In the hope of attracting new non-market lower-cost housing developments and supporting existing non-market housing projects, Saanich council has endorsed a new tax exemption policy.
Council unanimously approved the policy, which is designed to assure housing providers of their eligibility for property tax exemptions as they plan, develop, and operate non-market housing projects.
The policy, which some councillors noted formalizes existing practices, will only apply to non-profit organizations that provide rental housing and have the provision of non-market-priced housing as a part of their mandate.
Organizations will have to prove their non-profit status, information on the type of accommodation provided and disclose any parts of the property not being used for the intended purpose.
New non-market-priced rental projects, which may include redevelopments of existing sites, will be eligible for a five-year exemption for both land and improvements.
The idea behind the exemption is to reduce expenses and enhance viability in the first five years of occupancy.
For existing facilities, the policy will provide an exemption for improvements only.
The financial implication of the policy will shift the tax burden to other district property owners. However, the burden is not expected to be high as it is based on property valuations from B.C. Assessment, which sets reduced assessments for many non-profit housing providers.
The financial impact of the exemption on the 16 existing operators of non-market housing is $108,600.
Most of the non-market housing in the district is provincially owned and already tax exempt.
Saanich currently provides exemptions totalling $3 million annually to non-profit organizations including cultural and athletic clubs, community associations, community centres and supportive housing.
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