Significant changes ahead as the Town pushes for more multi-residential and rental housing

Huntsville Director of Planning Services Kirstin Maxwell was before the Town’s General Committee on March 26 with 17 recommendations to help incentivize the types of housing needed in the community.

Highlighting the findings of a Housing Needs Assessment conducted for the municipality, Maxwell noted the following:

• More than one-third of the population in Huntsville is 60 years old or older, and it’s the fastest-growing demographic group in the community.
• More than half of Huntsville’s population is currently earning less than the median income across the province.
• Lower average incomes are not reflected in the housing prices nor the forms of housing that have been created over the past few decades, being single-family detached dwellings.
• 80% of Huntsville’s current housing stock is comprised of single-family dwellings and there are notable deficiencies in one and two-bedroom units.
• 26% of Huntsville households are living in unaffordable, inadequate or unsuitable housing.
• Huntsville’s rental market vacancy is 0%.

To address some of these issues, the Town has developed a Housing Action Plan.

“To encourage affordability, we need to shift from large single-family detached dwellings to more compact forms of development, and that’s basically what the Housing Action Plan is going to focus on is multi-res and rental units so that we’re looking at addressing our greatest need,” she said.

Maxwell added that outside of the Housing Action Plan, the planning department is also working on considerations related to the height and density of development, rural lot standards, and a plan for lands north of Highway 60.

Maxwell said that in 2024, planning staff assisted proponents with approvals for ongoing work on 83 low-density, 99 medium-density, and 219 high-density units. “Not all were approved; some are still going through the planning process, but that was just for 2024.”

She said from a growth perspective in the urban area of Huntsville, there are currently approved developments comprising 1,900 units with another 700 going through the approval process and the majority of those consisting of single-family dwellings.

In the rural area of Huntsville, there are currently about 1000 vacant lots that could be built on.

“The growth strategy that the District completed last year notes that we would need 168 dwelling units annually with just over half of those being in the form of single-family dwellings and that we should continue to work with developers to specifically expand the supply of medium and high-density housing options,” she added. “Staff are recommending action items that are maintaining the vision of Huntsville as approved through the Strategic Plan and our Official Plan and ensuring that the community is well positioned for growth for the future.”

Maxwell explained that through the Housing Action Plan, staff are focusing on multi-residential development and rental housing and not on other forms of development. She also stated that the recommendations can be implemented using existing staff resources. Below are some of those recommendations.

• Appointing a planner as the go-to person or ‘concierge’ for multi-residential developments. That person would liaise with internal and external agencies and assist developers in the development process to be completed as efficiently as possible. She said by prioritizing these types of development staff would be looking for support if other types of development were to be delayed.
• Encouraging an increase in rental housing stock by facilitating secondary residential units (SRUs).
• Maxwell said the Town could procure structural drawings of preapproved plans for detached garages with an apartment above or different sizes of stand-alone buildings that contain an SRU, making them less expensive to build.
• Staff also proposed amending the Community Planning Permit (CPP) bylaw to permit two SRUs in a detached structure on rural lots.
• Recommendations were also made to change the number of strikes against a short-term rental (STR) before a license is revoked as a deterrent to having an STR and request a new property owner to own the property for a year before they apply for an STR license and removing the ability to have a STR in the urban residential low precinct (basically Huntsville proper).
• There are already breaks on development charges. No development charges (DCs) are charged for secondary residential units. DCs are also exempt through legislation when the purchase price is below he market base and income base thresholds, and DCs for affordable rental housing are exempt if the unit is considered affordable for a period of 20 years. Another legislated reduction targets market rental housing based on the size of the unit and the number of bedrooms, the DCs are reduced anywhere from 15 to 25%.
• Building and planning-related fee rebates are already in place for development based on MPAC-assessed value. Maxwell said the program could be further enhanced with an income-based affordable housing definition and include things like entrance permit fees, cash in-lieu of parkland or parking.
• A grant could also be implemented for rental and affordable housing development comprised of a tax increment grant policy, which could provide a grant equal to the difference in tax levied on a property between its existing rate and what it would be as a result of development. That could encourage larger-scale investment rentals by deferring, through grants, all or a portion of increases in taxation. Maxwell did note that while any grants or increases in rebates would benefit the housing provider, they would need to be funded by the municipality through an increase in property taxes or possibly an alternative revenue source like the Municipal Accommodation Tax.
• Reducing parking requirements for multi-residential and affordable housing developments.
• Permitting fourplexes as of right on urban serviced lots.
• Changing the OP to incorporate affordable housing targets for all new residential development of 10 or more units.
• Firm up policy to further restrict the conversion of multi-residential rental buildings to condominiums. (Currently, that has to be approved by the council.)
• Exploring more incentives for smaller units.
• New larger single-family dwellings accommodate plans for a secondary suite. (See the staff report below)

Councillors approved the recommendations, with some, such as Scott Morrison, arguing for including fourplexes as a right in the rural area as well. His suggestion was verbally supported by councillors Jason FitzGerald, Cory Clarke, Dione Schumacher, Monty Clouthier and Mayor Nancy Alcock, while planning staff remained reticent.

Following a lengthy discussion on the subject, including the high cost of building a septic system and well to service a fourplex, Clarke questioned, “We can talk about it all we want around here, but the real question is, is anybody even going to build them?”

FitzGerald responded, “I think if we provide the opportunity, maybe it will happen, maybe it won’t happen but we have to remember that not everyone wants to live in town and there’s other things happening outside of town in some of our special areas…,” he said, adding that while some people may not have transportation they may work in such areas. More opportunities are coming to those areas, including more employment and… so I don’t think we limit it by deciding what people’s options are… We need to provide all options.”

Maxwell said the idea of fourplexes in rural areas will be studied further. She also said there will be public consultation for all recommendations that involve changes to the OP or CPP as municipal staff starts working on implementing all 17 recommendations.

Click HERE (pdf) for the staff report with all the recommendations.

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Councillors approved the recommendations.

You can find the staff report HERE.