EXECUTIVE COMMITTEE APPROVES UPDATES TO AFFORDABLE HOUSING INCENTIVE

Another slate of updates to a standing city policy meant to increase affordable housing in Regina will be headed for final approval next week, after initial debate Wednesday at executive committee.

Recommendations to update the Housing Incentives Policy (HIP) passed with a unanimous vote in favour at Wednesday’s meeting, after discussion among city councillors about the purpose of the program.

Funded through the city’s Social Development Reserve (SDR) and a portion of property taxes, the full budget has been handed out twice since 2019.

Deborah Bryden, deputy city manager of city planning and community development, said the suggestions at hand on Wednesday will improve the program’s flexibility and responsiveness, and ultimately its outcomes.

All changes would align with other initiatives the city is pursuing in its pending Housing Accelerator Fund application, according to administration’s report.

“The intent of the HIP is to incent developers to integrate affordable units in their projects, not necessarily to incentivize new developments,” said Laura Pfeifer, manager of city revitalization.

“It’s about encouraging a shift, and providing support for purpose-driven organizations to access greater amounts of funding from government.”

Pfeifer said the policy has “historically been successful” in doing so, but natural shifts in the market over time lead to a need for change.

For example, current specifications say private projects in the city’s core must build at least four affordable units to qualify for HIP, but until last week, zoning rules obstructed such projects in those neighbourhoods.

“That’s where there might be some conflicts in this policy, with the intention of it,” Pfeifer said.

Over the past five years, HIP has supported the addition of 598 affordable units and 834 market units, like secondary or backyard suites, across Regina. Of those, 82 per cent have been in new development, or greenfield, zones.

Just seven per cent were in the North Central or Heritage neighbourhoods and none inside City Centre, all of which are named as priorities in Regina’s HAF targets.

Last year, $1.09 million was given out to support 35 new units, compared to 222 new units leveraging $2.2 million in 2021.

Pfiefer said the dip in starts isn’t necessarily indicative of interest, as “development comes in waves.”

An untethered $2.9 million currently sits in the SDR, and could potentially be handed out in 2024 should the updates be passed. It would boost the available grant pot to $4.4 million.

“We know construction costs have gone up, we know interest rates have gone up,” Mayor Sandra Masters said after the meeting. “To know that we can be a partner in this, to actually help facilitate and cover some of those costs, that’s really where it’s critical.”

Applicants, when reporting to receive ongoing tax exemptions, would also be able to switch which units are “affordable” in a project year-to-year, provided the number and types of units stays the same.

Additionally, the city manager would now provide oversight, delegating day-to-day authority to a director, and have the ability to make further minor changes to the policy. Bigger details, like project boundaries or funding, would still appear before city council, said Pfiefer.

“A big change here is us saying, ‘We’re going to be the first partner at the table,’ ” which is a big help to developers, said Pfiefer.

“Getting more rental units into market is vitally important, I think, for rent to stay at a lower rate,” Masters said.

Should the amendments be approved by city council on Feb. 14, the policy will be updated before applications open this spring.