Victoria, B.C. – Builders on Vancouver Island are criticizing Victoria, B.C. for its Inclusive Housing and Density Bonus policy. While the city argues the policy will encourage affordable housing, the Victoria Residential Builders Association (VRBA) explained the policy just shifts the responsibility and cost of housing issues on to private industry and homebuyers.
Council has approved the policy, which is expected to soon be ratified. It requires that 20 percent of developments with more than 60 units be affordable rental housing or non-market affordable home ownership. Smaller projects have an option of cash in lieu that will fund affordable housing and neighbourhood amenities
“The Policy is focused on translating the additional value generated through the rezoning process into on-site secured rental housing that meets the affordability objectives outlined in Victoria’s Housing Strategy,” reads a draft of the policy.
But Casey Edge, VRBA executive director, accused city officials of passing off their social responsibility to homebuyers while collecting millions in fees and taxes. He explained that those costs will be passed on to homebuyers already being squeezed by high home prices.
“The cost of production is always transferred to the end user,” said Edge. “We call it an ‘exclusionary’ policy because it excludes more people from being able to afford homes. The city calls it ‘inclusionary’ and we disagree.”
Edge explained that part of the blame for high home prices rests with government. Victoria generates millions through cash amenities, the provinces is generating billions from property transfer tax and the federal government is generating billions from the GST.
The city also collects millions in building permit fees, which Edge believes should be labeled a tax as it is based on the changing cost of construction rather than the cost to review and inspect projects.
“They have all these revenue streams from housing, generating millions, and now they want to transfer social housing or affordable housing to the private sector,” Edge said. “Social programs are the responsibility of senior levels of government – not new homebuyers.”
“Government has decided that the home is a cash machine for their programs and rather than going back to the taxpayer, they just pass regulations and costs onto new homebuyers. The reason is that nobody lives in the home yet.”
The costs add up. According to a recent study by the C.D. Howe Institute, taxes, fees, lack of rezoning and regulations in Victoria added $264,000 to the price of a new home. Edge said a better solution to affordability is being found in cities like Langford, which have streamlined their project approval process to take months rather than years.
Langford accounted for 60 per cent of all new island rentals, and 40 per cent of all new housing last year.
“There have been projects in the city that have met the official community plan but have been held up for two years,” said Edge.
“The city doesn’t participate in the risk, they don’t understand the risk involved in development, the government wants their money but if the housing market goes south, as it has before, are they going to write a check or take a loss? They won’t. They have no appreciation for the risk developers undertake in developing projects.”
Please help all the poor people. Nobody in this country deserves to suffer. People are being displaced, people are becoming homeless. Seniors and people with disabilities do not have the income to afford a shelter. Realestate has become unaffordable. Even these proposed affordable units are not affordable. We need social housing, and a lot more supportive modular housing to help the people that need the most help. I am so scared, I have a constant anxiety problem because I cannot imagine how hard it must be for all the suffering people that are dying on the street because their is no housing. The problem isn’t drugs, or alcohol for homeless people. The problem is housing affordability. People are suffering, these people desperately need help with housing.