The CEO of Our Place Society announced yesterday that he hopes to find homes by the end of the year for people living on the street in the 900-block of Pandora Ave.
“It distresses me to see so many displaced people,” Our Place CEO Julian Daly said in a media release. “No one should be consigned to living on the pavement in our city. It’s a crying shame. All people deserve so much better.” Our Place, located in the middle of the Pandora encampments, recently surveyed people living on the street. Not surprisingly, all of them hoped for a better life. “Each person told us they wanted housing, and what supports they needed to be successful once housed,” Daly said, noting the survey showed people need help with addiction and mental health as much as they do with housing. “There is no one-size-fits-all solution,” Daly says. “Instead, we have to tailor our supports to the individual.” Some of the highlights of the survey were:
Business and industry groups have been calling for policy changes to address the housing shortage facing Greater Victoria. And while many regions in the world are facing a similar challenge, we need solutions that work for Canada and BC.
Last week, the province revealed its three-year pilot to encourage homeowners to add secondary suites to their properties. BC Housing will administer the program, which offers forgivable loans of as much as 50% of the total cost of renovations — up to a maximum of $40,000 — to add a secondary suite or accessory dwelling unit such as a garden suite, laneway house or carriage home. If the new unit is rented at below market rates for at least five years, the loan will be forgiven. The province estimates the program will add 3,000 new rental units at below-market rates. To be eligible, homeowners must also:
The prospect of home ownership for younger Canadians has a direct connection to their ability to tap into the "bank of mom and dad," Statistics Canada stated in a report released today on Intergenerational Housing Outcomes in Canada. The report said that expensive urban markets such as Victoria, Vancouver and Toronto had a higher proportion of "co-signed" mortgages involving people born in the 1990s and their parents.
"Parents' housing wealth was associated with higher property values for their children, especially in Toronto, Kelowna, Vancouver and Victoria. In these cities, children whose parents were at the top of the housing wealth distribution owned properties that were on average 29.6% to 37.4% more valuable than properties owned by people whose parents were at the bottom of the housing wealth distribution," Statistics Canada said. "These results suggest that parental property ownership affects not only children's ability to access home ownership as adults, but also the value of the properties they own and, therefore, their ability to build up greater home equity and financial assets." It's not everyday that your breakfast conversation includes a candid discussion with BC's Premier about the major challenges facing business in Greater Victoria.
That was the experience yesterday for 300 people at the Victoria Conference Centre as they were able to nourish their bodies while feeding their minds. After speaking about the government's plans to support the private sector and grow BC's economy, Premier David Eby engaged in a lively discussion with Chamber CEO Bruce Williams about topics submitted by Chamber members. Community safety is top of mind for many people, and the Premier acknowledged the province is trying to find a solution for challenges facing governments around the world. The recent move to ban drug use in public spaces is an example of how government reversed course on a policy that wasn't working as intended. The long-term solution is complex, with Eby noting that a continuum of care is required for people experiencing homelessness rooted in mental health or addiction. Other topics included the province's plan to avoid disruptions to ferry sailings this summer — something that happened with alarming frequency last year — and how the province can reduce obstacles for builders so that they can increase housing supply. "The morning flew by and we could have easily kept talking all day," Chamber CEO Bruce Williams said. "I'm grateful for the Premier's time and for everyone who chose to enjoy breakfast with us. We'll keep the dialogue going between business and government and work together to find innovative solutions to the challenges facing our community." The Short-Term Rental Accommodations Act took effect today. Among the changes, according to the province, are:
If the new rules aren't followed, fines can be levied ranging from $500 to $10,000 per day, depending on who is operating the rental. BC Minister of Housing Ravi Kahlon told the Times Colonist that short-term rentals will be available on a smaller scale as the new rules aim to stop people from taking away large numbers of housing units that could serve as homes for people. On Tuesday, the provincial government released the next round of municipalities facing scrutiny to ensure they are helping increase BC's housing supply.
The next 20 priority municipalities include the following in Greater Victoria:
The first list, released last spring, included the City of Victoria, the District of Saanich and the District of Oak Bay. Each community receives a target number of total units that are expected to be built within a specific time-frame. The targets for the latest communities will be made public this summer. "The Chamber supports efforts to increase housing supply and we continue to advocate for all levels of government to smooth the process for builders so the construction work needed can be done," Chamber CEO Bruce Williams said. "I'm looking forward to speaking with Premier Eby next week at the Chamber breakfast to hear firsthand how the province is advocating for support from the federal government." The Chamber hosts Premier Eby on April 30. Register now to reserve your seat at the table. A new hub close to the "heart of Saanich" was given a key stamp of approval on Monday.
