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Cities can now create rental-housing zones

But new power has its limits, say Pitt Meadows, Maple Ridge
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Two tenants had to leave their apartment building because they couldn’t afford the higher rents after renovations. (THE NEWS/files)

While the B.C. government is trying to create more rental housing to ease the crunch, Maple Ridge is already making progress opening doors to people who can’t afford to buy their own place.

In the past year, the city has approved developments that will create about another 388 rental suites, the largest of which is the Sunrise Apartments complex on 122nd Avenue and 222nd Street.

That project, currently under construction, will see 288 rental units built in two new buildings. That’s spelled out in a housing agreement between the developer and the city. Two older buildings are being replaced by two ones, following a fire to the Sunrise in March 2015.

Maple Ridge-Pitt Meadows Community Services is also building 94 affordable rental units on 228th Street, while theRidge Meadows Association for Community Living is adding another six in Port Haney.

The city is also trying to get another eight apartments that will be built above shops at a condo and commercial development on 240th Street and 112th Avenue to be dedicated rental as well.

The B.C. government last week announced that it plans on changing the Local Government Act allowing cities to create rental-only zones. The changes also would allow cities to require existing rental buildings to remain rental, and prevent them from being turned into condos.

“Being able to zone for rentals, I think, would be very helpful,” said Maple Ridge Coun. Craig Speirs. But more details are needed. Rental apartments also can be expensive places to live, he added.

The city’s trying to create a regime that creates penalties for developers if they don’t create rental units. It’s also trying to create a pool of money, funded by community amenity charges, so that it could partner with senior governments for affordable housing.

The city also needs help with renovictions, where people are evicted or have to leave low-rent apartments to allow renovations to the building, that are followed by higher rents.

“Converting rentals to strata I think is horrible,” Speirs said. “I think this is very difficult for the people involved,” adding there are people who are now homeless, having lost their affordable rental unit.

“All of a sudden you get forced out of your affordable rental, and there’s nothing, absolutely nothing … and they end up on the street and it’s through no fault of their own.”

Maple Ridge Coun. Gordy Robson said the city has done a lot to create rentals. Metro Vancouver has also asked the city to create housing infill zones, where new homes are squeezed between existing older homes in order to increase population density and housing supply.

He estimates that 800 rental suites have been built in Maple Ridge in the last few years. “We do more, relatively more, than most municpalities in Metro Vancouver.”

Pitt Meadows Mayor John Becker though said the ability to create rental-only zones is “an excellent opportunity” for cities to help with affordable housing.

Many people fall between the cracks to get homes of their own, he added.

But that’s just part of the equation. Becker said most rental buildings are old, the result of the tax incentives given by the federal government in 1970s.

“If the federal government were to change back some of its tax rules, (on building depreciation ) they could with a stroke of the pen, literally incent the industry to switch to construction of rental housing,” Becker said.

As well, creating a rental zone won’t solve everything, Becker said. “If the economics aren’t there, the market will tell you if you’re telling them the right thing. It just won’t be built.”

That could see existing rental buildings continue to deteriorate and new condos or rentals won’t be built.

“To pretend that the municipalities armed with the ability to zone for rental, will now be able to wave a magic wand, through bylaw, is absurd,” Becker said.

The senior governments have the power to improve the amount of rental housing, he said.

“It’s a tax piece, plain and simple. You make it economically attractive for developers to risk their capital and they will do it.”