Affordable Housing Development Process:

From vision to occupancy, the development of affordable housing may take anywhere from 1-5 years or more to complete and can be challenging depending on the complexity of the project. In general, the development process has four phases: Concept Development, Planning and Predevelopment, Construction, and Occupancy and Operations. This guide provides an overview of each of these phases including key considerations, team members’ roles, and insight into issues that may arise.

Demonstrating Need & Demand
One of the most critical aspects to consider before undertaking any real estate development project is identifying the need in a particular location and then demonstrating a meaningful demand. This may involve commissioning a local Housing Needs Assessment, which is a market analysis that carefully examines the area’s supply and demand to determine existing and future needs for housing, as well as identifying appropriate area median income and market rental rates.

CMHC provides housing data, which is available online, but the statistics do not always accurately reflect the market reality. In some rural locations, the data does not exist at all. In some cases, municipalities may have already gathered data and have housing plans available that developers may access. For other communities, this data will have to be collected and analyzed.

Here are a few common considerations for data collection:
• Population and demographics: Is the population growing or shrinking? What are the demographics of the population (i.e., age, income, family composition, etc.)? What type of employment is available in the area? Are local employment opportunities growing or shrinking? What is the local employment rate?

• Marginalized populations: Are there marginalized or at-risk communities in the area whose housing needs should be considered (Indigenous, black, youth, senior, LGBTQ2S+, persons with disabilities, immigrants)? What are their current challenges?

• Existing housing: What types of owned and rental housing are already available in the community (i.e., single-family, multi-family, apartment, condo, etc.)? What is the current vacancy rate? What is the age and condition of the current rental stock? What percentage of the community’s housing stock is rental? Is there subsidized housing available and, if so, is there a waitlist? What is the average rent in the community How quickly have rents been increasing/decreasing? What percent of the community is in core housing need Are there sub-standard properties in the area?

• Community support: While you may be able to demonstrate the need for affordable housing in your community, local residents may express concern or opposition to the project (i.e., NIMBY or Not in My Backyard). It will be important early in the project plan to consider how you will gain support for the project, listen to and, where appropriate, act on the concerns of your neighbors, and keep your community stakeholders educated and informed on the project and its benefits.

Local housing coalitions, regional networks, and housing professionals such as realtors and appraisers may have access to data or information that can be helpful for developing a Housing Needs Assessment. Once the data has been collected, it needs to be analyzed for indicators that will identify both the current and future needs and demand for affordable housing in your community. Fundamentally, the Housing Needs Assessment should answer the questions of who needs affordable housing, and what type of housing is required, and determine if the current and forecasted local market conditions can sustain the development.

Organizational Structure & Capacity:
The strength of your organization and the people within it is fundamental if you are to execute a successful housing development and receive approval from funding available through the government, or any other funding partner. You will be required to provide detailed information on the structure and capacity of your organization as well as the capability of the people within it. Think carefully about appointing individuals with relevant skills and experience to your project. This could include third-party professionals from outside of your organization to help support your team.