Victoria council narrowly agreed this week to provide a grant to cover property taxes for a housing society so it can continue its work to provide affordable seniors housing.
Council was split on the merits of the $168,560 grant to the Gorge View Society, which reflects two years of property taxes.
The grant, which will come out of the housing reserve fund and will cover property taxes in 2024 and 2025, passed by a vote of 6-3, with councillors Chris Coleman, Marg Gardiner and Stephen Hammond voting against it.
Opponents worried that the grant was provided outside of regular channels and might send a signal that the city is playing favourites.
“I understand the rationale to support a very good operator who has a lot of track record of great service to the community and to a component of the population that desperately needs help,” Coleman said.
But he added that it could open a door to some of the other 90 organizations that provide supportive housing in the city.
“This is not about the quality of the applicant or the critically important work they do, and we should try and find other ways of helping them, but we’re stepping into a funding area that’s going to cause us lots of trouble,” Coleman said.
Hammond said council could find itself in the difficult position of having to say no to other groups.
Executive director Corinne Saad said the society has little room in its budget because of inflation and having to pay more than $380,000 in development costs as it began work on the redevelopment of Chown Place — a 313-unit master-planned housing project off Harriet Road that will eventually replace the existing 108-unit low-rise seniors complex.
Saad said the society’s application for a tax exemption was denied, as affordable housing is not a category supported by the program
But the direct grant, initiated by councillors Matt Dell and Krista Loughton, was a way to get around that and allow the society to maintain its existing older housing units and keep rents low.
“I’m delighted — it’s going to make a real difference,” said Saad, noting property taxes represent 10 per cent of the society’s operating budget. “We’ll now be able to put the money into maintaining our existing units, making sure that our tenants can live in good, healthy housing.”
Dell told council Thursday that the society’s grant was an exception worth making, noting it’s a small non-profit that is in the midst of a transition into one of the city’s more established housing providers.
“We have certain not-for-profits who are established, they have very strong boards, they have strong connections to government, they can apply for every single grant, and then we have others who are trying to kind of find their feet and turn into that model,” he said. “I think Gorge View Society is that. This is kind of transition funding to help them out through that.”
Several councillors pointed to the need for the city to reconsider how its permissive tax exemption policy works.
“But until that work happens, we can’t let Gorge View Society fall through the cracks,” said Loughton.
The first phase of Chown Place is already open. The society has applied to B.C. Housing for funding for the next phase — 79 housing units in a six-storey apartment building, townhouses and a community centre.
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