i n f a c t c o n t r i b u t e  to  Such revenues  c u l d serve the purpose of a c q u i r i n g a d d i t i o n a l s t r a t e g i c  unicipality.  lease  or s m a l l groups o f r e s i d e n t i a l  uas adapted f o r  is primarily  c o u n c i l c o n s i d e r the  parcels  to the o v e r a l l w e l l being o f  So f a r as the d i s p o s i t i o n  of  the  of a l a r g e undeveloped  tract  f land i s concerned, the l e a s i n g o p t i o n was adopted i n order to keep c n t r o l on the o v e r a l l  type of development.  The m u n i c i p a l i t y  c u l d share i n the a c c r u i n g values that ownership culd  i n the  property  provide. Such p o l i c y  indicates clearly  n the development process i s lanning c o n t r o l . n insufficient n the f u t u r e  t h a t the m u n i c i p a l  Any land d i s p o s i t i o n  amount of land a v a i l a b l e  to e x e r c i s e  development o f the surrounding  -  area.  adequate The other  planning  c o n t r o l the type -  consider-  land. of the  District  of undeveloped l a n d h o l d i n g s  control;  A c q u i s i t i o n of s t r a t e g i c  undeveloped p a r c e l s o f l a n d to  of development i n the surrounding  area;  D i s p o s i t i o n by s a l e of m a r g i n a l p a r c e l s of l a n d i n  order  to i n c r e a s e the e x i s t i n g  is  control  are:  C o n s o l i d a t i o n and r e t e n t i o n for  -  of Burnaby  for  i s only accepted when there  In summary, the main p o i n t s o f the l a n d p o l i c y unicipality  involvement  l i m i t e d mainly to land assembly  ation i s the l o c a t i o n of such p a r c e l s of  w  also  land r e v o l v i n g  fund.  62  C.  North Vancouver  1)  Background  District  D U B to the rough topography c u l t i e s faced in provision r e v e r t e d to the D i s t r i c t c f meeting i t s  of adequate s e r v i c i n g ,  i n the e a r l y  1930's.  d e b t s , was i n r e c e i v e r s h i p  period the D i s t r i c t tie  of the North Share and the  was r i c h  financial situation,  mast of the  1948.  incapable  During  i n land but poor i n revenue.  policy.  Trie m u n i c i p a l land should be disposed of at a l l cost i n order taxation.  goal  (approximately  value).  After re-installment until  to  To achieve t h a t  municipal land was s o l d at 50% of the assessed value o n e - t h i r d of market  stabilize  provincial  adopted the f o l l o w i n g  increase the revenues through property  that  To  the Commissioner, appointed by the  crvernment to a d m i n i s t e r the D i s t r i c t ,  land  The D i s t r i c t ,  until  diffi-  of C o u n c i l , the same p o l i c y  was  followed  1952, when the l a n d was to be d i s p o s e d of at the assessed value  (approximately gradually  60% of market v a l u e ) .  However,  i n c r e a s e d to the market v a l u e ,  by C o u n c i l .  During the 1 9 5 0 ' s ,  private  the s a l e p r i c e was  but was n e g o t i a t e d and approved developers were able to  acquire  large undeveloped p a r c e l s of land from the d i s t r i c t  and s u b d i v i d e them  into l o t s .  were disposed of by  Such l o t s w i t h i n those new s u b d i v i s i o n s  cevslopers at a l a r g e p r o f i t .  To r e g u l a t e  the land p o l i c y ,  C c u n c i l h i r e d a planner and a land agent i n 1956.  In October 1956 a  p o l i c y of land s a l e by p u b l i c tender was e s t a b l i s h e d i n the tz  supersede the former p o l i c y  of d i r e c t  the p r i n c i p l e  of d i r e c t  with one e x c e p t i o n . negotiation  for  District  negotiation.  In 1957, C o u n c i l adapted the p o l i c y lend by p u b l i c t e n d e r ,  the  of d i s p o s i n g of m u n i c i p a l The C o u n c i l maintained  the d i s p o s i t i o n of  substandard  63 its;  the reason being t h a t  jnsrs,  only tuo p e r s o n s ,  c o u l d o b t a i n such m u n i c i p a l l a n d .  namely the  The land uas  ;r development but c o u l d generate revenues to the C o u n c i l approved the f i r s t  adjacent unsuitable  District.  land a c q u i s i t i o n  i n March 1958.  i= purpose of such a c q u i s i t i o n uas to c o n s o l i d a t e e x i s t i n g ildings.  Subsequently,  ji-mitment to provide  the l a n d uas disposed of under a m u n i c i p a l  services.  During the f o l l o u i n g  years,  i l i c y uas to dispose of s m a l l undeveloped acreages to Houever,  i n 1962, C o u n c i l agreed to s e r v i c e  ibdivisions  and s e l l  lots  the p r o f i t s  on an i n d i v i d u a l  b a s i s to  the  private  •velopers.  ;alizing  municipal  its  oun  contractors.  made on such developments, C o u n c i l  established  _956) a r e v o l v i n g  land development fund to exercise- the p o l i c y  ailing  serviced  individual  lots.  This  sale provided Council  d d i t i o n a l sources of f i n a n c i n g r e q u i r e d Further,  for  the s u b d i v i s i o n .  j l i c y of c a r r y i n g  out the f u l l  id d i s p o s i n g of s e r v i c e d alp the b i d d e r s , current  lot  ion request  After  lots  the D i s t r i c t  sales.  This  on an i n d i v i d u a l  ;nd a c q u i s i t i o n . 'ailable  of  adopted the  still  basis.  maintains an is  In order  By f o l l o u i n g  individual  such a p o l i c y  uas able to c a r r y out a d d i t i o n a l  C o u n c i l uas and remains r e l u c t a n t Preference i s  to  up-to-date.inventory  a v a i l a b l e to any  ;provement programs u i t h o u t having to burden i t s Houever,  in  development of a l l m u n i c i p a l lands  inventory  the D i s t r i c t  option  the o p p o r t u n i t y  1969 the D i s t r i c t  at the m u n i c i p a l o f f i c e .  :nd d i s p o s i t i o n  uith  construction.  i n 1969, C o u n c i l a b o l i s h e d the s e r v i c i n g  =ss s a l e tenders u h i c h p e r m i t t e d developers ervicing  road  of  local  of  capital  taxpayers.  to approve any neu  given to the r e p l o t t i n g  provisions  to the m u n i c i p a l i t i e s under the B. C. M u n i c i p a l Act  ;. 825-858).  Those s e c t i o n s empouer the C o u n c i l to designate an area  Sk for r s p l a t t i n g , whereby  whereby  a new land s u b d i v i s i o n w i l l take place and  each owner w i l l be compensated f i n a n c i a l l y  the l o s s of t h e i r  property.  Where only  land i s  DT otherwise  involved,  amount of land w i l l r e v e r t to the owner under the new Finally, to achieve i t s  C o u n c i l r e l i e d mostly on i t s  land development p o l i c y .  was no need to a c q u i r e a d d i t i o n a l assumption,  It  land.  for  the same  subdivision.  a c t u a l land h o l d i n g s  was assumed that  For v e r i f i c a t i o n  there  of  an a n a l y s i s of the m u n i c i p a l land h o l d i n g s was  this  carried  out and a survey made i n 1973 was used as r e f e r e n c e . 2)  M u n i c i p a l Land Holdings  Analysis  -  For the purpose of the a n a l y s i s the D i s t r i c t i n t o two s e c t i o n s ;  w i l l be  namely, the C a p i l a n o area (from the West  divided Vancouver  m u n i c i p a l boundaries to the Seymour R i v e r ) and the Seymour area (from the Saymour R i v e r are as  to the Indian Arm R i . v e r ) .  Reasons f o r  the  division  follows: a)  IMo major development w i l l take place i n the Seymour area  u n t i l the p l a n n i n g department confirms the l o c a t i o n of the town c e n t e r . Presently,  negotiations  are t a k i n g place with the N a t i o n a l  Board to determine the f e a s i b i l i t y redevelopment c o n c e p t .  of u s i n g t h e i r  Additionally,  a study  lands i n an o v e r a l l  i s presently  pared to determine the type of development to take p l a c e i n entire  Harbours  being  pre-  the  Seymour a r e a . b)  Due to the rough topography  e s t a b l i s h e d the f o l l o w i n g (1)  guidelines  In the Seymour a r e a ,  of the whole d i s t r i c t ,  restricting  phase II  it  land development:  phase I w i l l c o n s i s t of  lands up to a maximum o f 550 f e e t  above the sea l e v e l .  w i l l be up to 1050 f e e t .  Council  developing In  65  (2) of  In  the C a p i l a n o a r e a ,  1050 f e e t  it  uill  be up to a maximum  i n phase I and up to 1250 f e e t  i n phase  These g u i d e l i n e s were e s t a b l i s h e d due to the d i f f i c u l t y the necessary s e r v i c e s Such g u i d e l i n e s  and the cost  reflect  involved  the present  To be c o n s i s t e n t  uith  a n a l y s i s uas s e t a c c o r d i n g l y .  if  they uere  purposes.  Consequently,  presently  (a)  as  presently  public  undeveloped.  The  Seymour Area 1,000 a c r e s 620 a c r e s •  Lands h e l d but p r e s e n t l y s i b l e f o r development (b)  inacces2,160 a c r e s  C a p i l a n o Area Phase I....  500 a c r e s  Phase II  600 acres  Lands h e l d but p r e s e n t l y s i b l e f o r development The l a n d development p o l i c y amount of 2 m i l l i o n d o l l a r s the m u n i c i p a l i t y achieve t h i s  accelerate  Vancouver.  follows:  Phase I I .  for  1  approx-  o f the C i t y of North  Phase I  prices  Hauever,  used or. r e s e r v e d f o r  5,680 a c r e s i s  breakdown of undeveloped lands i s  above the 1  i m a t e l y 264 a c r e s are under the c o n t r o l 1,640 a c r e s i s  provided.  the survey used as a r e f e r e n c e , ' "  7,604 acres are shoun under m u n i c i p a l ownership.  Approximately  providing  situation.  the m u n i c i p a l g u i d e l i n e s In  in  II.  and t h e r e  its  lots  800 acres  set by C o u n c i l i s to p r o v i d e  an  per year touard the c a p i t a l program of appears to be enough undeveloped lands  financial goal.  serviced  inacces-  Furthermore,  the r a p i d l y  reduces the u i l l i n g n e s s  development p o l i c y .  developed to meet the C o u n c i l t a r g e t  As l o t  prices  to  increasing  of the D i s t r i c t  to  increase less lots  of 2 m i l l i o n d o l l a r s p r o f i t per  are year.  66 3)  Land D i s p o s i t i o n  Program (Appendix  U i t h r e g a r d to m u n i c i p a l p o l i c y mentioned e a r l i e r on an i n d i v i d u a l  that  the m u n i c i p a l i t y  basis only.  adopted the f o l l o u i n g dential  lots  for  the  policy:"^  difference  of o f f e r i n g  resi-  tenderer;  The f o l l o u i n g  reasons uere  betueen a s a l e and a p r e p a i d l e a s e i s  but f o r  the  a c q u i r e s a p i e c e of land by it.  A prepaid  a g i v e n p e r i o d time (99 years  case). the m u n i c i p a l i t y  d i d not decide to use  approach to reduce the c o s t of h o u s i n g , t i g h t market s i t u a t i o n the s e l l e r  (the  The m u n i c i p a l i t y ' s  lease for  i n the r e g i o n .  District  first  uas very s u c c e s s f u l .  The d i f f e r e n c e  lease c o n c e p t .  is  the only  Houever,  uith  the e x p i r a t i o n  in this  case).  the p r e p a i d l e a s e approach  betueen a s a l e and a p r e p a i d  reason c o u n c i l  $2,DOC per l o t . agreed to the  such approach i m p l i e s that  l e s s than the present  existing  A l l the advantages remain  o f North Vancouver  experience  this  but d i d r e l y on the  99 years amounted to approximately  small d i f f e r e n c e  This  prepaid  the amount l o s t  value of the amount that u i l l  be r e c e i v e d  of the l e a s e .  The land department asset  dis-  June 1973, C o u n c i l  he has the o p t i o n of keeping or s e l l i n g  Furthermore  is  In  The p o s s i b i l i t y  When an i n d i v i d u a l  l e a s e has the same f e a t u r e s  uith  lots  l e a s e or purchase at the o p t i o n o f the  r i g h t to r e v e r s i o n .  