After crunching the numbers, two Colwood developers are saying they can’t afford to comply with the City’s attainable housing policy in the current market. But while councillors recognize the market is slowing down, they aren’t willing to completely forgo the seven-month-old policy.

“I don’t see developers in Langford begging to get out of (affordable housing contributions),” said Coun. Jason Nault. “I am loathe to give an exception to any developer.”

Colwood adopted its attainable housing policy in May. Similar to Langford’s award-winning strategy, it says developers must contribute one attainable housing unit for every 10 put on the market. Smaller projects contribute $500 per unit to special needs or low income housing.

Unlike Langford’s policy which only applies to single family homes, Colwood’s applies to all forms of residences, increasing the contribution from multi-dwelling projects, explained city administrator Chris Pease.

“It’s all very well for the City to change it because we do need to do something. But sometimes one forgets that the people who are paying the price is the developer (and the future homeowners),” he said.

Developers Michael Volk, at 591 Latoria Rd., and Stan Vowles, at 571 Latoria Rd., have asked council to revert back to the City’s original policy of a $500 contribution for each unit.

Colwood’s policy is very well-intentioned, Volk said, but it’s hurting developers. His two-year-old proposal for 93 units on Latoria Road would see him contributing nearly $500,000 toward attainable housing on top of other amenities requested by council.

“The notion of giving 10 per cent of your project away, it’s outrageous,” he said. “I’m not saying there isn’t a fair and equitable donation that could be made.”

It’s virtually impossible to get funding for major projects right now and adding affordable housing requirements into a condo project doesn’t help, he said. Banks and buyers alike are uneasy with the situation, he added.

It would be easier for developers if the City asked for a financial contribution toward attainable housing, rather than the donation of units, he said. In that way, developers and council could work together to determine the best location for affordable housing without hindering existing proposals.

“It they are going to have an attainable housing policy that is fantastic,” Volk said. “It just doesn’t work in a condo building, that’s all I am saying.”

When council reviewed the existing policy it was determined that the contribution was too small to actually get affordable housing built, said Coun. Carol Hamilton. The previous policy garnered $192,000 from developer donations.

Council approved second reading of the necessary rezoning bylaws for the Latoria properties, with Nault and Coun. Cynthia Day opposed. Staff were requested to work with the developer to see if a better compromise could be made before third reading.

Middle ground might be hard to find since council does have a policy in place, Pease said. There may be a possibility to amend the policy to allow contributions to be phased in over time, he added.

“It doesn’t make sense to put onerous requirements on them at this time,” said Coun. Ernie Robertson. “The key right now is to let people build. Some of the stuff we were able to ask for from developers a year ago they can’t afford to give right now.”

reporter@goldstreamgazette.com