Vancouver, B.C., sets maximum initial rents for rent-only buildings
Source: Vancouver Sun
The city of Vancouver has given developers $10 million in breaks on city fees through two rental housing construction incentive programs since 2009 — helping to create more than 1,300 units at a time when such housing hasn’t been built elsewhere.
But now, in an effort to make sure rental housing is more affordable for those who need it and to further drive down costs, the city is redrawing the rules to make sure developers aren’t targeting the luxury rental market.
The city has set a maximum rent developers can initially charge for studio, one and two-bedroom apartments in new dedicated rent-only buildings. Those rates — $1,443 per month for a studio, $1,517 for a one-bedroom and $2,061 for a two-bedroom apartment — are supposed to mirror the range of Canada Mortgage and Housing Corporation’s annual report on rents and not exceed 30 per cent of the renter’s income.
... The city says the new maximum rates are geared toward people with a combined household income of between $58,000 and $82,000. Those incomes are within the range targeted by Mayor Gregor Robertson’s housing affordability task force.
Read more: http://www.vancouversun.com/news/Vancouver+sets+maximum+initial+rents+rent+only+buildings/9243510/story.html