in this  disposed of serviced the method of  uas  policy.  The o n l y  purchase,  it  bidder.  the l e a s e being made on a p r e p a i d b a s i s . given f o r  on land d i s p o s i t i o n ,  Until recently,  p o s i t i o n uas by s a l e to the h i g h e s t  A)  ( l a n d ) to i n v e s t  d i d not  like  d i s p o s i n g of a permanent  i n u a s t i n g a s s e t s such as road uorks and  today at  67 services uith  l i f e s p a n s of only  fifteen  to f o r t y y e a r s .  The main  q u e s t i o n r a i s e d was what w i l l happen when such wasting a s s e t s have to be r e p l a c e d and there  i s no more land l e f t  l e a s e arrangement w i l l guarantee such f u t u r e . taxation  to s e l l ?  Alternatives  will The  prepaid  would be  or the e s t a b l i s h m e n t of a s i n k i n g fund to r e p l a c e such wasting  assets. The other ground l e a s e i s  favorable  aspect of a p r e p a i d l e a s e over an  the f a c t that  the m u n i c i p a l i t y  does not wish to  any a d d i t i o n a l expenses by way of a d m i n i s t r a t i o n , d e f a u l t on ground lease payments. both o p t i o n s ,  i.e.  renegotiation  The m u n i c i p a l i t y  the r i g h t of r e v e r s i o n  ordinary incur and  d i d get the best  as a l e s s o r of land and the  avoidance of the a d m i n i s t r a t i o n cost of ground l e a s e s by a prepayment c l a u s e at the time of  acquisition.  The main p o i n t s such p o l i c y  in favor  of the m u n i c i p a l i t y ' s  have been d e s c r i b e d b r i e f l y .  i m p l i c a t i o n s of the p o l i c y In summary, i t  In the next s e c t i o n  w i l l be analyzed  its  the f o l l o w i n g  a)  to f u l f i l l  b)  to maintain enough land i n r e s e r v e required far  of  the  further.  should be r e s t a t e d t h a t the d i s t r i c t  v o l v e d i n the l a n d development process f o r  c)  adoption  is  in-  reasons:  c a p i t a l improvement program;  capital  to achieve  financing  improvements;  to dispose of s e r v i c e d l o t s  on a p r e p a i d lease b a s i s and  r e t a i n the r i g h t of redevelopment  at the. e x p i r a t i o n  of  the ground l e a s e s ; d)  to prevent  a d d i t i o n a l i n c r e a s e i n property  taxes.  Implications The m u n i c i p a l i t i e s holdings  surveyed undoubtedly  as a planning t o o l to curb the growth.  were to r e t a i n ownership  of  used t h e i r Their  land  land p o l i c i e s  l a r g e undeveloped p a r c e l s of land and,  of  ,=n f i n a n c i a l l y  possible,  a c q u i r e a d d i t i o n a l lands f o r  •rposes.  Uhen development o c c u r r e d ,  cision.  Houever,  residential  that  the  m u n i c i p a l land  the b a s i s of long term p l a n n i n g o b j e c t i v e s .  the m u n i c i p a l i t y  of-North  i l c h produces r e s i d e n t i a l  There  Of the m u n i c i p a l i t i e s  V/ancouver  serviced lots  ;= purpose of such a p o l i c y znt  decisions  the amount of land  Finally,  no i n d i c a t i o n of change i n the f u t u r e . yed,  in  development uas r e l a t e d to  land under m u n i c i p a l o u n e r s h i p .  Idings are s t i l l  to the m u n i c i -  uas never a key f a c t o r  Council p o l i c i e s regarding  u l d be r e l e a s e d f o r "aunt of  to create a d d i t i o n a l revenues  The housing s i t u a t i o n  _; develop l a n d .  uas mainly a planning  the main purpose of m u n i c i p a l land development  = , and i s p r e s e n t l y , lities.  it  planning  District  is  the only  surone  on a c o n t i n u a l b a s i s .  i s mainly to f u l f i l l  its  capital  Houever, improve-  programs. What are the i m p l i c a t i o n s of such land a c q u i s i t i o n ,  ~d d i s p o s i t i o n p o l i c i e s ?  Land i n designated urban areas uhich  .thheld from the market by any given m u n i c i p a l i t y i the housing s i t u a t i o n .  holding  Additionally,  is  has a d i r e c t  as the m u n i c i p a l i t y  impact  has the  :uer to e s t a b l i s h and modify those designated urban areas there : other  corporation The d i s t r i c t  or i n d i v i d u a l  m u n i c i p a l i t i e s of Surrey  :nd from the market f o r •i = i r  -ply  a c o n t r o l over  and Burnaby  planning c o n s i d e r a t i o n s  financial ability,  c=rcise  uhich can compete u i t h  acquired a d d i t i o n a l  grouth.  In r e a l i t y  =nks r e s u l t  i n l e s s land f o r  private  .-ailability  of land s u i t a b l e  for  uhat they  to  are doing  development.  residential  uithheld  land supposedly  developers.  pouer.  and depending upon  ouning as much land as p a s s i b l e and o b t a i n i n g the  -, = n such land i s going to be r e l e a s e d f o r  this  is  is  profit These  Restraining  land the  development c r e a t e s a  69 ortage.  The D i s t r i c t  of North Vancouver does not a c q u i r e land on  s i m i l a r b a s i s as e x i s t i n g ads.  land h o l d i n g s are s u f f i c i e n t  The m u n i c i p a l i t y however,  velopment program.  Finally, thin  keeps a t i g h t c o n t r o l on  No more s e r v i c e d l o t s  at i s necessary to f u l f i l l  the D i s t r i c t ' s  designated urban a r e a s , c o n t r i b u t e  nds s u i t a b l e f o r  land h o l d i n g s ,  feet on the e x i s t i n g l i t y of S u r r e y ,  to the  existing  should be  Based on t h e i r  i s concluded that  housing s h o r t a g e ,  undeveloped  boundaries,  of North Vancouver D i s t r i c t  it  land h o l d i n g s  of Burnaby owns 63% of a l l  owns 64% of such undeveloped l a n d . id their  directly  r e s i d e n t i a l development w i t h i n i t s  f a r as the M u n i c i p a l i t y  its  f i n a n c i a l needs.  To emphasize the above comment, i t  ntioned that the M u n i c i p a l i t y  their  are being o f f e r e d than  the m u n i c i p a l i t i e s , by r e t a i n i n g t h e i r  u s i n g shortage.  for  i s concerned, land p o l i c i e s  they have a d i r e c t  with r e g a r d to the M u n i c i -  such c o n c l u s i o n i s not r i g h t .  The  Municipality  <ns only 2% of the undeveloped land w i t h i n the d e s i g n a t e d urban owth a r e a s .  The l a c k of revenues,  coupled with a l a c k of  expertise  i the development p r o c e s s , w i l l not enable the m u n i c i p a l i t y direct  role  Appendix  i n the p r o d u c t i o n of r e s i d e n t i a l b u i l d i n g s  to  play  lots  E).  As demonstrated, land d i s p o s i t i o n p o l i c i e s are p r o f i t •ntral o r i e n t e d depending upon the type of d i s p o s i t i o n . fared by the D i s t r i c t  Municipality  ample of a combined p r o f i t  of North Vancouver  and c o n t r o l o r i e n t a t i o n .  The is  the  or option perfect  The p r e p a i d  sse o p t i o n approved by the D i s t r i c t  of North Vancouver on recent  s i d e n t i a l serviced lots  benefit  isting  is a direct  t i g h t housing market.  d e r i v e d from the  70  Houever, :j=lling s i t e s ,  i n a ground l e a s e o p t i o n on s e r v i c e d there  is  aluays a t h r e a t  residential  uhen l e a s e s e x p i r e ,  -= p r o v i n c i a l government uauld l e g i s l a t e  to p r o t e c t  that  the l e s s e e s .  ~ = l e a s e s can be extended by s t a t u t e  and the l e s s e e s can be given  h= r i g h t to a c q u i r e the f r e e h o l d f o r  a nominal sum arguing that  r e p a i d amount uas almost equal to a s a l e p r i c e . f such a p o l i c y  i s of concern i n the f u t u r e  encouver D i s t r i c t  in this  hat the m u n i c i p a l i t y 3 the mortgage.  case).  for  the  In f a c t ,  problems  the l e s s o r  (North  One p o i n t worth mentioning  is  d i d not want to subordinate the ground l e a s e  The reason was that the m u n i c i p a l i t y  a be faced with f o r e c l o s u r e p r o c e d u r e s . uced m o r t g a g e a b i l i t y  of the f u t u r e  or 99 years was d e v i s e d .  buyer,  However,  d i d not want  to l e s s e n the  re-  a prepaid lease option  Such an approach, i n f a c t ,  enables the  uyer to o b t a i n f i n a n c i n g at the same terms and c o n d i t i o n s as a buyer f a freehold i n t e r e s t .  The e f f e c t s are again of a long term nature  t h r e a t of enfranchisement at the e x p i r a t i o n rovincial  government).  As f a r  as the D i s t r i c t  r= concerned, t h e i r  M u n i c i p a l i t i e s of Surrey  and Burnaby  land d i s p o s i t i o n programs are so marginal that  here i s no a c t u a l e f f e c t on the e x i s t i n g _nicipality  of the l e a s e by the  of Surrey  housing s i t u a t i o n .  The  does not own enough undeveloped land s u i t a b l e  r r r e s i d e n t i a l purposes while  the M u n i c i p a l i t y  of Burnaby i s more  n t e r e s t e d i n land banking than land development. However, jnicipalities  an a n a l y s i s of the housing s t a r t s  surveyed,  e s t r a i n i n g growth.  i n the  does not seem to i n d i c a t e that  From 1966 to 1973, those three  three  they  are  municipalities  •..proved between 28% and 32% of a l l the housing s t a r t s  i n the  Greater  71  Vancouver Regional D i s t r i c t starts  (Appendix  F).  If  ue compare the housing  i n 1973 to the amount of land designated f o r  i n the Greater Vancouver Regional D i s t r i c t ,  r e s i d e n t i a l uses  ue can a r r i v e at a  12 different  conclusion.  A r e c e n t survey  Vancouver R e g i o n a l D i s t r i c t  i n d i c a t e s that  designated f o r r e s i d e n t i a l u s e . l o c a t e d i n the D i s t r i c t of Surrey,  Of t h i s  of Burnaby,  and 4,215 acres (7%)  In 1973, the D i s t r i c t starts  p u b l i s h e d by the there  Greater  i s 57,352 acres  amount, 5D13 acres (8%)  27,979 acres (48%) i n the  i n the D i s t r i c t  of North  District  Vancouver.  of Burnaby approved 7% of the housing  in the GVRD u h i l e having 8% of the undeveloped land designated  f o r r e s i d e n t i a l use u i t h i n  its  boundaries.  The D i s t r i c t  Vancouver a l s o approved 7% of the housing s t a r t s  of  boundaries.  Houever,  ouning r e s p e c t i v e l y  undeveloped land u i t h i n the housing market i f  their  different.  In  they u i l l  they m a i n t a i n t h e i r  existing  of S u r r e y ,  1973, the M u n i c i p a l i t y  its  63% and 64% of the  boundaries,  In the case of the M u n i c i p a l i t y  North  u h i l e having 7% of  the undeveloped land d e s i g n a t e d f o r r e s i d e n t i a l use u i t h i n  starts  affect  existing  considerably  land p o l i c i e s .  the s i t u a t i o n  is  completely  approved 16% of the housing  i n the GVRD u h i l e having 48% of the undeveloped land designated  f a r r e s i d e n t i a l use u i t h i n  its  boundaries.  As the M u n i c i p a l i t y  only 2% of the undeveloped land d e s i g n a t e d f o r r e s i d e n t i a l use, e f f e c t of i t s not r e l e v a n t  land p o l i c i e s are m i n i m a l . to t h i s  thesis u i l l  to encourage r e s i d e n t i a l In c o n c l u s i o n , i t ities  are  the  Other inducements u h i c h are  have to be devised by the  Municipality  development. is relevant  to mention that  of Burnaby and of North Vancouver D i s t r i c t  directly  ouns  a f f e c t the housing s i t u a t i o n  if  the m u n i c i p a l -  as land ouners,  they m a i n t a i n t h e i r  can  existing  72 land p o l i c i e s . policias u i l l  In the case of the M u n i c i p a l i t y  cf Surrey,  its  have a minimal e f f e c t u n l e s s f i n a n c i a l support  land  from  the senior l e v e l s of government can be obtained i n the a c q u i s i t i o n land in the designated urban a r e a s .  