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Greater Victoria BC Real Estate - Municipalities looking at ways to address affordability issue in municipality.

Last year Victoria and View Royal began the process of legalizing secondary suites to help with on going rental crunch in Greater Victoria. Some estimates had put the number people residing in non-conforming suites as high as 70,000 people. I feel that may be a on the high side, but even at half that amount there are people potentially living in precarious living conditions. One complaint from a neighbour and they could be out. This problem in conjunction with Victoria’s homeless at 1500 is quite a concern. All this in conjunction with record high housing prices has made the municipalities in and around Victoria re-think there secondary suite policies.

Below is an article from the Times Colonist by Bill Cleverley who address the issue of Colwood going through this process. If only Saanich would do the same. Considering all the suites that exist there to help house the University housing issue 

Bill Cleverley, Times Colonist

Published: Monday, March 24, 2008Colwood wants to hear from the public on legalizing secondary suites.“The suites are here. It’s not a matter of if we do something, it’s when we do something.

There are so many of them that we have to do something,” Coun. Dave Saunders, chairman of Colwood’s planning and zoning committee, said yesterday.“

I think it’s better to be proactive than reactive.”

Colwood administrator Chris Pease said one of the first steps is trying to get a handle on how many secondary suites there are in the municipality.“

I think also there’s a real concern that some of the structures where the secondary suites are created are not safe,” Pease said.“

There’s also another area that you wouldn’t normally think about. And that’s if the house is on septic, is the septic field capable of handling an additional load.”

Colwood’s planning and zoning committee is recommending the municipality host an open house to be followed by a series of workshops on the issues.“

That would create the necessary knowledge for committee members and the public to understand what’s going to happen,” Pease said.

Given the importance of the issue and the broad range of public opinion, staff recommended that council undertake a mailout survey.

But the committee believes the municipality will get a bigger bang for its buck from the open house, Pease said.

Staff also had suggested that the municipality look at putting a non-binding referendum question about legalizing suites on the November municipal ballot, but council hasn’t made a decision on that yet, Pease said.“

There are certain areas that do have legalized secondary suites. A good example is sections of Royal Bay. It was permitted right from the start (of that development) to permit secondary suites,” Pease said.

Secondary suites have also been permitted in some other new developments but for the most part, the municipality only hears about the suites when they become a problem. The examination of secondary suites is part of an overall look at housing affordability in the municipality.“

I just think it’s time we look at the issue,” Saunders said.Like many municipalities, Colwood currently only reacts to secondary suites when there are complaints.

Saunders thinks there may even be a bylaw on the books that prohibits enforcement unless there is a complaint.

Suites are particularly beneficial because they provide rental units at a time when new rental units are not being built, Pease said.

A recent survey of Metchosin residents found that more than 70 per cent were in favour of expanding the allowable size of secondary suites there.

That municipality’s current policy permits one secondary suite attached to a dwelling unit to a maximum of 60 square metres (646 square feet) or 35 per cent of the gross floor area.

Last year, Victoria councillors voted to legalize secondary suites in family homes.

A patchwork of regulations covers secondary suites throughout the region.

Oak Bay bylaws allow each home to have two boarders, but not a suite.

Saanich, too, is considering suites, but is taking it slowly. A questionnaire put out in conjunction with the municipality’s review of its official community plan showed that about 75 per cent of those who responded were in favour of legalizing them.

View Royal has legalized suites, as has Sidney.

Legalizing suites allows municipalities to regulate them, and make sure they’re built safely and to code.

Colwood is looking at secondary suites in tandem with the issue of affordable housing. The committee has received a draft housing needs assessment as part of putting together an affordable housing strategy.

The assessment shows that buying a house is rapidly getting out of reach for many who live in the area.

“The big thing is the residential sale price trends. My God, you look at housing from 2002 to 2007 and prices have jumped from a median of about $220,000 up to $450,000. For condos the dollar gap is even greater,” Pease said.

Saunders said the city has been collecting $500 from every new lot created in an affordable housing fund and it’s time to put that money to work.

- Prices for the average single-family home in Colwood have doubled in five years from just under $220,000 to about $450,000. Townhouses and condos, while less expensive, are also rising. The median sale price for a townhouse is almost $400,000. These prices are out of reach for median income households earning $67,000 a year (single person household incomes are much lower) who can only afford to buy a unit that costs about $290,000.

- Only households earning more than $100,000 a year can afford to buy a single detached unit today.- Rents in Langford, View Royal, Colwood and Sooke stood at $836 for a two-bedroom unit in 2006, up form $815 in 2005. In Colwood, rental units comprise a declining proportion of the housing stock, dropping to 24 per cent in 2006 from 26 per cent in 1996.

- CMHC reports that amid growing population and strong employment there has been little investment in rental housing. This means a strong rental market of rental condos and of secondary suites. Rents continue to rise above inflation and availability is down slightly. In Langford, Colwood, View Royal and Sooke the vacancy rate was 1.5 per cent in 2007, up slightly from 0.9 per cent in 2006 but still amounting to few units.

Needs and gaps in Colwood’s housing supply:

- The primary housing need in Colwood is for modest, family-oriented housing that is within the financial means of young families — rental and ownership within the reach of those families earning $67,000. There were 1,910 two-person households with incomes between $30,000 and $70,000 in 2001.

- Households with low incomes including individuals and families who work for minimum wage or who live on a fixed income and who do not meet the criteria for existing senior government programs face a difficult time finding adequate and affordable housing. Rental housing could help fill the gap, particularly if combined with some incentives or subsidies. Non-market housing would be needed for the lowest income housing. There were 470 households with incomes under $20,000 in Colwood in 2001 and a further 370 with incomes ranging between $20,000 and $30,000.

 In the future it will be important to ensure there is a supply of units available to those who want to sell their homes and remain in Colwood. These would be smaller units, either owned or rented, requiring less maintenance and close to services, transportation and amenities.

For more information or comments on this article you can contact Bill Cleverley at bcleverley@shaw.ca

For more information on real estate in Victoria BC feel free to contact us at 250-920-7000 or though our website: www.PropertiesinVictoria.com

Cheers
BillBill Ethier B.Sc - REALTOR®Properties in Victoria Professionals- Royal LePage Coast Capital RealtyBill has been a REALTOR® in Victoria since 2006. Originally from the Vancouver area, Bill moved to Victoria to attend the University of Victoria where he received his Bachelor of Science. Not only does Bill have a wealth of real estate knowledge he is also an active member of the community. He is a member of Triple Shot Cycling Club, Island Road Racers and is the Race Director for the Sooke River 10K.