Kelowna, B.C., granted $31.5M in federal funding to fast-track new housing builds

The City of Kelowna, B.C., has signed a $31.5-million agreement with the federal government to fast-track the construction of nearly 1,000 homes over the next three years.

Federal Housing, Infrastructure and Communities Minister Sean Fraser was in Kelowna on Wednesday morning to announce the funding arrangement through Canada's Housing Accelerator Fund,a $4-billion federalinitiative to prompt more home building in cities.

"This is a fund that is designed to reward the most ambitious cities with direct financial support if they are willing to zone more densely, if they are willing to improve their permitting processes and create incentives to get people and home builders building homes for their residents," Fraser said.

The funding will allow the city to fast-track an additional 950 housing units over the next three years, with a greater focus on higher density housing, student housing, homes near transit and affordable housing units, and help pave the way for up to 20,000 additional homes over the next 10 years, Fraser said.

With the agreement, Kelowna becomes the first municipality in B.C. granted access to the Housing Accelerator Fund, joining a handful of other Canadian cities which have signed agreements with Ottawa under the initiative over the past several weeks.

"All of the incentives and all of the initiatives that we could have asked them to do, they were already willing to do," Fraser said.

"Anumber of years ago they increased zoning permissions that allowed lots that were previously zoned for single-family homes to hold up to four families in new developments."

The announcement was made in front of a newfour-plexdevelopment across from a city park an example of the infill housing Fraser praised Kelowna for encouraging. The ministersaid he toured the building earlier and met the people wholive there.

"I had a quick opportunity to speak with one of the residents, who said he and his family of two kids, like mine, are living the dream. They are next to a park, they can walk to school and they can have a nice home for their family to live in."

Fastest growing region in Canada

Kelowna will be expected to continue zoning changes to allow the construction of affordable and middle housing options and meet milestones to access all of the allotted funding.

Kelowna Mayor Tom Dyassaid the agreement means the city can continue to accelerate the housing construction needed to keep up with the rapid rate of population growth the city is experiencing.

"This ... investment means Kelowna can take an additional innovative stepto deliver more diverse, attainable and affordable housing options within our community for our community," Dyas said.

Buildinghomes along rapid transit corridors, makingcity-owned lands available for affordable housing projects in partnership with non-profit organizations and expanding the use of AI technology to streamline building permit applications are the city'spriories, according to Dyas.

Last year, Statistics Canada data pegged the Central Okanagan as the fastest growing census metropolitan area in Canada, growing 14 per cent since 2016.

A recent housing needs assessment conducted by the City of Kelownafound a deficit of nearly 5,000 homes and suggested the need for up to 26,000 new housing units by 2031.