Land Trust Acquires First Property: Hamilton Affordable Housing

NRU
Feb. 1, 2017
Andrew Cohrs

Faced with increasing land values, the continuing loss of rental housing and the financial challenges of operating social housing, Hamilton council has approved the transfer of a surplus city property to a community land trust to develop affordable housing in central Hamilton.

“Municipalities can’t afford the operating cost of social housing, we are not given enough money in this system [but] what we do have is land and so what we can potentially do is partner up with groups like the Hamilton Community Land Trust... where we supply the land, which is often the most expensive part of the deal, and they can do their development,” Ward 3 councillor Matthew Green told NRU.

Last Wednesday, council unanimously approved the transfer of 278 Wilson Street, a 251 m2 surplus residential property, to the Hamilton Community Land Trust. This will make the organization the first community land trust in the Greater Golden Horseshoe to receive land from a municipality for affordable housing. It will also be the first property that the land trust will own and develop, making it crucial to demonstrating the organization’s viability.

Formerly a detached dwelling, 278 Wilson Street has been vacant for over 15 years. Declared surplus by the city in 2008, the land trust approached Green with a proposal to redevelop the property last year. Recognizing the city’s need for affordable housing and the difficulty of retaining affordable housing stock, Green was eager to make it work.

“We have to be aggressively seeking affordable housing options for people...The community land trust could be a financial vehicle for the acquisition of lands that would then be held in perpetuity for affordable housing. The current models [such as Habitat and Options for Homes] really only have short-term affordability in mind because once market appreciation comes there’s a strong opportunity for people to sell their houses and cash out,” Green said.

Hamilton Community Land Trust director Allison Maxted explained to NRU that the land trust is able to preserve affordability indefinitely because it will retain ownership of the land and lease it to non-profit housing builder Habitat for Humanity, who will construct the homes. By partnering, the land trust is able to leverage Habitat’s experience and resources to construct inexpensive housing. It also ensures the new housing stays affordable, where the typical Habitat model would allow homeowners to sell their house on the private market.

Habitat for Humanity Hamilton director Sean Ferris told NRU that the site will accommodate two townhouse-style units and will likely only require a minor variance. Partnering with the land trust is a win-win, he said.

“It helps us serve more families, and it help us serve families faster, and it helps serve the broader community on a wider scale than Habitat can alone.”

While the property is small, Maxted said it is a symbolic victory for both the community and the land trust, which is eager to prove itself as a viable option for creating affordable housing.

“It’s a really big symbolic win for the community to feel like they have a little more control and impact on the changes that are happening in their city... It’s really tough to do any acquisition without having something to show for it...[This project is about] proving [our] model works and also for us to learn and develop capacity.”

Formed in 2014, the land trust is a volunteer-led grassroots organization focused on creating development that is sustainable, affordable and meets community needs. While affordable housing is a top priority, others include securing community gardens and creating affordable community space. The land trust’s mandate includes all of Hamilton, but its emphasis is on central Hamilton, a historically affordable area where property values are quickly rising.

Green welcomes the efforts of the land trust, noting that the city currently has 6,000 people on affordable housing waitlists, in addition to hundreds of social housing units that are not in use because the city cannot afford the upkeep. He said the small scale of this project is important to ensure the land trust’s success.

“The first thing with taking a concept to implementation is getting that first project on line, showing that it is a viable model and then trying to get broader community buy-in.”

The land trust will be finalizing the transfer of the property in the next few weeks while Habitat concurrently finalizes the housing designs and determines which construction partner is available.