THE CORPORATION OF THE CITY OF NELSON

REQUEST TO APPEAR AS A DELEGATION

DATE:
TOPIC:
PROPOSAL:

July 20, 2015 Committee of the Whole

SHARE Housing Initiative (15 minutes)
Proposal from Kootenay Christian Fellowship and COVER
Architectural Collaborative Inc.
PROPOSED BY: Staff
_____________________________________________________________________
ANALYSIS SUMMARY:
Jim Reimer of Kootenay Christian Fellowship and Robert Stacey with COVER
Architectural Collaborative Inc. have requested an opportunity to present the vision and
opportunity for the SHARE Housing Initiative at 520 Falls Street.
BENEFITS OR DISADVANTAGES AND NEGATIVE IMPACTS:
The presentation is for Council and the publics information.
LEGISLATIVE IMPACTS, PRECEDENTS, POLICIES:
It is within Council mandate and authority to hear the presentation.
COSTS AND BUDGET IMPACT - REVENUE GENERATION:
There are no costs associated with hearing the presentation.

IMPACT ON SUSTAINABILITY OBJECTIVES AND STAFF RESOURCES:

There are no costs associated with hearing the presentation.
COMMUNICATION:
N/A
OPTIONS AND ALTERNATIVES:
1.
Receive the audience and thank the presenters
2.
Refer to staff with further direction
ATTACHMENTS:
Presentation slides and Business Plan
RECOMMENDATION:
That Council receives the presentation and thanks Jim Reimer and Rob Stacey for
attending.
AUTHOR:

REVIEWED BY:

_______________________________
DEPUTY CORPORATE OFFICER

______________________________
CITY MANAGER

JULY 20, 2015

PRESENTATION TO NELSON CITY COUNCIL

SHARE HOUSING INITIATIVE

AT 520 FALLS STREET

KOOTENAY CHRISTIAN FELLOWSHIP

Kootenay Christian Fellowship

SITE PLAN

BA

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K

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LS
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Kootenay Christian Fellowship

Y 3A

L
FA

HW

CF
GK
IN NG
I
I ST
EX ILD
BU

PRO
P OS
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BUIL
DIN
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SECTION

Residential Rentals
Tenant Indoor Amenity Area
Commercial Rental Unit (C.R.U.)
Circulation

Falls St.

Existing
KCF
Building

Hwy 3A

Kootenay Christian Fellowship

LOWER LEVEL PLAN

S.H.A.R.E. and COMMERCIAL RENTAL UNIT

S.H.A.R.E. operations and staff room.

C.R.U. lower level access to the outdoor areas
along the highway buffer.

LOBBY

C.R.U.

S.H.A.R.E.
Total Floor Area - 4309ft / 400m
S.H.A.R.E. - 48%
Structure and Walls - 8%
Commercial Retail Unit - 30%
Circulation and Lobby - 14%

Kootenay Christian Fellowship

MAIN LEVEL PLAN

S.H.A.R.E. and COMMERCIAL RENTAL UNIT

Sales floor for S.H.A.R.E.

Smaller CRU space.
Lobby serves access to Residential Suites above
and CRU on lower floor.

LOBBY
STAIRS
DOWN

W.C.

C.R.U.

W.C.

S.H.A.R.E.

Total Floor Area - 7940ft / 738m

S.H.A.R.E. - 74%
Structure and Walls - 6%
Commercial Retail Unit - 10%
Circulation and Lobby - 10%
LOADING DOCK

Kootenay Christian Fellowship

SECOND LEVEL PLAN

Residential Rentals

Studio and one bedroom apartments

250 - 600ft in size.

Complete bathroom and kitchenette in each

suite.
Potential balcony space for suites.

20
SERVICE
ROOM

19
18

9
17
Total Floor Area - 8544ft / 794m
Balance, Surrey BC
Common Areas - 26%
Structure and Walls - 11%
Residential Areas - 63%

10

16
15

11
14
13

12

Balance, Surrey BC

Kootenay Christian Fellowship

THIRD LEVEL PLAN

Residential Rentals

Studio apartments.
Common areas for tenants, as well as potential
for roof top access.

