Gonna find out who’s naughty and nice.
In May 2023, the new Housing Supply Act and Housing Supply Regulation came into effect, giving the BC Government the authority to set housing targets in municipalities with the greatest need and highest projected population growth. The first housing target orders were issued in September 2023, commonly referred to as Housing Minister Kahlon’s “naughty list.” Former HAVAN CEO Ron Rapp, shared his thoughts on the list when it first came out.
The ten municipalities, identified as the first cohort, were provided with five-year housing targets that not only identified how many net new housing units were required, but also recommended the number of units by size, rental versus owned homes, below market rental units and units with on-site supports. The Minister’s plan was a blueprint to ensure a 38% increase in overall housing to be built in these communities over what was historically projected.
The analysis undertaken by the Province in coming up with the targets took into consideration the total number of units that are needed to address the shortage of housing now and to respond to population growth over the next five years, and while the Province has encouraged municipalities to work hard to meet the total housing need, the targets have been set based on 75% of a municipalities identified housing need.
Having passed the one-year mark, those municipalities have submitted their annual reports. Has the housing target legislation been successful in the first year?
| Municipalities | Five-Year Target | First-Year Target | First-Year Results | On-Target |
| Abbotsford
|
7,240 | 1,022 | 602 | No |
| Delta
|
3,607 | 514 | 561 | Yes |
| Kamloops
|
4,236 | 679 | 449 | No |
| North Vancouver (District)
|
2,838 | 499 | 500 | Yes |
| Oak Bay
|
644 | 56 | 16 | No |
| Port Moody
|
1,694 | 231 | 168 | No |
| Saanich
|
4,610 | 440 | 338 | No |
| Vancouver
|
28,900 | 5,202 | 4,143 | No |
| Victoria
|
4,902 | 659 | 1,477 | Yes |
| West Vancouver
|
1,432 | 220 | 58 | No |
With only three of the ten municipalities having been able to meet their housing targets – the District of North Vancouver exceeded the target by one new home – the answer is a resounding no.
Factors beyond the control of municipalities – High interest rates, inflation, labour shortages and increasing material costs – have been identified as driving forces, in addition to significant development cost charges and community amenity charges, contributing to lack of financial viability for the completion of many projects across the province.
It should be noted however that the targets are based on completions with occupancy and not on in-stream applications. Municipalities have expressed, in many cases, that they will likely meet five-year targets, based on an analysis of applications that have completed the rezoning process, and those that have received development and building permits.
The Province had noted that if a municipality fails to meet the prescribed housing targets, it can take several courses of action. This includes appointing advisors to review actions, policies, practices and progress toward meeting goals and create a report with recommendations for meeting future housing targets. The Province is also able to intervene in a municipality’s bylaw-making and permit-issuing powers.
Will the Minister bring down a punitive approach after this first year review? Last week Minister Kahlon was reappointed as the Housing Minister, and given additional responsibilities with the addition of the Municipal Affairs portfolio. He has more power than ever before.
The most appropriate course of action would be to continue to work closely with municipalities, in a collaborative approach, to identify the barriers that are within the control of the two levels of government, and break them down. Speed up approvals and take a reasoned approach to financial demands of homebuilders. Establish funding or incentives to support municipal infrastructure demands.
HAVAN members want to build housing but it has to be financially viable and currently there is a lot standing in the way of that.
So what next? The second cohort, named July 2024, includes Chilliwack, Kelowna, Maple Ridge, Nanaimo, North Vancouver (City), Surrey, White Rock, Central Saanich, Sidney, Esquimalt.
And the third cohort, named August 2024, includes Colwood, Langley, Mission, New Westminster, Port Coquitlam, Prince George, West Kelowna, North Cowichan, North Saanich and View Royal.
The next move is the Minister’s.
HAVAN continues to work with CHBA BC and CHBA to advocate for all levels of government to work together to address the challenges of the housing industry including zoning restrictions, density limits, and NIMBYism.
Looking to stay up-to-date on Metro Vancouver’s residential housing industry? Sign up for Wendy’s weekly Monday Morning Briefing and other HAVAN emails here.
QUICK BITES …
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A new Mayors’ Task Force is aiming to streamline the process of producing factory-built homes. The group will work closely with Modular BC to bring affordable housing to communities throughout the province.
- Defined as a day dedicated to raising awareness about housing and homelessness, National Housing Day 2024 is a good time to reflect on the fact that importance is being put on restoring housing affordability and stability for Canadians – an indisputably tall order.
- Economic growth is the only way out of BC’s financial mess, opines ICBA’s Chris Gardner.
