Tuesday, July 7, 2009

Will Nelson Become a Hollow Boutique Community?


Made in the Kootenays Housing Crisis Requires Home-made Solutions

Now that I have my house in the Kootenays should I care about housing for others? If prices are too high here, won’t the current financial crisis straighten things out, like it’s doing to formerly overheated housing markets south of the border? If there aren’t enough rentals, won’t the market respond and build some?

These are all questions that emerged at the “100 Mile Ideas Diet” conversation café on innovative affordable housing solutions that CIEL (www.theCIEL.com) organized at Oso Negro (www.osenegrocoffee.com) last week (this was the 4th of 5 forums on issues related to community vitality). Housing is such a broad and relevant topic (we all need housing) that the café was only able to scrape the surface of the issue, in the process tapping into some passionate beliefs and values when it comes to housing and possible solutions.

“The market has failed, and failed colossally here”, began housing consultant Derek Murphy. In the last great market failure, governments stepped in. Murphy gave the caffeinated crowd of 75-80 some history and context. A housing shortage caused by the swooning ranks of boomers in the ‘70s led provincial and federal governments of the day to become proactive, not only providing units (through non-profits and cooperatives) and incentives for housing developments, but also offering generous subsidies to low and even middle income earners to buy homes (up to $10k). This time around that same supply crisis we experience here in Nelson is more of a regional issue. It’s confined mainly to the west and differs from community to community. Therefore, we shouldn’t expect it to be addressed by deficit-laden Ottawa or Victoria any time soon said Murphy.

What does that mean for us? With rentals in short supply (and disappearing yearly), developers only building higher-end units (and all that’s moving much more slowly – if at all- in a slow economy), prices still hovering in the $300 k range (unaffordable for most first-time buyers), and the issue being complex (spans geographical and political boundaries – Salmo, Castlegar, the Valley, Nelson are interconnected), are there any signs of hope?

To make matters worse, many of us who bought when things were cheaper (like me), are often oblivious of the issue. Or they believe we should raise the drawbridge and not let anyone else in. But if young families, and many of those who helped to build the vitality that we appreciate in Nelson (seniors, artisans, people who work in lower paid sectors that fuel much of our service-based economy) can’t afford to make this place home, we become a hollow boutique community. “The word is out,” said panellist Stacey Lock, community outreach worker, “Don’t move to Nelson unless you have accommodation.”

Some of the innovative solutions suggested were interesting: allow innovative non-profits to flourish (like years ago), provide land trusts (public owns the land, therefore units are more affordable) like they do in Europe (CBT was suggested as the catalyst), offer shared accommodation (in Philadelphia, trusts operate larger renovated houses accommodating 7-8 people), provide housing where a full range of services can be provided to the homeless (like Portland Hotel in Vancouver – panellist Michelle Mungall pointed out that it costs 33% less to house those in need than provide for medical, health, and justice services to the homeless. She also stated that one in five clients of emergency housing services locally are the working poor).

There were also some more affordable construction options offered; the new Castlegar seniors residence is coming in at 2/3rds of typical development costs, yurts (a fully insulated yurt for less than $20 k), supporting local builders (Mandala, Top Notch, etc.), or accepting more cheap modular (pre-fabricated) housing. Tata, the Indian manufacturer of a sub-$5,000 car, is selling out of its new basic $5,000 five hundred square foot pre-fabricated three story walk-up apartment units in the Indian housing market.

Nelson is going to have to get over its extreme Nimbyism (Not In My Backyard) if it wants to move forward on the issue concluded panellist Derek Murphy. He asked some provocative questions:

  • Is Nelson willing to accept 40-60 unit multi-family dwellings (which we currently seem to oppose)?
  • Are we willing to expand City boundaries to allow for more serviced land (and therefore more affordable units)?
  • Are we willing to accept and push for more modularized homes (e.g. mobile homes and other pre-fabricated choices), getting over our hang-up for custom (more expensive) homes?

All food for thought and worth having a continued community conversation and respectful debate on. Closing our eyes and ignoring the issue won’t make it go away. Only good focussed leadership will help.

To follow the continuing discussion: http://ciel1.blogspot.com/

To listen to the café’s conversations, stay tuned in the coming weeks to KCR for the ‘100 Mile Ideas Diet’ and CIEL’s web-site (podcasts of the show).

Mike Stolte is the Executive Director of the Nelson-based Centre for Innovative & Entrepreneurial Leadership (CIEL – www.theCIEL.com).