Regional officials may soon sweeten the pot for landowners on Salt Spring interested in operating a long-term rental suite –– but who can’t pencil out the finances to make it worthwhile.
The Capital Regional District’s (CRD) pilot Rural Housing Program envisions stacking more dollars in forgivable loans atop the existing $40,000 similarly offered from the provincial government, according to Southern Gulf Islands CRD manager Justine Starke –– possibly as much as another $40,000. That money is technically not yet allocated in the CRD’s budget, but is receiving a lot of board support.
Back in May, BC Housing launched its Secondary Suite Incentive Program (SSIP), centred on a forgivable loan meant to offset as much as half the cost of creating a new secondary suite or accessory dwelling unit (ADU) on a property already zoned for it. In exchange for having as much as $40,000 in loans forgiven, homeowners participating in SSIP agree any unit built (or renovated) with that money will be rented below market rates for a minimum of five years.
Already considering something along similar lines, CRD staff and consultants had looked at building permit data, Starke said, and have spoken to builders and landowners throughout the Southern Gulf Islands to determine where the needle might move for incentivizing more housing here. Not unlike the conclusion drawn by the province, the biggest bang for the CRD’s limited buck seemed to be in working to convince landowners already zoned for secondary suites to create them — because so far, there aren’t a lot.
Nowhere is underutilized zoning more apparent than on Salt Spring, where a 2013 bylaw allowing secondary suites on hundreds of island properties has resulted in just 10 building permits. Starke said that poor uptake had a lot to do with people simply not wanting to be landlords, but for many it was just as much the dollar amounts attached; building or renovating costs money, and upon completion breaking even would require charging higher monthly rent than many workers on Salt Spring could afford.
The provincial program defined “affordable” rent as 30 per cent of the median income for an area; BC Housing sets that amount on Salt Spring Island using the median for Victoria, around $70,000. That’s higher than the median income on this island, Starke admitted, so there might be some shift in that number for the CRD’s program — and even then, it might not be affordable for every island worker.
But any new unit that’s rented for less than current market-driven rates is an improvement.
“I’m not going to sit here and tell you this program is going to solve our housing crisis,” said Starke. “It’s a small piece of the solution. But we think it can help.”
The coordination of the pilot program needs staff –– who will draw a paycheque at least partly from funds contributed by the Southern Gulf Islands Tourism Partnership, using some revenue from the short-term accommodation tax.
For the forgivable loan funding itself, the CRD Board meets next in mid-September, and approval — and program specifics — could come as early as the fall. Starke said perhaps the most important part of building out the program is the establishment of a function within the CRD that’s specializing in rural communities’ housing needs –– and that needs input from those communities.
A significant public engagement effort will be launching this fall. Visit getinvolved.crd.bc.ca/crd-rural-housing-program for more information on the program and to be notified of updates.