Council Provides Feedback on Proposed Affordable Housing Reserve Fund

As I posted, Langley City now has a new zoning bylaw. One of the requirements of the new zoning bylaw is that all new residential projects within an 800-metre radius of the Willowbrook and Langley City Centre SkyTrain stations must have at least 2.5% of the units available for rent for at least 20% below Langley City market rates for the life of the building. Under BC law, a builder may either provide these units as part of a residential project or pay a cash-in-lieu amount to the municipality.

Outside these SkyTrain areas, the City now also has density bonusing that applies to low- and mid-rise, and mixed-use areas. These areas are all generally north of the Nicomekl River. Density bonusing allows a builder to have a higher density than otherwise permitted in exchange for 13% of the building’s units being affordable. These affordable units must be rented out for at least 20% below Langley City market rates for the life of the building, or the builder must pay a cash-in-lieu amount. The density still must be within the permitted land use. For example, in our low-rise areas, the maximum height would still be 6 stories, even with density bonusing.

Council is now developing an Affordable Housing Reserve Fund, which is required to accept cash-in-lieu payments per provincial requirements. At this Monday’s Council meeting, City staff noted that the Affordable Housing Reserve Fund can not only receive revenue from these cash-in-lieu payments, but that Council can also designate other revenue sources for the fund, such as a portion of the MRDT accommodation tax, which is charged when people stay at a hotel or short-term rental.

The City must set the cash-in-lieu payment rates to cover the true costs of building affordable units by BC law. The proposed rates are $400 per sq. ft. for woodframe projects and $500 per sq. ft for concrete or steel residential projects.

Council would receive and consider applications from non-profits or government-owned housing providers who would like to use the funds.

Council's primary feedback was that the cash-in-lieu rates should be reviewed frequently to ensure they reflect the true cost of building affordable units, that the funds be used to deliver 20% below market rates units that would otherwise not be built (ie, not used to offset the costs for an affordable housing projects that was already going to be builts), and that it wouldn’t be used to offset City fees and charges. The clear takeaway was that Council wanted to see more affordable units built near SkyTrain and in density bonusing areas.

Staff will now take Council's feedback and develop an Affordable Housing Reserve Fund bylaw and policy for Council's consideration at a future meeting.