The Housing Opportunities Reserve Fund

The intent of this fund is to encourage the development of affordable housing. The City will use monies (generated from land sales and leases as well as other sources) to acquire lands suited to development opportunities that would include affordable housing. Land would then be leased or sold to builders, non-profit housing societies, developers and others to achieve projects that include a proportion of affordable housing*.

With new sources of funding identified in 2005 (including an annual commitment to the fund as part of the budget process) the fund will reach $500,000 in 2005. The City has now also taken direction from its Social Planning & Housing Committee to use the fund to give grants in return for the provision of affordable housing.

Affordable units must be defined and kept affordable by written agreement with the City and must also be allocated to households with incomes that qualify for these dwellings. For non-profit rental housing that is subsidized by other levels of government, the City has committed to a $5,000 grant per unit provided. If it is new rental housing that meets the City’s requirements for affordability, but is not subsidized by other levels of government, there is a $2,500 per unit grant available.

In addition, the City has decided to waive development cost charges for new non-profit rental housing. Available research confirms an overwhelming need for rental housing that low income households within Kelowna can afford, instead of devoting the majority of their income to rent. The need for affordable housing that can be purchased is much less, but the City is also interested in projects of this nature.

* An acceptable benchmark of affordability is the proportion of income that is spent on housing; to be affordable, shelter should not account for more than 30% of one’s before-tax income in a rental situation.

If annual gross income is $18,680, housing costs should not exceed $467 per month.
If annual gross income is $23,560, housing costs should not exceed $589 per month.
If annual gross income is $28,920, housing costs should not exceed $723 per month.

For more information contact Theresa Eichler, Community Planning Manager, at 469-8633.