21

22

23

24

25

26

Potential balcony space for suites.

40

39

OFFICE

27

MULTI-PURPOSE
ROOM AND KITCHEN

28

38
29
37
364ft Precedent layout

30
36

Project: Balance, Surrey BC

35

31
34
33

Kootenay Christian Fellowship

32

Total Floor Area - 8544ft / 794m

Common Areas - 13%
Structure and Walls - 11%
Residential Areas - 76%

S.H.A.R.E. Housing Initiative

A KCF Project in Nelson BC
May, 2015.

Prepared as a business proposal

For: KCF Board and CMHC
By: Michael McIndoe
mmcindoe@telus.net

Table of Contents
1.0

EXECUTIVE SUMMARY

2.0

BACKGROUND INFORMATION
2.1
Introduction to the project
2.2
Purpose of the initiative
2.3
Demonstrated need
2.4
Project Objectives and Goals

3.0

ORGANIZATIONAL STRUCTURE
3.1
Mission and Objectives
3.2
Corporate structure and legal status
3.3
Governance
3.4
Vision

4.0

MARKET ANALYSIS
4.1
Target audience
4.2
Market analysis
4.3
Summary

5.0

PROJECT CONCEPT AND DESIGN

5.1
General characteristics
5.2
Interior amenities and common areas
5.3
Accessibility
5.4
Parking
5.5
Energy efficiency

6.0

FINANCIAL PLAN
6.1
Capital Costs
6.1.2 Capital Plan
6.1.3 Operating plan
6.2
Strategies for self sustainability
6.3
Marketing plan
6.4
Capital contributions
6.5
Summary

7.0

Appendices
7.1 Cover Architecture Concept drawings pp. 12-14
7.2 Public meeting (April 21, 2015) report pp.15-21
7.3 Links to Cityscape studies

1.0

EXECUTIVE SUMMARY

The S.H.A.R.E. Housing Initiative (SHI) is proposing a new affordable housing development at 520 Falls
Street in Nelson British Columbia.
Our ambition is to develop housing that makes residents proud and brings vitality to the Nelson
downtown core. We aim for quality architecture and compact homes that are designed for affordability.
Our project integrates nicely in the surroundings and has good connections with Nelsons downtown
amenities. Finally, we will supply low market units for the general working population while providing
eligible individuals from specific social housing programs access to quality, rental housing.
SHI has identified an immediate and strong demand for affordable rental housing in Nelson. Our goal is to
provide minimum or low wage earners quality housing, in the downtown core, that falls into the CMHC
30% (or less) range of gross income affordability.
Construction will consist of a three-storey structure with two or three commercial rental units on the
first floor and 40 rental units on the second and third floors. Kootenay Christian Fellowship (KCF) would
own the property and all units will be managed by a subsidiary of KCF. There will be a mix of bachelor
and one-bedroom units - with monthly rents ranging from $600 to $800. All units are to be selfcontained.
SHI will lead the various stages of development, engaging an experienced Development Consultant to
provide comprehensive services in the organization, coordination, management and administration
required for all aspects of the development of the project. The delivery method will be a conventional
Design-Bid-Build, with an Architect and engineering sub- consultants retained by the SHI.
Total construction costs are estimated to be about $6.5 million. Preliminary financial modelling
estimates annual cash flow from rents to be approximately $501,000. SHI will determine the amount of
debt finance that can be accessed based on the projects cash flow and seek grant funding and no-interest
or low-interest loans for the balance.
Development of this site and this project are realistic and feasible. KCF owns the site, and there are no
known development constraints. There is an immediate and strong demand for affordable rental
housing that the current market does not meet. We see this initiative as a good opportunity for the
addition of quality affordable housing, much needed in the City of Nelson.