of  73  Footnotes  "''K. S . Crawford, Canadian M u n i c i p a l Government, U n i v e r s i t y of Toronto P r e s s , 1954, p. 48.  Toronto:  2 The C o r p o r a t i o n of the D i s t r i c t of Surrey Planning Department "Perspectives 8 1 " , (Surrey: Surrey Planning Department, 1965), p . 7 8 . 3  Ibid.,  p. 8 0 .  it Surrey Land Use Map, obtained from the Greater Vancouver Regional D i s t r i c t P l a n n i n g Department (updated by the a u t h o r , January 1974).  5  C o u n c i l Minutes,  ^Council Minutes,  December 1968 ( D i s t r i c t of June 1970 ( D i s t r i c t of  Burnaby).  Burnaby).  7 The C o r p o r a t i o n of the D i s t r i c t of Burnaby Planning D e p a r t ment, M u n i c i p a l Land Study, Part 1 - a c a t e g o r i z e d i n v e n t o r y , (Burnaby: Burnaby P l a n n i n g Department, January 1971. Q  Burnaby Land Use Map, o b t a i n e d from the G r e a t e r Vancouver Regional D i s t r i c t P l a n n i n g Department (updated by the a u t h o r , January 1974). •  C o u n c i l M i n u t e s , March 1970 ( D i s t r i c t of  Burnaby).  "^North Vancouver D i s t r i c t Land Use Map, obtained from the Greater Vancouver Regional D i s t r i c t P l a n n i n g Department (updated by the a u t h o r , January 1974). "'""'"Council M i n u t e s , June 1973 ( D i s t r i c t of North  Vancouver).  12 I n f i l l s t u d y , prepared by Thompson, P r a t t and P a r t n e r s f o r the Greater Vancouver Regional D i s t r i c t Planning Department, A p r i l 1974.  CHAPTER VI  THE PROVINCIAL AND FEDERAL ROLE IN THE ACQUISITION, DEVELOPMENT AND DISPOSITION OF LAND FOR RESIDENTIAL PURPOSES  Housing matters are always a concern of the s e n i o r l e v e l s rrvernment. m e n t  Their  direct  p a r t i c i p a t i o n i n the a c q u i s i t i o n ,  and d i s p o s i t i o n of land f o r  cribed in p a r t i c u l a r .  part,  the p r o v i n c i a l powers and  In the second p a r t ,  = - d p o l i c i e s w i l l be r e v i e w e d .  develop-  r e s i d e n t i a l purposes w i l l be d e s -  In the f i r s t  p o l i c i e s w i l l be a n a l y s e d .  of  Finally,  the f e d e r a l powers  the i m p l i c a t i o n s of such  p o l i c i e s w i l l be b r i e f l y summarized. The P r o v i n c i a l Role  Housing f a l l s w i t h i n p r o v i n c i a l j u r i s d i c t i o n  as s p e c i f i e d by  rha f o l l o w i n g powers granted to the P r o v i n c e s under s e c t i o n 92 of rha B r i t i s h North America A c t .  1  2.  D i r e c t t a x a t i o n w i t h i n the province f o r of a revenue f o r p r o v i n c i a l p u r p o s e s .  8.  Municipal i n s t i t u t i o n s  i n the  the r a i s i n g  province.  10.  L o c a l works and u n d e r t a k i n g s . . .  11.  The i n c o r p o r a t i o n of companies with p r o v i n c i a l  13.  Property and c i v i l  16.  G e n e r a l l y a l l matters of a mainly l o c a l or nature i n the p r o v i n c e .  In f a c t , limitations,  rights  i n the  objects.  province. private  the c o n s t i t u t i o n a l powers of the P r o v i n c e s have no  e s p e c i a l l y when d e a l i n g with housing m a t t e r s .  74  The  75  provincial lau e n d  legislators  can enact any type of s t a t u t e u h i c h becomes  e n f o r c e d through C o u r t .  a f f e c t pouers c o n s t i t u t i o n a l l y A.  (As long as such s t a t u t e s granted to the F e d e r a l  do not  government.)  L e g a l Pouers  As mentioned above, the P r o v i n c i a l government has the stitutional housing.  pouers to enact any type of l e g i s l a t i o n u i t h r e g a r d to  Houever,  the a c q u i s i t i o n , poses.  con-  emphasis u i l l  be put on l e g i s l a t i o n  development and d i s p o s i t i o n of  Under the former S o c i a l C r e d i t  dealing  land f o r  government,  uith  housing  one p i e c e of  purlegis-  2 l a t i o n uas e n a c t e d : legislation  The Housing A c t .  It  uas simply a p i e c e of  complementary to the N a t i o n a l Housing A c t .  t h i s comment, Mr. N i c h o l s o n , M i n i s t e r of Housing i n the  To emphasize provincial  legislature recently s t a t e d : The p r e v i o u s government's l a c k of i n t e r e s t i n housing meant that the Province uas f o r c e d to r e l y p r a c t i c a l l y e x c l u s i v e l y on the s e r v i c e s of the C e n t r a l Mortgage and Housing C o r p o r a t i o n (CMHC). 3  The Act empouered the p r o v i n c i a l  government to a c q u i r e ,  develop  and dispose of any type of land f o r housing purposes on a p a r t n e r s h i p b a s i s u i t h the F e d e r a l government. The former government d i d form a r e g i o n a l housing department i n November 1971 i n the Greater Vancouver a r e a . l i m i t e d to the a c q u i s i t i o n of land f o r  Its  pouers uere  public purposes.  Due to  the  lack of p r o v i n c i a l  funding,  the department d i d not a c q u i r e much l a n d .  To supplement t h i s  paucity,  the department r e c e n t l y  provincial  government to amend i t s  lishmsnt of a r e g i o n a l n o n - p r o f i t pouer i s g r a n t e d ,  requested the  " L e t t e r s p a t e n t " to permit e s t a b housing a s s o c i a t i o n .  the neu o r g a n i z a t i o n u i l l  If  such  be empouered to apply  f e d e r a l funds under the neu s e c t i o n 15.1 of the N a t i o n a l Housing  far  76 Act.*  Alternatively,  and lease i t  the p r o v i n c i a l  back at 4% to a n o n - p r o f i t  no ground l e a s e payments s t a r t occupied. land far  However,  until  can buy the  organization.  the p r o j e c t  the r e g i o n a l o r g a n i z a t i o n  lou income housing In  government  In  land  addition,  i s completed and  uill  only  acquire  projects.  1973, the government  (Neu Democratic P a r t y ) enacted the  5 Housing I n c e n t i v e Fund Act Municipal A f f a i r s .  under the c o n t r o l of the Department  T h i s Act p r o v i d e d a ID m i l l i o n d o l l a r  able to any m u n i c i p a l i t y housing development f o r Until recently,  in British the g e n e r a l  Columbia f o r  fund a v a i l -  land a c q u i s i t i o n  or  public.  the province  to carry out land a c q u i s i t i o n  of  d i d not have any housing  f o r g e n e r a l housing p u r p o s e s .  uas the main cause of the government's  agency This  apathy touards h o u s i n g .  As Mr.  Nicholson s t a t e d : ^ I n c r e d i b l y , the p r e v i o u s government had only one c i v i l servant r e s p o n s i b l e f o r i t s s o c i a l housing programs. To r e c t i f y the s i t u a t i o n ,  legislation  u i t h pouers of s u p e r v i s i n g ,  c r e a t i n g a Department of  acquiring,  developing,  improving and d i s p o s i n g of housing i n the p r o v i n c e , ** i n the l e g i s l a t u r e .  This b i l l  Housing,  maintaining, uas  introduced  r e c e i v e d Royal Assent on November 2nd,  ** * 1973. actively  The m i n i s t e r  r e s p o n s i b l e has a l l the powers to  i n the housing market.  amended many other  Finally,  Acts d e a l i n g u i t h  participate  the enactment of t h i s  housing i n g e n e r a l  Act,  (Appendix  B )  *  Any n o n - p r o f i t o r g a n i z a t i o n can apply f o r 100% f i n a n c i n g , uhich cavers l a n d a c q u i s i t i o n and c o n s t r u c t i o n c o s t s . In a d d i t i o n , 10% of the t o t a l loan i s donated.  **  B i l l 49, c r e a t i n g a Department of Housing A c t , l e g i s l a t u r e (October, 1973).  *** Department of Housing A c t , s t a t u t e s (1973).  chapter  introduced  110 of the B r i t i s h  in  the  Columbia  77 but uhich are not r e l e v a n t  to t h i s  discussion.  U n t i l the enactment of t h i s housing p o l i c y of land f o r  legislation  r e l a t e d to the a c q u i s i t i o n ,  housing p u r p o s e s .  The f i r s t  the province  development and  had no disposition  task of the Department uas  to e s t a b l i s h such p o l i c i e s . B.  Policies  R e a l i z i n g the growing of the Department o b j e c t i v e s achieve that a b j e c t i v e ,  uas to put housing on the market.  should get i n v o l v e d  who would c a r r y  was to provide  s e r v i c e d by the p r i v a t e  Income Tax Act  (income s h e l t e r  the p r o v i n c i a l  land a c q u i s i t i o n ,  two needs.  The g u i d e l i n e s  brought r a p i d l y  sector,  acquisition  the  was decided t h a t  private the  accommodation to people namely low income p e o p l e .  reduced due to changes i n the  allowance).  To a l l e v i a t e  this  federal  situation,  programs uere o r i e n t e d tauards  d i r e c t e d a c q u i s i t i o n of l a n d that  onto the market.  of  acquisition.  l a n d development programs i t  A l s o , r e n t a l housing was s e v e r e l y  type  and the l o c a t i o n  does not want to compete u i t h  government's r e s p o n s i b i l i t y not u s u a l l y  To  hou funds would be a l l o c a t e d , and  out the land  As the government sector in i t s  in,  The second d e c i s i o n uas r e l a t e d to the l a n d  program; uhat funds uere p r o v i d e d , finally  Columbia, one  d e c i s i o n s uere made u i t h r e g a r d to the  of housing the government such h o u s i n g .  housing needs i n B r i t i s h  To a c q u i r e such l a n d , the  r e l i e d an the Regional Housing Department of the Greater  these  c o u l d be province  Vancouver  area. During 1973, the Regional Housing Department contacted the m u n i c i p a l i t i e s to f i n d out the a v a i l a b i l i t y within municipal boundaries.  af s u i t a b l e  all  land  The process of land s e l e c t i o n was based  78 •n three main f a c t o r s : and the p o s s i b i l i t y  the p r i c e of l a n d , the p r o x i m i t y of  of r a p i d p r e s e n t a t i o n to the market.  services,  The R e g i o n a l  Housing Department o p t i o n e d many s i t e s but e x e r c i s e d the r i g h t purchase 6 1 . 1 acres at a cost of $ 5 . 1 m i l l i o n . were abandoned due to l a c k of f u n d s . by the p r o v i n c i a l government  The other  to  options  Out of the 746 acres purchased  i n 1973, only 6 1 . 1 a c r e s uere a c q u i r e d  i n tha Greater Vancouver r e g i o n and aver o n e - h a l f 38 acres) uas purchased i n the D i s t r i c t  (approximately  Municipality  of  Burnaby.  The t h i r d type of d e c i s i o n uas r e l a t e d to the l a n d development program, i . e .  do ue s e r v i c e  the l a n d and dispose of i t  carry out the complete s e r v i c i n g  or do ue  and c o n s t r u c t i o n ?  The p r o v i n c i a l government adopted tuo s e t s of p o l i c y : p r o v i s i o n of s e r v i c e d land t D n o n - p r o f i t organizations,  and s e c o n d l y ,  to s e r v i c e  groups and c o - o p e r a t i v e land and b u i l d housing  people una cannot a f f o r d to buy from the p r i v a t e Under the second p o l i c y ,  firstly,  the M i n i s t e r  for  sector.  stated:  7  I have determined that the needs of e l d e r l y B r i t i s h Columbians should be p r i m a r i l y met by s e n i o r c i t i z e n housing developed by n o n - p r o f i t sponsors such as c h u r c h e s , s e r v i c e c l u b s , and other c i t i z e n groups. It i s p r e f e r a b l e t h a t l o c a l people and v o l u n t e e r s be i n v o l v e d i n l o o k i n g a f t e r the e l d e r l y r a t h e r than a large government agency. The government uauld provide struction  the necessary f i n a n c i n g f o r  and u a u l d make a v a i l a b l e land uhich the p r o v i n c i a l  ment a c q u i r e d on b e h a l f of those groups. the government u i l l  g  congovern-  purpose, Citizens  be a d m i n i s t e r e d by the Department of Housing.  