Help with a ‘catch-22’ now, tax relief later.
That’s what Pacifica Housing, a non-profit, requested from city council last week as it looks to purchase a downtown apartment building for affordable housing.
Pacifica Housing plans to buy a 45-bedroom complex at 275 Nicol St. B.C. Housing indicated it will kick in a $350,000 grant for the purchase and financing for a mortgage of the balance, but according to Dean Fortin, Pacifica Housing executive director, the catch-22 is B.C. Housing is looking for municipal support of a property tax exemption before it moves forward on a grant application. Pacifica Housing cannot get a permissive tax exemption until it is a building owner.
The exemption would cost $31,000 in 2018. Council granted the society a letter of comfort, which lays out the criteria required for permissive tax exemptions. Victor Mema, city chief financial officer, said it does not pre-approve the tax exemption.
Fortin believes the letter will give comfort to B.C. Housing “to say, listen, unless there’s unusual circumstances, it’s most likely that they will be successful and that lowers their level of risk, they are prepared to take that risk and loan the money and grant the money and we can move forward on this.”
Coun. Wendy Pratt said she supports affordable housing and this is a “wonderful opportunity” for Pacifica to provide more housing.
In a request to appear before council, Fortin had said rent will be reduced to 2016 Housing Income Level rates, which for a one-bedroom is based on an annual family income of $31,000.
Coun. Jerry Hong was supportive, but questioned if people don’t meet the low-income threshold, if they would be kicked out and if not, if they’d still get a discount. The Residential Tenancy Act would not allow eviction of tenants for that reason, according to Fortin, whose organization plans to go in front of council in October for an exemption with more information.