$ 460,000 in tax exemptions
Photo: castanets / file
Two residential projects are using a Kelowna City program that provides incentives for affordable rental housing.
The company with Davara Holdings Ltd. and Evangel Family Rental Housing Society’s revitalization tax exemption agreements will save the two organizations an estimated $ 460,000 in local taxes over the next 10 years.
The tax exemption was introduced by the city more than a decade ago to encourage affordable rental housing to be built in core areas of the city.
In order to qualify, project developers must conclude a residential contract with the city, which guarantees that the projects will remain in the rental pool for at least 10 years.
The council officially signed a housing contract with Davara Holdings for 23 units on Neptune Road on Monday.
The planner Arlene Janousek stated that the agreement in this case is set for 15 years instead of 10 years, as the project involves several single-family houses being built as one project on a single plot of land.
“The design of the single-family house was a higher risk of being converted from rental apartments to condominiums, so the employees asked to resolve this with a 15-year apartment contract,” said Janousek.
The second project to receive the tax exemption is a 46-unit rental housing project at 969 Harvey Avenue.
The city and the Evangel Family Rental Housing Society signed a 10-year housing contract earlier this year.