2.0

BACKGROUND INFORMATION
2.1

Introduction of SHARE Housing:

The City of Nelson in its document, Affordable Housing Needs Assessment Update - Final Report | October
2014, recognizes Ten Housing Gaps in the city of Nelson. The first two Gaps are:
Housing Gap

Sub-Population Group

Affordable bachelor or one-bedroom units suitable for

singles

Single individuals living on their own (youth, adults,

seniors)

Independent affordable housing for youth (22+)

Young Adults

The SHARE Housing initiative (SHI,) sponsored by Kootenay Christian Fellowship (KCF) proposes
to provide up to 40 units (bachelor and one bedroom) aimed at addressing these two

identified Gaps.

2.2 Purpose of the Initiative:

KCF is proposing to utilize its downtown land base to provide affordable housing for two of the
groups identified in both the City of Nelsons Housing Needs Study and its separate Housing
Strategies Study. (Both studies were done by Cityscapes from Vancouver.) In both of these
studies some of the greatest perceived housing needs in Nelson are currently experienced by at
risk youth and young adults (18-22 year age group,) seniors and single adults at risk of
homelessness because their income is significantly below affordability for current, market driven
rentals in Nelson.
The congregation (KCF) and people involved with the SHI take seriously the challenge to meet the
needs of the least advantaged in our community. To this end they have commissioned this
business plan to consider the feasibility of providing housing to these least advantaged citizens
of Nelson.
This business plan will assist KCF to define their capacity to undertake the initiative (SHI) as it
examines the feasibility of the project, particularly in terms of the financial commitment required.
It will also serve as a tool for the use of project funders in reviewing the proposed development
and its long-term sustainability.
This business plan is a dynamic document that will be updated as the project proceeds through
the development stages.
2.3 Demonstrated need

As concluded in both the Affordable Housing Needs Assessment and the Affordable Housing Strategy
(Fall 2014), commissioned and carried out through the City of Nelson, the need for affordable
supportive housing in Nelson is significant. A summary of the relevant findings and
recommendations of that report are presented below.

A primary housing shortage exists in the availability of affordable bachelor and one
bedroom housing units. This shortage affects the entire continuum of renters.
Poor housing conditions were reported in 2010 and continued in 2014. A significant
portion of the rental market consist of units that are more than fifty years old and in very
poor condition. (49% of Nelson housing stock was built before 1960.) Concerns exist that
upgrading these buildings will result in increased rents, evictions and a further loss of
affordable housing.
Since 2010 there has been an overall decrease in the number of multi-rental units on the
market. There are no units in Nelson over five stories.
Despite age and condition of rentals CitySpaces 2014 snapshot of rents reports that
bachelor units rent for an average of $615.00 and one bedroom units $827.00 (We have
targeted rents of $600 and $800 respectively).

2.4 Project Objectives and Goals

The SHARE Housing initiative proposes the development of affordable rental market housing in a
mixed use environment targeted towards the working poor and those individuals whose incomes
may qualify them for the various rental subsidy programs currently in effect. The Building will
become the new location for S.H.A.R.E. Nelson who will become the flagship commercial tenant.
The location, panoramic view potential and local community should come together to make our
building a prominent example of what makes Nelson special.
In an effort to obtain this objective, the project has goals in the following categories:

Project Location: The project will be located on land owned by the KCF at the foot of
Baker Street, on the vacant land (owned by KCF) behind the current church site on Falls
Street.
Building Design: It is anticipated that the first floor will take advantage of the prime
business location providing market value commercial lease revenue supporting the
housing component of the initiative. The proposed affordable market housing would
consist of up to 40 rental units on the second and third floors of the three-storey building.
Bachelor suites (32 suites between 250- 309 sq. feet each) and a limited number of onebedroom suites (8 suites between 351-580 sq. feet each) are planned. Each suite will be
fully self-contained.
Target Tenant Groups: There will be two commercial lease spaces on the first floor
generating market returns for the leased space. The largest commercial space is already
spoken for (S.H.A.R.E. Nelson) by a longstanding, established commercial tenant. In the
housing component it is expected that there will be a mixed demographic of renters as
identified in need of affordable bachelor and one bedroom units by the Nelson Housing
Strategy.
Rent Levels: Rental affordability of our units will be in the low end of market rents for this
area. Typically rent subsidy programs require market rents as a condition.

