TOWNSHIP OF ESQUIMALT STAFF REPORT
MEETING DATE: July 20, 2026 Report No. DEV-26-035
TO: Council
FROM: Bill Brown, Director of Development Services
SUBJECT: Year Two Housing Target Progress Report Form July 1, 2025 to June 30, 2026
RECOMMENDATION:
Recommendation
That Council:
1. Pursuant to Section 4 (3) (a) of the Housing Supply Act, receive the Year Two Housing Target Progress Report Form attached as Appendix “A” to staff report DEV-26-035;
2. Authorize the Chief Administrative Officer or his delegate to, as soon as practicable, publish the report on the Township of Esquimalt’s website; and
3. Authorize the Chief Administrative Officer or his delegate to, as soon as practicable, submit the report to the Minister of Housing and Municipal Affairs.
Body
EXECUTIVE SUMMARY:
On June 25, 2024, the Minister of Housing issued an Order pursuant to the Housing Supply Act in relation to the Township of Esquimalt. The Order, which came into effect on July 1, 2024, set out the following cumulative Housing Targets for the Township:
- Year 1: 81
- Year 2: 185
- Year 3: 325
- Year 4: 510
- Year 5: 754
The Township is required to prepare a Housing Target Progress Report Form after six months from the effective date and then annually thereafter. June 30, 2026, represents the end of year two. The Year Two Housing Target Progress Report Form is attached as Appendix “A”. It indicates that a total of 989 net new housing units have been completed in Esquimalt since July 1, 2024. Not only is this well above the Year Two housing target of 185 completed housing units; it is well above the Year Five housing target of 754 completed housing units meaning that Esquimalt has exceeded the provincial expectation in two-years.
BACKGROUND:
The province put housing targets in place in response to a critical shortage of housing. This program responds to housing supply issues which is only one of many variables contributing to the lack of affordable housing. Municipalities that receive housing target orders are selected by the province based on an analysis of selected index indicators including:
• Dwelling to population ratio
• Dwellings per residential land area
• Density to reach affordability
• Ground-oriented to multi-storey housing ratio
• Renter to ownership ratio
• Housing for workers and families
• Proximity to amenities
• Homelessness count
• Social housing waitlist
• Rural/urban community
Descriptions of each indicator can be found at the following web link: <https://news.gov.bc.ca/files/Selection_Index_Indicators.pdf>
The Township of Esquimalt was part of the second cohort of municipalities to receive provincially mandated housing targets. The other two Capital Regional District municipalities in this cohort are the District of Central Saanich and the Town of Sidney. Each of the municipalities that have received a provincial order outlining their housing targets are required to complete a Housing Target Progress Report Form annually. The Reports must be received by Council, published on the municipality’s website, and submitted to the Minister of Housing and Municipal Affairs within 45 days of the end of the reporting period. The province will use these reports to assess compliance with the housing target order. Communities that show a significant negative variance from the target may be subject to increased scrutiny from the province. The Ministry of Housing and Municipal Affairs may appoint an advisor to those municipalities that cannot meet their targets.
In addition to the mandated housing targets, the province has also provided the Township with non-mandatory guidance on types of units. These non-mandatory guidelines are based on Unit Size, Unit Tenure, Rental Unit Affordability, and Below-Market Rental Units as follows:
Unit Size:
• Studio/One-Bedroom 523 (with a minimum of 179 one-bedroom units)
• Two Bedroom 121
• Three or more Bedrooms 110
Units by Tenure:
• Rental 510
• Owned 244
Rental Units by Affordability:
• Market 244
• Below-Market 267
Below-Market Rental Units:
With On-site Supports 16
As indicated on the Housing Target Progress Report Form (Appendix “A”), 515 Studio/One-Bedroom units have been completed with 470 of them being one-bedroom. In addition, 400 two-bedroom units have been completed along with 74 three-bedroom or more units. In terms of tenure, there have been 556 rental units and 433 owner units completed in the past two years. In terms of rental units by affordability; 442 market rental units and 114 below market rental units have been completed. No units with on-site supports have been completed.
ANALYSIS:
Although it appears that the Township is lagging in three-bedroom or more units, it should be noted that this is a very common unit configuration in many small-scale multi-unit housing developments and this number should increase significantly next year as the first of these types of housing receive occupancy.
The Township is also lagging in below-market rental housing by 153 units. It is unlikely that the target of 267 will be met without significant resources from higher levels of government or non-profit housing organizations.
Finally, with the announcement by the federal government that there will likely be a significant increase in the number of members of the Canadian Armed Forces stationed at CFB Esquimalt, there may be increased demand for rental accommodation on or near the Base. It is unclear if any net new accommodation on the Base will be counted as part of the Township’s housing targets - this is a matter that staff will discuss with the province.
OPTIONS:
1. That Council, pursuant to Section 4 (3) (a) of the Housing Supply Act, receive the Second-Year Housing Target Progress Report Form attached as Appendix “A” to staff report DEV-26-035;
That Council authorize the Chief Administrative Officer or his delegate to, as soon as practicable, publish the Report on the Township of Esquimalt’s website; and
That Council authorize the Chief Administrative Officer or his delegate to, as soon as practicable, submit the Report to the Minister of Housing and Municipal Affairs.
2. That Council request that staff provide further analysis and present it at the next Council meeting bearing in mind that the statutory deadline for submission of the report to the province is August 14, 2026, therefore a Special Council Meeting would be required to meet the provincially mandated submission deadline.
COUNCIL PRIORITY:
Housing
FINANCIAL IMPACT:
There are no direct financial impacts associated with the Housing Targets Progress Report.
COMMUNICATIONS/ENGAGEMENT:
The Housing Targets Progress Report Form will be published on the Township’s website as soon as practicable after it has been received by Council.
TIMELINES & NEXT STEPS:
Following Council’s resolution to accept the Year Two Housing Targets Report Form, it will be published on the Township’s website and a copy of the Report will be sent to the Ministry of Housing and Municipal Affairs. The next Housing Targets Report will be presented to Council in July 2027.
REPORT REVIEWED BY:
1. Deb Hopkins, Director of Corporate Services, Reviewed
2. Ian Irvine, Director of Finance, Reviewed
3. Dan Horan, Chief Administrative Officer, Concurrence
LIST OF ATTACHMENTS:
1. Appendix “A” Year Two Housing Target Progress Report Form