North Cowichan council unanimously decided at its meeting on July 16 to reduce the development cost charges for the affordable housing project proposed for 2731 Vian St. by $55,000, which is almost half the $120,000 it would normally pay the municipality in DCCs.
The five-storey, 28-unit housing project is being proposed by the Duncan-based Parhar Group, a family-run firm that specializes in residential and commercial construction management, in partnership with the non-profit Clements Centre for Families, which provides services for people with disabilities.
Most of the subsidized rental units would be occupied by adults with developmental disabilities who live independently in the community and are currently supported by the Clements Centre.
The partners intend to secure funding for the project through BC Housing’s Community Housing Fund.
A letter to council from the Parhar Group's Reena Parhar said North Cowichan’s DCC fees for the project present a significant impact on overall capital costs at the full rate and requested that council consider reducing or waiving the DCCs using funds from the municipality’s affordable housing reserve fund.
She said this would be consistent with other affordable housing projects previously approved by the municipality, such as the 92-unit housing project at 3191 Sherman Rd.
“Additionally, a reduction or waiver of the DCC fees would significantly offset rising project costs, including an estimated $600,000 to $800,000 in BC Hydro infrastructure upgrades to integrate the new development into the surrounding neighbourhood,” Parhar said.
“BC Housing places a strong emphasis on projects that demonstrate support from a range of equity sources. A reduction or waiver of the DCCs would help diversify the project’s funding, while also demonstrating North Cowichan’s commitment to creating and supporting affordable housing."
North Cowichan gave the first three readings for the project in May.
Mayor Rob Douglas said there are a number of means the municipality can employ to give the project the reduction in DCCs that the partners are asking for but, in his opinion, the best way is to draw $55,000 from North Cowichan’s affordable housing fund.
“BC Housing has told us in the past that about 80 per cent of these applications get rejected because there isn’t enough money to go around, so each [funding advantage] can make a big difference in terms of making the cutoff for the top 20 per cent,” he said.
Coun. Chris Istace had asked for a staff report for a future council meeting on the issue before council considered reducing the project’s DCCs, but relented when it was pointed out that the deadline for the partners to hand in the funding application to BC Housing’s Community Housing Fund is July 31.