The District of Saanich has an extensive plan for the Uptown-Douglas area, which is at the crossroads of Greater Victoria's core municipalities. The area will be zoned to shape new development designed to grow the neighbourhood as a major hub north of downtown Victoria and between the West Shore and Saanich Peninsula. The plan includes turning Oak Street into a vibrant commercial district that creates a walkable boulevard between Uptown Mall and Mayfair Shopping Centre. The City of Victoria is updating its Official Community Plan this year. The province requires all BC municipalities to update their OCP every five years with a vision for the next 20 years. Victoria — facing a changing climate, growing population and a profound shortage of housing — is looking for input from the public and business community to help shape the next plan.
"Decisions on where housing, businesses and parks should go, how we move around the city and ways Victoria can respond to the climate crisis are all determined by the OCP," states the city's website. "If the City was a train, the OCP would be its conductor leading the way." Community engagement will continue until September and plans currently include an open house, a survey, pop-up events in the city and an online information session. Learn more at engage.victoria.ca/ocp. More spending and more taxes have many business groups concerned about the future after the federal government released its ambitious 2024 Budget yesterday.
"Canada must end the cycle of tax and spend politics," Canadian Chamber of Commerce Senior Director of Fiscal and Financial Services Policy Jessica Brandon-Jepp said. "Fueling economic growth is the key to improving quality of life and affordability for Canadians." The national chamber network opposes any measure that increases costs for businesses currently experiencing economic headwinds. We also will work with our members to understand how the increase to capital gains tax will impact business. "(The) budget contains few surprises. Most of the major new spending was announced by the government over the last few weeks, and the government’s projections for the deficit are largely in line with previous predictions," Canadian Chamber CEO Perrin Beatty said. "Our lagging productivity and stalled GDP growth means Canadians are becoming collectively poorer and working harder to just remain where they are today." New taxes will cover about $18 billion with about $57 billion in added spending:
Another successful AGM is nothing new for your 161-year-old Chamber, but the expert panel convened for yesterday's meeting could not have been more topical.
"Safe communities is a long-standing advocacy priority for us, and we know there is no simple solution," Chamber CEO Bruce Williams said. "A true fix requires a collaborative approach, though as we learned yesterday there are things we can do to improve symptoms while we work on more permanent solutions." After a series of reports of violent incidents in media, Chamber members had many questions about policing, mental health support and housing services. The need for more homes for all income levels is clear, as is a requirement for adequate health care and addiction treatment professionals. Those solutions will take time, even as the political will grows to invest in foundational change. While mistakes have been made, including in the early days of the pandemic when screening for supporting housing wasn't as closely monitored as it is now, progress is being made. The Chamber is working on policy issues such as legal reforms to keep repeat offenders off the street, and police are partnering with health authorities to enforce laws while assisting people in distress. "We can't ignore these issues facing the business community, but we also have a responsibility to not sensationalize them," Williams said. "Going Downtown is safe and our region really is one of the best cities in the world. That said, as with any city, if you don't feel safe, stay away from the few spots that are troubled, stay informed about what governments are doing and let's all be part of positive change." A new waterfront neighbourhood has been proposed for the area around the Capital Iron District. In an article in the Times Colonist, Reliance Properties CEO Jon Stovell said its plan for an arts and innovation district will go before City of Victoria council on April 18.
The proposal includes preservation of heritage buildings along Store Street and 12 new buildings over two city blocks adjacent to the Upper Harbour. The area known as the Capital Iron lands is bordered by Chatham, Discovery and Government streets. If the proposal is approved, the area will be home to 500 new housing units and provide working space for 1,800 people. It will also serve as a new home for the Art Gallery of Greater Victoria. Using available land on military bases for direly needed homes for military personnel can help solve Canada's housing crunch.
The Chamber is currently crafting a policy resolution on this solution for our national network to take to the federal government. This week, we heard good news from the feds. The defence policy update titled Our North, Strong and Free includes almost $300 million for Canadian Armed Forces Housing over 20 years. "Chamber members tell us one of the biggest hurdles for finding and keeping workers is the cost of housing in Greater Victoria," Chamber CEO Bruce Williams said. "We have thousands of Armed Forces personnel in our region, and providing more, quality housing on CFB Esquimalt land will free up homes off base for other workers." The update announced a total of $8.1 billion over five years and $73 billion over the next two decades to bring Canada closer to its NATO commitment. The District of Saanich's plan for the area around Uptown received a boost on Monday as the province announced it has secured land for a new transit-oriented development.
