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How Alternative Asset Classes are Shaping Neighbourhoods: Social Housing
John Fox, Partner
Robins Appleby & Taub LLP
Land and Development Conference 2013
OUTLINE OF PRESENTATION • Can social housing drive a development? • Why and when is this likely to happen? • What’s unique about housing driven
developments? • What lessons can we apply?
Can Social Housing Drive a Development?
YES
Why and When Does this Happen? -Low Density Housing -Economic and Social Isolation -Energy Inefficient Buildings -High Cost to repair (FCI) -Land Owner is willing to do Something
Case in Point: Since built, Regent has had limited Capital Investment – - Contributes to a growing capital backlog.
Unique Aspects of Housing Driven Development
1. The Amazing Community
2. The Capital Backlog
3. The Revitalization Equation
Revenues ≥ Costs
Revenues ≥ Costs
Mkt Units * Profit p.u ≥ Rental Units * Cost p.u.
Revenues ≥ Costs
Mkt Units * Profit p.u ≥ Rental Units * Cost p.u.
Replacement Units Mandated
Revenues ≥ Costs
Mkt Units * Profit p.u ≥ Rental Units * Cost p.u.
Replacement Units Mandated Costs per unit determined by trade pricing
Revenues ≥ Costs
Mkt Units * Profit p.u ≥ Rental Units * Cost p.u. Replacement Units Mandated Costs per unit determined by trade pricing Profit based based on location (plus)
Revenues ≥ Costs
Mkt Units * Profit p.u ≥ Rental Units * Cost p.u.
Replacement Units Mandated Costs per unit determined by trade pricing Profit based based on location (plus) Number of Market units function of planning approval
Revenues ≥ Costs
Mkt Units * Profit p.u (+SUBSIDY) ≥ Rental Units * Cost p.u.
Replacement Units Mandated Costs per unit determined by trade pricing Profit based based on location (plus) Number of Market units function of planning approval Subsidy drains repair program
Lessons We can Apply
1. Density and Diversity Assets - Phase 1 Unit Distribution
2. Partnerships and Collaboration– Working with Government and the Private Sector
3. Build Support and Harness the Awesome talent that resides in the community.
3. Let MAGIC happen MLSE Supported Sports Field
Daniels Spectrum Cultural Hub
Regent Park Aquatic Centre
Regent Park Community Centre
Paintbox Bistro
4. You can only Start by Starting
And the Plan will evolve...
When do you know its working?
Editor Sarah Fulford: In the Summer I take visiting friends to Kensington Market or the Brickworks. If they have young kids, Centre Island...Now there’s a new destination on my list, Regent Park. ... Its not just a fascinating and unique experiment in mixed use housing, it’s also a SURPRISINGLY FUN PLACE TO HANG OUT.
John Fox Partner Robins Appleby & Taub LLP 416-360-3349 jfox@robpp.com
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