With r e g a r d to c o - o p e r a t i v e stated:  To achieve that  put 10 m i l l i o n d o l l a r s under the E l d e r l y  Housing A c t , u h i c h u i l l  further  the  organizations,  the  Minister  79 The Department o f Housing, nou a c t i v e l y a s s i s t s c o - o p e r a t i v e h o u s i n g p r o j e c t s by l e a s i n g l a n d a t a ground r e n t o f U%,. o f i t s v a l u e and p r o v i d i n g b r i d g e f i n a n c i n g . The  Department o f Housing a c q u i r e d most o f t h e s h a r e s o f  D u n h i l l Development L t d . t o c a r r y out t h e i r h o u s i n g programs. for  Reasons  such a move were:^ The a l t e r n a t i v e s to. a c q u i r i n g D u n h i l l uere e i t h e r t o engage i n a c o m p l i c a t e d and time consuming t a s k o f e s t a b l i s h i n g a l a r g e Crown house b u i l d i n g o r g a n i z a t i o n from s c r a t c h , o r to c o n t i n u e t o r e l y c o m p l e t e l y on c o n s u l t i n g f i r m s . I s e l e c t e d t h e f i r s t p r o p o s i t i o n f o r t h e time b e i n g because we must move r a p i d l y t o g e t houses on t h e market; and t o r e l y s o l e l y an c o n s u l t a n t s s i m p l y means a l o t o f expense w i t h n o t h i n g l e f t o v e r i n t h e way o f a r c h i t e c t u r a l d e s i g n DT e n g i n e e r i n g c a p a c i t y t h a t can be a p p l i e d t o o t h e r p r o j e c t s . However, t h i s f i r m w i l l be o n l y one o f t h e h o u s i n g development  arms o f t h e P r o v i n c e .  Other arrangements such as t e n d e r s  and b u i l d e r  p r o p o s a l c a l l s w i l l s t i l l be u s e d . F i n a l l y , t h e f o u r t h and l a s t t y p e o f d e c i s i o n was r e l a t e d t o the l a n d d i s p o s i t i o n program, i . e . do we w e l l o r l e a s e t h e l a n d ?  The  M i n i s t e r • m a d e i t q u i t e c l e a r when he s t a t e d : For t h e most p a r t t h e government w i l l l e a s e r a t h e r than d i s pose o f l a n d Dn a f e e s i m p l e b a s i s , because we b e l i e v e t h a t i t i s p r o p e r t h a t f u t u r e f u r t h e r p r i v a t e s p e c u l a t i o n be p r o h i b i t e d and t h a t any w i n d f a l l p r o f i t t h a t o c c u r s from an i n c r e a s e i n l a n d v a l u e s s h o u l d be e n j o y e d by a l l members o f t h e community. However, t h e i n f o r m a t i o n r e l a t e d t o t h e p r o c e d u r e o f g i v i n g out these l a n d l e a s e s was not made a v a i l a b l e t o t h e a u t h o r . i t s h o u l d be p o i n t e d out t h a t Mr. N i c h o l s o n  Finally,  used t h e term " f o r t h e  most p a r t " i n h i s speech t o comply w i t h a s t a t e m e n t made by Mr.  Basford.*  I f the p r o v i n c i a l government d i s p o s e s o f  l a n d through l e a s i n g arrangements o n l y , t h e F e d e r a l government may * Mr. B a s f o r d i s M i n i s t e r o f S t a t e f o r Urban A f f a i r s i n the F e d e r a l government. He i s a l s o r e s p o n s i b l e f o r the C e n t r a l Mortgage and Housing C o r p o r a t i o n which i s a d m i n i s t e r i n g t h e N a t i o n a l Housing A c t .  completely cut o f f ence i s f o r  its  f i n a n c i a l support because the F e d e r a l p r e f e r -  a combination of l e a s e and s a l e arrangements.  In summary, the p r o v i n c i a l p o l i c i e s are o r i e n t e d mainly  to-  wards a s p e c i f i c s e c t o r of the p o p u l a t i o n uhich i s not adequately s e r v i c e d by the p r i v a t e with the p r i v a t e  sector;  sector.  There i s no i n t e n t i o n to compete  on the c o n t r a r y ,  there i s a need f o r  s e c t o r s to work towards the same o b j e c t i v e :  both  the p r o d u c t i o n of housing  u n i t s f o r the p o p u l a t i o n of B r i t i s h Columbia. C.  E s t a b l i s h m e n t of a P r o v i n c i a l Land Inventory  F o l l o w i n g the c r e a t i o n of a p r o v i n c i a l Housing Department, the second step i n s o l v i n g the housing problem was the e s t a b l i s h m e n t of a provincial  land i n v e n t o r y .  The p r o v i n c i a l c a b i n e t commissioned the  Department of Lands, F o r e s t s and Water Resources to c a r r y inventory  of a l l lands owned by any Department or Crown C o r p o r a t i o n  under p r o v i n c i a l j u r i s d i c t i o n . cise a better However,  out an  prior  One of the main purposes was to  c o n t r o l over the d i s p o s i t i o n of p r o v i n c i a l to any l a n d d i s p o s i t i o n ,  However,  Presently,  lands.  the Department of Housing w i l l  have f i r s t r e f u s a l , namely the r i g h t to i n v e s t i g a t e housing p u r p o s e s .  exer-  its  potential  no i n f o r m a t i o n i s a v a i l a h l e . *  a survey** was c a r r i e d out i n 1973 which shows the  amount of land owned by the p r o v i n c i a l government i n the D i s t r i c t Surrey,  for  the D i s t r i c t In S u r r e y ,  of Burnaby and the D i s t r i c t  of  of North  Vancouver.  the Province owns 1,862 acres of l a n d .  The major  * No i n f o r m a t i o n w i l l be r e l e a s e d u n t i l the Survey i s completed. Comment made by an o f f i c i a l of the Department of Lands, F o r e s t s , and Water R e s o u r c e s . **Survey done by the Greater Vancouver R e g i o n a l D i s t r i c t Planning Department i n A p r i l 1973, updated by the author i n January 1974.  81 part  i s under the r e s e r v e  remaining part l i s h e d by the  municipality. the province  (approximately  University.  The  i s o u t s i d e the designated urban growth areas e s t a b -  In Burnaby, oped part  e s t a b l i s h e d by the Land Commission.*  owns 1,652 acres of l a n d .  365 a c r e s )  i s adjacent to Simon F r a s e r  Due to the m u n i c i p a l c o u n c i l a t t i t u d e ,  undoubtedly remain undeveloped.  The u n d e v e l -  this  In f a c t the s i t u a t i o n  the Endowment Lands uhere the U n i v e r s i t y of B r i t i s h  land  uill  is similar  to  Columbia i s  situated. In North Vancouver D i s t r i c t , land ( e x c l u d i n g  the B l a i r  Provincial partnership).  the province  ouns 7D7 a c r e s of  R i f l e Range s i t e purchased under F e d e r a l E x c l u d i n g the lands d e d i c a t e d to p u b l i c u s e ,  the remaining lands cannot be developed f o r housing purposes due to the rough  topography.  In summary there i s no i n d i c a t i o n that the r e s u l t c a r r i e d out by the p r o v i n c i a l  government u i l l  s i t u a t i o n u n l e s s the government uses i t s  of the  a f f e c t the housing  pouers to develop i t s  h o l d i n g s adjacent to Simon F r a s e r U n i v e r s i t y  survey  land  i n the m u n i c i p a l i t y  of  Burnaby.  D.  Implications  As demonstrated, the p r o v i n c i a l policy until However,  government d i d not have any  1973 with r e g a r d to land a c q u i s i t i o n f o r  the c r e a t i o n of t h i s  lishment of a p r o v i n c i a l housing p r e s s u r e .  housing p u r p o s e s .  new housing department and the e s t a b -  land i n v e n t o r y  The Province  w i l l hopefully  i s already  relieve  the  committed to the purchase  The Land Commission was e s t a b l i s h e d i n December 1972 to preserve a g r i c u l t u r a l land i n the Province of B r i t i s h Columbia.  the  82 land t h a t  can be brought  rapidly  onto the market.  Additionally,  varnment programs are e s t a b l i s h e d to reach a c l a s s of people most f a c t e d by the housing s i t u a t i o n , sole.  Uhat are the i m p l i c a t i o n s of such p o l i c i e s ?  iicies u i l l  provide  using problem u i l l th  namely the low and moderate income  housing, but, still  the m u n i c i p a l i t i e s ,  isting  pressures.  If  exist.  As the c o n t r o l of  no p r o v i n c i a l  policies  Uhat i s needed i s  rvicing  a financial policy  a d d i t i o n a l urban l a n d .  s l i z e d i n such neu s u b d i v i s i o n s  basically  involvement  Additionally,  lacking is  profits  municipality  i n no uay r e l i e v e  to e n -  to cope u i t h the The  o  provincial  regard to m u n i c i p a l needs.  land at s u b s i d i z e d r a t e s u i l l  idea of p r o v i d i n g  The  on Croun  benefit  land  a limited  the e x i s t i n g  housing  situation.  land at s u b s i d i z e d r a t e s to lou income  aple and o l d age p e n s i o n e r s i s very good i n d e e d . IMo mention uas made i n the p r o v i n c i a l aidential serviced duelling the hands of the p r i v a t e  of  The m u n i c i p a l i t i e s  The i d e a of b u i l d i n g m u l t i p l e housing u n i t s  uaver,the  the cost  some immediate p o l i c i e s  c o s t of development p l a c e d on them.  ~ber of people but u i l l  have  units.  vsrnment proposes neu developments u i t h o u t  d leasing this  uill  government.  mit grouth due to a l a c k of f i n a n c i a l a b i l i t y and l i n g e r i n g  relieving  to encourage the m u n i c i -  urage the development of neu housing u n i t s .  itial  aim.at  should be i n v e s t e d i n the  such a d d i t i o n a l housing  Uhat i s  land remains  market.  should be taken up by the p r o v i n c i a l  ich provides  the  no measures are used to encourage m u n i c i p a l i -  minimal impact on the o v e r a l l  to provide  provincial  i n the next feu y e a r s ,  as to open up neu urban a r e a s , the government  lities  The  sites.  developer  This  policies  to  provide  type of housing i s  and m u n i c i p a l i t i e s .  left  There  is  83  indication that, provide  i n the f u t u r e ,  any support f o r Furthermore, land* u i t h i n  i.-fill -i~t = d .  this  the p r o v i n c i a l  k i n d of  Such u n d e r - u t i l i z e d  the development of  designated urban areas u i l l  be designated u r b a n .  As there  as a uhole i s  "t  type of l a n d , the housing  affected.  To summarize, the p r o v i n c i a l the housing s h o r t a g e ,  p o l i c i e s are aimed at  but the approach i n s o l v i n g  i n accordance u i t h the m u n i c i p a l p o l i c i e s .  - e s t of t h e i r  land h o l d i n g f o r  PO a c q u i r e s t r a t e g i c of development u i t h i n their  land h o l d i n g s ,  "•using s h o r t a g e .  future  relieving  these problems i s  Municipalities  retain  p l a n n i n g c o n s i d e r a t i o n s and  try  undeveloped p a r c e l s of land to c o n t r o l the pace their  boundaries.  By r e s t r a i n i n g  the m u n i c i p a l i t i e s c o n t r i b u t e  Conversely,  land u h i c h can be brought pausing  land u h i c h  i s nD j o i n t m u n i c i p a l and p r o -  v i n c i a l agreement i n the development of t h i s -srket  be p r o -  land i s one of the reasons the m u n i c i p a l -  i t i e s uant to r e t a i n ounership and/or a c q u i r e any f u t u r e hill  uill  development.  there i s no i n d i c a t i o n that the e x i s t i n g  government  development of  to the  existing  the P r o v i n c i a l government a c q u i r e s •  rapidly  onto the market to r e l i e v e  the  existing  situation. As any other  TTLinicipal  developer,  the P r o v i n c i a l government needs to  a p p r o v a l to proceed u i t h  any type of development.  