The Fourth Pillar in the Four Pillars model is Revenue Generation. It is a huge part of the solution that doesn’t require long-term government financing commitments.
Even with zero cost land, below market mortgage rates and expedited delivery systems and permitting it is still virtually impossible to deliver affordability at scale.
A survey conducted by the Haskayne School of Business at the University of Calgary revealed that there is market acceptance for mixed-use, multi-family, mixed-income developments in Metro Vancouver. Two-thirds of respondents were comfortable with new types of developments in their neighbourhood.
One of the best examples of revenue generation is the Skwacháys Lodge & Gallery – an Indigenous social enterprise where 18 hotel rooms and a street level Fair Trade Indigenous Gallery subsidized 24 artist live/work studios.
Other options could include market and near market rentals, workplace and student housing as well as short-term and executive suite rentals. Every site has to be examined to maximize the best revenue generation model.
Additionally the inclusion of CRUs’ (Commercial Retail Units) and office space where appropriate (that could include grocery, health clinic, pharmacy, retail and community office space etc.) can generate revenue that can be translated into more affordable units for Non-Profit Housing Providers.