The City is taking a leadership role to make housing more affordable, accessible and attainable for people in the city. Affordable housing priorities are outlined in the City's Housing Strategy and affordable housing actions are detailed below.
Fast Track for Affordable Housing
Fast Track for Affordable Housing accelerates the delivery of new non-market affordable rental and non-profit cooperative housing projects. Non-market applications need to secure affordability and rental tenure through a legal agreement. Applications must be consistent with applicable development permit guidelines and are generally delegated to staff and prioritized.
Developing Non-Market Housing in Residential Areas
In priority growth areas, non-market housing that is subject to City’s Zoning Bylaw 2018 can access additional density through density benefits (Schedule C of the bylaw).
Properties Subject to the Zoning Regulation Bylaw
Properties subject to the City’s Zoning Regulation Bylaw can build up to the maximum density outlined in Schedule O of the bylaw without a rezoning application or Council approval if:
affordability and rental tenure are secured with a legal agreement.
applications are consistent with design guidelines previously approved by Council.
existing zoning allows for the proposed residential use (e.g., multiple dwellings).
projects do not exceed the maximum density as outlined in Schedule O of the Zoning Regulations Bylaw.
Tax Exemptions for Affordable Rental Housing
The Affordable Rental Housing Revitalization Tax Exemption (RTE) Bylaw establishes a program to provide 10-year tax exemptions to support new non-market rental housing projects and encourage builders to include median-income rental units in new market rental projects.
The Affordable Rental Housing Revitalization Tax Exemption (RTE) Bylaw establishes a program to provide 10-year tax exemptions to support new non-market rental housing projects and encourage builders to include median-income rental units in new market rental projects.
Under the RTE program, the City issues a property tax exemption for the increased property value resulting from the construction of the rental building. (Schedule A in the bylaw provides an example of the formula used to calculate the exemption). Non-residential portions of the rental building are excluded. The exemption certificate comes into effect after the occupancy permit is issued.
Eligibility
All new non-market and market rental development projects that have not received occupancy permits and have five or more units are eligible to apply.
Program requirements are broken into two streams:
Non-Market Rental
The project is owned and operated by a non-profit housing provider
Applicants enter into a legal agreement securing rental tenure and affordability (flexible based on project) for 60 years
Offering the Right of First Refusal to tenants displaced by the redevelopment to the affordable units (in addition to the existing Tenant Assistance Plan)
Market Rental
10 per cent of the units must be secured at 95 per cent of the Canadian Mortgage and Housing Corporations’ median market rent for the City of Victoria for 60 years
Rental tenure of building secured in perpetuity
Offering the Right of First Refusal to tenants displaced by the redevelopment to the affordable units (income tested)
Application
Interested parties are encouraged to submit a Revitalization Tax Exemption Program application form when submitting their rezoning or development permit applications to help streamline the legal agreement process. However, applicants can still apply any time before receiving their occupancy permit. Applicants should indicate their interest in the RTE program to the development planner for their file and schedule a meeting to discuss their application.
Development Cost Charges Grant Policy
The Development Cost Charges Grant Policy (DCC Grant Policy) is part of the City’s ongoing efforts to enable more affordable rental housing by reducing costs for non-profit housing providers.
The Development Cost Charges Grant Policy (DCC Grant Policy) is part of the City’s ongoing efforts to enable more affordable rental housing by reducing costs for non-profit housing providers. This policy allows grants to non-governmental non-profit housing providers that cover up to 100 per cent of the residential DCCs for the proposed non-market rental housing project.
To be eligible for the grant funding, affordable rental projects must be located within the City of Victoria and applicants must:
Be a non-government non-profit organization that delivers affordable housing for very low-, low-, median- or moderate-income households
Demonstrate they will be the long-term operator of the proposed housing
Submit a complete development permit application
Demonstrate alignment with at least one of the affordable rental housing priorities identified in the policy
Application Process
As described in the DCC Grant Policy, applications must be submitted to the City with or following a Development Permit application. Applications are reviewed in the order they are received and staff will confirm whether a project is eligible to receive a DCC grant.
DCCs will be applied as a credit to the total Development Cost Charges payable to the City when the building permit is issued. Grant amounts are subject to available funds.
Write a brief letter that summarizes how the project aligns with eligibility and project priorities described in the City of Victoria DCC Grant Policy.
Provide a recent annual report prepared by the non-profit organization outlining affordable housing activities, operations and governance.
The Affordable Housing Standards Bylaw helps guide the City and housing providers when securing rental housing and below-market homeownership units.
The Affordable Housing Standards Bylaw helps guide the City and housing providers when securing rental housing and below-market homeownership units. The Bylaw provides a resource for housing providers by setting maximum rental rates and income limits that align with affordability targets.
