City gets temporary housing policy

by Wayne Moore - Feb 23, 2008 CASTANET

Some Kelowna City Councillors have shown their frustration lately over the lack of a clear policy to deal with developers asking for increased density. Council has looked for a definitive guidelines in regards to either the amount of affordable housing or cash-in-lieu a developer should provide when seeking increased density within a particular project. City staff will present Council with an interim policy Monday. A firm policy will be made once a report from a land economist is complete. "Council is frequently faced with development proposals for housing whereby there is an increase in density and the developer does not wish to provide affordable housing on the same site in return for the density bonus," says Community Planning Manager, Theresa Eichler. "There is a need for a clear policy to guide the amount of cash that should be contributed in lieu of providing housing on site." The proposed policy takes two forms, density bonuses within a particular zone and density bonuses beyond the Official Community Plan.

Within the prescribed zone, staff is recommending affordable housing of 50 per cent of the increase in net floor space, while cash-in-lieu would follow a complicated formula in which the developer would make a $30,000 donation to the Housing Opportunities Reserve Fund for every 1,000 square feet of additional floor space granted. Outside the OCP, staff is asking for an affordable housing requirement of five per cent of the total net residential floor space. A building with 100,000 square feet, approximately 100 units, would require 5,000 square feet devoted to affordable housing, or between five and 10 units. In place of affordable housing, the developer would be required to contribute about $300,000 to the HORF on that same 100,000 square foot building.