Housing Agreements

A local government may, by bylaw, enter into a housing agreement under Section 483 of the Local Government Act.  

What are Housing Agreements?

Housing agreements between a local government and the landowner are a tool to secure affordable and special needs housing. A Housing Agreement cannot vary the use or density defined in a Zoning Bylaw, however it can include requirements such as the tenure of the housing units, rent, sale or share prices, the administration and management of the housing units, and the characteristics of persons who may occupy the units (e.g. seniors).

The following are typical types of housing that are secured with a housing agreement in the City:

1. Affordable/Supportive housing (a housing agreement is required to qualify for a Development Cost Charges [DCC] reduction);
2. Residential shelters;
3. Rooming houses;
4. Student housing; and 
5. Schedule D Amenity Requirements for Additional Density (e.g. to secure residential rental tenure or affordable housing);

Housing Agreements in the City of Nanaimo

The City has been securing housing agreements since 1995, and adopted Housing Agreement bylaws can be found here. Since 1995:

• 1,300 housing units secured by 26 Housing Agreements in which the development has been constructed (~400 rental units and ~900 non-market units).
• 123 housing units secured by 3 Housing Agreements, for developments that are currently under construction (111 non-market units and 12 rental tenure units).
  

Scheduling a Pre-Application Meeting

Where a landowner consents to enter into a housing agreement, the landowner (or authorized agent) should schedule a pre-application meeting or contact Current Planning staff at planning@nanaimo.ca (or by phone at 250-755-4429).

What is the Process to Enter into a Housing Agreement?

There are no application fees for a housing agreement application, however, the landowner will be responsible for legal fees incurred during the housing agreement process. A landowner can choose to retain their own solicitor or rely on the City's solicitor. If a landowner chooses their own solicitor, the steps in the process are generally outlined below:

1. The landowner's solicitor will draft the housing agreement, using City’s template to ensure the conditions comply with City requirements.
2. Depending on the nature of the housing agreement terms, the City’s solicitor may need to review the proposed housing agreement). In this situation the landowner must reimburse the City for legal costs. 
3. Once the terms of the housing agreement are confirmed by both the City and landowner, the housing agreement will form a bylaw and added to a future Council meeting agenda. 
4. Council will consider the housing agreement bylaw and provide three readings and direct Staff to register a Section 219 covenant to reinforce the terms of the housing agreement once the bylaw is adopted.
5. At a subsequent Council meeting, the bylaw will be adopted. 
6. Following adoption of the housing agreement bylaw, a Section 219 covenant will be drafted by the landowner's solicitor. A Section 219 Covenant is a legal charge registered against a property's title. It is an agreement between a property owner and the City that restricts how the land can be used.
7. Once finalized, the Section 219 covenant is signed by City representatives and the landowner and registered on the title of the property by the landowner's solicitor.
8. Two copies of the Housing Agreement must be signed by City representatives and landowner.
9. The housing agreement will be monitored based on the conditions noted in the housing agreement.

Housing Agreements “run with the land”, thereby committing any future landowner/user of the property to be bound by the terms of the agreement.