3.0 ORGANIZATIONAL STRUCTURE

3.1 Mission and Objectives
The focus and mandate of the SHARE Housing initiative (SHI) is to provide low market rental
accommodation to individuals currently struggling to find appropriate housing, as identified in the
Nelson housing studies. Recognizing the shortage of this type of housing, KCF is interested in
helping to meet this need by intensifying the use of land they currently own.
3.2 Corporate Structure and Legal Status:
SHI is a non-profit charity registered under the BC Societies Act with charitable status under the
auspices of the Kootenay Christian Fellowship Society.
3.3 Governance:
The SHI governance will be managed by an oversight board made up of community members
including:

Tenants
Community representation
KCF representation

3.4 Vision
The SHI vision is to see the development of a low market housing project in the City of Nelson to
meet the identified community needs for more affordable housing. The provision of rental
accommodation will keep the supply of such housing available to individuals in need for many
years to come. While the specific design of the project has yet to be finalised, it is expected that the
proposed housing initiative will be composed of studio and one-bedroom units. With the
development of this project a wide spectrum of renters (as identified by the City of Nelson housing
strategy) will have access to safe, secure and affordable housing.

4.0 MARKET ANALYSIS

4.1 Target Audience:
The target audience of this initiative are renters seeking market rental or those renters seeking
rental assistance in private market rentals. Characteristically this group of renters are the ones
who drive the demand recognized by CitySpaces for bachelor and one-bedroom units. The

vacancy rates in Nelson (below 3%), compounded by the age and condition of rentals (49% more
than 50 years of age) and the current high rates for these rentals make us confident our target
audience is sufficient to pursue this initiative.
4.2 Market Analysis:
The Nelson Housing Strategy report (p.10 table 4) identifies a projected need of between 55-110
units that could benefit our target audience. This is a primary reason that all current studies
conclude the most pressing need for affordable rentals in Nelson are one-bedroom and Bachelor
suites.
CitySpaces 2014 snapshot of rents reports that bachelor units rent for an average of $615.00 and
one-bedroom units for an average of $827.00. In building our business plan we have done our
initial financial projections based upon a bachelor unit rental of $600.00 and a one-bedroom unit
rental of $800.00. Since these are new build these units will be attractive from both cost and
liveability factors. The location of this initiative is also very critical as it is in the immediate
downtown core and will become a very desirable location.
By targeting current market rates, at risk for affordability renters can meet the critical
requirement of rent subsidy programs like SAFER, RAP, Provincial Housing assistance programs
so reduce their shelter cost to 30% of their income. Specifically, the SAFER program requires a
single applicant to be paying no more than $667 per month and a couple, no more than $727. The
rent ceilings for RAP (3 or less) is $970 per month in this area. A major issue faced by individuals
attempting to qualify for these affordable housing programs is finding liveable units below the
program rental ceilings. The SHI will provide such units.
4.3 Summary:
As concluded in both the Affordable Housing Needs Assessment and the Affordable Housing Strategy,
commissioned and carried out through the City of Nelson the need for affordable quality market
housing, in Nelson, is significant and demonstrable. The rental rates we have identified are lowmarket and will help keep our vacancy rates low while providing affordable market housing to a
wide spectrum and demographic of Nelson renters.

5.0 PROJECT CONCEPT AND DESIGN

5.1 General Characteristics
The proposed project will consist of 40 residential units. Each unit will fully self-contained with
its own bathroom. The table below provides more detail about proposed unit sizes and
composition. Units have been kept to a modest size to encourage affordability.