“Our communities are growing quickly, and people need affordable homes close to public transit, so they can get to where they need to go – and get ahead in life,” said BC Premier David Eby, who will be speaking to Chamber members on April 30. “This new development in Saanich will create a vibrant, connected community where people can find everything they need at their doorstep.” The land was bought by the BC Ministry of Transportation and Infrastructure’s $394-million property acquisition fund. Early plans for the area in Saanich include hundreds of new homes, public spaces and active-transportation connections. There will also be new retail and commercial spaces. Other suggested services include child care, community health and educational facilities. The development will integrate the Lochside and Galloping Goose regional trails to make it a hub for active transportation and BC Transit services, with connections to downtown Victoria, the University of Victoria, the Westshore and the Saanich Peninsula. “The Uptown-Douglas area is the perfect location for a high-density, transit-oriented development and regional transit hub that will no doubt be transformative for this community," Saanich Mayor Dean Murdock said in the news release. Luke Mari, principal of Aryze Developments commented on the announcement, saying “The best transportation plan is a land-use plan. When we put the right homes in the right places – near existing services amenities and transit – we can reduce our dependence on private car use.” BC Premier David Eby and Housing Minister Ravi Kahlon announced new rules yesterday to give landlords and renters more certainty regarding tenancy agreements. The proposed amendments to the Residential Tenancy Act will increase flexibility and provide clearer guidelines for issuing evictions.
“While most landlords and tenants play by the rules and have respectful relationships, too many people in BC are still facing unfair rent hikes and evictions under false pretenses,” Eby said in the media release. “At the same time, many people who have chosen to rent part of their home are struggling to end problematic tenancies.” Under the new rules, rent increases will be restricted when a family adds a child under 19 to the household. Landlords also will need to give tenants a longer notice before taking over a unit for personal occupancy. "The Chamber supports policies to increase the supply of stable housing," Chamber CEO Bruce Williams said. "This requires a balance between protecting renters and making sure the rules aren't so onerous they prevent potential landlords from renting out available units." Williams said housing will be a major topic of discussion when The Chamber hosts Premier Eby on April 30. Register now to reserve your seat at the table. Leading to Election - Breakfast with Premier David Eby
Greater Victoria's real estate industry appears to be back in season.
"We have more inventory for consumers to consider when compared with recent years. This additional inventory improves both buyer and seller confidence as it means people have more options and more reassurance that they are going to be able to find their new home," Victoria Real Estate Board Chair Laurie Lidstone said in a media release. "As people buy and move, more properties are added to the available inventory, which supports a much healthier market. Supply really is key, and looking to the future we need to ensure that focus continues on the creation of new homes of all types and price points." VREB reported 2,647 active listings at the end of March 2024 — up 12% from February and 34.4% March 2023. In the core area of our region, the benchmark value for a single family home in March 2024 was $1,279,300, up from February's value of $1,247,400. The benchmark value for a condominium in March 2024 was $567,300, up from $557,000 in February. Six new projects in Greater Victoria funded in part by the province will provide 765 affordable rental homes. Two sites, owned by the Luther Court Society, in the District of Saanich at 1525 Cedar Hill Cross Rd. and 3781 Cedar Hill Rd., will be home to 95 new units of intergenerational housing with community support space on the ground floor.
“I’m thrilled to see support from BC Housing’s Community Housing Fund going toward several innovative projects in our community," Saanich Mayor Dean Murdock said. "Once completed, they will provide affordable rental homes for families, students and seniors. We want to provide housing for people at all life stages that provides a high quality of life, and these projects certainly contribute to these goals.” Other projects in the region include:
"The need for housing supply in our region is great, and even small efforts help," Chamber CEO Bruce Williams said. "We want our region to be attractive for people to live, start a family and build a career and affordable housing is key to making that happen." The rules targeting short-term rentals in BC have been updated to provide a little more clarity.
