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Rental Housing Construction Incentives
The Issue
Greater Victoria continues to have one of the lowest vacancy rates
in Canada for rental accommodation. A major barrier to the private
sector electing to develop new purpose-built rental properties
is the taxation disincentives implemented by the federal government
in 1972. However, other barriers exist as well including a number
of municipal regulations that at worst preclude development,
and at best impose unrealistic requirements and delays that have
the same effect.
VREB Position
The 2006 VREB President, Scott Kendrew, wrote the City of Victoria
Mayor and Council on April 20, 2006 to support a paper on the
topic presented to the City earlier in the month by Victoria’s
Real Estate and Construction Organization (RECO). The document
provided the combined advice of ten local developers recognized
for their experience with the construction and management of
rental accommodation.
Specific suggestions in the RECO report supported by the VREB
include:
- Providing local property tax holidays for new rental construction;
- The development of secondary suites within existing apartment
buildings;
- Reduction of lengthy permitting/rezoning processes;
- Creation of a city hall advocate for solutions to rental housing
needs;
- Removal of some of the costly regulations for construction
that exceed standards set in other jurisdictions;
- Development of a new “Vision” and priority for
rental housing;
- Encouragement for upgrading of social housing developments
of the 1960s and 1970s to allow for higher densities and renewal;
- Rezoning of areas for specific rental use to provide incentives
for a much-needed local wave of construction.
Update
None of the recommendations have yet been acted upon by the City
of Victoria
Ratification
Position ratified by the VREB Directors, September 2007.
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