Municipal tools to protect affordable housing

Preserving affordable rental housing takes significant investment, but funding isn’t the only tool local governments can use. Municipalities hold a unique set of additional tools that can remove existing barriers and keep affordable housing affordable.

Across British Columbia, forward-thinking cities are proving how local policy changes yield real social returns.

Here are few few examples of what has already worked across BC municipalities to secure the future of affordable housing for the people who need it most.

1. Coquitlam: Housing reserve contributions save 290 non-market units

Even without a dedicated acquisition fund, municipalities  can strategically deploy reserve funds to fill critical gaps in financing.

In Coquitlam, the City approved a $5.8 million grant from its Affordable Housing Reserve Fund (AHRF). This contribution was instrumental in protecting 290 non-market co-op housing units across the Tri-Branch and Garden Court co-operatives on Packard Avenue, shielding hundreds of residents from displacement.

With the support of the Rental Protection Fund, these homes were secured under community ownership. Residents were able to stay in the neighbourhoods they built their lives in, and new residents are now able to settle securely into long-term housing with them.

Here are two examples of what this contribution did for residents:

After losing her spouse, a long-term resident suddenly faced a new reality alongside her grief. As a co-op member, when she lost her partner’s income, she was able to stay in her home. Her housing costs were adjusted to reflect her new financial reality.

A 79-year-old visually impaired resident had lived at the co-op for more than 25 years and was losing her ability to upkeep her unit. She was offered a newly renovated one-bedroom home that fit her reality better. 

“Because the assets will now be held by the community, affordability today means affordability forever,” said BC Non-Profit Housing Association CEO Jill Atkey.

The City’s contribution helped make the acquisition possible, while the BC Rental Protection Fund provided the investment needed to complete the purchase; a perfect example of how municipal and provincial governments can work together to protect affordable housing that already exists.

2. Penticton: Strengthening long-term viability with tax exemptions

Property taxes are one of the ongoing costs non-profit housing providers account for. They directly impact the rents a non-profit must charge to keep the property financially sustainable.

The City of Penticton, recognized this and updated its Permissive Tax Exemption Policy, shifting non-profit housing providers to an extended 10-year exemption cycle.

This change gives non-profits better certainty as they plan their long-term operating budgets. When evaluating an at-risk property, a stable tax exemption allows a non-profit to plan their acquisition with accurate, long-term financial models. They can then protect the lower rents, benefiting the community with stable tenancies.

The benefits of Permissive tax exemptions also extend beyond a property tax:

• They reduce red tape: Instead of forcing staff and non-profits to process complex applications every single year, a fixed 10-year calendar block heavily reduces administrative burden.
• They protect non-profits from regional and school taxes: A municipal permissive tax exemption has a cascading effect. When a municipality exempts an eligible property using Section 224 of the Community Charter, the exemption also applies to school and regional district property taxes under provincial legislation. As a result, qualifying non-profits are typically relieved of most property tax levies on the property, not just municipal taxes.

In combination with a grant from Penticton's Affordable Housing Pilot Funding Program, the City worked with the Penticton and District Society for Community Living to protect a property home to dozens of long-term residents.

“This program, along with our updated Permissive Tax Exemption policy, reflects our commitment to non-market housing and partnerships to protect affordable rentals so residents can stay in homes they can afford,” shared Mayor Julius Bloomfield.

3. Burnaby: Standardizing grants to increase efficiency

In real estate, timing is everything. Naturally affordable buildings go on the market unexpectedly, and private developers move fast, leaving non-profits behind as they often need more time to secure their funding sources.

Recognizing this barrier, the City of Burnaby overhauled its Community Benefit Bonus Affordable Housing Reserve (CBBAHR) to standardize grant distributions; the City explicitly updated its criteria to allow grants for buying market-rate buildings, provided the non-profit secures capital from the Rental Protection Fund. Once acquired, the building is legally protected by a 20-year affordability covenant under the Rental Protection Fund.

Burnaby’s structural update features:

• Standardized grant amounts: The City eliminated the slow practice of calculating grants based on waiving individual municipal fees, shifting to a standardized, transparent per-unit allocation, drastically reducing staff review time.
• Incentivizing family housing: Funding increases based on bedroom count, encouraging non-profits to secure family-friendly homes.

“We are not the primary funding source for affordable housing. We are here to augment,” said Burnaby’s General Manager of Planning and Development, Ed Kozak. “It’s intended to make it more efficient, more standardized.”

Working together can protect more affordable homes 

In the world of housing acquisition, efficiency is key to lowering costs and securing affordability sooner. 

For residents, it leads to peace of mind, sense of security, aging in place, and dignity.

Preserving affordable housing is a collaborative effort that can be done well when municipalities think outside the box. When municipalities optimize their local toolkits, they provide the foundation non-profits need to protect local communities, now and far into the future.

These are only a few examples, but there are many ways municipalities can use the tools at their disposal to help protect existing affordable homes, support non-profit housing providers, and strengthen communities for the long term. Together, we can help ensure more affordable homes remain affordable for the people and communities that depend on them.