Studio suite
1 Bedroom

# of
Units
32
8

Total

40

Units

Unit Size Tenants Average Monthly Rent Payment

250 SF +500 SF +-

$600.00
$800.00

250-500 SF

The unit composition and sizes reflect preferences that were expressed by respondents to a
housing preference survey conducted by KCF and Our Daily Bread. It is anticipated that the
building will be a three-storey building. Initial meetings with both architects and city planning
staff indicate that the site is large enough to accommodate such a building. (See preliminary
concept drawings appendix 1.)
5.2 Interior Amenities and Common Areas
The building will include an elevator, laundry room for the tenants, a large common room and
office space for property management. The design of the proposed project, including the height of
the building and design of the facade will reflect character of the surrounding neighbourhood.
5.3 Accessibility
In addition to the inclusion of accessible units, the proposed project will follow strict facility
accessibility design standards.
5.4 Parking
Surface parking will be included as concept and design characteristics are worked out. At present
KCF is in negotiation with some of the neighbouring commercial establishments who are
interested in pursuing and funding shared parking.
5.5 Energy Efficiency
In terms of energy efficiency measures, and as specified in the proposed 2015 British Columbia
Building Code, the proposed project will meet or exceed energy efficiency levels outlined in the
Model National Energy Code for Buildings. Where appropriate, Energy Star rated products and
features will be incorporated into the design of the proposed project, including appliances,
lighting, windows, heating and cooling systems, and ducts. Walls and ceilings will also have more
insulation than is required by the BC Building Code to reduce heat loss.

6.0

FINANCIAL PLAN
6.1

Capital Costs

The following table contains a summary of capital costs, as well as details on the sources of funds.
The table shows that the project at 40 affordable housing units would incur total project costs of
an estimated $6,111,000 including hard costs (i.e. construction costs) and soft costs that include
consultant fees, legal, financing, and organizational costs, and planning permits and fees.

6.1.2 Capital Plan

Mortgage
Owner's Equity
Cost to Build
Land Value
Value of project

$
$
$
$
$

4,173,500
1,937,500
6,111,000
437,500
6,548,500

The Owners Equity of about $1.9 million is not yet in place. We expect it to be composed of a
combination of grants received, government subsidies, in-kind donations for services rendered,
municipal fee wavers and prepaid long term leases with Not for profits operating social
programs (Housing First Programs) in our local area. Note the present value of $600 per month
(one studio unit) over 25 years at 5% is just over $100,000.

6.1.3 Operating Plan

Revenue Estimate

Annual

Residential - single (32)

Residential - double (8)
SHARE

$230,400
$76,800
$110,492

CRU
Parking\Storage\Laundry\Other
Total Revenue

$33,444
$50,000
$501,135

Operating Expenses
Administration
Repairs/Maintenance
Insurance
Property Taxes
Utilities
Replacement reserves
Contingency for Vacancy\Bad Debt
Total Cash Expenses

4%
10%

4.00%
2.50%

$20,045
$42,750
$20,000
$40,600
$42,720
$22,551
$12,528
$201,195

Net Income before Interest Expense

$299,940

Principal plus Interest (Mortgage payment)

$239,100

Debt Service Coverage

1.25x

Loan to value Ratio = $ 4,173,500\$6,548,500= 64%

Net Operating Income Before Interest = $299,940 with mortgage payments (principal
plus interest) of $ 239,100 (30 year amortization @ 4.0% on $4.173 Million) resulting in a
Debt Coverage Ratio of 1.25x.
6.2

Strategies for Self-Sustaining Operation

The proposed housing project must demonstrate that it is self- sustaining in order to achieve any
financial commitments, and KCF must know the operation of the new building will generate
sufficient revenue to cover operating costs and mortgage payments. In addition, since many of the
tenants will have low, moderate and/or fixed incomes, it is important that rents be kept as low as
possible to ensure that they are affordable.
In order to minimize on-going utility costs for the building, a strong emphasis will be placed on
energy efficient forms of design and the use of energy efficient appliances. At the very least, the
design of the building will comply with requirements of the proposed 2015 BC Building Code.
In order to achieve these requirements, a significant contribution towards capital costs is required
to reduce mortgage payments once the building is completed and operating. These funding
sources are described in detail in the next section, alongside a summary of the capital costs. This
section is followed by an overview of operating revenue and expenses.
6.3

