Banff Housing Corporation is mapping out its future direction given there are no more big chunks of land inside town boundaries to develop for below-market housing.
Officials with the corporation’s board of directors say the opportunity for large developments has likely passed and the role of the corporation may change over time.
They say the board and BHC administration will continue to monitor the market for the acquisition of both rental housing opportunities and new purchases.
“I would say all things are an option,” said Councillor Paul Baxter, chairman of the board.
“We need to stay nimble because opportunities present themselves very quickly, for example, like Peyto Place.”
BHC’s goals and strategies for this year are outlined in the corporation’s 2011 business plan, which was presented to council – acting as shareholders of the corporation – on May 9.
In addition, BHC will continue talking to Parks Canada to request the federal agency identify Park-controlled land that would be available for development.
“We’re still working with them to seize the opportunity for any lands to become available; however, in the short term there doesn’t seem to be,” said Baxter.
The Cave Avenue property still appears to be off the table because it’s cost prohibitive.
“If we would have had to pay the asking price of Parks, it would take it completely out of the realm of affordability,” said Baxter.
“There’s no real point developing something nobody can afford.”
The BHC is a not-for-profit developer whose sole shareholder is the Town of Banff.
Its goal is to provide homes within the community that are more affordable for residents. This is essentially housing that has been sold at approximately 66 to 86 per cent of the current market value.
Since 1993, the BHC has built seven housing developments with a total of 173 units and 45 suites.
In May last year, BHC acquired 10 apartments in Peyto Place and reintroduced the downtown units into the market under a home ownership tenure with a price restriction.
With the exception of Middle Springs 2G and Peyto Place, BHC implemented a unique sublease agreement whereby homeowners pay the total cost of construction and land, as well as operating costs related to the development of the property. BHC acquires the equity difference between the costs and appraised market value of the unit.
Middle Springs 2G and Peyto Place were sold at 80 per cent of fair market value, and the future resale of these properties is tied to a price restriction of two per cent per annum, compounded annually.
BHC also holds two two-bedroom rental properties; the net revenues from these two properties offset a portion of BHC’s annual operating costs.
Baxter said the board will also consider this year whether the time has come to update its housing needs assessments.
He said the board is in contact with the Town’s Family and Community Support Services department and the Bow Valley Regional Housing Authority on the changing needs of the community.
“We are considering doing a study because it’s been a couple of years since we have assessed the needs of the community,” he said.
As part of the 2011 goals and strategies, the board is also reviewing the BHC’s ability to become self-sufficient and approach the shareholder with options for matching funding to BHC activities.
By June 30, the board plans to identify the BHC’s future activities, identify sources of funding for its activities and make recommendations to the shareholder.
