Reduced DCCs for secondary suites

By Jennifer Smith - Kelowna Capital News - December 19, 2007

New development in the City of Kelowna may soon come zoned for secondary suites. Monday afternoon city council voted unanimously to approve a new 20-year service strategy that sets new development cost charges which make zoning for suites an affordable option for developers.“I think this makes a lot of sense,” said Coun. Carol Gran, noting the city is not getting any money from illegal suites. At present, if a developer wants to add a secondary suite into a house as it is built or into the zoning on lots being subdivided for building, the developer is charged two full DCC charges to help pay for the services the two new homes will need.But with the cost of land and building materials sending housing prices up, and a rental vacancy rate hovering around zero, developers have been lobbying Kelowna city council to cut them a break on the second DCC charge, so they can give new homeowners and renters a break.

Last month the city took the plunge and came forward with a new schedule of charges that would see the DCC on the suites halved, but developers said it still wouldn’t fly.“The move to reduce DCCs on secondary suites is encouraging, but unfortunately we do not believe that the proposed policy goes nearly far enough,” a letter submitted to the city late November from the Urban Development Institute states. As a result, the city’s finance department decided to drop the bar from an average suite charge of $11,000 to $2,500 and city council has tentatively approved the move. “I just don’t see the rational…We are saying every person living in a new secondary suite is going to be subsidized by $10,000.” said Coun. Barry Clark, who voted in favour of the bylaw as it was lumped in with several other new provisions he supports. Couns. Andre Blanleil and Robert Hobson were also skeptical, but said they’re willing to try the new charges.

“We need to be clear with the taxpayer,” said Hobson, who questioned city staff on where that subsidy was to come from. “We need to account for these dollars as a civic contribution.” Along with the new DCC charges for secondary suites, city council approved a rate increase on DCCs across the board and agreed to eliminated second kitchens from Kelowna’s zoning bylaws. There is also a new reduced-rate DCC for smaller apartments u nder 600 square feet and developments of less than four units will now be charged DCCs.