A panel of planners and a representative from the Ministry of Housing gathered at the Housing Summit 2024 to discuss development finance changes stemming from legislation passed in the fall. Bill 46 specifically changes the framework for development and amenity charges, but is in context of several other housing-related bills that shift the way local governments plan for housing.
Conversation about development finance encompasses a lot of local government operations. One aspect the panel came back to again and again was affordable housing. The new structure for amenity contribution charges will prevent local governments from directing those funds towards affordable housing, as many currently do.
The Ministry of Housing has said they are aware of the gap created for funding affordable housing, and has announced that legislation for inclusionary zoning will be introduced in spring 2024. (Inclusionary zoning can require a certain amount of affordable, or below market housing, or accept cash in lieu.)
Local governments are looking forward to this new legislation, but planners in this session said inclusionary zoning alone will not fill the gap of affordable housing tools.
The tools local governments have to make housing affordable are limited.
“Inclusionary zoning is such a narrow conversation. The issue is affordable housing, period. In particular, housing that requires deeper subsidy,” said Lisa Spitale, CAO for New Westminster.
“We have some tools from a land use perspective, but they're really quite limited. So, I would say to the Province, ‘You need to really be leading this and we will support you.’ That's what the partnership needs to be.”
The impact of the legislative changes from bills 44, 46 and 47 caused Burnaby to create a new department of planners, but that’s not something every local government has the capacity to do. There is a real staffing constraint in BC, and not just in smaller communities with budget-based capacity issues. There is a shortage of planners, and local governments are competing against each other for the same knowledge pool.
The Province will release regulatory details to help local governments implement the legislation, in the coming weeks, which will help. But there are also calls for the Province to help lead coordination between planning departments to find staffing and project efficiency.
Questions from members also raised the issue of how to fairly divide the real costs of servicing growth for livable communities between developers, governments, and residents. Levying all growth expenses on developers could affect the viability of new developments, but the only other significant lever local governments have is property tax. Higher property taxes are paid for by all residents, including those struggling with affordability. Planners on the panel called for a coordinated look at balancing developer charges, property taxes, and support from other orders of government.