The council on July 14 adopted an amendment to Vancouver’s multifamily tax exemption program allowing qualifying projects that select the market-rate affordable-housing fee option to defer payment until the sixth year of the exemption period.
Sam (staff) and Samantha Whitley explained the amendment: projects can delay the fee-in-lieu payment until year six—after stabilization and lease-up—provided the developer records a lien to secure the payment and agrees to a 10 percent increase to account for the cost of money; staff also proposed a requirement that projects ready to proceed obtain permits within one year of approval.
Staff said the deferral would provide developers with cash-flow flexibility during the lease-up period and included examples of savings depending on the standard fee rate in different target areas; councilors generally supported the measure as a way to encourage affordable production and shorten construction timelines, and some asked staff about pending applications affected by recent fee-waiver decisions.
The council approved the deferral ordinance; the vote was 6–1 with Councilor Stober voting no.