Marketing Plan :

Monthly
rental - single micro unit
rental - double micro unit
rental - SHARE (9564 sq ft @ $10)
rental - CRU (2685 sq ft@ $10)
Monthly rental by Unit Type

Base
$600
$800
$7,970
$2,238
$11,508

Prop Tax
$0
$0
$335
$91
$426

Insurance
$0
$0
$550
$150
$700

Common Mtnce
$0
$0
$353
$308
$661

Total (Mo)
$600
$800
$9,208
$2,787
$13,295

The Largest Commercial Renter is S.H.A.R.E. Nelson currently operating at 612 Lakeside drive in
Nelson. It is owned and operated by the Kootenay Christian Fellowship and has been operating at its
present location for 10 years. A better location for the S.H.A.R.E operation is a major return to KCF for
taking on the risk of this project and allows KCF to fulfill its mandate to provide social housing in
Nelson.
The second smaller retail space will be leased at full market but is estimated at $10 per square foot
plus triple net. This location and unique, attractive setting provides a very tangible rental asset that will
offset financial liabilities. In a market study done to support a mortgage refinancing done in July 2014
on the existing property, Strand and Godfrey appraisal data showed similar sized commercial spaces
(1843 sq. ft. to 3997 sq. ft.) leased in the $12.12 to $16.26 range.
The building will be one block off Baker Street (Nelsons Main Street) and have a large physical
presence to traffic coming from the East on Hwy 3 (Castlegar), the primary access to Nelson. We expect
to take advantage of the panoramic view west and north of the Kootenay Lake West Arm. The local

10

community will include Our Daily Bread, the Kootenay Christian Fellowship Church, the Shambala
building, and SHARE Nelson. This provides a very positive tenancy mix.
6.4

Capital Contributions

In order to fully cover capital costs of the proposed project, we will endeavour to access funding from
multiple sources. Potential sources could Equity or Funding partners including (1) Columbia Basin Trust,
(2) BC Housing, (3) Osprey Foundation (4) Nelson Community Services, and (5) Nelson CARES

6.5

Summary

We are currently searching for possible equity and contributing partners. We have met with, and have,
initial support from the City of Nelson. This support may take the form of waived servicing and
licensing costs, property tax considerations or both. We intend to secure the services of a
Development Consultant familiar with Not For Profit Housing projects who will, we hope, provide
direction in this area. On April 21, 2015 the Project Committee held an Information and Feedback
session for the general public to introduce the project of the community and gain feedback, including
some organizations targeted as possible partners in our project. A report on that session is attached.

11

12

13

14

Appendix 7.2
Final Report of Public Meeting of Tuesday, April 21, 2015
Planning Meeting

Team met on April 14, 2015 to discuss the objectives and agenda for the meeting

Agenda was drafted, roles assigned for presentation, and strategy for engaging participants

Pre-meeting

Ads placed in paper and Pastor Reimer gave an interview to Nelson Star, which was published on
Friday, April 18th.

Some members of the team met on the afternoon of Tuesday, April 21st to rehearse their
presentations

Architectural drawings were posted in advance

A sign-in sheet was placed at the front table

A one-pager (appended) outlining key points about the project was provided to each participant as
s/he arrived

Paper surveys were available for people who wanted to add additional feedback

Facilitated Meeting

Andrew Jarrett (contracted facilitator) welcomed the participants (about 50 in attendance),

introduced himself, briefly outlined the purpose of the meeting, and reviewed the agenda, which was
posted on a flip chart.

