FACT
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FACT
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Many local governments are seeking ways to assist community groups who want to develop supportive housing for seniors and other individuals with special needs. Both non-profit and for-profit housing agencies occasionally request assistance such as grants, property tax or development cost charge exemptions, use of city-owned property, or loan guarantees.
In the summer of 1998, the Legislature passed Bill 31, the Local Government Statutes Amendment Act. The bill amended the Municipal Act to give municipal and regional governments new powers to grant assistance for the purpose of benefiting the community. This fact sheet outlines those new corporate powers as they apply to helping a group that wants to develop a supportive housing project. A future paper will discuss the whole range of approaches that local governments already have through existing powers.
Making Agreements. New sections 176(1)(a) and (b) give a local government authority to make agreements with anyone respecting its own activities, works or services, and with a "public authority" respecting activities, works or services within the powers of any party to the agreement. A "public authority" includes another local government, the provincial and federal governments, and a whole range of public bodies, such as the BC Housing Management Commission.
Under this new section, a municipality could, for instance, agree by resolution to provide municipal services to a federally-owned site on condition that the federal government leased the site at no cost to a non-profit group for an Abbeyfield house.
Grant Assistance. New section 176(1)(c) gives local governments authority to provide assistance, by resolution, for the purpose of benefiting the community or any aspect of it. Section 181 defines "assistance" very broadly. Local governments may, among other things:
A tax exemption, however, may be provided only for a property value tax and as authorized by the Municipal Act (section 184). Assistance may not be provided by waiving development cost charges.
Although section 182 affirms the rule that assistance may not be provided to business, industrial or commercial undertakings, an exception is made in section 183: assistance may be provided under a "partnering agreement". A partnering agreement is defined in the new section 5. This exception is made so that local governments may enter into public-private partnerships, subject to requirements for disclosure and voting or petitioning opportunities (sections 177 and 178).
Using these powers, a municipality or regional district could help a non-profit society develop congregate housing by making a grant, exempting it from building permit fees, leasing the land at a cost well below market value, or guaranteeing a loan. It will have to publish notice of its intention before providing the assistance. If the liability created by a loan guarantee exceeds five years, the municipality or regional district will have to provide a counter petition opportunity, and the liability should be undertaken through a loan authorization bylaw.
Dispose of Property. The new section 176(1)(d) gives local governments broad authority to acquire, manage and dispose of property. This power can be used to exchange land, transfer land to a non-profit society or to dispose of land under a partnering agreement. Notice of such direct disposals (as opposed to offering land to the public for acquisition) must be published (section 189).
Some of these powers, such as leasing land below market value, could already be used by local governments wishing to help a non-profit agency to build affordable housing. These are now extended to for-profit groups. Local governments can now enter into a partnering agreement with a for-profit company wishing to develop supportive housing. Under the partnering agreement it may provide any of the types of assistance mentioned above for all or part of the development. A Housing Agreement (section 905) could be used to ensure that the company provides what it has said it will.
Bill 31 received Royal Assent on July 30, 1998, and came into effect by Order in Council on September 23, 1998. It is part of a substantial reform of British Columbia's Municipal Act that will take place over several years that will recognize local government as an independent, responsible and accountable order of government.
With regard to the use of those powers to assist supportive housing developments, readers are asked to refer to the legislation itself for further clarification, rather than relying solely on this fact sheet.
More information on the broad corporate powers introduced through Bill 31 may be found on the Office of Housing and Construction Standards Municipal Act Reform website.
More Information on Supportive Housing
Office of Housing and Construction Standards
(250) 387-7088
Housing Policy
homepage
Ministry
of Health (Office for Seniors)
(250) 952-1240
Office for Seniors
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