Castlegar city council appears set to adopt incentives to encourage more rental housing by giving developers financial breaks.
Two bylaws received their first three readings this week. The first would reduce or waive development cost charges, currently set at $3,900 per unit in a multi-family development, while the other would provide tax exemptions. Developers would choose between the two.
The size of the reduction depends on the type of housing (non-profit, for-profit rental, market housing) and the place it is being built (downtown or a “specified growth area”).
But some projects could see all of their development cost charges waived. Those charges are intended to pay for expanded infrastructure. The tax exemptions would be staggered over six years, and would be 100 per cent for the first two years in some cases.
When the matter came before council this week, councillor Dan Rye called it was a “fairly major change” and suggested seeking more feedback from contractors and the general public before pressing ahead.
The rest of council, however, said they were ready to proceed.
“There’s at least one project I know of that they’re waiting for this to make their decision and break ground,” said councillor Cherryl MacLeod. “I’m okay with this. We’ve talked about this forever and any feedback we will get we’ve probably already got.”
Council heard that similar incentives exist in other communities, but Castlegar will have a lower qualifying threshold.
The incentives were suggested during city council’s strategic planning last year and follow the completion of the city’s housing strategy, downtown plan, and economic development plan.
Final adoption of the bylaws is expected at council’s next meeting and the incentives could be in place by June. Projects that are currently underway would be eligible.
Developers who take advantage of the program would have to sign a housing agreement to ensure the affordability of their rental units for at least 10 years.