Minister of Housing, Infrastructure and Communities Sean Fraser holds a news conference in Ottawa on Oct. 23.Sean Kilpatrick/The Canadian Press
Canada’s Housing Minister says he is “disappointed” that politicians in B.C.’s Lower Mainland have voted to plough ahead with massive increases to development fees, defying Ottawa’s push to promote the construction of more affordable housing.
Sean Fraser had suggested delaying the increases, which will triple development fees in Metro Vancouver over three years, as a condition of receiving funding under Ottawa’s new Housing Accelerator Fund.
Friday’s vote at Metro Vancouver leaves $138-million in federal money destined for Surrey and Burnaby in limbo. Vancouver and other cities in the region had applied for money from the fund as well.
Opponents of delaying the higher fees said they didn’t believe that would create any affordable housing and accused Mr. Fraser of just playing politics ahead of a federal election.
The development fee increases, they argue, are needed to cover an almost $12-billion bill for sewers, parks and water services for new residents.
Previously, about half of growth costs came out of general tax revenue. The fee increases mean a builder will be paying between $11,000 and $15,000 more per unit by the end of the three-year period.
In a statement issued by his office late Friday, after the vote, Mr. Fraser said he would be looking to see whether the development fees are really being used to pay for sewers and water, “rather than to address existing fiscal challenges.”
The vote among Metro Vancouver’s approximately 40 board directors Friday revealed sharp divisions among the 21 municipalities, Treaty First Nation and rural electoral area that make up the district.
Directors from some of the fastest-growing cities in the region – Vancouver, Maple Ridge, New Westminster, Port Moody, the City of North Vancouver – voted to do what Mr. Fraser had asked: delay the start of the phased-in fee increases from January, 2025, to January, 2026.
Many said they didn’t think the delay would make much of a difference in producing more affordable housing – but approving it would unlock millions of dollars in federal money.
“I don’t want to play chicken,” said Vancouver Councillor Lisa Dominato, who moved the motion to approve a one-year delay. “I support our development-cost charges, but we can’t ignore the politics.”
But many other directors resented what they saw as federal government interference.
Those from a mix of fast- and almost no-growth cities – Surrey, Burnaby, Richmond, Delta, the Township of Langley, West Vancouver, Anmore and Belcarra – voted against delaying the fees.
With a weighted vote, the final count was 82-58 opposed.
Port Coquitlam Mayor Brad West called Mr. Fraser’s demands “akin to a hostage-taking,” while Langley township Mayor Eric Woodward said “it’s clear that none of this has anything to do with facts.”
Mr. Woodward said that if the federal government was really trying to improve the housing situation, it would have offered solutions, not just threats.
“I’m not hearing solutions. I’m not hearing about funding from the federal government on immigration targets.”
Directors did agree to conduct annual reviews of the development charges, including economic-impact analyses, and to look at extending waivers for different types of rental and affordable housing. The district already waives development fees for non-profit housing or privately built apartments where at least 30 per cent of the units are rented at below-market rates.
In his statement, Mr. Fraser said he would be talking to other levels of government in B.C. next.
“Before finalizing the funding decisions, I will be re-examining the proposed initiatives in each city’s application, and will make necessary adjustments where the initiatives conflict with the position taken at today’s Metro Van Board meeting,” he wrote.
“In addition, I will seek a conversation with provincial representatives, who I know are committed to seeing more homes built in British Columbia.”
He also said he and the rest of cabinet would be discussing whether other programs should have conditions attached before cities can get money.
Elsewhere, Mr. Fraser has asked cities to make infill housing – typically allowing four homes per residential lot – legal. Mississauga city council voted not to comply with that demand a couple of weeks ago, but Mayor Bonnie Crombie overruled her council days later.