New program to encourage rental housing construction

There’s a new incentive program in Vancouver to encourage developers to build purpose-built rental housing.  There are some seemingly attractive aspects of this program but developers seem more focused on tidier short term profits and these are more quickly realized building condo towers.

Incentives under the new policy will likely be similar to those of the STIR program which included:

•  rental property assessment (on rental units only);
•  development cost levy waiver (on rental units only);
•  parking requirement reductions (on rental units only);
•  discretion on unit size;
•  increased density; and
•  expedited permit processing.

Whether this program will be enough to entice developers to build new rental units is a matter for debate. One thing is certain and that’s there is a shortage of affordable rental housing in this city.