To  get  grant  such a p p r o v a l , m u n i c i p a l i t i e s c l a i m that they need more f i n a n c i a l a s s i s t a n c e from the Province to cope u i t h the a d d i t i o n a l c o s t s c r e a t e d -7 neu r e s i d e n t i a l developments. provided,•municipalities  it  If  such f i n a n c i a l a s s i s t a n c e i s  not  have the pouer to r e f u s e any neu development  Land u h i c h i s a l r e a d y s e r v i c e d but uhich i s  under-utilized.  84 =v=n one requested by the In  Province.  view of such d i f f e r e n t  policies,  it  i s evident  c o n s u l t a t i o n s would be r e q u i r e d by the two l e v e l s  of  that  further  government.  Delays c r e a t e d by such c o n s u l t a t i o n s w i l l undoubtedly  affect  the  reusing market. In the three m u n i c i p a l i t i e s s u r v e y e d , Kunicipality  there  is  only  of Burnaby who has undeveloped land s u i t a b l e  d e n t i a l development under the ownership of the P r o v i n c e . tie  Province bought 38 a c r e s s u i t a b l e  development.  In  addition,  for  for  multiple r e s i d e n t i a l  conflicts  may a r i s e  As the intended p o l i c y  i n the implementation of such  policy with-the Municipality  of Burnaby.  In  fact,  unit  365 acres of  Province i s to put housing on every p a r c e l of l a n d under i t s snip,  resi-  In 1973,  the Province owns approximately  adjacent to Simon E r a s e r U n i v e r s i t y .  the  owner-  provincial  the M u n i c i p a l  C o u n c i l claims t h a t no development would occur on the p a r c e l o f adjacent to the Simon F r a s e r U n i v e r s i t y . exists  Such c o n t r o v e r s y  i n r e g a r d to the development of the Endowment Lands  Co the remaining 38 a c r e s ,  the  land  actually (U.B.C.).  development w i l l occur but i n t e n s i v e  con-  s u l t a t i o n s w i l l precede such u n d e r t a k i n g . To summarize, the e f f e c t of the p r o v i n c i a l  government  parti-  c i p a t i o n i n the housing market w i l l be minimal i n the three m u n i c i p alities  surveyed.  TT:_-icipalities  As f a r  as the p o l i c i e s of the Province  are concerned, there e x i s t s  s r i v e d by p r o v i d i n g  a conflict  a d d i t i o n a l f i n a n c i a l a s s i s t a n c e to  unich w i l l approve a d d i t i o n a l r e s i d e n t i a l  development.  that  and can be r e -  municipalities  85  i*- = F e d e r a l Role  Housing matters are c o n s t i t u t i o n a l l y "h= Provinces  (B.IM.A. A c t ,  ment i n v o l v e d  itself  natters.  section 92).  as e a r l y  To remain w i t h i n i t s  the r e s p o n s i b i l i t y  However,  the F e d e r a l  as the t u r n of the century constitutional  powers,  its  f i n a n c i a l input  Thereafter,  the  hederal  i n c r e a s e d to the p o i n t  Such F e d e r a l involvement  In the f o l l o w i n g  zavernment i n the assembly> residential purposes,will  A.  role  s e c t i o n s the r o l e  that  be more p a r t i c u l a r l y  policy  i s summarized  of the  development and d i s p o s i t i o n  Federal  of land  for  analysed.  Background  C e n t r a l Mortgage and Housing C o r p o r a t i o n a t i o n charged with c a r r y i n g  end r e p o r t s  Under t h i s  1954, subsequent amendments and e a r l i e r  corpor-  legislation.  a designated m i n i s t e r  to Parliament through the m i n i s t e r .  dy an Act of Parliament i n 1945.  "crporatlon  i s the Crown  out Canadian f e d e r a l housing  "MHC i s r e s p o n s i b l e to the government through  -zi,  policies  i s now e s s e n t i a l to the achievement of any  dealing with housing m a t t e r s . in Appendix C.  its  govern-  i n such  involvement was merely a d e s i r e to e s t a b l i s h g e n e r a l s o c i a l in the p r o v i n c e s .  of  Act,  It  was  incorporated  the N a t i o n a l Housing  Housing A c t s ,  the  i s empowered t o :  -  Insure mortgage loans made by banks, t r u s t and loan companies, and other approved lenders on new and e x i s t i n g h o u s i n g ; (IMHA, s e c t i o n 1 5 ) .  -  Make mortgage loans to borrowers unable to o b t a i n i n s u r e d loans from p r i v a t e l e n d e r s on new and e x i s t i n g h o u s i n g ; (IMHA S e c t i o n 5 8 ) .  -  Make mortgage loans on l o w - r e n t a l (IMHA S e c t i o n 1 5 ) .  -  Make loans to u n i v e r s i t i e s , c o - o p e r a t i v e a s s o c i a t i o n s , c h a r i t a b l e c o r p o r a t i o n s , v o c a t i o n a l and t e c h n i c a l s c h o o l s ,  housing  projects  86 t r a i n i n g h o s p i t a l s , s c h o o l s f o r s p e c i a l groups of h a n d i capped p e r s o n s , p r o v i n c e s DT t h e i r a g e n c i e s , to a s s i s t i n p r o v i d i n g accommodation f o r r e s i d e n t students and married students and t h e i r f a m i l i e s : (IMHA S e c t i o n 4 2 ) . - Make loans to p r o v i n c e s , m u n i c i p a l i t i e s , or m u n i c i p a l sewerage c o r p o r a t i o n s to a s s i s t i n the c o n s t r u c t i o n or expansion of sewerage treatment p r o j e c t s f o r the c o n t r o l of water and s o i l p o l l u t i o n ; (NHA S e c t i o n 5 1 ) . -  Provide insurance to banks on loans made f a r home improvements, and guarantee r e t u r n s from m o d e r a t e - r e n t a l housing p r o j e c t s b u i l t by l i f e insurance companies and p r i v a t e i n v e s t o r s ; (NHA S e c t i o n s 13, 14, 28, 29, 3 4 ) .  - Buy and s e l l i n s u r e d mortgage l o a n s , make loans to mortgage l e n d e r s , on the s e c u r i t y of mortgages and purchase of the debentures of l e n d i n g i n s t i t u t i o n s ; (NHA S e c t i o n 10) (CMHC A c t , S e c t i o n 2 8 ) . -  A s s i s t p r o v i n c e s and m u n i c i p a l i t i e s to redevelop and r e h a b i l i t a t e urban renewal areas i n accordance with an o f f i c i a l p l a n ; (NHA A c t , S e c t i o n 2 2 ) .  -  Make l o n g - t e r m loans t D p r o v i n c e s , m u n i c i p a l i t i e s or t h e i r agencies f o r the c o n s t r u c t i o n or a c q u i s i t i o n of housing p r o j e c t s ; arrange under a F e d e r a l - P r o v i n c i a l p a r t n e r s h i p agreement to b u i l d ' and operate p u b l i c housing p r o j e c t s ; make l o a n s . t o assemble land f o r r e s i d e n t i a l purposes; and p r o v i d e grants to a i d i n meeting l a s s e s ; (NHA S e c t i o n s 40, 42, 43, 4 4 ) .  -  C o n s t r u c t , awn and manage housing p r o j e c t s on i t s own account and on b e h a l f of the f e d e r a l government departments and a g e n c i e s ; (NHA S e c t i o n 55) (CMHC A c t , S e c t i o n 2 9 ) .  -  Encourage the development of b e t t e r community planning and, i n c a r r y i n g to undertake or arrange f o r s t u d i e s n i c h a l , economic and s o c i a l aspects S e c t i o n s 35, 36, 3 7 ) .  -  Encourage c r e a t i o n of new communities to r e l i e v e the pressure on the e x i s t i n g urban c e n t e r s ; (NHA S e c t i o n 4 5 ) .  However, t h i s  housing and sound out t h i s r e s p o n s i b i l i t y , and r e s e a r c h on t e c h of h o u s i n g ; (NHA  a n a l y s i s w i l l concentrate on the extent of  Federal government i n p u b l i c  land assembly, development and  comprised i n s e c t i o n s 40 and 42 ( N a t i o n a l  Housing  Act).  the  disposition  87  B.  Evolution  of F e d e r a l  Participation  From 1949 to 1969, the main f e d e r a l a s s i s t a n c e to and m u n i c i p a l i t i e s f o r  provinces  the assembly of land uas c a r r i e d out under  the  c o s t - p l a n n i n g arrangements of s e c t i o n 40 of the N a t i o n a l Housing A c t . Under t h i s  s e c t i o n , CMHC had the o p t i o n to enter  u i t h the p r o v i n c e s on a 75%-25% b a s i s .  into  a partnership  The r e d e r a l government  uould  provide 75% of the land a c q u i s i t i o n cost and the p r o v i n c e s 25%. ever,  the 25% of the a c q u i s i t i o n cost uould be shared by the  and the m u n i c i p a l i t y  (percentage  subject  to  Hou-  province  negotiation).  The b a s i c procedure to o b t a i n such f i n a n c i a l a s s i s t a n c e uas as f o l l o u s :  the request of f i n a n c i a l a s s i s t a n c e f o r  proof of need uas coming from the m u n i c i p a l i t y , to the CMHC.  In B r i t i s h  a project  through the  e x t e n s i o n to the s i t e u h i l e  to i t s  services  the CMHC h e l d the r e s p o n s i b i l i t y  development and d i s p o s a l .  trunk s e r v i c e s uere t o t a l l y addition,  province  Columbia, the m u n i c i p a l i t y uas r e s p o n s i b l e  f o r the a c q u i s i t i o n of the land and the necessary trunk  planning,  and i t s  Houever,  for  the e x t e n s i o n of such  the expense of the m u n i c i p a l i t y .  In  the percentage of p r o f i t to the m u n i c i p a l i t y uas only  participation Even i f  i n the  equal  partnership.  CMHC r e c o g n i s e d the use of s e c t i o n " 4 0 as a land banking 12  purpose i n A p r i l  1968,  by the P r o v i n c e s .  the term of 15 years l i m i t e d such  Under t h i s  s e c t i o n , houever,  some 32,000 a c r e s  i n a l l the p r o v i n c e s uere a c q u i r e d but only the B l a i r (640 a c r e s )  i n North Vancouver D i s t r i c t  Vancouver R e g i o n . firstly,  being a p r o v i n c i a l  responsibility.  R i f l e Range  uas purchased i n the  Three b a s i c reasons uere given f o r  the change i n p r o c e d u r e ,  utilization  planning,  this  Greater  situation;  development and d i s p o s a l  Secondly,  the lack of a p r o v i n c i a l  88  housing agency i n B r i t i s h  Columbia to c a r r y  out such work.  Thirdly,  the hidden c o s t s of the m u n i c i p a l i t i e s which were not covered by the p a r t n e r s h i p In This  agreement, such as o f f - s i t e  1964, s e c t i o n 42 was added to the N a t i o n a l Housing  s e c t i o n allowed CMHC to p r o v i d e  cost at p r e f e r r e d and s e r v i c i n g In  servicing.  interest  loans of up to 90% of  r a t e to p r o v i n c e s  o f l a n d , but s p e c i f i c a l l y  for  for  the  Act.  the  acquisition  p u b l i c housing  purposes.  1SE5, s e c t i o n 42 was broadened to i n c l u d e the a c q u i s i t i o n and  development o f  land f o r  time _as s p e c i f i e d 15 y e a r s ;  only  posed o f . gradually  general purposes.  ( u n t i l March 3 1 , 1972).  interests  were p a i d a n n u a l l y  P r i n c i p l e was p a i d on a p r o - r a t a disposed o f .  Canada under t h i s  Approximately  section,  However,  the p e r i o d  The l o a n term, was up to until  the l a n d was  basis i f  dis-  the land was  ID,ODD; a c r e s were developed  but none i n the G r e a t e r  Vancouver  The main reason mentioned i s the l a c k of a p r o v i n c i a l such f i n a n c i a l a s s i s t a n c e .  of  Another reason i s t h a t  area.  agency to  only raw  in  promote  land  could be a c q u i r e d under s e c t i o n 4 2 . S e c t i o n 42 was r e i n s t a t e d  i n 1973 amendments to the  Housing Act with even broader t e r m s . T h e uses i n c i d e n t a l to  new loan p o l i c y  g e n e r a l housing p u r p o s e s ,  of urban uses normally  the term w i l l be extended to 25 years or 50 years  the  Iran w i l l be d e f e r r e d u n t i l  order  to o b t a i n such a l o a n ,  name r f  CMHC by the borrowing  touaros  the  the land i s  will  cover  namely a complete range  seen i n a l a r g e s c a l e development.  disposed of under a l e a s e h o l d arrangement;  National  if  In  addition,  the land i s  the i n t e r e s t  to be  payment on  disposed o f .  