Dear Editor,
There is a desperate need for more rental housing units of all types in Richmond. The vacancy rate for all of Richmond in 2014 was 1.6 per cent. The vacancy rates in subsidized rental housing operated by the Metro Vancouver Housing Corporation was less than one per cent vacancy. Most of the units for rent in Richmond are old and were built in the 1970s and 1980s.
The local supply does not even come close to meeting the needs of the community. According to BC Non-Profit Housing Association’s Rental Housing Index, Richmond would need 3,560 more units to house all renters suitably.
Currently, Richmond developers are reluctant to build rental units in developments, preferring to build market housing for home buyers. To encourage development of new rental housing, the City of Richmond requires developers to set aside five per cent of units as low end market rental in developments of more than 80 units.
For developments under 80 units, developers have the option of making a cash contribution in lieu of providing rental units.
A cash contribution is offered to the city by developers more often than units.
The cash received from developers goes into the city’s affordable housing reserve, which is used to fund new projects such as the recently opened Kiwanis senior housing towers.
The city has done its best with the cash input from developers to facilitate development of low end market units and subsidized rental units.
However, average local costs for rental housing ranges from $800 to $1,300 for one bedroom units, 2 bedroom units cost $1,175-$1,300 and 3 bedroom units can cost $1,500-$2,100. These rates are not affordable for many low or fixed income families.
The senior levels of government need to step up and provide incentives to encourage developers to provide more rental housing at affordable rates. They largely abandoned housing as a priority years ago, and municipal government bears the load, along with the many non-profit agencies we partner with.
We need to do more. Here are some solutions which could ease the situation:
The city should require more developers to provide rental units as part of their developments, rather than simply making a cash contribution.
The city could increase the affordable housing percentage required within developments from five per cent to 15 per cent. An increased density bonus could be provided to developers who include critically-needed types of rental housing in their developments.
Our population is getting older and many are selling their homes and are looking for rental opportunities and finding demand far exceeds supply. On the flip side, our young people and families cannot find affordable rental accommodation in Richmond either and are moving elsewhere.
The city continues to strive to provide rental housing, but we need more partners at the table and creative new strategies to help us increase the number of affordable units. We can’t do it alone.
What are your ideas for increasing the supply of rental housing? Send me your ideas to [email protected].
Bill McNulty
Richmond City Councillor