Andrews presentation was along the lines of:

Kootenay Christian fellowship working on a vision for affordable housing
Going to present the idea and get some feedback to guide their future planning
Start with a presentation (30 minutes)
Then give you an opportunity to ask questions of clarification
Then engage in some facilitated discussion in two groups (30 minutes)
Then share the feedback with whole group (30 minutes)

Presentations
1. Community Needs (Mike McIndoe)

15

Situation in Nelson

Working Poor

Housing Strategy Report

See one-pager for more detail

2. Opportunity (Pastor Jim Reimer)

SHARE Lease

KCF land

Interest rates

Agency support

Municipal support

See one-pager for more detail

3. Vision (Cover: Graeme & Rob)

Footprint Aligned

Drawings/Concept

See PowerPoint for more detail

4. Challenge (Brad Howard)

Low market housing

Financial challenge

See one-pager for more detail

Questions of Clarification

Participants were given an opportunity to ask questions of clarification regarding what was
presented

Input/Feedback Session (7:45 8:15)

Andrew divided the group in two, one group going with Mike McIndoe and the rest staying with
Andrew

Andrew gave instructions:

Facilitators will moderate the discussion and take notes on prepared flip charts

Flip Chart titles:

Strengths/Advantages
Shortcomings/Disadvantages/Weaknesses
Challenges/Threats
Opportunities

16

Groups will prepare to report to larger group

Mikes Group
Strengths

Affordability!
Co-location with KCF
Creates community
Central location
Walking/bike distance
Views
Quality new building
Opportunities
Solar garden
Green roof
Energy efficient
Employment / work experience
Small footprint carbon-responsible
Location promotes agency coop/coord.

Weaknesses

Building access (traffic)

Small (restricted) size

Threats

City Hall
$1.9 million bucket needs to be filled
Management plan for resident mix. Staffing?
Operational issues. Use of amenity areas, etc.
Parking / storage

Andrews Group

Strengths
Location
Anchor business
Affordability
Land donated / charity
SHARE accessible
Close to downtown
Close to ODB & Pastor Jim
Multiple units
Open to all age groups
Recreation, social gathering
Sustains SHARE (rent)
Opportunities
Profile/visibility
Soundproofing
Public contribution community pride
Donations from trades
Energy conservation use southern exposure
Roof garden
Doctors in upper units
Addresses big need
Gives people a chance
Houses potential customers
Enhances downtown
Other parking not far away (CPR)
Anchors west end
Walkway over the highway
Connection to services ODB
Tenants could work on building
Create jobs
Business opportunity

17

Weaknesses

Parking
$1.9 million
Design restraints (site)
Financial obligation (mortgage)
Traffic flow and noise
Ambitious time line
Dense living
Qs about site environmental
Requires variance
Threats

NIMBYism
Time to fill units marketing
Site management
$ -- Interest rates
Affordable?
Demand for mix of units
Tenant turnover
Unforeseen site issues
Idling (vehicle)
Coordination of development (Kiwanis,
Nelson CARES, Salvation Army)

Reporting in

Andrew and Mike posted the results and Andrew reviewed the lists with the larger group, adding one or
two points

Wrap-up

Participants were invited to add their comments confidentially on the feedback surveys available at the
entrance

Jim thank the team for their work and the participants for their input and indicated that those who had
provided contact information would be kept informed

Adjourn

The meeting adjourned at about 8:45 p.m.

Facilitators Comment

My impression was that most of the people there think additional affordable housing in Nelson is needed
and that this project looks promising in helping to address a gap. Concerns expressed tended to focus on
details rather than on concept (which I think is a good sign). I think the shared reservation was the
feasibility of raising the funds required.

Summary Results
Strengths

18

Weaknesses

Location
Close to downtown
Walking/biking distance to downtown and
most services (groceries, recreation)
Close to services and supports (e.g. Our Daily
Bread & Pastor Jim)
Residential attractiveness
Affordable; fills gap in range of housing
New, quality building with multiple units, a
visible landmark, anchoring west end of town
Great views
Open to all age groups
Opportunities for recreation, social gathering,
development of a sense of community
Small footprint carbon-responsible
Viability
Co-location with SHARE means there is an
Anchor tenant ready to pay rent
Land has already been purchased
Charitable status for fund raising

Design
Dense living / restricted size
Question of affordability
Design restraints (site)
Requires variance
Financial
$1.9 million
Ambitious time line
Long term financial obligation
(mortgage)
Site Characteristics
Parking will be limited
Traffic flow a challenge (one-way)
Traffic noise (highway)
Questions about site (e.g. soil,
environmental)

