By Mark Squibb
The City of Mount Pearl is following recent trends across the country in prioritizing multi-unit, multi-story rental units to help combat the country’s housing crisis, caused in part due to record numbers of immigration, post-COVID inflation and higher interest rates.
The City hosted an Open House at City Hall last Wednesday morning for developers and contractors to meet with staff and learn more about five new housing incentives the City is offering.
The incentives are funded through the federal government’s Housing Accelerator Fund (HAF), a $4 billon program aimed at combatting the housing crisis by getting contractors to build homes faster.
Brian Power, Mount Pearl’s new Marketing and Economic Development Officer, said the City has some $6.1 million in HAF funding, and have allocated $650,000 for the five new incentives.
“A lot of it is for affordable housing,” said Power. “And there are some great incentives here to build within the City of Mount Pearl. And my job is to help facilitate. So, if you’re looking to build, a lot of the red tape you often find with municipalities, I will try and remove a lot of those barriers where possible, and as well show you what funding is available, upwards of a cap of $100,000 if you’re looking at multiple initiatives.”
The first incentive is a grant to help with construction of new buildings with four or more housing units.
That particular incentive prioritizes speed — applicants will receive $1,000 per unit if the occupancy permit is issued within three years, $2,000 per unit if the occupancy permit is issued within two years, and $3,000 per unit if the occupancy permit is issued within a year, to a maximum of $50,000 per project.
“We know that there is a need for housing, so we want people to build not only with integrity, but also quickly,” said Power. “We don’t want anybody sitting on permits for an extended period of time.”
Other incentives include a waiver of development fees – up to a maximum of $50,000 per project— a $10,000 per lot grant to encourage high-density development on underutilized parcels of land, and upwards of $15,000 in grants for pre-construction costs for affordable housing projects.
There is also a homeowner incentive; residents can receive $20,000 to build accessory dwellings within existing single-family homes or lots, or a $10,000 grant for existing, unapproved lots to become legal.
Mayor Dave Aker said the mixer was an opportunity for staff to get the information directly to those who need it most.
“We’ve hired the people necessary for the next three of four years to implement the funding, our strategic planning process is continuing, but this part of it is opening the doors to developers, contractors, builders, and the like so they can understand exactly what we’re doing,” said Aker. “So, we’re trying to get the message about the Housing Accelerator Fund into the hands of people who actually develop houses. Because if you don’t have a good relationship with the building and construction community, you can’t just expect houses just to show up organically… This is about opening the door and saying we’re open for development, and for a new type of development here in the city.”
Aker said according to developers the market for stand-alone houses is very soft at the moment, while the appetite for more rental houses in the region is growing rapidly.
The mayor added the City is open to developers ‘building up,’ so long as it’s in accordance with the City’s development regulations, though he allows some residents may not be onboard with the idea.
“We don’t want to wait for a proposal to come in and then surprise residents by saying, ‘We’re considering building, say, a multi-storey building,’” said Aker. “We want residents to have input, because we know down the road there are going to be some changes to neighbourhoods. The question then for council, and for our residents, is which neighbourhoods want the change. It’s not going to be an easy road. From time to time, yes, there will be challenges. I can’t pre-judge how council will feel, but I know my colleagues well enough that I know they want to be engaged with the community to ensure this is done the right way and in the best interest of the entire city.”
Aker noted the City has committed to building 300-plus new houses, mostly through intensification and re-development, and that the need for housing, not just in Mount Pearl but the region, is tremendous.
“We’re trying to encourage more young families to come to Mount Pearl, and we’re also trying to ensure that immigrants coming to the province that work in Mount Pearl or work in the region have places to live,” said Aker.
The mayor added that with increased housing comes a need for more public transportation.
“You may seem some changes in the forthcoming months in some of our bus routes,” said Aker. “Our bus routes are full. They’re at capacity. So, we’re working with Metrobus to see what we can do.”
Property owner Dave Howell and contractor Ash Chalmers were two of many industry professionals who attended an open house at City Hall last Wednesday.
“I just wanted to figure out what their goal was,” said Chalmers. “I learned a lot about the urban density situation that they’re trying to solve. Mount Pearl has a lot of spread-out housing that was appropriate for the time it was built, but in these days, they’re trying to increase that urban density and build up instead of out. This is stuff that I encountered in Vancouver when I lived there.”
Chalmers deemed the incentives the City is offering as reasonable.
“Anything helps out,” said Chalmers. “Obviously there is a problem that needs a solution.”
Council officially approved the five new incentives during this week’s public council meeting.
“This is all about building more houses more quickly,” said councillor Jim Locke during that meeting. “Intensification is a theme around this council table. We realise, with limited land space, that to be sustainable into the future, we have to increase our tax base, and one of the strategies going forth is to promote intensification.”
Councillor Isabell Fry threw her support behind the incentives, noting the negative impact the housing crisis is having on young families and minimum wage workers in particular.
“When there is such a demand for homes, prices for rentals increases, and that prices a lot for people out of the market for a home, “said Fry.
Councillor Mark Rice, meanwhile, noted there is still vacant land, both privately owned and City-owned, to be developed within the City.
Council approved the incentives unanimously, excepting that councillor Chelsea Lane was absent from the meeting.
