Kelowna’s housing supply will be bolstered in the years to come through significant federal funding.
Housing Minister Sean Fraser announced Wednesday his government would be providing $31.5 million to build more housing in Kelowna, B.C., through the recently announced Housing Accelerator Fund. The $4-billion federal funding program earmarks funds for municipalities to support housing.
“What’s very exciting is not the dollar figure. It’s the number of homes that the city is going to be able to build as a result of the initiatives that they’re launching,” Fraser said.
“Over the next three years, expect to see almost 1,000 homes, 950 added to the supply in the city, with up to 20,000 over the next decade. This is over and above the projected numbers that the city was already anticipating that they would see.”
The funding is tied to zoning changes that would allow for more mixed and middle housing options to be built. Twenty-five per cent of the money comes up front, with 25 per cent each of the following three years based on the milestones being met under the agreement.
Five other Canadian cities have already received a combined total of $419.3 million from the fund, though Kelowna is the first in B.C. to benefit.
Fraser said Kelowna has shown itself to be an ideal candidate for financial support with programs introduced years earlier, such as the four-plex, infill housing initiative.
“We’re pushing cities to bring more density by offering permissions as of right to build the kind of homes that people can live in,” Fraser said.
“The City of Kelowna demonstrated leadership a number of years ago when they increased as of right zoning permissions that allowed lots that were previously zoned for single-family homes to hold up to four families and new developments.”
Fraser said he just walked through a unit of that kind that he said did not change the character of the neighbourhood, but rather created more space for families.
Those who live there will be able to live next to a park, walk to school, and have a nice home, he said.
“This is what we’re trying to achieve across Canada but we can’t do it alone,” he said.
“We need nonprofit players. We need private developers. We need provincial governments, and importantly, we need ambitious leadership at the city level.”
Mayor Tom Dyas said Kelowna has a track record for getting more homes built faster.
That said, housing hasn’t grown as fast as needed in the last year. City data indicates that housing starts in Kelowna dropped by a third over the last year.
Dyas, however, pointed out that isn’t a Kelowna-specific issue.
“I think we recognize there’s a number of factors that go into play with respect to that,” he said on Wednesday.
“One of the things that we’re discussing this morning is the labour force that is needed to look at developing those houses, (and) interest rates that everyone is affected with at this particular point.”
He added that the city is looking at 3,600 to 3,700 building permits the city is trying to advance.
“It’s announcements like this which allow us to, again, advance those housing initiatives and to move forward with more because there is a need within our community,” Dyas said.