Bylaw No. 2225 – City of Langford Housing Agreement (1361 and 1371 Goldstream Avenue), Bylaw No. 2225, 2025

Staff Report to Council

DATE: Tuesday, April 22, 2025
DEPARTMENT: Planning
SUBJECT: Housing Agreement Bylaw No. 2225

EXECUTIVE SUMMARY

The owners of the Attainable Home Ownership partner building located at 1371 Goldstream Avenue (Trailside at the Lake) wish to amend the Housing Agreement registered in accordance with Bylaw No. 2145 in 2023 by adjusting the remaining mix of units available to qualified buyers of the Attainable Home Ownership Program (“the Program”). These changes respond to feedback and demand from prospective applicants for additional two-bedroom units in this project. Bylaw No. 2225 has been drafted to include the proposed new unit mix, which includes two additional two-bedroom units in exchange for five fewer one-bedroom and den units than the existing agreement. While this is an overall reduction of three units, a total of 28 units, or 22.5% of the total number of units within the development, will still be provided to the Program.

BACKGROUND

On January 10, 2022, Council adopted Bylaw No. 2013 to authorize the registration of a Housing Agreement for the property at 1365 Goldstream Avenue (which has since been readdressed to 1361 and 1371 Goldstream Avenue). This Housing Agreement required that 30% of the units within the buildings constructed on the property be sold as attainable units within the Program. It was subsequently agreed that these units would be allocated with the following unit mix:

Table 1 – Original Attainable Unit Requirements

On September 7, 2023, Council adopted Bylaw No. 2145 to authorize an amended Housing Agreement, which remains in effect. This Agreement reduced the number of attainable units from 37 to 31, adjusted the unit mix to include six additional two-bedroom units (a total of 13 two-bedroom units instead of seven), and converted all one-bedroom units to one-bedroom with den units. So, despite the total number of attainable units being decreased by six, there was no net loss of bedrooms, due to the provision of six additional 2-bedroom units. In addition to this, the functionality and flexibility of use for the 1-bedroom units was greatly improved through the inclusion of dens. The unit mix secured through this Bylaw is summarized below:

Table 2 – Current Attainable Unit Requirements

Staff note that all 13 two-bedroom units currently secured within this development have been sold, and six of the one-bedroom and den units have been sold.

COMMENTARY

When the Program was developed in 2021, a low interest rate environment made it possible for middle-income people with little to no down payment to qualify for a mortgage at nearly the same monthly payment (including taxes and strata fees) than they were paying in rent. While interest rates have decreased by ~2.5% over the past year, greatly improving affordability over the peak interest rate that was in place between mid-2023 to early-2024, it remains challenging for middle-income people to qualify for mortgages.

For example, under the initial interest rate environment, a $425,000 mortgage at a 2% interest rate for 25-years would require a monthly payment of approximately $2,040 including strata fees and taxes (with applicants qualifying at a “stress test” rate of 4%). By contrast, a $425,000 mortgage under the current interest rate of 3.89% requires a monthly payment of approximately $2,450 (with applicants qualifying at a “stress test” rate of 5.89%).

While these payments are less than those required last year, they remain higher than the average monthly rent for a comparable rental apartment, which currently sits at approximately $2,000 per month. The improved affordability has resulted in an increase in demand for the one-bedroom and den units over the past few months, as evidenced by the six recent sales; however, prospective applicants are still primarily interested in the larger two-bedroom units.

As discussions occurred between staff and the owner around how to most effectively address feedback from applicants and sell the remaining unsold units allocated to the Program in a timely manner, an exchange of one-bedroom and den units for a lesser number of two-bedroom units was explored. The owner determined that releasing five one-bedroom and den units from the Program in exchange for adding two additional two-bedroom units would be viable.

As such, Housing Agreement Bylaw No. 2225 proposes to replace the current Housing Agreement with a new Housing Agreement that would adjust the number and mix of attainable units available to qualified buyers of the Program at this location. The breakdown of the proposal is summarized in Table 3 below:

Table 3 – Proposed Attainable Unit Requirements

As the Program is currently sold out of two-bedroom units, this would create an opportunity for two additional qualified applicants to purchase a larger home, while retaining seven one-bedroom and den units for additional applicants seeking the smaller unit type.

FINANCIAL IMPLICATIONS

None.

LEGAL IMPLICATIONS

Pursuant to the Local Government Act, any new or modified housing agreement to be registered on title must be authorized by Council via a housing agreement bylaw. If Council supports the changes proposed as part of this amendment, the current housing agreement will be discharged concurrently with the registration of the new agreement following the adoption of the Bylaw.

STRATEGIC PLAN ALIGNMENT

1m – Pursue Programs and Partnerships for Affordable Housing.

OPTIONS

Option 1
THAT Council give 1st, 2nd, and 3rd Readings to Bylaw No. 2225.

OR Option 2
THAT Council take no action with respect to Bylaw No. 2225.

SUBMITTED BY

Leah Stohmann, RPP, MCIP, Director of Community Planning and Climate Change

Concurrence:
Melisa Miles, Manager of Legislative Services
Concurrence:
Donna Petrie, Senior Manager of Communications & Economic Development
Concurrence:
Yari Nielsen, Director of Parks, Recreation and Facilities
Concurrence:
Matthew Baldwin, RPP, MCIP, Director of Development Services
Concurrence:
Leah Stohmann, RPP, MCIP, Director of Community Planning and Climate Change
Concurrence:
Katelyn Balzer, P.Eng., Director of Engineering and Public Works
Concurrence:
Michael Dillabaugh, CPA, CA, Director of Finance
Concurrence:
Marie Watmough, Director of Legislative & Protective Services
Concurrence: Braden Hutchins, Deputy Chief Administrative Officer
Concurrence:
Darren Kiedyk, Chief Administrative Officer

Attachments: Bylaw No. 2225

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