Moncton eyes expanding affordable housing grant program to include renovations

Moncton is considering expanding a little-used program to offset permitting costs to build new affordable housing construction to also include renovations.

The city launched a three-year pilot program in 2020. It allows developers to apply for a grant to offset the cost of municipal building permits and other fees based on the proportion of a structure with affordable housing.

The policy uses a formula that awards points based on various criteria such as affordability, environmental efficiency and proximity to transit and trails. The point total affects how large the grant may be.

"There is demand for making this city program more flexible," Andrew Smith, Moncton's manager of long range policy planning, told councillors during a committee meeting Monday afternoon.

Staff outlined several recommendations to expand or alter the program Monday.

The main change would allow building owners to apply when undertaking renovations for buildings with affordable housing, not just new construction. The staff recommendationdoes not spelling out what is meant by renovations.

Staff also recommended two changes to eligibility criteria: lowering the minimum percentage of affordable units from 30 per cent to 20 per cent, and lowering the minimum total building units from five to four to allow smaller buildings to qualify.

The policy considers housing affordable if it is 80 per cent or less of the median rent in the city, a figure published annually by Canada Mortgage and Housing, or if it qualifies as affordable under CMHC or provincial programs.

The city's existing program has only been used once. A non-profit built a 20-unit building and received a grant worth $9,720.64.

A city staff report notes another building with 76 units, 50 deemed affordable, is pending approval and is tentatively eligible for a grant worth $6,579.14.

Several councillors asked staff about the low use of the program.

Answers ranged from a lack of awareness to the time it can take for developers using programs through the Canada Mortgage and Housing Corporation to help fund affordable housing.

Concerns about the small amount builders could receive compared to the total cost of construction were raised when the program was first proposed.

Deputy mayor Charles Leger questioned why Rising Tide Community Initiatives hasn't used the program. Rising Tide received $15.4 million from the federal, provincial and municipal governments over three years to supply 160 units by 2023 in renovated or newly constructed buildings.

Its first 15 units in two buildings were completed in recent weeks.

No definitive answer was offered, Smith said the non-profit was made aware of the program "early on." Councillors were told staff would bring it up again.

Leger said he'd like to see Rising Tide be able to use the program, so it can use the money it would need to spend on permits instead spent directly on housing.

Coun. Daniel Bourgeois objected to the non-profit being able to use the program.

"They should be able to manage with $6 million," he said, adding he wouldn't be able to justify it to constituents. He moved a motion to exclude Rising Tide that failed when no one else seconded the motion.

Councillors voted unanimously in favour of the staff recommendations to amend the program at the committee meeting. It still needs to be approved at a future city council meeting.

Councillors will also consider whether to allow builders to apply retroactively, an aspect that wasn't included in the original recommendation Monday. No date for how far back it would apply has been set yet.

Other tools

Bill Budd, Moncton's director of planning and development, said during the meeting staff are preparing a separate recommendation to council to introduce a planning tool called density bonusing.

Generally, that allows a developer to exceed some bylaw limits like height or density if they include some affordable units.

Moncton, Dieppe and Riverview have also said they plan to introduce bylaws to enact inclusionary zoning, which allows a municipality to require a certain percentage of affordable units in some cases. Inclusionary zoning wasn't an option for communities until the province passed local governance reforms.

The province still needs to enact regulations related to that measure.