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 Ask
a HOME BUILDING Professional
The Canadian Home Builders ’
Association is a non-profit organization
dedicated to education, professionalism, consumer
awareness and
housing affordability.
Send your questions to
info@chbavictoria.com.
DCC's
My last column outlined multiple
challenges to housing affordability, especially when governments perceive
housing as a cash cow. These include local development cost charges (DCC's);
erosion of the federal GST rebate; and BC's property transfer tax.
These charges are often contrary to the recommendations of housing and
planning professionals. For example, the CRD's own Housing Affordability
Strategy recommends:
-
Reduce or waive development cost
charges for projects encouraging housing affordability.
-
Legalize and encourage secondary
suites. These suites are a social necessity, providing mortgage helpers
for owners, and accommodation for students, seniors, and care workers.
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Streamline the municipal approval
process. Processing times for development permits range from 36 days to
176 days in our region. Rezoning applications can take four to eight
months or longer. The costs of these delays are ultimately borne by the
consumer.
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Harmonize local government
development regulations and costs. Cooperation and harmonization among
municipalities are essential to create efficiency and affordability.
One Canadian municipality did
initiate some of these measures, and the results were impressive. The City
of Ottawa implemented a residential development program that provided
builders with exemptions from DCC's, building permit fees, and other
administrative charges.
The result was 64 housing projects and about 4300 units either built,
under construction, or in the approval process. The program was so
successful the incentives were expanded in 2000 and 2002. Property taxes
were also changed to eliminate a bias against apartment building owners.
The cost to the municipality was compensated by increased revenue from the
annual property taxes paid by the owners of the new homes. The waived
taxes and fees were recouped in less than four years.
To find professional builders,
renovators, trades and suppliers go to
www.chbavictoria.com or
contact info@chbavictoria.com
.
Look for "Ask a Home Building
Professional" every Wednesday in the Times Colonist. |