TOWNSHIP OF ESQUIMALT STAFF REPORT
MEETING DATE: January 27, 2025 Report No. DEV-25-004
TO: Council
FROM: Bill Brown, Director of Development Services
SUBJECT: Housing Target Progress Report Form - Six (6) Months
RECOMMENDATION:
Recommendation
That Council, pursuant to Section 4 (3) (a) of the Housing Supply Act, receive the Six-Month Housing Target Progress Report attached as Appendix “A” to staff report DEV-25-004;
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.
Body
EXECUTIVE SUMMARY:
On June 25, 2024, the Minster 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 after six months from the effective date and then annually thereafter. Housing units are based on net new units and are counted once they are ready for occupancy. In the first six months from July 1, 2024, to December 31, 2024, a net total of 224 housing units were completed and ready of occupancy in Esquimalt. These include 137 units at 874 Fleming Street, 72 units at 1310 Saunders Street, and 10 units at 812 Craigflower Road. This means that the Township has surpassed the Year 2 target within the first six months.
BACKGROUND:
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. More details about the cohorts and their housing targets can be found here at this link:
https://www2.gov.bc.ca/gov/content/housing-tenancy/local-governments-and-housing/housing-targets/orders#cohort-2 . Each of the 30 municipalities that have so far received a provincial order outlining their housing targets are required to complete a Housing Target Report. The Reports must be received by Council, published on the municipality’s website, and submitted to the Minister of Municipal Affairs and Housing within 45 days of the end of the reporting period. The first report is due after six months. Subsequent reports are due annually from the initial start date set out in the order. 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 Municipal Affairs and Housing may appoint an advisor to those municipalities that cannot meet their targets. Given that Esquimalt is significantly ahead of its housing target, it is anticipated that the province will be satisfied, and further scrutiny will not be required.
ANALYSIS:
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 here:
<https://news.gov.bc.ca/files/Selection_Index_Indicators.pdf>
Once a municipality is selected, the housing target is established by the province based on 75 percent of their estimate of Esquimalt’s housing needs or 75% of the municipality’s most recent housing needs report, whichever is higher.
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
With over 900 units currently in the rezoning process, over 700 in the development permit process, and over 1000 in the building permit process, Esquimalt should easily meet its 5-year target of 754 new units. Staff have not completed a more detailed analysis to ascertain the degree to which the Township will meet the non-mandatory guidelines outlined above.
OPTIONS:
1) That Council, pursuant to Section 4 (3) (a) of the Housing Supply Act, receive the Six-Month Housing Target Progress Report attached as Appendix “A” to staff report DEV-25-004;
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 deadline for submission of the report to the province is February 14, 2025.
COUNCIL PRIORITY:
Housing
FINANCIAL IMPACT:
There are no direct financial impacts associated with the Housing Target Progress Report.
COMMUNICATIONS/ENGAGEMENT:
The Housing Target Progress Report must be published on the Township’s website as soon as practicable after it has been received by Council.
TIMELINES & NEXT STEPS:
The next Housing Target Progress Report will be based on the period from July 1, 2024, to July 1 2025.
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” Housing Target Progress Report Form