The Brechin United Church, under slow construction to become a mix of market value and affordable housing. (Ian Holmes/NanaimoNewsNOW)

By Spencer Sterritt

price point

What constitutes ‘affordable housing’ in Nanaimo as housing market outpaces salaries?

Jul 30, 2020 | 5:31 AM

NANAIMO — Bank accounts are taking a sizable hit when paying mortgages and rentals, even when the projects are considered to be easy on the wallet.

Social media comments about several recently announced affordable housing projects in Nanaimo questioned why something considered “affordable” starts with rents at $1,100 for a studio apartment, up to $1,900 per month for a three-bedroom unit.

Similar comments are made whenever affordable housing projects are announced, such as 27 one-or-two bedroom units opening on Georgia Ave. or the redevelopment of the Brechin United Church into a mix of market-value and affordable rental units.

A statement from the Ministry of Municipal Affairs and Housing said it considers any project to be considered affordable when the monthly rent equals 30 per cent of less of a monthly salary.

Andrea Blakeman, CEO of the Nanaimo Affordable Housing Society, told NanaimoNewsNOW the term affordable housing is the “phrase of the day” which covers a wide-range of housing options.

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“Our organization has housing unit which range from shelter rates (at $375 a month) all the way to the moderate, middle-income. For some, that’s very affordable,” she said.

“There’s no one size fits all. That word affordable housing, I think, maybe needs to be unpacked and defined.”

For example, an “affordable housing” development in Victoria was announced for households with annual incomes between $48,000 and $100,000.

Blakeman said the idea of affordability tied to income is a “welcome” description of what many people commenting about the high cost of construction desire.

The Nanaimo Affordable Housing Society has several rent geared to income units, but Blakeman stressed it’s not an easy solution to housing woes.

“It’s not a cookie-cutter process, it’s a lot more complex. It’s a significant amount of paperwork and time to determine what the rent is.”

Another substantial hurdle with rent being tied to income is the large financial gap between what tenants pay and the market value of the housing.

“Who pays for the gap and how long is that gap paid for,” Blakeman said.

When asked directly about the cost of upper-end affordable housing not being affordable, Blakeman said it’s due to an elevated housing market and high construction costs.

“It’s a lot more than saying ‘Yes those rents are expensive.’ Old stock on the market is of course less expensive because those buildings no longer have mortgages, whereas these new buildings are going ahead with very large mortgages. People still have to make a profit, because if you don’t have a business you don’t survive and you don’t help anybody.”

Blakeman said everyone affordable housing unit added to Nanaimo does help bring down the average costs, but a long-term plan will be needed to make a substantial difference.

“We really need to make a larger, long-term game plan and look 20 and 50 years out. We need to look at where we are now as a society, culture and nation in all various formats, because there’s no one size fits all. It’s very regional.”

Graham Morry, executive director of the Nanaimo Association of Community Living, told NanaimoNewsNOW he’d like to see more fully subsidized housing included in new housing construction.

“That’s a key part of people being successful in their lives. Just look at the number of people living on the street still, they need a lot of support. Low-end of market housing doesn’t have services attached to it.”

Morry said he hopes the same conversations about the high cost of affordable housing aren’t continuing in one decade.

“I think we’re going to come a long way. There’s no doubt the federal and provincial government are stepping up in a way we haven’t seen in many years.”

spencer@nanaimonewsnow.com

On Twitter: @SpencerSterritt