However,  debentures w i l l have to be i s s u e d i n agency or m u n i c i p a l i t y  as a  in the  security  loan.  The b a s i c elements of the F e d e r a l land p o l i c y  have been  clearly  89 e n u n c i a t e d by the M i n i s t r y  of S t a t e f o r Urban  Affairs:  -  Land assembly has been c r i t i c i s e d f a r making a p r o f i t f o r the governments i n v o l v e d . For t h i s r e a s o n , even where land i s s o l d or l e a s e d at or near market p r i c e , the governments p a r t i c i p a t i n g s h o u l d not r e t a i n p r o f i t s but would put them back i n t o the market - at no cost to the • m u n i c i p a l i t y - and other a m e n i t i e s . Any remaining p r o f i t a f t e r these lands are a s s i g n e d , c o u l d be a p p l i e d to the c a p i t a l cost o f community s e r v i c e b u i l d i n g s .  -  F i r s t p r i o r i t y i n the a l l o c a t i o n of F e d e r a l funds w i l l be given to lands t h a t can be brought q u i c k l y onto the m a r k e t .  -  Land would be made a v a i l a b l e f r e e of charge w i t h i n the p r o j e c t f o r a r e a s o n a b l e p r o p o r t i o n of p u b l i c h o u s i n g .  -  we are prepared to a s s i s t p r o v i n c e s which undertake l a n d assembly, and a l s o to a s s i s t m u n i c i p a l i t i e s who wish to do so and have p r o v i n c i a l a p p r o v a l .  -  Ue are prepared to f i n a n c e as p a r t of the l a n d assembly cost the i n s t a l l a t i o n of o f f - s i t e c o n n e c t i n g trunk s e r v i c e s .  C.  A n a l y s i s of the F e d e r a l Land H o l d i n g s  F e d e r a l land ownership i n B r i t i s h i m a t e l y 1,276,800 a c r e s (Appendix  D).  However,  the a n a l y s i s ,  to r e l a t e  approx-  Land i s h e l d by v a r i o u s  partments and F e d e r a l Crown a g e n c i e s , f o r functions.  Columbia amounts to  the f u l f i l l m e n t  such l a n d h o l d i n g s  of  de-  their  to the purpose  of  a s p e c i f i c study of t h r e e m u n i c i p a l i t i e s was c a r r i e d  to determine the p o t e n t i a l i t y  of such land h o l d i n g f o r  out  residential  purposes. In  the D i s t r i c t  d i c a t e d , that Of t h i s  *  Municipality  of S u r r e y ,  a r e c e n t survey*  the F e d e r a l government** owrs approximately  amount, twelve  (12)  in-  429 a c r e s .  a c r e s are used by the Post O f f i c e ,  and  Survey c a r r i e d out by the G r e a t e r Vancouver R e g i o n a l D i s t r i c t P l a n n i n g Department, updated by the author January 1974.  ** It should be p a i n t e d out that a l l lands or water l o t s owned by the N a t i o n a l Harbours Board are not i n c l u d e d i n the s u r v e y .  90 the Customs Department.  Two hundred s i x t y - e i g h t  used by the Department o f Communications, u h i l e acres are l o c a t e d d i r e c t l y estate;  In the D i s t r i c t  industrial.  Municipality  of Burnaby,  200 acres are p r e s e n t l y  government i s  a c q u i r i n g the  Of t h i s  in-  amount,  being disposed o f .  The  provincial  (37 a c r e s )  the purchase of the remaining  A l l the other p a r c e l s of l a n d (137 a c r e s )  used by v a r i o u s  In the D i s t r i c t  the same survey  "George Derby H o s p i t a l " s i t e  is negotiating  park p u r p o s e s .  are p r e s e n t l y  is  uses.  approximately  acreage f o r  industrial  There i s no l a n d u h i c h  d i c a t e d a f e d e r a l land ounership of 337 a c r e s .  and the m u n i c i p a l i t y  the remaining 149  a c r o s s from the Annacis I s l a n d  the p o t e n t i a l use i s  available for r e s i d e n t i a l  (268) acres are  f e d e r a l departments.  Municipality  of North Vancouver,  the same  survey i n d i c a t e d an amount of 1,252 a c r e s under f e d e r a l o u n e r s h i p . Excluding the land i n a c c e s s i b l e f o r  development, and the land a d m i n i s -  t e r e d by the Department of Indian A f f a i r s  and Northern Development on  behalf of the Indian p e o p l e , there i s only 640 a c r e s known as the " B l a i r R i f l e Range", which i s a c c e p t a b l e f o r Due to m u n i c i p a l p o l i c y  limiting  of the s i t e uould e v e n t u a l l y  residential  development.  development, approximately  be used f o r r e s i d e n t i a l  one-third  purposes.  The s i t e uas a c q u i r e d by the j o i n t p a r t n e r s h i p of the  pro-  v i n c i a l government and C e n t r a l Mortgage and Housing C o r p o r a t i o n the request of the m u n i c i p a l i t y uhen i t  becomes s u r p l u s  at  to the needs  of the Department of N a t i o n a l Defence. D i v i s i o n of o p i n i o n between the partners  and the m u n i c i p a l i t y It  i s evident  have s t a l l e d development so  from the above a n a l y s i s that  lend h o l d i n g s w i l l not have a d i r e c t ment p o t e n t i a l .  effect  far.  the e x i s t i n g  i n terms of t h e i r  Those lands would e v e n t u a l l y  Federal  develop-  become o b s o l e t e i n  their  91 present uses and the m u n i c i p a l i t i e s uauld a c q u i r e them.  Houever,  none of these s i t e s have a p o t e n t i a l f o r housing p u r p o s e s ;  their  only p o t e n t i a l i s that of park a r e a s . To summarize, i t  i s evident that the F e d e r a l land h o l d i n g s  s u i t a b l e f o r r e s i d e n t i a l development cannot a f f e c t the housing s i t u a t i o n .  substantially,  In the three surveyed m u n i c i p a l i t i e s ,  the  only p a r c e l of land s u i t a b l e f o r r e s i d e n t i a l development i s the R i f l e Range" s i t e . District  Due to the topography  Municipality  of the North Shore,  q u i r e d by the j o i n t p a r t n e r s h i p p o l i c i e s for If  the  of North Vancouver estimates t h a t 214 a c r e s can  be economically developed at the present t i m e .  existing  "Blair  of the s e n i o r  As the s i t e uas a c levels  of  government,  the development are under p r o v i n c i a l  jurisdiction.  ue c o n s i d e r the t o t a l p u b l i c ounership of land s u i t a b l e  r e s i d e n t i a l development i n the D i s t r i c t the impact f o r  the f u t u r e  provision  Municipality  of North  of housing i s tremendous.  for  Vancouver, The  combined l e v e l s of government oun 69% of a l l the undeveloped land suitable for r e s i d e n t i a l  D.  development,  Implications  F e d e r a l p o l i c i e s r e l a t e d to housing matters are e s s e n t i a l l y a f i n a n c i a l support to the p r o v i n c i a l There i s no i n t e n t i o n uhatsoever  governments,  and f o r  from the F r e d e r a l government to make  a p r o f i t on any type of r e s i d e n t i a l development. earlier,  the F e d e r a l government u i l l  facilitate  As p o i n t e d out the a p p r o p r i a t i o n  f e d e r a l funds to accommodate m u n i c i p a l i t i e s i n t h e i r The purpose of the f i n a n c i a l a s s i s t a n c e i s availability it  of s e r v i c e d l o t s u i t h i n  i s up to a p r o v i n c i a l  municipalities.  requirements.  to i n c r e a s e the  any given urban c e n t e r .  agency or more l i k e l y  of  municipalities  Houever, to  92  ply  for  such a s s i s t a n c e .  quest f o r  f e d e r a l funds,  ovinces to c o - o r d i n a t e The i n t e n t i o n licies  As p r o v i n c i a l there  an i n c r e a s i n g burden put on the  and process those  applications.  of the F e d e r a l government  a f f e c t i n g land i n t o  t i e s and p o l i c i e s .  is  a p p r o v a l i s r e q u i r e d on any  This  c l o s e r alignment u i t h  approach, houever,  :varnments have such d e f i n i t e i n i c i p a l and p r o v i n c i a l  policies.  policies  varnment and the m u n i c i p a l i t i e s  It  to b r i n g  it  implies that  prior-  provincial  uas demonstrated If  i s up to the  to uork more c l o s e l y .  quirement mentioned by the M i n i s t e r  their  provincial  are q u i t e d i f f e r e n t .  d e r a l a s s i s t a n c e i s to be of any v a l u e ,  i a t e d to the d i s p o s i t i o n  is  that  the provincial  The  only  of State f a r Urban A f f a i r s  o f s e r v i c e d l a n d ; there  should be a corn-  n a t i o n of s a l e and l e a s i n g arrangements to encourage people of v e l s of income to a c q u i r e such l a n d s . .ere should be d e f i n i t e • varnment.  policies  is  To achieve such a g o a l ,  e s t a b l i s h e d by the  provincial  all  93 Footnotes  '''A. E. Grauer, Housing, "A Study Prepared f o r the Royal Commission on D o m i n i o n - P r o v i n c i a l R e l a t i o n , " Ottawa, 1939, p. 34. 2  Housing A c t ,  R.S.B.C.,  1960, C. 1 8 3 . '  N o t e s f o r speech made by Hon. L o m e N i c h o l s o n , M i n i s t e r Housing i n the B r i t i s h Columbia L e g i s l a t u r e , on 14th February, 1974, p. 2. 3  of  4 Greater Vancouver Regional D i s t r i c t Housing Department, Memorandum to the Board of D i r e c t o r s from the Housing Committee, January 23, 1974.  British  5 Housing I n c e n t i v e Fund A c t , Columbia, 1973.  Chap. 41 of the S t a t u t e s  of  ^Nates f o r speech made by Hon. L o m e N i c h o l s o n , M i n i s t e r Housing i n the P r o v i n c i a l L e g i s l a t u r e on F e b . 14, 1974, p. 2.  of  7  Ibid., p. 4. ^Ibid.,  p.  5.  Ibid.,  p.  7.  9  Ibid., i : L  p.  3.  N a t i o n a l Housing A c t ,  R.S.C.,  1970, c .  N-10.  12 M. Dennis and S . F i s h , Programs i n search of a p o l i c y : Low income housing i n Canada, ( T o r o n t o : A. M. Hakkert, 1972), p. 319. ^R. B a s f o r d , 1973 N a t i o n a l Housing Act Amendments, explanatory nates on a B i l l , C e n t r a l Mortgage and Housing C o r p o r a t i o n , J a n . 30, 1973, p. 3 . 14 • Notes f o r speech made by Hon. R. B a s f o r d , M i n i s t e r of f o r Urban A f f a i r s at the N a t i o n a l T r i - L e v e l conference on Urban A f f a i r s , Edmonton, October, 1973.  State  CHAPTER  VII  SUMMARY AND CONCLUSIONS  A primary preview of the t h e s i s and the l i m i t a t i o n s -=sses of such a study  are g i v e n below.  This  is  e - u n c i a t i o n of p o l i c i e s and recommendations t h a t such r e s e a r c h . study, this  Finally,  indication  and weak-  f o l l o w e d by a b r i e f are e v i d e n t  i s g i v e n to f u r t h e r  to  areas of  based Dn the c o n c l u s i o n s a c h i e v e d and l i m i t a t i o n s o u t l i n e d i n study.  Summary o f the  Thesis  Perhaps t h i s reiteration  t h e s i s can b e s t be summarized by an expanded  of the chapter summaries.  In Chapter I I ,  the t h e o r e t i c a l  supply of r e s i d e n t i a l s e r v i c e d l o t s  a n a l y s i s of the demand and  demonstrates t h a t  stock of housing i n the market determines the p r i c e Z~ the i n c r e a s e i n supply riven period o f - t i m e ,  this  the s t a n d i n g  l e v e l s of  housing.  i s not adequate to meet the demand i n any w i l l result  in a direct  increase in  the  p r i c e of the s t a n d i n g stock of h o u s i n g . This  conclusion refutes  estate o r g a n i z a t i o n s  the argument put forward by many r e a l  which s t a t e s t h a t  the a d d i t i o n s to the housing  errck determines the p r i c e  of e x i s t i n g  z'  w i l l have no d i r e c t  - =j  undeveloped land i s , housing u n i t .  If  it  housing.  Whatever the e f f e c t on the  price final  a developer cannot purchase and develop u n -  reveloped land For housing purposes t D comply with the p r i c e s e t by  9'.  