The Short-Term Rental Accommodations Act takes effect May 1. The updates, once approved, will include an exemption from the principal-residence requirement for certain strata-titled hotels and motels, so they can continue to operate. Strata hotels and motels consist of individually owned strata lots, where accommodation is provided in a manner similar to a hotel or motel. The definition requires the facility meet certain criteria, based on whether they were operational before Dec. 8, 2023. "The Chamber has been at the forefront of calling for increased housing supply, but we also stand for fairness and have called on government to protect purpose-built visitor accommodation," Chamber CEO Bruce Williams said. "Difficult decisions are required to find the balance between having enough rooms to adequately support our important visitor economy, and ensuring there are enough homes for all residents." A recently released report by Grant Thornton says Canada's real estate industry is looking for optimism in uncertain times. The report highlights current trends impacting the real estate industry, as well as trends across residential, retail, office, industrial and alternative asset classes.
Ongoing concerns include developmental pressures created by a shortage of labour in construction, environmental challenges as governments try to meet climate change targets and stubbornly high interest rates that are dampening investment. "The general economic uncertainty we currently face has left many organizations with less appetite for risk and a resultant focus on risk management," the report states. "To secure financing, borrowers need to get out ahead of their lenders and present a balanced risk profile. It will be increasingly important to present a transparent financial picture, get to know your lenders more closely, and get in front of renewals earlier in the process so that you have time to address potential concerns. Borrowers with less liquidity or poor cash flow are going to have a more difficult time securing financing, and those that do will see less favourable terms." Canada's Finance Minister and Deputy Prime Minister Chrystia Freeland made a surprise visit to Victoria on Monday for a meeting with BC Premier David Eby. With the federal budget coming on April 16, Freeland was in town to promote her government's investment in housing across Canada. "For me, it's actually pretty simple," Freeland said at a media event ahead of her meeting with Eby. "It's housing, housing, housing. Supply, supply, supply, affordability, a strong economic plan that delivers great jobs and a real focus on younger Canadians." Freeland stated $34 million in federal funding has helped create homes in Greater Victoria — something the Greater Victoria chamber continues to call for to help our region meet the demand at the root of housing affordability. Freeland highlighted Sawyer Block on Fort Street, which has 60 rental apartments, and a project in Cook Street Village that helped build 47 rental apartments. "Through the Apartment Construction Loan Program, we will also be offering low-cost loans to post-secondary institutions — like the University of Victoria ... so that they can build more student housing on- and off-campus," Freeland said in her presentation. "This will help more students to find housing they can afford close to where they study, and at the same time, it will mean that there are more homes available for those who live in those same communities year-round." Adding on-campus housing is another long-standing chamber advocacy priority, Chamber CEO Bruce Williams said. "This is a big win for our advocacy work. We know that one of the biggest challenges for building homes in Greater Victoria is our land constraints," Williams said. "Post-secondaries have the space. They need the right financing to make housing work and this is part of that solution." Construction has started on 66 below-market homes on Songhees Nation land.
Residents will pay no more than 30% of their income on rent in the six-storey apartment building, which will have studio, one- and two-bedroom homes. “This project symbolizes our unwavering commitment to providing safe and secure housing for all our members,” Songhees Nation Chief Ron Sam said in a news release. “We are excited to declare that this initiative represents merely the first step in a comprehensive plan aimed at ensuring the well-being and prosperity of our people.” The Songhees Nation contributed land valued at $2.8 million, while the Capital Regional District worked with BC Housing, which is providing $10 million, and the Canada Mortgage and Housing Corporation, which is chipping in $9.9 million. The building is expected to be completed in early 2025. Aryze Developments, the builder, is contributing $525,000 of in-kind design services. “The project at 1502 Admirals Rd. represents a true, layered partnership, where the private sector has teamed up with four distinct governments — Songhees, regional, provincial and federal — to deliver much-needed housing for community members," Aryze principal Luke Mari said. "This building is the epitome of rapid housing, from funding to construction in less than a year. On behalf of our team and our dedicated trade partners, we are honoured to be supporting Songhees Nation in this important, Indigenous-led housing solution.” On Friday, federal government representatives were in Victoria to announce agreements that will fast-track more than 900 homes on Vancouver Island over the next three years, with a promise of more than 16,000 homes over the next decade.
