Photo: Contributed
Columbus Center is an affordable 36-unit housing project near the Capri Mall
The city of Kelowna says it may need to take more practical steps to provide much-needed, affordable rental housing in the city.
This may mean reaching out to taxpayers to fund the purchase of land needed to support such projects.
The city council will be discussing the need for affordable housing on Monday as part of a new strategy for acquiring affordable housing.
A staff report backing the new strategy suggests that housing in general is a province’s responsibility, but growing housing challenges have forced local governments to play a bigger role.
While working with groups like BC Housing, the report said that setting up an AHLAS would allow the city to contribute land in exchange for affordable housing projects.
According to employees, demand in the city continues to grow as both home ownership and affordable rents become less and less accessible.
According to the report, nearly half of the 19,600 rental households this year are in core or extreme core housing needs. Those in the core must spend at least 30 percent of their annual income on rent, while those in the extreme core must spend more than half their annual income on rent.
These numbers, say employees, are trending upwards.
The report also suggests that meeting the growing demand over the next 10 years will require more than 2,500 affordable rental units with an estimated land value of nearly $ 20.5 million per year – well beyond the city’s capabilities.
However, the report suggests that the city can do a small part in allocating more taxpayers’ money each year to fund its housing reserve fund.
The city currently pays $ 200,000 a year in tax dollars to the account. The report suggests doubling that number to $ 400,000 in 2022 and tripling it to $ 20,000 in 2023 and beyond, resulting in $ 2.2 million being generated every four years.
According to the employees, this would be enough to purchase at least one property every four years.
It is also suggested that the city continue to use local and regional district taxes available through online platforms like Airbnb to supplement the reserve fund.
“Overall, the acquisition of land for affordable housing will be a key tool to express the leadership role of the city. The availability of land has the potential to initiate new affordable housing projects, attract development and operating partners and use external financial resources.” the report concluded.
