Reclaiming & Leveraging the value of a home slated for demolition
Charitable Donation Model
Every year roughly 700 good to excellent condition single family homes are slated for demolition across Metro Vancouver and Vancouver Island.
This is both economically and environmentally wasteful. Each 2,000 sq. ft. home demolished has roughly 65 tonnes of CO2e embodied carbon. We have seen many homes (building alone) appraised from $200,000 to over one million dollars.
By leveraging charitable tax receipts homes can be donated, relocated and repurposed to "qualified donees" e.g. First Nation communities or non-profit housing groups in need of good housing.
This charitable donation model can unlock hundreds of thousands of dollars per home, divert material waste from local landfills, reduce embodied carbon waste and provide good housing to communities in need.
Sts'ailes Nation:
Case Study
The inspiration for this donation model is the Sts'ailes Nation in Agassiz, BC.
In 2012 the Nation was contacted by a family who had just purchased a property on Harrison Lake. The family wanted to build themselves a new home but to do so they first needed to demolish the existing structure -- which was a large lake home in fair condition.
Instead of paying to bulldoze the building it was donated, relocated and repurposed. The Sts'ailes Nation issued the family a significant charitable tax receipt based on the appraised value.
The family used their charitable tax credit saving benefit to help lower the relocation cost of the home to Sts'ailes Nation.
The family kept their demolition + abatement cost saving.
Sts'Ailes Nation:
Youth Support Housing
Once the home landed the Sts'ailes built a foundation, serviced the home and updated some finishes, i.e. flooring. From start to occupancy the process took less than two months.
The repurposed home is currently being rented by a community group and used as Youth Support Transition Housing for members of the Sts'ailes Nation.
The Sts'ailes case study proves an incredible opportunity for developers and home owners with good homes slated for demolition:
Instead of paying to demolish a high-value home we can use the charitable tax donation model to unlock and leverage the value of the home before it is thrown away.
Developers & Home Owners:
Do Good, Save Money.
Every day two good to excellent condition homes are demolished somewhere in coastal British Columbia.
These homes have significant value, just not to the current owner at their current location.
Working with our moving company partner, Nickel Bros, we will:
(a) Assess the condition and moveability of the home.
(b) Arrange for a certified appraisal of the building value.
(c) Identify a First Nation or non-profit community group interested to receive the home(s) that can issue a charitable tax receipt.
(d) Coordinate the issuance of the charitable tax receipt. [Unused tax credits can be carried over for up to five years].
(e) Coordinate the moving of the home(s) to the receiving community.
The First Nation community or non-profit housing association will pay for the relocation cost upfront. The developer or homeowner will be asked to share their tax credit saving benefit (once they receive it) with the Nation to help the Nation recover some of their upfront relocation cost. This arrangement will be outlined through a "Donation Gift Agreement."
The developer or homeowner is invited to keep their demo / deconstruction / abatement saving.
Receiving Communities:
Good Repurposed Housing
Renewal Home Development, working with our moving company Nickel Bros, identifies hundreds of high-value homes slated for demolition each year.
Click here for a small sample of current inventory.
Typically the cost to move a home is roughly $100 / sq. ft, floor joists and up.
Your organization will pay for the home relocation cost upfront. Renewal can help identify affordable housing loan programs, if necessary.
Through a "Donation Gift Agreement" we will coordinate the re-contribution of the developer's / home owner's tax credit saving (i.e after their year-end) to help lower this upfront cost.
In the best case scenario the relocation cost can be brought down to zero, as in the Sts'ailes example. However, each donation and relocation arrangement will need to be assessed individually. The appraised value of the donated home(s), the move cost, and tax situation of the homeowner/developer will vary.
Working with our moving company partner, Nickel Bros, we will:
(a) Identify high-value homes slated for demolition.
(b) Identify the willingness of the developer / home owner to donate instead of demolish the home(s).
(c) Work with the receiving community to build a redevelopment budget.
(c) Request a hazmat and engineer report on the structure.
(d) Request a certified appraisal of the building in the receiving community.
(e) Coordinate the relocation of the home to the receiving community.
The receiving community will:
(a) Identify accessible land for single family homes.
(b) Submit grant applications to upfront finance project costs.
(c) Coordinate the foundation construction, services, minor renovations and landscaping.
