Hurdles in housing crunch

By John MoorhouseThursday, July 26, 2007 http://www.pentictonherald.ca/stories.php?id=56174

Service clubs and other organizations could hold the key towards easing the affordable housing crunch in Penticton, says Mayor Jake Kimberley. However, local housing society officials say there are still a lot of hurdles to overcome. Ernst Schneider, finance officer for the Penticton Kiwanis Housing Society, said Wednesday the society has run into difficulties in the past since the government now provides less funding for housing aimed solely at seniors. "The problem is that we, as Kiwanis, don’’t want to go into anything else but seniors housing," he said. "That is a bit of stumbling block." The Kiwanis had earlier proposed a 57-unit, four-storey seniors development on Van Horne Street, but could not acquire provincial funding. Schneider suggested the province would likely be more sympathetic towards projects that call for more general housing -- including accommodation for "homeless at risk" people. "We don’’t want to get into that, because it’’s not an area where we have expertise," he said. "For straight seniors housing there doesn’’t seem to be much funding to be had." B.C. Housing does offer a matching grant program, which could be available. Schneider said the Kiwanis are working with the city on a possible project, but could not provide details at this time.

Tony Laing, executive-director of the Penticton and District Community Living Society (PDSCL), said the city could help by reducing development cost charges. "The city has always been good with (reduced) property taxes on an ongoing basis," he said. "One of the things we have had trouble with things like development cost charges to reduce the building costs upfront." PDSCL operates a number of low-cost housing projects throughout the city, such as Chesnut Place next to the Penticton Retirement Centre, Reid’’s Corner at Fairview Road and Winnipeg Street, and Creekside Terrace on Pickering Street. Laing said PDSCL is at least a year away from making a decision on future projects. Earlier this month, city council rejected a recommendation from its social development advisory committee that it consider establishing affordable housing facility on a portion of city-owned land at 2460 Baskin St. Instead, council will look into establishing a wide-ranging policy regarding affordable housing. Kimberley said he has met with a couple of developers on the issue, but nothing came out of those talks. "There is very limited interest in developing those kinds of projects because there’’s not as much money as other projects would accommodate in the present construction situation," he said. Kimberley said council is limited in what it can do the address the housing crunch since the city does not have the authority to apply for provincial government funding for affordable housing. "That’’s the dilemma we’’re in and it’’s shared by every municipality." The mayor pointed to $240 million for affordable housing projects the provincial government received from the federal government in 2005. He said city staff would be available to work with local service organizations in trying to gain a portion of those funds for a project in Penticton. Kimberley said he personally would support an effort by council to purchase land for affordable housing, but wouldn’’t like to see the city become further involved in the construction or management of such a project. "I don’’t think any council should be looking at becoming landlords of housing. It’’s not appropriate," he said. Meanwhile, council is looking at legalizing secondary suites in single family neighbourhoods. However, Kimberley said it’’s uncertain how many additional housing that will create since many homeowners already operate basement suites against existing city bylaws. "I don’’t think we’’re going to see a huge rush to city hall if we legislate the approvals of them," he said. "All it means is city hall is going to be more in demand to go out and make inspections."