Osoyoos advances plan to end Near Market Affordable Housing program
Osoyoos Town Council has given first and second reading to an OCP amendment tied to the proposed end of the Near Market Affordable Housing program.
Credit: Town of Osoyoos
OSOYOOS — Osoyoos has begun the formal process of dismantling its Near Market Affordable Housing program after 10 homes were sold through the program over roughly a decade, with the Town citing administrative demands and questions about its effectiveness.
Council gave first and second reading Sept. 22 to OCP Amendment Bylaw 1375.12, which would remove an affordable-housing requirement from the Southeast Meadowlark neighbourhood plan. A public hearing is scheduled for Oct. 13 at 2 p.m. in council chambers.
The program remains in effect while the repeal process continues. Town records also contemplate repealing Near Market Affordable Housing Policy PLA-017 and Housing Agreement Bylaw 1343 and discharging outstanding housing agreements registered against affected properties.
Adopted in 2016, the Near Market Affordable Housing program required developers using the Town's Intensive Residential Development zoning provisions to designate 15 per cent of approved residential units as affordable housing.
Those homes were generally to be sold for 15 per cent below the price of comparable market homes in the same development, with the comparison based on an appraisal selected and directed by the Town.
For developments of six units or fewer, the Town could allow either one affordable unit or a payment equal to three per cent of the final sale price of each market unit.
The program is aimed at homeownership rather than affordable rental housing. Eligible purchasers must meet Town requirements that include residency, citizenship or permanent-resident status, property ownership and employment criteria. Applicants are placed on a first-come, first-served waiting list.
Housing agreements registered on title impose conditions on participating properties. The current policy provides for a 15-year affordable-housing period and places limits on resale prices during part of that period.
An owner selling within the first five years is generally subject to a maximum resale price based on the original purchase price and changes in the B.C. consumer price index. After five years of ownership, the policy allows a home to be sold at market value.
The homes must also be used as the owner's principal residence and cannot be leased, sublet or operated as vacation rentals while the applicable restrictions remain in place.
The Town says the program's effectiveness is unclear and that administering it involves burdensome processes for municipal staff.
Ten homes have been sold through NMAH since the program was introduced, according to the Town.
The Town proposes to discharge outstanding housing agreements if the program is repealed.
Those agreements have not yet been removed from title. Registered housing agreements are legal instruments binding affected properties, and the Town's records describe their discharge as a future step in the repeal process.
The available Sept. 22 post-meeting record confirms first and second reading for OCP Amendment Bylaw 1375.12. A staff report also recommended first and second reading of a separate Housing Agreement Repeal Bylaw 1411, but the Town's meeting highlights do not confirm that those readings occurred.
Council had previously directed staff to begin the repeal process after an in-camera decision was made public Aug. 18. That direction called for repeal of Policy PLA-017, removal of the Southeast Meadowlark affordable-housing provision from the OCP and repeal of Housing Agreement Bylaw 1343.
If the OCP amendment is adopted, the current requirement that 15 per cent of new housing units in the Southeast Meadowlark area be affordable would be removed.
The staff report does not propose a replacement affordable-housing program. It identifies retaining or redesigning NMAH as alternatives, but says developing a new model would require further staff work, legal costs and potentially consultants or additional staffing.
The Town's current policy states that the NMAH program operates at council's discretion but will not be terminated without the Town meeting its existing written obligations.
After the Oct. 13 public hearing, the OCP amendment would still require further council consideration before it could be adopted.
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