COQUITLAM, B.C., March 4, 2024 – After record-breaking progress on new rental units in 2023, Coquitlam anticipates future housing gains could be impacted due to new provincial legislation.
Since Coquitlam adopted its Housing Affordability Strategy in December 2015, almost 1,000 new purpose-built rental units have been completed, another 2,225 are now under construction, and over 11,000 units were in the development application process as of December 2023.
However, according to a progress report to Council last Monday, the future of Coquitlam’s Housing Affordability Strategy is now in question due to wide-ranging impacts associated with B.C.’s suite of legislative changes
2023 Housing Highlights
Through the Housing Affordability Strategy, Coquitlam has leveraged tools historically available to local governments to facilitate housing affordability. This includes rental incentives (additional residential density made available to development projects in exchange for purpose-built rental units), and the collection and use of density bonus revenue to sustain the Affordable Housing Reserve Fund (AHRF) – an important financial tool the City uses to support new affordable housing opportunities, including retention of existing rental housing stock, in partnership with others.
Coquitlam is a regional leader in facilitating purpose-built rental housing and earned public praise from past B.C. housing ministers. Through the Housing Affordability Strategy, 2023 progress included:
- 274 new rental units completed in 2023 for a total of 980 new rental homes since late 2015, including 400 below- or non-market units (lower rates for lower/moderate incomes).
- Over 11,000 in new rental units in the development process by end of 2023, including nearly 2,000 below- or non-market.
- 2,255 rental units under construction by end of 2023, including 445 below-or non-market.
- Approval-in-principal of a $5.8-million Affordable Housing Reserve Fund grant to support 290 non-market units in 2023, for a total of $20.3 million in reserve funding to date supporting 957 non-market units.
- Developer contributions of $4.9 million for the Affordable Housing Reserve Fund.
- $12,520 in annual grant funding to the Tri-Cities Housing and Homelessness Task Group for a regional homelessness coordinator position to support a Tri-Cities approach to homelessness.
- Selecting S.U.C.C.E.S.S for a partnership to develop and operate about 150 non-market seniors’ units.
- Supporting the delivery of 42 new family-oriented townhomes by Habitat for Humanity.
- Updating the Zoning Bylaw to improve affordability in below-market rental and permitting lock-off units in townhouse and medium-density zones near SkyTrain stations to create flexible housing options.
Unknown Impact of Housing Legislation
The City of Coquitlam is adapting its Housing Affordability Strategy in response to recent changes in provincial legislation aimed at boosting housing supply. While these legislative adjustments present an opportunity for Coquitlam to showcase its innovative and collaborative approach in managing, prioritizing, and funding growth in the community, there are challenges forecasted that do not have an easy fix.
Changes to provincial legislation are intended to increase much-needed housing supply and affordability, however, there is an effect on the City’s Density Bonus Program. As a crucial funding mechanism for the City’s Affordable Housing Reserve Fund, the Density Bonus Program enables the City to provide additional density in return for the development of rental and below- or non-market housing.
The City is concerned the uncertainty brought by the new legislation will result in developers pausing applications involving much-needed new rental units and other housing. This could also affect the $25 million grant Coquitlam received this year through the federal Housing Accelerator Fund, which relies on the City meeting specified housing and growth targets.
In February 2024, due to anticipated implications of this legislation, the City took the proactive measure of putting disbursements from its Affordable Housing Reserve Fund on hold until a replacement funding source is confirmed.
Despite the challenges posed by recent legislative changes, the City of Coquitlam remains steadfast in its commitment to supporting the diverse housing needs of our community and will work with all levels of government to navigate the evolving landscape of housing affordability.
Find more information about the new legislation at coquitlam.ca/HousingChanges.
2024-2025 Housing Work Program
Coquitlam and other cities have a tight timeline to adapt their bylaws and policies to the requirements of the new provincial legislation. This will be a primary focus of the City’s 2024-2025 housing activities, diverting resources from other work.
Activities to understand and respond to the new legislation will include:
- Identifying the impact of new and upcoming provincial legislation on the Density Bonus Program, Affordable Housing Reserve Fund and Housing Affordability Strategy Rental Incentives Program.
- Identifying new policies, tools and revenue sources to enable Coquitlam to continue to be a housing leader while managing the impacts of growth.
- Updating the Housing Needs Report, Official Community Plan and related housing policies.
Some of this work coincides with the City’s responsibilities related to the federal Housing Accelerator Fund grant, including projects intended to speed up development approvals, encourage more purpose-built rental housing, update parking regulations, explore opportunities for small-scale infill housing (redeveloping single-family lots) Citywide, and strengthen partnerships with non-profit housing partners.
These projects will require significant staff resources, and work not directly related to the new provincial legislation or the Housing Accelerator Fund projects will be a lower priority.
About Coquitlam’s Housing Affordability Strategy
Coquitlam’s Housing Affordability Strategy was adopted by City Council in December 2015 to broaden the variety of housing types, sizes, prices and ownership in the city. A cornerstone of the Strategy has been the Affordable Housing Reserve Fund, which acts as the key funding mechanism for affordable housing projects by leveraging a portion of density bonus contributions from development towards potential affordable housing options.
The Housing Affordability Strategy’s structure and funding sources, including the Density Bonus Program and the Affordable Housing Reserve Fund, are under review in 2024 following provincial housing legislation introduced in late 2023. Information about the strategy is available at coquitlam.ca/housing.
Media Contact:
Andrew Merrill
General Manager, Planning and Development
DevInfo@coquitlam.ca
604-927-3430
We acknowledge with gratitude and respect that the name Coquitlam was derived from the hən̓q̓əmin̓əm̓ (HUN-kuh-MEE-num) word kʷikʷəƛ̓əm (kwee-KWET-lum) meaning “Red Fish Up the River”. The City is honoured to be located on the kʷikʷəƛ̓əm traditional and ancestral lands, including those parts that were historically shared with the q̓ic̓əy̓ (kat-zee), and other Coast Salish Peoples.