Increasing the supply of affordable and supportive housing is a key priority in Saanich. Given current market conditions, affordable housing is almost entirely delivered through the non-profit housing sector. The District is actively supporting and working in partnership with non-market housing developers, as well as prioritizing initiatives that benefit the non-profit housing sector in order to achieve this objective. Read more here about how we are making it easier for non-profit organizations to build and operate affordable housing in Saanich.
What is non-market housing?
Non-market housing is an important type of affordable housing. Non-market housing units are owned and operated by a government agency or non-profit society with rents usually secured through an agreement with the project funder(s). These agreements also guarantee that the housing units will remain as part of Saanich’s non-market housing stock over the long term. Non-market housing can range from deeply subsidized and supportive housing for those at risk of or experiencing homelessness, to near-market housing for individuals and families whose housing needs are not being met by the market. Non-market housing also often becomes more affordable over time, because rents will only rise enough to cover operational costs and will not be raised for profit.
Saanich’s Housing Needs Report highlights a significant need for non-market housing within the District, and Council has identified it as a priority through the Official Community Plan, Council’s Strategic Plan, the Housing Strategy, and other policies.
What does “housing affordability” mean?
Affordable housing means different things in different contexts. Usually, housing that is affordable means that a household is paying no more than 30% of their gross income on housing costs. This is a commonly used definition across many governments and organizations in Canada.
Because of the rising cost of housing, the market cannot currently deliver affordability for low-income households and many moderate-income working households. Non-market housing is an important way to provide long-term, stable, affordable housing for a range of households that may not be served by the private market.
Can housing affordability be delivered by private developers through inclusionary housing?
Inclusionary housing is a policy approach in which new market (private) residential developments are required or encouraged to include affordable or below-market units within their development. Under inclusionary housing, a percentage of units in a new development are offered at below-market rates for a period of time (for example, 20-50 years).
While inclusionary housing seems like a good way to get market developers to build below-market housing, it can be challenging to operationalize. A fair amount of density is needed for it to be viable, densities that often are not contemplated in Saanich. The management and operation of below-market units within a market development can be complex, and it is challenging for municipalities to monitor and track whether those units continue to be offered at below-market rates and they can easily be lost over time. It can be more beneficial to encourage contributions to the Saanich Affordable Housing Reserve Fund where the District can directly support non-market development to build housing that will be affordable for the long term.
Some new Federal funding and financing programs may require inclusionary units be provided. This can provide below-market rental units for a minimum number of years (such as 10). In these circumstances, the Federal government monitors the below-market units.
Rapid Deployment of Non-Market Housing Program
Because non-market housing is one of the most effective ways to deliver affordable housing, Council has initiated several initiatives to support non-market housing development. One of the most significant is the Rapid Deployment of Non-Market Housing Program (RDP), which consists of two key components:
-Non-market housing projects are eligible for pre-zoning if the proposed project is within the height and density limits supported by the Official Community Plan.
-For eligible non-market housing projects, Council’s authority to approve a Development Permit is delegated to staff.
Provided they are consistent with the OCP, these changes significantly lower the risk, reduce timelines, and increase opportunities for government funding for non-market housing projects. These advantages increase the probability that affordable housing projects get built in Saanich.
For more information on all the District supports for non-market projects, including the Rapid Deployment Program, click here.
If you are a non-profit housing provider, or are looking to develop non-market housing, please reach out to directly to planning@saanich.ca.