$4B in funding skips Penticton
Penticton’s housing development scene will be just fine without a multi-million-dollar injection from the federal government, says the mayor.
The city is among hundreds across Canada that were left out of the federal government’s $4-billion housing accelerator fund, according to an announcement Monday from Ottawa.
Penticton’s share was estimated at up to $11 million when council in August 2023 agreed to submit an application.
Kelowna is the only Okanagan city that secured a deal, which is worth $31.5 million over three years.
Authors of Penticton’s plan, which was prepared by planning staff with help of a consultant and community input, believed it could lead to the creation of 407 new housing units by 2026, over and above 720 units the market is expected to build.
The seven initiatives in the plan were: creating a three-person team of city staff to direct policy changes; utilizing city land and potential new civic facilities for housing; accelerating new neighbourhood growth by assisting developers with infrastructure costs; starting a parking requirement reduction pilot; creating stock plans for fourplexes and duplexes to house the “missing middle;” removing or revising density and height restrictions; and pre-zoning strategic areas.
But those ideas are still on the table through a broader review of the Official Community Plan that’s underway now in response to provincial changes to housing legislation.
As a result, Mayor Julius Bloomfield likes where Penticton is heading.
“The federal funding would have allowed us to do more but it no way changes our focus or determination,” said Bloomfield in a press release.
“We’ll continue to lobby the senior levels of government for support and continue to build a stronger Penticton for all of our residents.”
Already this year, city council has approved projects featuring 72 new units of housing, added the release.
Penticton was among 544 municipalities that applied for cash from the housing accelerator fund, which resulted in deals with just 179 of those local governments, according to federal Housing Minister Sean Fraser.
The agreements, which run until 2026-27, are expected to help fast-track 107,000 permits within the next three years and build more than 750,000 homes over the next 10 years.
“We’ve allowed communities to advance local solutions in exchange for federal investments,” said Fraser in an interview with The Canadian Press..
Experts often point out Canada’s housing shortage is caused in part by excessive red tape, slow permitting processes and high development fees at the municipal level.
According to the Canadian Home Builders’ Association, average municipal approval timelines for housing projects in 2022 spanned from three months to nearly three years, depending on the city.
The housing accelerator fund has been touted by the Liberals as the solution to these problems. It offered communities federal dollars in exchange for changes to bylaws and regulations that would boost home construction.
Although the specifics of the agreements vary, Fraser says he’s managed to secure significant changes from cities, including the digitalization of the permitting process and an end to exclusionary housing, or zoning that limits what you can develop on specific land.
Under the agreements the federal government, municipalities receive 25% of their funds upon signing and 25% each year thereafter, provided they reach specified milestones.