Builders of affordable housing projects could pay less in development fees to the City of Kelowna.聽
But a proposed reduction in the development cost charges for such projects would need to be offset by higher taxes or higher fees on other housing projects, municipal staff caution.聽
Currently, the city charges DCCs at the rate of about $30,000 per unit on all new apartment projects, including affordable housing complexes. The fees are used to help pay for the cost of population growth, with revenue allocated toward parks, utilities, and other city services.聽
Since 2006, the city has provided $300,000 annually through a rental housing grant program, which is used to reduce the DCCs by 10 per cent on approximately 100 affordable housing units.聽
This year, that program was bolstered considerably with a one-time $3 million federal grant. As a result, DCCs were lowered by 34 per cent on almost 350 new housing units.聽
If the city were to make the same amount available next year, the cost would be equivalent to about 1.5 per cent of the municipality鈥檚 total taxation demand of just over $200 million.聽
At Monday鈥檚 meeting, staff are looking for direction from council on whether or not to keep developing details of an expanded rental housing grant program. If so, a longer report, with full cost implications, will be brought back at a later date.聽
In a related matter, this week the provincial government announced extra funding for Metro Vancouver so it can hold DCC charges for projects that are in-stream from 12 months to two years.聽
鈥淭his helps ensure major housing projects in our biggest region have the financial authority they need to succeed,鈥 according to the Ministry of Housing and Municipal Affairs.聽
鈥淲e are hopeful this can serve as a model for future funding agreements with the federal government to support local government infrastructure while lowering the cost of building housing,鈥 the ministry says.聽