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On Tues (Nov 26) #vanpoli Council will consider a report on encouraging badly needed rental housing.
If it doesn't pass it could be a big setback. Please consider sending a msg to show your support for rental homes. I'll shares some thoughts below. https://vancouver.ca/your-government/contact-council.aspx
If it doesn't pass it could be a big setback. Please consider sending a msg to show your support for rental homes. I'll shares some thoughts below. https://vancouver.ca/your-government/contact-council.aspx
Council asked staff to review existing policies that try to encourage new purpose built rentals (PBR). Vancouver has a vacancy rate of less than 1%, which creates a desperate shortage of rentals that forces renters to compete with each other for scarce homes. That's a Bad Thing.
So staff prepared this report. It provides a great overview of what the city has been doing over the last 10 years ago to try to get more PBR built, eg pages 6 - 7 give short summaries of existing policies. Handy stuff.
https://council.vancouver.ca/20191126/documents/p1.pdf
https://council.vancouver.ca/20191126/documents/p1.pdf
Here are some of the highlights.
Over 63% of our rental stock was built between 1950 and 1980. Unfortunately, after that rental construction completely collapsed and basically nothing at all was built between 1980 - 2010.
That has directly led to our current crisis.
Over 63% of our rental stock was built between 1950 and 1980. Unfortunately, after that rental construction completely collapsed and basically nothing at all was built between 1980 - 2010.
That has directly led to our current crisis.
And look, there's no way around this. If you oppose new market rental today, you probably would have opposed the very homes you now say are the core of our affordable housing stock.
Congrats, you're killing the next generation's affordable homes.
Congrats, you're killing the next generation's affordable homes.
There are a lot of reasons rental construction collapsed, but (as I read it at least) they boil down to this:
Building and selling condos is a much, much more profitable venture.
Given this economic reality, we need to give incentives to encourage the construction of new PBR.
Building and selling condos is a much, much more profitable venture.
Given this economic reality, we need to give incentives to encourage the construction of new PBR.
So, starting in 2009, the City started to offer some incentives. Actual developers could talk more knowledgeably about the details, but it looks to me like these incentives take two major forms:
First, height/size relaxations. The basic logic here is that if you can build more homes on a given plot of land, you can share those land costs (and at least some construction costs) across more homes, making them all more affordable.
Second, the city waives some fees. Most new developments have to pay a "Development Cost Levy" (DCL), which is basically a fee paid to the City. To encourage PBRs the City will waive the DCLs in some situations.
So, in essence, the City says: if you build condos here, you need to pay the DCL, but if you build a PBR instead you maybe don't.
Now, here's the good news: these incentives have been EFFECTIVE. After decades of zero new PBR, we finally started to see some new homes built!
Now, here's the good news: these incentives have been EFFECTIVE. After decades of zero new PBR, we finally started to see some new homes built!
The bad news is that it still ISN'T ENOUGH. Not even close. We're far behind on our housing goals, which is obvious to you if you rent, have rented, or know anyone who rents. A housing shortage gives all the power to landlords.
The report mostly recs continuing current incentive policies, though it suggests some pretty neat new things (like expanding areas where 4 storey rentals can be built).
Council approving this report won't solve the housing crisis; but NOT approving it will make it worse.
Council approving this report won't solve the housing crisis; but NOT approving it will make it worse.
We need to be doing MORE, not less -- especially if we're serious about achieving more meaningful affordability.
But despite this, some councillors are strongly against these incentives, especially the DCL waivers.
But despite this, some councillors are strongly against these incentives, especially the DCL waivers.
They don't have any replacement programs ready to go -- they just oppose the current ones.
Surprisingly, these attacks don't come from only the right, but also from the left.
I have NO CLUE how they think we'll achieve more affordability by INCREASING FEES on rental building!
Surprisingly, these attacks don't come from only the right, but also from the left.
I have NO CLUE how they think we'll achieve more affordability by INCREASING FEES on rental building!
This is especially so given how minor the DCL waivers have been. Since they started in 2010 the City has waived about $24M. That's only 4% of the DCLs received in that period!
And in return we got about 2700 new permanent rental homes.
THAT'S A BARGAIN.
And in return we got about 2700 new permanent rental homes.
THAT'S A BARGAIN.
The same councilors who are opposed to DCL waivers often talk of the need for more housing money from senior levels of government.
How credible will the City be as a housing partner making those sorts of demands if we decrease our own investment in rental housing?!
How credible will the City be as a housing partner making those sorts of demands if we decrease our own investment in rental housing?!
Which brings me back to where I started: please consider writing to Council to let them know that you support more rental housing and support incentives to achieve that goal. The City has limited powers, but it can do this. Let's do more, not less. https://vancouver.ca/your-government/contact-council.aspx
