Peachland Councillor Dave Collins delivered a sobering update on the state of housing development in B.C. at council香蕉视频直播檚 June 10 meeting.
It followed his attendance at a recent Urban Development Institute (UDI) luncheon.
香蕉视频直播淚t was a rather grim luncheon,香蕉视频直播� Collins said, noting that developers are struggling to make projects financially viable amid rising costs.
香蕉视频直播淚t香蕉视频直播檚 a fundamental structural change in the cost of development,香蕉视频直播� he said, pointing to soaring prices for materials and labour, as well as fees from all levels of government香蕉视频直播攎unicipal charges alone can add up to $100,000 per unit.
Collins, a licensed realtor, said one of the most urgent concerns raised was the impending implementation of Step Code 3, an energy efficiency standard that would effectively invalidate existing building plans and add hundreds of thousands of dollars to project costs.
香蕉视频直播淏ecause if you've got a development file and drawings on file, well, you can throw those drawings out, Step Code 3 wipes that are drawing out,香蕉视频直播� he said.
He noted that developers aren香蕉视频直播檛 starting new projects香蕉视频直播攖hey香蕉视频直播檙e only finishing ones already underway.
香蕉视频直播淲e香蕉视频直播檙e slowly going down into less and less building starts,香蕉视频直播� he said, pointing out that, in Peachland, 17 development parcels are up for sale, but no new ground is being broken. 香蕉视频直播淵ou can香蕉视频直播檛 force developers to lose money.香蕉视频直播�
Collins warned that the stalled growth puts pressure on the town香蕉视频直播檚 finances.
香蕉视频直播淚, for one, do not want to jack property tax rates up because we don香蕉视频直播檛 have a growing tax base,香蕉视频直播� he said.
Collins suggests that municipalities are going to have to think outside the box, and hopefully, the federal government will come to the rescue with some infrastructure money.
He said the ask from UDI is for the province to stop giving projects to municipalities because it takes up planning departments' time to implement these things.
Despite the challenges, there was some optimism. Collins noted that Housing Minister Ravi Kahlon has floated federal-level ideas to support housing delivery in BC. The UDI also urged reconsidering restrictions on short-term rentals, which previously helped developers reach pre-sale targets and secure financing.
香蕉视频直播淭here isn香蕉视频直播檛 one development project that doesn香蕉视频直播檛 need investors,香蕉视频直播� Collins said. 香蕉视频直播淏ut they香蕉视频直播檙e not in the market right now, because why would they be?香蕉视频直播�
The government does not have enough money to build housing, he pointed out.
香蕉视频直播淭hey can help, but they just don't. It's trillions of dollars. They're going to have to look at foreign buyers again, which used to help with presales and get projects off the ground.香蕉视频直播�
Mayor Patrick Van Minsel acknowledged the need for action.
香蕉视频直播淭his council will have to look at incentive programs for Peachland, and we will do that sooner rather than later,香蕉视频直播� he said. 香蕉视频直播淲e香蕉视频直播檙e already working with federal and provincial governments香蕉视频直播攖hey just need to listen.香蕉视频直播�
Chief Administrative Officer Joe Creron also supported offering incentives like property tax relief for a few years to offset Development Cost Charges. But he said the responsibility doesn香蕉视频直播檛 fall on government alone.
香蕉视频直播淲e all have to look, not just government,香蕉视频直播� he said. 香蕉视频直播淚香蕉视频直播檓 getting tired of everybody blaming government. Yes, we are part of the problem, but so is the industry.香蕉视频直播�
