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PATH 1. SUPPORT LOCAL ECONOMY

Building projects are key drivers of economic growth and development in local communities. They generate employment, boost local economies, and enhance the overall well-being of the regions they impact. The construction industry offers jobs across a wide range of skill levels, creating opportunities within the community. In 2022 in Canada, over 1.5 million people worked in the construction sector, which had nearly 95,000 additional jobs available. [35] Construction projects can also positively impact local businesses, such as suppliers of construction materials, who may see increased demand, sales, and revenue.

Project teams pursuing this path must assess and report on the number of construction jobs generated by the project as part of its contribution to local economic development. A minimum of 15% of the construction jobs created by the LEED project must employ individuals that live within the administrative district, defined as a division of local government such as a municipality, county, parish, or equivalent.

PATH 2. LOCATION EFFICIENT AFFORDABLE HOUSING

Addressing the housing to jobs mismatch is essential to ensure that developers locate affordable housing near employment opportunities, reducing burdens on low-income households. This mismatch occurs when housing availability is geographically disconnected from job centers, forcing workers, particularly low-income individuals, to endure long commutes, increased transportation costs, and limited access to employment. Rising rents and property prices are making it harder for people to find homes they can afford, with low-income residents disproportionately affected by high utility costs and service shutoffs. Affordable housing in the right places, along with rental assistance, can reduce financial strain and support long-term stability for these communities. Also, land use regulations are a significant barrier to affordable housing in urban communities. Zoning restrictions, density limits, and lengthy permitting processes often create challenges for builders trying to build affordable housing in high-demand areas where jobs are concentrated.

Project teams must begin by considering the location of the development and identifying the AMI for the project location. The AMI is a crucial benchmark used to determine affordability, as it represents the midpoint of household incomes in the area, with half of the households earning more and half earning less. Once teams determine AMI, they need to calculate pricing that would qualify as an affordable rental or for-sale unit based on household income levels. The square footage dedicated to said units must comprise a minimum of 10% of the project’s total residential floor and meet the AMI requirements of the rating system. Teams must comply with LTc3: Compact and Connected Development by meeting either Option 2: Access to Transit or

35 Bush, O., “Construction Industry Statistics in Canada”, Made in CA, updated January 3, 2025, https://madeinca.ca/construction- industry-statistics-canada/.

U.S. Green Building Council LEED v5 Reference Guide for Building Design and Construction, April 2025 Launch Edition 64