95 the e x i s t i n g  standing stock,  can, houever, is  he u i l l  not b u i l d .  Such b u i l d e r  u i t h h o l d s e r v i c e d land from the market i f  i n c r e a s i n g very r a p i d l y .  In Chapter III,  expensive,  term.  the a n a l y s i s of supply  i n M e t r o p o l i t a n Vancouver  such p r i c e  As the h o l d i n g c o s t s are very  such a c t i o n i s of very s h o r t  developer  and demand f o r  housing  demonstrates t h a t a c o n s i d e r a b l e number of  peopla cannot a f f o r d to purchase a s i n g l e f a m i l y d u e l l i n g due to excessive p r i c e of such type of accommodation. demonstrated that the demand f o r and u i l l  maintain i t s  Houever,  it  uas  that type of housing uas very  l e v e l i n the f u t u r e  d e s p i t e the high  In Chapter I V , t h e a n a l y s i s of the s t a t i c  the  strong  cost.  and dynamic d e v e l o p -  ment process demonstrated the main f a c t o r s r e s p o n s i b l e f o r shortage of supply of r e s i d e n t i a l s e r v i c e d l o t s .  the  In b r i e f ,  it  should  be pointed out t h a t the e x p e c t a t i o n of the ouners of undeveloped land i n designated urban areas are so high t h a t very d i f f i c u l t for  to a c h i e v e .  land s u b d i v i s i o n  Secondly,  assembly f o r  development  the m u n i c i p a l a p p r o v a l procedure  i s so consuming t h a t p r o j e c t s  uhich reduce supply of s e r v i c e d land f o r  encounter  the market.  delays  Finally,  of requirements demanded by m u n i c i p a l i t i e s reduces the q u a n t i t y residential lots  for  a given  In summary, i t dential serviced lots  cannot meet the e x i s t i n g hypothesis uhich uas:  of r e s i d e n t i a l s e r v i c e d l o t s In Chapter V,  the  type  of  area.  should be p o i n t e d out that the supply of  c l u s i o n proves the f i r s t  is  in Metropolitan  resi-  demand.  Such c o n -  there  i s a shortage  Vancouver.  the a n a l y s i s shous that m u n i c i p a l i t i e s have  the pauers and the land h o l d i n g s of r e s i d e n t i a l s e r v i c e d l o t s .  to play an a c t i v e r o l e  Houever,  i n the three  i n the  provision  municipalities  studied i t  uas demonstrated that t h e i r  reduce such a s h o r t a g e . holdings f o r f u t u r e  The three m u n i c i p a l i t i e s do use t h e i r  planning c o n s i d e r a t i o n s .  supply such s e r v i c e d l o t s , on t h e i r  p o l i c i e s are not intended to  it  is  Houever,  land  uhen they  i n a very l i m i t e d f a s h i o n based  f i n a n c i a l needs. In Chapter VI,  the a n a l y s i s i n d i c a t e s that u n t i l  recently  the P r o v i n c i a l government d i d not have any housing p o l i c i e s . p o l i c i e s i n d i c a t e that d i f f e r e n t multiple family d u e l l i n g s ,  uill  types of accommodation such as r e c e i v e s p e c i a l government  There i s no i n d i c a t i o n , that r e s i d e n t i a l s e r v i c e d l o t s u i l l vided by the p r o v i n c i a l i s concerned, i t  redistribute  be u s e d .  Houever,  As i t  be p r o -  as the F e d e r a l government the  the P r o v i n c i a l government, need an agency u i l l i n g  should be emphasized that the r o l e of  the d i f f e r e n t  p o l i c i e s of the three  the  of s e r v i c e d land f o r r e s i d e n t i a l p u r p o s e s .  of  shortage  This conclusion indicates  that the hypothesis uhich r e f e r r e d to the d i f f e r e n t  p o l i c i e s of  three l e v e l s of government as a cause of the e x i s t i n g is  lots  levels  government i n d i c a t e d t h a t they c o n t r i b u t e d to the e x i s t i n g  residential serviced l o t s ,  to  evident.  i n the development process o f r e s i d e n t i a l s e r v i c e d Houever,  as  stands nou, no i n d i c a t i o n of such  to m u n i c i p a l i t i e s i s  In summary, i t  is evident.  As f a r  of such f e d e r a l f u n d s , u i l l  such f u n d s .  redistribution  public sector  government.  subsidies.  i s hoped t h a t the f i n a n c i a l a i d p r o v i d e d f o r  municipalities u i l l the c o o r d i n a t o r  The neu  shortage  the of  verified.  L i m i t a t i o n s and Weaknesses The b a s i c l i m i t a t i o n of the t h e s i s to the a n a l y s i s of one r o l e existing  i s that  of the p u b l i c s e c t o r  shortage of r e s i d e n t i a l s e r v i c e d l o t s .  it  is  restricted  i n reducing  the  IMo c o n s i d e r a t i o n  is  97 given to the other powers that primarily  those of r e g u l a t i n g  Those powers have a great urban  the m u n i c i p a l i t i e s can e x e r c i s e ; the s u b d i v i s i o n of land and of  taxation.  i n f l u e n c e on the form and the shape of  growth. The f i r s t  hypothesis  deals with one type of accommodation:  However,  there are other types of accommodation  single dwellings.  that can reduce the shortage Df housing u n i t s which are more e f f i c i e n t i n any growing urban c e n t e r . u n i t does not r e f l e c t  The a n a l y s i s of only one type of housing  the o v e r a l l need of any growing  a m e t r o p o l i t a n area such as Vancouver,  this  population.  type of s h e l t e r  is  coming l e s s d e s i r a b l e due to the amount of land and s e r v i c i n g  In  berequired.  To a r r i v e at a much more a c c u r a t e r e l a t i o n s h i p between the needs of the p o p u l a t i o n  (demand) and the d i f f e r e n t  i n the market ( s u p p l y ) , to r e f l e c t  types of s h e l t e r  a more d e t a i l e d a n a l y s i s should be undertaken  such a choice and reasons f o r such a c h o i c e .  The second h y p o t h e s i s  d e a l i n g with the r o l e  i n the development process of housing u n i t s  the g o a l of p r o v i d i n g  income l e v e l s .  and p u b l i c  was e a r l i e r  sector  developers  housing accommodation to a l l types  Such a n a l y s i s would more a c c u r a t e l y r e f l e c t  played by the s e n i o r l e v e l s of As i t  of the p u b l i c  should be extended to  a l l forms of f i n a n c i a l a i d a v a i l a b l e to p r i v a t e to f u l f i l l  offered  the  role  government.  c o n c l u d e d , p o l i c i e s r e l a t e d to the assembly,  development and d i s p o s i t i o n of p u b l i c lands f a r housing purposes, do not r e f l e c t  the same o b j e c t i v e s ;  not want to p r o v i d e shortage. tives  of  the main.reason being that  the same type o f housing to s o l v e the  To complete such a s t u d y ,  should be undertaken.  they do  existing  an a n a l y s i s of a l l those  objec-  98 Finally,  it  should be p o i n t e d out that t h i s  i n d i c a t e s the complexity  of such a problem:  land to accommodate a l l types of urban  study  clearly  the p r o v i s i o n  of  serviced  structures.  P o l i c y Recommendations The u n d e r l y i n g First,  purpose of t h i s  project  uas of a t u o f o l d  there uas a d e s i r e to demonstrate the shortage of supply  residential serviced lots T h i s study  and to i n d i c a t e the reasons f o r  demonstrates c l e a r l y  i n d i c a t e the d i f f e r e n t  such s h o r t a g e .  can be d e v i s e d u i l l  to  of government as  C o n c l u s i o n s a r r i v e d at uauld support  Based on the reasons f o r the d i f f e r e n t  e n u n c i a t i o n of p o l i c i e s t h a t  of  S e c o n d l y , uas a d e s i r e  p o l i c i e s of the three l e v e l s  one cause of such s h o r t a g e . findings.  such f a c t s .  nature.  policies, hopefully  such  a brief consolidate  such d i f f e r e n c e s . The Greater Vancouver R e g i o n a l D i s t r i c t  should e s t a b l i s h a  "share of g r o u t h " concept r e l a t e d to the grouing  demand f o r  serviced l o t s .  acceptance by  Such concept should r e c e i v e  the m u n i c i p a l i t i e s .  If  after  all  such acceptance i s not r e a c h e d , reasons should  be given by the m u n i c i p a l i t y to the D i s t r i c t ,  full  residential  concerned.  having f i r s t  Houever,  consulted, u i t h  it  is  left  entirely  the m u n i c i p a l i t i e s ,  to f i n a l i s e such a c o n c e p t . To induce the m u n i c i p a l i t i e s to  develop  their  levels  land h o l d i n g s ,  the f i n a n c i a l a s s i s t a n c e of the s e n i o r  of government could be based an such c o n c e p t . ity  has to provide  the s e n i o r  l e v e l s of government could provide land and s e r v i c i n g .  c o s t s i n c u r r e d during the p r o j e c t  municipality.  any given m u n i c i p a l -  a c e r t a i n percentage of the grouth  the cost of p r o v i d i n g tration  If  i n one y e a r ,  f i n a n c i a l a i d to equal  Furthermore a l l the a d m i n i s can be claimed by the  99 Houever,  such approach does not cover the a d d i t i o n a l c o s t s of  providing u t i l i t i e s To provide f o r  such as parks and s c h o o l s f o r  those a d d i t i o n a l c o s t s , the s e n i o r l e v e l s of  ment should be prepared to r e i n v e s t a venture  the m u n i c i p a l i t y .  a l l the p r o f i t s  r e a l i z e d i n such  i n the m u n i c i p a l i t y uhere the housing p r o j e c t  Such approach i m p l i e s t h a t s o l d at market v a l u e . dispose of the l o t s  If  the s e n i o r l e v e l s of government i n t e n d to  i n any other uay,  they should buy such l o t s T h i s approach i n d i c a t e s  that any i n t e n t i o n of the s e n i o r l e v e l s of government to  Finally,  this  often c l e a r l y  i s not f a v o r e d .  b e n e f i t f o r the p u r c h a s e r .  c r e a t e s a d m i n i s t r a t i v e and f u t u r e l e v e l of government) t h a t u i l l  for  If  subsidize  the annual ground l e a s e  Further  such an o p t i o n  l e g a l problems to the l e s s o r  (one  outueigh p o s s i b l e f u t u r e advantages.  Study  are suggested by the s e c t i o n i n t h i s First,  t h e r e i s no immediate  Additionally,  There are tuo obvious areas f o r  and u e a k n e s s e s . "  clearly  i n d i c a t e s that the l e a s i n g of  payment i s not s u b s i d i z e d i n one uay or another,  Implications  at  not be made at the expense of the m u n i c i p a l i t i e s .  residential serviced lots  or f u t u r e  i s undertaken.  a l l the r e s i d e n t i a l s e r v i c e d l o t s u i l l be  market value from the m u n i c i p a l i t i e s .  f u t u r e buyers u i l l  govern-  further  r e s e a r c h and s t u d y .  chapter d i s c u s s i n g  Both  "limitations  the r o l e of the m u n i c i p a l i t i e s i n the d e v e l o p -  ment process should be r e l a t e d to t h e i r  pouer of r e g u l a t i n g  land s u b -  d i v i s i o n and land t a x a t i o n . In Chapter IV,  the a n a l y s i s of the c o n s t r a i n t s of the  of r e s i d e n t i a l s e r v i c e d l o t s  i n d i c a t e s that the d i s c r e t i o n a r y  of the m u n i c i p a l i t i e s to designate any given a r e a . a s urban use  supply pouers directly  100 a f f e c t the process The a v a i l a b i l i t y  of the supply of land f o r housing p u r p o s e s .  of m u n i c i p a l lands u i t h i n  those d e s i g n a t e d urban  areas i s only an a d d i t i o n a l c o n t r o l i n the hands of the m u n i c i p a l i t i e s . Additionally, l i m i t e d to i t s process.  direct  the r o l e of the s e n i o r participation  l e v e l s of government  i n the r e s i d e n t i a l  Other government programs uhich i n d i r e c t l y  process e x i s t but they are not d i s c u s s e d i n t h i s it  is  development  affect  study.  