The creation of the BHA.
According to John Brendan McEown, the first CEO of the Burnaby Housing Authority, the BHA is “an initiative that the City took on after gathering feedback on needs in [residents’] communit[ies]… specifically as it related to housing needs, and so [the City] took a really proactive approach by setting up an arm's-length independent company that's fully owned by the City.”
McEown explains that the BHA is to carry out two intertwined goals: one, to construct a mix of affordable and some market-rate housing, and two, to become a self-sustaining entity not funded by taxpayers.
By “arm’s-length,” he means the BHA is outside of the City of Burnaby’s processes directly, but the City is its sole shareholder. Similar entities exist in the Metro Vancouver region and beyond, including the Surrey City Development Corporation and the Whistler Housing Authority.
The Federal Build Canada Homes program is also underway. There are no projects announced in BC, however. Still, if the opportunity presents itself, McEown says that the BHA does intend to work with any partners in whatever way they can as long as it helps achieve the organization's goal of delivering housing that meets the needs of Burnaby residents.
In terms of building their projects, McEown states that, "It's really going to depend on the opportunity but we're really focused on filling gaps, so if it makes sense on a City-owned site for us to deliver it and that's going to create best value for Burnaby residents, then we'll do that, but if it makes most sense to partner with a non-profit housing provider or a developer, we'll do that.” He reiterates that the BHA is only just over a year old and just getting started on its first two projects.
Whether the BHA will manage properties directly remains to be seen. The BHA is looking at partnering with property management companies for its first two projects. In the future, the BHA may manage projects directly, as well.
“I think you'll see a combination, too,” McEown says. “We might partner with a non-profit on some component of the project and a private developer on another component of the project, so I think all of those are in play.”
Will the BHA compete with private or non-profit developers?
Given that the BHA is adding housing units to the mix of what’s already available and being built, private developers may feel that a competitor has entered the field. But McEown says that the BHA does not intend to directly compete with private developers.
Rather, he says, “we really want to be viewed as collaborating with the sector. We're not competing with the private sector. We're not competing with the non-profit sector. We want to help support partnerships and projects that fill gaps within the housing spectrum.”
Where will the housing go?
To reduce costs, especially during its early stages, the BHA will be using City of Burnaby-owned land on 99-year leases. This removes land costs from the equation, which make up the bulk of housing costs in BC, besides DCCs and other fees.
But City-owned land is not in endless supply. So, as McEown notes, “I think [it] will be our primary focus, but then we also have to think long-term in terms of the longevity of the organization – how we're going to continue to deliver these housing solutions for Burnaby residents – so at some point in the future I could see us working with the City on land [acquisition] opportunities.”
So far, the projects under development do not fall outside of Official Community Plans in their areas. But if projects do require rezoning applications or other changes, McEown says the BHA will follow the usual rules. At the same time, the BHA does have “a partnering agreement with the City that kind of allows us to take advantage of expedited processes, but we still have to meet the same processes that a private developer [or] a non-profit developer would have to meet,” he says.
What type of housing will it be and who can live there?
Unlike solely affordability-focused housing authorities, McEown anticipates the BHA will have a mix of housing types. “I think we'll see a combination of some units that are rent geared-to-income units, some units that are potentially below-market units and then some market units as well,” he says. Plus, while rentals are the focus for now, McEown says that, “there is a discussion around affordable home ownership as well, so it is something we're exploring. But, we don't have any immediate plans to do that.”
Part of the reason for the mix of affordable and market rate units, as mentioned, is the fact that the BHA aims to be self-sustaining. While the BHA does not intend to run at a profit, it does hope to make enough money that can then be reinvested in creating more housing and maintaining units it already has, as well as covering the operating costs of the company. Plus, while McEown notes that there will be market-rate units in the mix, the BHA may not have an incentive to raise rents as high as possible on an ongoing basis, and therefore future affordability may be created, so long as the projects are able to cover their ongoing maintenance needs.
A row of modern townhouses.
As for the initial homes the BHA is building, there are currently two developments in progress. The first is a townhome project consisting of 183 rental units with a mix of affordable and market-rate homes near Marine Dr. and Byrnepark Dr. It’s being built in partnership with Mosaic Homes. This project is one McEown highlights, stating, “I think it's one of the largest, if not the largest, affordable and market townhome rental project in the country, so we're really excited about that project, and it's a type of housing that you don't typically see as an affordable rental.”
A six-storey apartment building.
The other project is a six-storey apartment building with a total of 204 affordable and market-rate units near 10th Ave. and Newcome St.
The interiors of the housing units created by the Burnaby Housing Authority are intended to be functional and comparable to other middle-of-the market housing developments. Finishings and appliances will be comparable to most mid-market developments in Metro Vancouver, too, according to McEown. The townhomes will have outdoor areas for residents to use in their own backyards, while the mid-rise apartment building will have standard amenities found in other developments, such as community gardens, a gym and indoor and outdoor amenity spaces.
These two projects are using conventional construction techniques. McEown states that the BHA may consider innovative construction technologies, such as pre-fabricrated buildings, but these will have to be weighed against the goal of delivering housing in a cost-effective and schedule-effective way. “I would say as an organization, we want to be innovative, but we don't want to be innovative for innovation’s sake,” he says. “So we really want to see an innovative solution that is proven out and will make an impact to create more affordability and a more sustainable project.”
For now, the Burnaby Housing Authority is just getting started on its first two developments. Because the organization is a recent creation, things may change as time passes. As for the ultimate ambition, McEown states that, “we really want to be viewed as an option for all residents of Burnaby.”
