Kelowna looking at ways to help spur on construction of affordable rental housing

Photo: Contributed

Columbus Centre is a 36-unit affordable housing project near the Capri Mall

The City of Kelowna says it may have to take a more hands on approach to providing desperately needed affordable rental housing in the city.

That may mean turning to the taxpayers as one way to help fund the purchase of land needed to support such projects.

City council will discuss the need for affordable housing Monday through a new Affordable Housing Land Acquisition Strategy.

A staff report supporting the new strategy suggests that while housing is generally a provincial responsibility, growing housing challenges have forced local governments to take a larger role.

While working with groups such as BC Housing, the report says establishing an AHLAS would give the city the ability to contribute land in exchange for affordable housing projects.

The need, staff say continues to grow in the city as both home ownership, and affordable rent become less, and less attainable.

The report says nearly half of the 19,600 rental households this year are in core, or extreme core housing need. Those in core need to spend at least 30 per cent of their yearly income on rent, while those in extreme core need to spend more than half their yearly income on rent.

Those numbers, staff say, are trending upward.

The report further suggests in order to address all of the growing need over the next 10 years, more than 2,500 affordable rental units will be required, with an estimated land value of nearly $20.5 million per year – well beyond the city's ability.

However, the report suggests the city can do a small part by putting aside more tax dollars each year to help fund its housing opportunities reserve fund.

Presently, the city tucks away $200,000 per year in tax dollars into the account. The report suggests doubling that to $400,000 in 2022, and tripling it to $600,000 in 2023 and beyond, resulting in $2.2 million generated every four years.

That, staff suggest, would be adequate to purchase at least one property every four years.

It's also suggested the city continue to use the Municipal and Regional District Tax available through online platforms such as Airbnb to supplement the reserve fund.

"Overall, land acquisition for affordable housing will be a key tool to express the city’s leadership.The availability of land has the potential to initiate new affordable housing projects, attract development and operational partners, and leverage external financial resources," the report concluded.