The $4 billion Housing Accelerator Fund, launched last March, will provide $33.5 million to Island municipalities, with the City of Victoria receiving almost $18 million for its Action Plan. “It takes collaboration and creativity to address the housing shortfall in our communities," Victoria Mayor Marianne Alto said in the news release. "This federal support empowers the City of Victoria to continue transforming our local housing policies and zoning processes to inspire and accelerate the development of diverse, innovative, affordable housing." Housing supply touches on almost every Chamber advocacy priority, including finding and keeping workers, safe communities and business growth and adaption. Housing supply is a keystone issue. It affects almost all other Chamber advocacy priorities, so we're pleased with yesterday's announcement of the BC Builds program. The goal of speeding up construction of more homes for middle-income earners is vital for ensuring we have the skilled workforce needed by employers.
It's too soon to know all the details of BC Builds, which the province says will leverage land owned by government, municipalities or non-profits along with $2 billion in low-cost financing and a commitment of $950 million for the overall program. The Chamber has called on all levels of government to look at solutions used in other jurisdictions around the world, including Vienna, Austria. BC Builds appears to do just that — though some municipal leaders are already pointing out gaps in infrastructure that need to be addressed. The executive lead for BC Builds, former Victoria mayor Lisa Helps, told Business in Vancouver the program will allow construction to continue on rental homes at a time it is being slowed by other forces. “BC Builds is not an affordable housing program, it's not supportive housing, it's not subsidized housing. It's really meant to close the gap above where BC Housing programs end and where we … start to really see a slowdown in rental development if there isn't an intervention,” Helps said. BC Builds at a glance: > At least 20% of all BC Builds homes will have rents at least 20% below market rate for projects in partnership with non-profits and First Nations. > All BC Builds units have a target of middle-income households spending no more than approximately 30% of their income on rent. > The rents for BC Builds will not exceed market rent for that community, and will in many cases be below. > All households living in BC Builds homes are income tested at move-in. > The income levels vary by community, so homes are within reach for that community’s middle-income households. > BC Builds projects aim to deliver more two-, three- and four-bedroom homes, as many as possible with below-market rents. > Projects owned and operated by non-profit providers mean rents will remain low over time, creating more affordability. There's reason for optimism in Greater Victoria's real estate sector, as a sense of stability is returning after what felt like truly turbulent times.
"Mortgage rates have levelled out, inventory is slowly creeping back up, and we are no longer in that highly pressurized market of recent years which created complicated and sometimes stressful conditions for buyers and sellers," Victoria Real Estate Board Chair Laurie Lidstone said in the organization's latest news release. "If balanced conditions continue, buyers and sellers will have more time to make decisions and there will be less pressure on pricing. Of course, there are many factors that impact the market here in Victoria, and, as we've seen in the past, things can change very rapidly." The real estate board had 2,140 active listings for sale at the end of January, a 23.1% increase from 12 months ago. The benchmark value for a single family home in January was about $1.24 million, down from December's value of $1.27 million. The benchmark value for a condominium in the Victoria Core in January was $559,000, down from the December value of $562,000. The Secondary Suites Incentive Program, introduced to all BC municipalities last fall, is being expanded to 16 regional districts, including the Capital Regional District.
“We’re using innovative solutions to make it easier for homeowners and communities to build homes faster, so people can live and work in the communities they love,” BC Minister of Housing Ravi Kahlon said in a news release. The three-year pilot SSIP will provide about 3,000 homeowners with forgivable loans for as much as $40,000 to create a new secondary suite or an accessory dwelling unit on their property. To qualify, the units must be rented below market rates for at least five years. In a separate news release, Kahlon also announced that the province issued a request for proposals that could lead to BC adopting an innovative housing solution used in places such as Seattle and New York City. A common practice in Europe, the solution involves allowing single staircases in residential buildings by updating an 80-year-old rule in BC's building code that currently requires two stairwells. The change would allow for larger apartments with more daylight, cross breezes and greenspaces. "The Chamber encourages all levels of government to embrace innovations that allow builders to provide the housing supply we need," Chamber CEO Bruce Williams said. "Looking at how other places in the world have solved the same issue we face makes sense." British Columbia's population is expected to reach 7.9 million by 2046, with Greater Victoria accounting for 655,000 people. Overall, the province is getting older than the rest of Canada, with a lower fertility rate, according to a BC Stats report released yesterday.
BC's current population is 5.58 million, with about 450,000 living in the Capital Regional District. The province's annual growth rate of 3.3% is the highest since 1972. The growth is from historic levels of international immigration as 66,190 people from outside Canada settled in BC. However, the province also experienced a net loss in people migrating within Canada as 4,634 more people left for other provinces than moved here. |
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