City of Vancouver would act as landlord in bold new market rental plan
There was a lot of excitement at city hall this morning as the City of Vancouver announced a relatively unprecedented new market rental plan to target middle-income earners.
This initiative, led by the Vancouver Housing Development Office (VHDO), will allow market rentals on City-owned property. The strategy aims to optimize financial returns while generating non-tax revenue for the City.
The City says it’s a five-site pilot plan, with the first site located at Pacific and Hornby. The approach is under the Rental Housing on City-owned Land — Public Benefits Pilot Rezoning Policy.
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City staff said that the actual rental units would be based on provincial income standards, and to qualify, folks would need to have a household income between $90,000 and $194,000.
Since the rental units would be City-owned, the City of Vancouver would technically function as the landlord. The City believes that this has never been done in Canada.
City of Vancouver
The first step of the plan would be rezoning the pilot site at Pacific and Hornby, which is set to take place this spring.
“The proposed 54- and 40-storey buildings at Pacific and Hornby could provide up to 1,136 market rental homes, comprising a mix of studio and one- to three-bedroom units,” the City said in a release.
City of Vancouver
At a press conference at city hall, Vancouver Mayor Ken Sim said, “That’s over 1,000 units, or 1,000 homes for individuals, for families and workers, right in the heart of our city, close to jobs, schools and amenities.”
“Too many of our people, young professionals, families, and essential workers, are struggling to find a place they can afford to call home in Vancouver,” he added.
While the City would technically function as a landlord for these market rentals, it would still run rental operations through a property management arm. One of the primary goals of this plan is to generate long-term financial revenue for the City.
“This means more funding for the things that make Vancouver even better, renewing our community centers, growing the Vancouver Affordable Housing Endowment Fund and investing in projects that make Vancouver an even more vibrant city,” Sim said.
The new market rental plan would run parallel to the City’s other housing strategies in Vancouver, including continuing to offer affordable housing.