Opportunities

Threats

Community Contribution
Public contribution community pride
Houses potential customers
Improvements/Features
Soundproofing
Energy conservation use southern exposure
Energy efficient design
Green roof/roof garden /solar garden
Doctors in upper units
Walkway over the highway
Other parking not far away (CPR)
Employment
Employment for construction
Potential for work experience
Tenants could work on building
Financial
Donations from trades
Create jobs
Business opportunity

Community
NIMBYism
Coordination of development with
other affordable housing projects
(Kiwanis, Nelson CARES, Salvation
Army)
Design/Site
Demand for mix of units
Unforeseen site issues
Municipal regulations
Demand for parking/storage
Financial
Cost containment; potential for rising
interest rates
Time to fill units marketing
Operational
Site management, staffing
Tenant turnover
Use of amenity areas
Idling (vehicle)

SHARE Housing Initiative April 21, 2015

520 Falls Street
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The NEED
The Need for Affordable Housing in Nelson:

The S.H.A.R.E. Housing initiative is driven by the belief that there is a demonstrated and
significant shortage of affordable housing in Nelson.
The Affordable Housing Needs Assessment and the Affordable Housing Strategy, (2010 and
2014) commissioned and carried out for the City of Nelson, describes the need for affordable
housing in Nelson as significant.
These studies conclude that the most pressing need for affordable rentals, in Nelson, are onebedroom and bachelor suites. This results in the first of ten housing Gaps identified by the
city of Nelson as affordable bachelor or one-bedroom units.
The shortage of affordable housing affects the entire continuum of renters.
Poor housing conditions were reported in 2010 and continued in 2014. A significant portion of
the rental market consists of units that are more than fifty years old and in very poor condition.
(49% of Nelson housing stock was built before 1960.) Concerns exist that upgrading these
buildings will result in increased rents, evictions and a further loss of affordable housing.
Since 2010 there has been an overall decrease in the number of multi-rental units on the
market. Despite age and condition of rentals, CitySpaces 2014 snapshot of rents reports that
bachelor units rent for an average of $615.00 and one bedroom units $827.00
The Nelson Housing Strategy report identifies a projected need of between 55-110 units that
could benefit our target audience.

The OPPORTUNITY

Available property
Time is right, - strong political will as outlined in the last civic election
S.H.A.R.E Nelson lease expires, offering opportunity to be an anchor tenant
Direct response to the CitySpaces Needs and Demands Study.
Recognized Charity WILLING to build a not for profit below market rental units.
Qualified and dedicated steering committee, giving oversight to the project.

The CHALLENGE

There is a reason private developers dont build low market rentals. Our target residential rents
combined with full Commercial Market rents produce insufficient revenues to breakeven, let
alone generate income.
The Kootenay Christian Foundation needs to know that the building can sustain itself break
even financially.
The 40 low-market rent units will enable individuals to qualify for existing rent subsidy
programs because our targeted rent is below their rent ceilings. At $600 and $800 per month
rentals, our units are affordable for working people earning $24,000 and $32,000 per year (or
$12.30 and $16.41 per hour), respectively.
Once built, our units will free up space and reduce rent price increase pressure on similar
sized units throughout Nelson.
Rental units in Nelson are characterized in the Nelson Needs Report as old and poorly
maintained.

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21

Proposed Mortgage
EQUITY Contribution NEEDED
COST to Build
Value of Land Donation
Value of Project

$
$
$
$
$

4,173,500.00
1,937,500.00
6,111,000.00
437,500.00
6,548,500.00

Annual Rental Revenues

Annual Projected Expenses
Annual Estimated Net Income
(Loss)

$
$

501,135.00
489,015.00

12,120.00

Appendix 7.3 Link to CityScape studies

1. www.cityspaces.ca/project/nelson-housing-needs-study-report-strategy/
2. www.nelson.ca/.../Pubs~and~Reports/.../Highlights_HousingStrategy.pdf

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