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Steps taken to incent long-term rental housing creation
Village of Radium Hot Springs council Nov. 14 adopted a taxation incentive bylaw intended to encourage developers to build long-term rental housing.
“Council has identified housing development, and incenting long-term rental housing, as a priority for the village,”said acting mayor Dale Shudra. “From the campaign, into this council’s first year, it has been and will remain a point of focus of council and village staff.”
Under the Village of Radium Hot Springs Long-Term Rental Housing Revitalization Tax Exemption Program Bylaw, municipal taxes may be waived for a period of up to 10 years on qualifying rental developments.
Smaller scale rental developments of five units or less can qualify for a 75% reduction of municipal taxes for 10 years if the owner of those properties enters into a housing agreement with the village. The agreement is then registered on the property’s title, thereby cementing the long-term rental status of these properties for the life of the agreement.
Larger scale developments, of more than five units, can qualify for a 100% reduction of municipal taxes if the owner enters into a long-term housing agreement with BC Housing.
The reason for the 100% reduction of municipal taxes for larger projects is to greater incent larger developments that work with the province’s rental housing corporation – BC Housing.
Various types of long-term rental developments are eligible for a housing agreement with the Village — including secondary suites and accessory dwelling units. Existing units permitted before the date of bylaw adoption – November 14, 2023 – are not eligible.
Short-term rental properties are not eligible for the program.
BC provincial legislation allows municipalities to waive the municipal portion of taxes to achieve certain community development goals – in this case long-term rental housing. Taxes collected for other agencies, such as regional, hospital, and school taxes, cannot be waived.
In addition to the newly adopted bylaw, in 2022 the village previously adopted another taxation revitalization incentive bylaw to facilitate redevelopment of former industrial sites located in parts of the village.
And over the summer the village used grant money to purchase a three-unit long-term rental building in Radium Hot Springs which is being managed by the Columbia Valley Housing Society.’
e-KNOW file photo
Village of Radium Hot Springs
