Future residential developers will have to contribute toward creating affordable housing in Squamish. However, what form that contribution will take is still up in the air.
According to two economic consultants contracted by the district to research the viability of having developers assist in creating low cost housing, the idea is economically viable.
"There are about six different scenarios that council could pursue," said Blair Erb of Coriolis Consulting.
One of those scenarios would have developers offer a portion of any new development at a discounted rate.
"Under this scenario 10 per cent of space would be made available for affordable housing," said Erb. "On a 133 unit development that would be 13 units. If they were be sold at market value for $320,000, then the affordable housing units would be sold at $275,000."
At current interest rates a $275,000 property on a 30-year mortgage would require payments of $1,604 per month.
"That is definitely not affordable housing," said Coun. Patricia Heintzman.
Many of the other options that Erb brought forward were variations on how developers could contribute by making suites available at a below market value.
"With this we're not really looking at low income earners," said Noha Sedky of Citspaces, Erb's co-presenter.
"This would be for middle income earners, who may not be able to get together a substantial down payment."
The scenarios brought forward left some councillors questioning what type of impact they could ultimately make on the local housing market.
"I'm becoming less confident that we can make any inroads in terms of affordable housing," said Coun. Greg Gardner. "Because it's market driven, the question is how do we manipulate that market?"
Among the ideas discussed during the strategy session was changing the district's parking requirements for new developments."Each parking space that a builder provides costs about $12,500," said Heintzman. "If we require two spaces that is $25,000."Heintzman contended that by reducing the number of stalls required under Squamish's planning by-laws the savings would be passed on to the homebuyer.
"This would reduce costs, but depending on the site can cause traffic and parking problems," said Erb.The experts also advised council that the same amount of funds that developers could use towards on-site low cost housing could be available for a separate fund to create separate housing projects.
"We do need affordable housing," said Coun. Raj Kahlon.
"I am not confident that having this on-site is the way to do it. We should be looking at making single detached homes more affordable."
However, Kahlon's idea was not well received by some of the other councillors.
"I don't see how that's a possibility," said Coun. Corinne Lonsdale. "You can't make the land cheaper."
Another option council was presented with was allowing some developers to have higher densities.
"This could be a way to work with developers to make more affordable housing units available," said Erb.
Council agreed to revisit the issue again this summer, and the municipality is not the only government grappling with how to create affordable housing.
"There are intensive studies on this in a number of areas in B.C.," said Sedky.
"Across Canada there's a litany of examples where this issue is being meticulously looked at, and different communities are finding there are different ways of doing it."
