Stakeholders in B.C.’s housing market are trying to read through the fine print after a sweeping announcement from the B.C. government.
It included financial incentives to help tame the rising cost of a home and could significantly change neighbourhoods in the process.
In the 1920s, development began in the Uplands neighbourhood of Oak Bay.
“They sold lots over time and, in fact, I think the last lot to have sold was in the early 70s,” says Oak Bay Mayor Kevin Murdock.
Large lots, zoned for single-family dwellings. It has become one of the most affluent neighbourhoods in B.C.
“What we’re really going after is to level the playing field for affordable and obtainable housing here,” said Premier David Eby on Monday.
Eby announced sweeping changes in order to get more homes built faster, including making blanket changes to zoning and allowing four units of housing on a traditional single lot.
That would include Uplands.
“We would not be able to say it can only be single-family homes. It would be up to four units if that’s the provincial legislation,” said Murdock.
As of now, council has final say on what gets built in the community, including having sighting and design authority.
With the premier being short on details during his press conference and legislation not being tabled until the fall, the mayor doesn’t know what powers council will be left with.
“There’s no details here and I think that could be a stumbling block for many owners,” said David Hutniak, CEO of LandlordBC.
Hutniak is curious about another element in Monday’s announcement.
Homeowners will be able to access a forgivable loan of 50-per cent of the cost of a renovation, up to $40,000, for the construction of a secondary suite.
The catch is the suite has to rent below the market rate for at least five years.
“The big unknowns are around what the below-market rent will be,” said Hutniak.
That will determine how many homeowners will take advantage of the program and if it would even make financial sense.
“Press conferences aren’t typically a place where governments introduce a great deal of depth to any policy,” said Dan Reeve, a political science instructor at Camosun College.
Reeve believes the premier was intentionally short on details because it was more of a shot across the bow of municipalities.
“Telling municipalities that we [the province) are willing to intercede into municipal zoning if you don’t do it,” said Reeve.
Oak Bay council is currently working on plans to allow more than one home on a lot but with a provincial housing plan that many say is vague on details, the mayor wonders if the region should just wait until the fall.
“I think until we understand how this is being implemented, it’s very hard to know what we do next with it,” says Murdock.
