Steveston-Richmond East MP Joe Peschisolido is hailing the recent opening of a new, 129-unit subsidized, rental housing development as a prime example of what Canada’s new National Housing Strategy will bring to communities.
“This is a good example,” said Peschisolido.
Granted, the Granville Avenue development, dubbed Storeys, is largely a provincial-municipal effort, Peschisolido said more funding ($15.9 billion in total) will start to funnel into such projects across Canada between 2019 and 2029.
Responding to criticism from Richmond Centre’s Conservative MP Alice Wong, that the strategy is not being immediately implemented and does little to address housing affordability for the middle class, Peschisolido said the strategy is specifically designed for low-income people.
The $57.4 million Storeys used $3.1 million through the federal-provincial Investment in Affordable Housing Agreement.
But a major component of the capital costs, $19.4 million, came from the City of Richmond’s Affordable Housing Strategy, funded by new developments.
Peschisolido said the Canadian government will step up its contributions under the strategy, which will nevertheless remain dependent on provinces, municipalities and the development industry.
“You’re utilizing the market to get a public good.
“This policy is brilliant because it combines one’s heart and head where you utilize the role of the market, as well as government (help). Because there are times the private sector doesn’t function all the time,” he said.
Wong and the Conservatives were also critical about the strategy’s lack of details.
Peschisolido said his government needs time to consult with provinces and municipalities and that’s why implementation is delayed.
“We’ll work with the council to see what works for Richmond,” he said.
As the National Housing Strategy will hinge on municipal (and provincial) efforts, another Storeys-like project will depend on council being able to raise enough money in fees from new construction of single-family homes, townhouses and small apartments.
As of Dec. 31, 2016 the city has $23.7 million in the Affordable Housing Reserve.
Until last year, developers had reaped significant profits in Richmond over the past few years, while contributing relatively little to affordable, subsidized housing, noted a recent review of affordable housing fees by consultant Site Economics.
Then, under advisement of city staff and outside consultants, such fees were increased in 2016 for the first time since 2007. This year, they increased again to keep pace with land costs. Council is expected to review the fees in the near term.
The Storeys project was first announced in 2013 and was to be completed in spring 2016.
A new 80-unit subsidized apartment building is expected to be constructed at the foot of No.2 Road Bridge near Dover Park beginning in spring 2018. The former provincial government announced the project is in partnership with the city and Pathways Clubhouse Society.
