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Vol. 7 • Issue 88
Welcome Rotary conference delegates See Pages 13 to 16
LVR teacher honoured See Page 3
Council accepts Nelson Commons ‘restricted resales’
BILL METCALFE Nelson Star Nelson city council voted in favour Monday of Nelson Commons’ request that council waive a $54,000 contribution by the developer to the city’s housing committee and instead allow them to offer three “restricted resale units” at 25 per cent below market value. Council also accepted Nelson Commons’ request that the city take over administering the future resale of those three units. But council rejected a request that the connection fees for those units be waived.
What are restricted units? “Restricted resale” means that a unit has rules attached to its re-sale. Those rules could pertain to purchase price but in the case of affordable housing could also include stipulations about the financial situation of the buyer. The three restricted resale units at Nelson Commons would be sold for 75 per cent of market value, and that price restriction would be attached to those specific units forever. With this concept now accepted by the city, it will waive a $54,000 payment Nelson Commons would have otherwise made to the city’s affordable housing fund. The objection among some council members has been that a buyer would need an income of at least $55,000 per year to qualify for a mortgage for those units, which would sell for about $200,000 after the discount. The argument in favour of the restricted resale units has been that even though it may not help the people most in need, it could still get a renter into home ownership and free up rental
Ali Watt 250.551.5235
Barbie Wheaton 250.509.0654
Dave Buss 250.354.9459
units. Also, the total of the 25 per cent discounts for the three suites would be worth about $240,000 — much more than the $54,000 contribution to the housing committee. This discussion over the past few months has been complex because of the reaction of the city’s housing committee and questions about what that committee did or did not agree to in 2013. One of the most vocal opponents of the restricted resale units up this point, councillor Michael Dailly, voted in favour of them at Monday’s meeting. “Even though I don’t think it meets the needs of the most needy, I will be supporting this because council needs to be fair and consistent in its dealing with developers,” he said. Dailly explained that he has learned that in 2013 the city’s housing committee gave the restricted resale units concept its tacit encouragement and that the developer (Nelson Commons) acted on that and had a right to expect consistency in dealings with council and its committees. Councillor Janice Morrison was the only council member who opposed the restricted resale units proposal. “As much as we might argue that previous committee or council saw this, it is clear to me that we are rescinding the $1,000 per door [the $54,000 lump sum] accepted by the previous council. I don’t consider this affordable housing. This is still market priced housing, no matter how you slice it. I don’t see where the guarantee is that this would be sold to someone who is now in a rental unit.” Council voted in favour of the Continued on page 7
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Personal Real Estate Corporation
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May beach day Kootenay toddler Mazzi Richards, 16 months, enjoyed the unusually warm weather at Lakeside beach on Monday afternoon. According to the Southeast Fire Centre, three daily maximum temperature records were set in April. More weather stats on Page 10. Will Johnson photo
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