New West is unlikely to meet the province’s housing targets – saying some of the factors contributing to housing construction are out of its control.
The Province's Housing Supply Act, which came into effect in 2023, enabled the provincial government to establish housing targets for communities based on areas of greatest need and highest projected growth. On July 30, the province announced targets for “areas with the greatest housing needs” – including New West.
Of the 10 communities included on the July 30 list, New Westminster was given the highest target – with the province asking that 4,432 net new units be created within five years.
"Our government is working closely with municipalities to ensure more homes are built in communities with the greatest needs,” said Ravi Kahlon, minister of housing, in a news release. “By having these targets, all levels of government will be able to align to address the housing crisis and help build more affordable housing for people in these communities for years to come."
The best way to solve the housing crisis and build more homes is by working together. 🏡
— Ravi Kahlon (@KahlonRav) July 30, 2024
With the latest set of housing targets, we’re working in alignment with all levels of government so more homes are built in communities with the greatest need.
👉🏾 https://t.co/8fIrBIoPHv pic.twitter.com/0v51cN2EOl
At city council’s Aug. 26 meeting – its first since the targets were released – staff provided council with an information report about the province’s housing target order for New Westminster.
The housing target order outlines the total net new units the province wants completed in New Westminster, guidelines on unit distribution, and progress reporting details.
“The order states that the city is required to build 4,432 net new units over five years,” said the staff report. “The target is 75 per cent of the province’s estimated housing need for the city.”
The report stated the province encourages the city to try to meet 100 per cent of the total estimated housing need (5,908 net new units) over the duration of the order, which goes until July 31, 2029.
Given a variety of issues, staff say it is “unlikely” all of those units will be completed and occupancy permits would be issued within the required timeframe.
According to the staff report, the city anticipates having enough capacity in the zoning bylaw to meet the housing targets. The city’s official community plan will be updated to align with the new transit-oriented development area and small-scale multi-unit housing legislation, which staff say will further ensure there is capacity to enable the required growth.
“However, the city may be unable to meet the housing targets because development is mostly driven by market conditions (e.g. construction costs, lending rates), which are outside of the city’s control,” said the report.
The report noted that as of June 2024, about 6,000 new residential units are currently underway – under construction, approved but not yet under construction or in the planning review process.
“To meet the provincial target, nearly all of these units would need to achieve occupancy within the order’s five-year window,” said the report. “However, units generally take 1.5 to four years to be constructed.”
Council received the staff report for information.
In its news release, the province said municipalities will be evaluated after six months and then annually on their progress toward achieving the housing targets. The province said it will monitor progress and work with the municipalities to support them in achieving their targets.
In addition to targets for the number of new units to be created, the province has also issued housing guidelines regarding units by size, tenure, and affordability.
“While not a requirement, the province is encouraging the city to strive toward meeting these unit distribution guidelines,” said the report. “The province will measure progress by the annual net new housing units constructed, as well as other actions taken by the city toward meeting the target (e.g. adoption of other initiatives toward meeting the targets.).”
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