Saanich council has approved an amendment to a Housing Agreement for a 119-unit non-market housing project at 2249 McCoy Road, making the development eligible for a reduction in development cost charges. The vote, held on September 15, was unanimous.
The project, originally approved in May 2024, consists of two six-storey apartment buildings managed by the Capital Region Housing Corporation, a non-profit subsidiary of the Capital Regional District. The Housing Agreement previously ensured rental tenure for all units but lacked specific affordability provisions required to qualify for financial incentives.
The amendment now guarantees that all units will be rented at rates at or below market levels, not exceeding 30 per cent of middle-income limits, aligning with BC Housing standards. This ensures the project meets eligibility requirements for a reduction in development cost charges while protecting affordability for tenants.
District staff said the amendment corrects an oversight in the original agreement and reduces financial risk to Saanich. Even if the BC Housing funding agreement is cancelled, rent levels remain secured, safeguarding both tenants and the municipality.
The change provides a 100-per-cent reduction in development cost charges, a significant financial support measure for non-market housing developments. This reduction lowers construction costs and increases the feasibility of delivering affordable housing in the region.
Council members emphasized the importance of securing affordable housing while managing municipal financial risks. The amendment ensures that the community benefits from new housing without compromising budgetary responsibilities.
The project is part of Saanich’s broader strategy to expand non-market housing options and address the growing need for affordable rental units. By linking rent levels to BC Housing standards, the municipality ensures long-term affordability and accessibility for residents.
The Capital Region Housing Corporation, which will operate the buildings, has extensive experience managing non-market housing. Their involvement provides confidence that units will remain affordable and well-managed for the long term.
This amendment demonstrates how local governments can adapt agreements to better support housing affordability while maintaining financial prudence. It balances community needs with fiscal responsibility, a model for future developments.
Saanich’s action highlights the importance of ongoing oversight in housing projects. Ensuring that agreements include specific affordability measures protects tenants and allows developers to access essential financial incentives, such as development cost reductions.
The 119-unit project will provide critical housing options for residents, contributing to the region’s goal of increasing non-market housing stock. By adjusting the Housing Agreement, the municipality strengthens its commitment to affordability and equitable access to housing.
The unanimous council vote reflects strong support for practical measures that improve housing availability while safeguarding municipal interests. Residents can expect a mix of rental options that remain affordable over time, with clear oversight and regulatory compliance.
The development at 2249 McCoy Road represents a significant step toward addressing the affordable housing shortage in Saanich. With the amendment in place, the project can move forward with greater financial security and guaranteed rental affordability.
The 100-per-cent reduction in development cost charges not only reduces costs for developers but also ensures that affordable housing projects remain viable and sustainable in the long term. This approach encourages future investments in non-market housing and supports broader housing policy goals.
By updating the Housing Agreement, Saanich ensures that affordability, accessibility, and financial responsibility are aligned. The project will now provide secure, well-managed rental units that meet the needs of the community while following BC Housing guidelines.
The amendment sets a precedent for future housing developments, demonstrating that clear affordability provisions are essential for financial incentives and long-term project success. Saanich continues to prioritize practical solutions that benefit both residents and municipal planning objectives.