such  Houever,  should be p o i n t e d out that any study p e r t a i n i n g to housing matters  i n an urban c e n t e r i s an extremely Finally,  it  complex m a t t e r .  should be emphasized that a d i r e c t  of the p u b l i c s e c t o r i s becoming an ever not be o v e r l o o k e d .  In t h a t r e s p e c t ,  i n the study of the p u b l i c s e c t o r development p r o c e s s .  this  participation  increasing factor thesis  involvement  i s only  i n the  that  should  a beginning  residential  BIBLIOGRAPHY  A.  Books  Crawford, K e l v i n S . Canadian M u n i c i p a l Government. U n i v e r s i t y of Toronto Press 1954.  Toronto:  Samuelson, Paul A. Economics: An I n t r o d u c t o r y A n a l y s i s . M c G r a w - H i l l Company of Canada L t d . 1966.  Toronto:  Dennis, M i c h a e l and F i s h , Susan. Programs i n Search of a P o l i c y . Toronto: Hakkert P r e s s , 1972. B. Lee, T .  Periodicals  H. The Stock Demand E l a s t i c i t i e s of IMon Farm Housing. Review of Economics and S t a t i s t i c s 46. 1964.  The  Oksanen, E. Housing Demand i n Canada, 1947-1962: Some P r e l i m i n a r y Experimentation. Canadian J o u r n a l of Economics and Science 32. 1966. R e i d , M. G. C a p i t a l Formation i n R e s i d e n t i a l Real E s t a t e . of P o l i t i c a l Economy 6 6 . 1958. Uhler,  R. A. The Demand f o r Housing and Inverse P r o b a b i l i t y The Review of Economics and S t a t i s t i c s 5 0 . 1968.  C.  Unpublished  Journal Approach.  Material  DerkDwski, Andre. R e s i d e n t i a l Land Development i n O n t a r i o . Development I n s t i t u t e of O n t a r i o . 1972.  Urban  Gerecke, Kent and Ideisman, Brahm. E v o l u t i o n and P r a c t i c e of Canadian Urban P l a n n i n g . ( U . B . C . - School of Community and R e g i o n a l Planning 1972). ( C o l l . Reader - Planning 4 2 5 ) . Goldberg, M i c h a e l . R e s i d e n t i a l Developer B e h a v i o r : Findings. F a c u l t y o f Commerce and Business U . B . C . Vancouver, 1972.  Some E m p i r i c a l Administration,  Hamilton, S . kl. P u b l i c Land Banking - Real or I l l u s i o n a r y B e n e f i t s . Report of the Urban Development I n s t i t u t e of O n t a r i o , 1974. Moore, R.A. Development P o t e n t i a l Model f o r the Vancouver M e t r o politan Area. Unpublished M a s t e r ' s of Business A d m i n i s t r a t i o n thesis. U . B . C : Vancouver, 1972.  102  Price,  E. V. The House B u i l d i n g Industry i n Vancouver. Unpublished M a s t e r ' s of Business A d m i n i s t r a t i o n t h e s i s . U.B.C. Vancouver, 1970. D.  Government  Publications  Federal Basford,  R. 1973 N a t i o n a l Housing Act Amendments: on a B i l l . CMHC. 1973.  Explanatory  B a s f o r d R. Notes f o r Speech at the N a t i o n a l T r i - l e v e l on Urban A f f a i r s . CMHC. Edmonton 1973. Canadian Housing S t a t i s t i c s . Grauer,  Notes  Conference  CMHC. 1971-72=73.  A.E. Housing: A Study Prepared f o r the Royal Commission on Dominion-Provincial Relations. Ottaua 1939.  Plunkett, T.V. The F i n a n c i a l S t r u c t u r e and D e c i s i o n - M a k i n g Process of the Canadian M u n i c i p a l Government. O t t a u a : CMHC 1972. Population Projections  for  Canada.  S t a t i s t i c s Canada.  Provincial N i c h o l s o n , L. Notes f o r February 1974. Regional  Speech i n the B r i t i s h  Columbia  Legislature.  District  Land Use Maps ( S u r r e y , North Vancouver D i s t r i c t , Burnaby). Prepared the Greater Vancouver Regional D i s t r i c t P l a n n i n g Department 1973. The Housing I s s u e . Prepared by the Greater Vancouver R e g i o n a l Planning Department, Vancouver, 1973. The Housing I s s u e : A D i s c u s s i o n Paper. Prepared by the Vancouver R e g i o n a l D i s t r i c t Planning Department, 1974. Population Forecast. Prepared by the Greater D i s t r i c t , 1973.  Vancouver  District  Greater Vancouver,  Regional  P o p u l a t i o n Trends i n Louer Mainland 1921-1986;. Prepared by the Louer Mainland R e g i o n a l Planning Board, 1968. Municipal The C o r p o r a t i o n of the D i s t r i c t of Surrey Perspectives 81. Surrey: Surrey  Planning Department. Planning Department, 1965.  The C o r p o r a t i o n of the D i s t r i c t of Burnaby Planning Department. M u n i c i p a l Land Study, Part I - A C a t e g o r i z e d I n v e n t o r y . Burnaby: Burnaby Planning Department, 1971.  E. Revised S t a t u t e s of Canada:  Statutes  197C C. n-10 N a t i o n a l Housing A c t .  Revised S t a t u t e s of B r i t i s h Columbia: I960 c.255 M u n i c i p a l Act I960 c.183 Housing Act 1973 c.kl Housing I n c e n t i v e Fund Act 1973 c . l l B Department of Housing Act  F.  P e r s o n a l Interviews  C o r p o r a t i o n of the D i s t r i c t of S u r r e y . Personal interviews Mr. R. J e f f e r s o n and Mr. G . H a l s e y - B r a n d t .  with  C o r p o r a t i o n of the D i s t r i c t of Burnaby. Personal interviews Mr. Jack Belhouse and Mr. E . G r i s t . C o r p o r a t i o n of the D i s t r i c t of North Vancouver. with Mr. G. A. W i l l i a m s . C e n t r a l Mortgage and Housing C o r p o r a t i o n . Mr. R. Burns and Mr. L. T y e . Greater Vancouver R e g i o n a l D i s t r i c t . Wyles.  Personal  with  interview  Personal interviews  Personal interview  with  with Mr.  F.  APPENDIX A  ID 5  APPENDIX A  R e s i d e n t i a l Lets S o l d by the  M u n i c i p a l i t y of  North Vancouver D i s t r i c t  Standard  Substandard  Private  Multi-family  1967  4D  3  46  5  1968  114  1  83  1  1969  91  1  71  -  197D  123  3  35  3  1971  128  2  113  1  1972  146  -  -  3  1973  184 ( s o l d ) 49 ( l e a s e d )  N.B.  Standard l o t s have 60 or 70 f o o t frontage Substandard l o t s have 33 foot frontage P r i v a t e l o t s have - the o n - s i t e s e r v i c i n g c a r r i e d Dut by developer - the o f f - s i t e s e r v i c i n g p a i d by developer . but c a r r i e d out by m u n i c i p a l i t y .  Source:  The D i s t r i c t  M u n i c i p a l i t y of North Vancouver  (Land Department)  APPENDIX B  107  APPENDIX B  The Department of Housing Act  The Department of Housing A c t , following  Effects  uhen i n t r o d u c e d ,  had the  effects:  1.  Repealed  -  Housing I n c e n t i v e Fund A c t , of B r i t i s h Columbia, 1973.  2.  Amended  -  Housing A c t ,  c . 4 1 of the  Statutes  R . S . B . C . 1960, c . 183  E l d e r l y C i t i z e n Renters Grant A c t , c . 1 8 of S t a t u t e s of B r i t i s h Columbia, 1973 -  Elderly c . 125  Citizens'  Housing A i d A c t ,  R . S . B . C . 1960,  P r o v i n c i a l Home A c q u i s i t i o n A c t , c . 39 of S t a t u t e s of B r i t i s h Columbia, 1967. -  P r o v i n c i a l Home-Owner Grant A c t ,  Department of Housing A c t , Columbia, 1973.  the  R . S . B . C . 1960, c.308  U n i v e r s i t y Endowment Lands A d m i n i s t r a t i o n R . S . B . C . 1960, c . 396.  Source:  the  Act,  c.110 of the S t a t u t e s of  British  APPENDIX  C  109  APPENDIX C  Canadian Housing P o l i c y  - A Chronology  1867  B . N . A . Act ( S e c t . f o r housing  1912  Commission of C o n s e r v a t i o n e s t a b l i s h e d , r e l a t e s and poor h e a l t h to bad housing  1918  LJar Veterans Housing Act  1930  P r o v i n c i a l Acts permit moratorium on mortgage payments  1935  Dominion Housing Act (part of economic p o l i c i e s ) funds f o r second mortgages  1938  N a t i o n a l Housing Act -  1939  Wartime Housing  1941  Rent  1942  Veterans Land Act  1944  Farm Improvement  1944  Curtis  1945  N a t i o n a l Housing Act and C e n t r a l Mortgage and Housing Corporation -  92) e s t a b l i s h e s p r o v i n c i a l  funds f o r  jurisdiction disease  stabilization  mortgages  Limited  Controls  joint  Loan Act  Report  loans  1948  Rental  Insurance  1949  Land assembly on f e d e r a l / p r o v i n c i a l  1953  Insured loans  1956  Urban renewal s t u d i e s housing  I960  Student h o u s i n g ,  1964  P u b l i c housing 90%-10% b a s i s ; urban renewal 75%-25% b a s i s  1966  Loans on e x i s t i n g  housing  1967  C.M.H.C. interest  rate  finances;  sewage p l a n t s ,  floats  partnership  basis  75%-25% s h a r i n g f o r  trunk  sewer  public  lines  11D  1969  H e l l y e r Task Farce  197D  M i n i s t r y af Urban A f f a i r s ; preceding  1971  Innovative housing  1972  Neighbourhood  1973  IMeu communities program  Source:  Improvement  Lituick  Programs;  Report  and events  Land banks  School of Community and R e g i o n a l P l a n n i n g , of B r i t i s h Columbia, 1973.  University  APPENDIX D  APPENDIX D  F e d e r a l Land Holdings i n B.  C.  Province of B r i t i s h Columbia Acreages  Department Croun-ouned Agriculture Customs and E x c i s e C•B•C•  Leased  5,050.4  21.9  55.1  7.9  130.2  22.5  C.M.H.  1.2  COM  -  12.1  DND  117,137.7  7,416.6  DOE  1,138.1  2,127.9  DOT  35,849.6  2,368.2  DPld  599.2  1,408.4  DMA  - 271.0  EMR  629.9  50.2  IAN  1,100,920.7  NHB  8,849.6  NHU  11.4  NRC  5,519.0  PEN  558.3  POU  .8  RCM  77.7  16.3  1,276,799.9  13,455.9  Total  3.6  -  APPENDIX E  114  APPENDIX E  Undeveloped Lands A v a i l a b l e  Provincial  Municipal  Burnaby Surrey North Vancouver District  Source:  Acres  %  3,164  63  38  653  2  2,720  64  Residential  Federal  %  Acres  for  Acres  Uses  Others a'  Acres  %  Total Acres  .8  -  -  -  -  -  -  27,326 98  27,979  -  -  214'  5  1,281 31  4,215  1,811 35.2  5,013  I n f i l l study prepared by Thompson, B e r u i c k , P r a t t and P a r t n e r s f o r the Greater Vancouver R e g i o n a l D i s t r i c t , A p r i l 1974. ( M u n i c i p a l , P r o v i n c i a l and F e d e r a l land ownership prepared by the author)  APPENDIX F  APIOIUIX r Duelling Starts 1966  1967  i n M e t r o p o l i t a n Vancouver  1968  1969  1970  Starts  %  Starts  %  Starts  %  Starts  %  Starts 3  Burnaby  417  9  523  8  558  9  498  9  Surrey  644  14  S29  13  870  15.;  729  North Vancouver District  355  7  443  7  447  7  Others  3,049  70  4,533  72  3,783  69  Total  4,465 100  6,328 100  5,658 100  1966 - 1973 1971  1972  1973 %  Start^  %  496  8  544  7  15  1,070  17  1,158  16  503  8  402  6  521  7  72  3,722  67  4,055  69  4,865  70  100  5,680  100  6,023  100  %  %  Starts  330  6  ' 596  10  14  738  15  859  401  7  381  7  3,737  70  3,383  5,165 100  4,832  Starts  7,088 100  * D u e l l i n g s t a r t s mean S i n g l e detached, semi-detached and duplex Source:  C e n t r a l Mortgage and Housing C o r p o r a t i o n ,  Annual S t a t i s t i c s  1966-1973.  r-  1  m  

Cite

Citation Scheme:

        

Citations by CSL (citeproc-js)

Usage Statistics

Share

Embed

Customize your widget with the following options, then copy and paste the code below into the HTML of your page to embed this item in your website.
                        
                            <div id="ubcOpenCollectionsWidgetDisplay">
                            <script id="ubcOpenCollectionsWidget"
                            src="{[{embed.src}]}"
                            data-item="{[{embed.item}]}"
                            data-collection="{[{embed.collection}]}"
                            data-metadata="{[{embed.showMetadata}]}"
                            data-width="{[{embed.width}]}"
                            async >
                            </script>
                            </div>
                        
                    
IIIF logo Our image viewer uses the IIIF 2.0 standard. To load this item in other compatible viewers, use this url:
http://iiif.library.ubc.ca/presentation/dsp.831.1-0099884/manifest

Comment

Related Items