Attachment A: Secondary Suite Type 1 and Type 2 Permits (COMMITTEE OF THE WHOLE REPORT)

While the City of Colwood does not have a Secondary Suite Permit Program, the municipality once had a class two permit, which was a declaration provided by the property owner that the secondary suite met the basic zoning and building code requirements. Colwood has since eliminated Type 2 permits.

For the other 11 municipalities, only a building permit is required to confirm compliance with a Zoning Bylaw and the BC Building Code to authorize a secondary suite.

View Royal’s Secondary Suite Permit Program

Program Operations

The Town’s Secondary Suite Permit Program has been in force for over seventeen (17) years. When it was first implemented, it complemented the Town’s new secondary suite regulations and received support from the community. Table 2 below provides a summary of all the tasks and costs associated with managing the Town’s Secondary Suite Program, which is in addition to the building permit process.

Table 2: Summary of Tasks and Costs

As noted above, there are 201 Type 1 and 245 Type 2 secondary suite permits that would require renewals this year. The revenue generated by the annual renewal of Type 1 and 2 permits is approximately $44,600.00. With the removal of Type 1 permits, the amount of staff time spent on the secondary suite permit program may be reduced to approximately 40hrs. However, there is still a significant amount of staff time required to administer this program when secondary suites can be regulated and legalized through the building permit process.

Proposed Changes to Secondary Suite Permit Program

Table 2 above demonstrates that it requires significant amount of staff time and resources to administer the Program on an annual basis. In addition, it is an onerous process for homeowners to annually renew their secondary suite permits as they must visit Town Hall or mail a cheque. Furthermore, Town staff is essentially doubling up on the administrative and review processes for Type 1 secondary suite permits since a building permit is also required to legalize a suite and zoning reviews are also conducted during the building permit process. Building Permits are the tool other municipalities use to legalize and keep track of secondary suites. In the early years of legalizing secondary suites, Type 1 permits played an important role as the community got comfortable with suites in the neighbourhoods. Now that secondary suites have been legal in the Town for almost two decades, staff recommends for Council’s consideration that the Town eliminate the requirement for Type 1 secondary suite permits.

For Type 2 secondary suite permits, staff recommends a slightly different approach. Given that Type 2 permits were issued before September 1, 2007 for secondary suites that do not comply with the B.C. Building Code, staff recommends to Council for consideration that the Town double the annual renewal permit fee from $100 to $200 to incentivize homeowners to bring their suites up to current BCBC by applying for building permits, and slowly terminate Type 2 permits. Should Council wish to increase the renewal fee for Type 2 secondary Suite Permits, then staff recommend deferring the increase to April 1, 2024, to give homeowners sufficient time (one renewal cycles) to become aware of this fee change. If Council supports this approach, then the new fee would be in place for the November 2024 renewal cycle. This year’s renewal notice would notify homeowners of a fee change, if it is approved by Council.

Should Council not wish to proceed with all of the above recommendations, then there are alternative options for Council’s consideration below.

SUSTAINABILITY/CLIMATE CHANGE IMPACTS:

There are no sustainability and climate change impacts associated with the proposed changes to the Secondary Suites Permit Program.

FINANCIAL IMPLICATIONS:

In the short-term, there would be an increase in annual revenue should the renewal fee for Type 2 permits be increased from $100 to $200 (approx. $49,000). However, under this approach, there may be a reduction in annual revenue generated by the Secondary Suite Permit Program should homeowners of Type 2 permits choose to upgrade their secondary suites to meet current B.C. Building Code. Should Council eliminate Type 1 permits and not increase the renewal fee of Type 2 permits then the annual revenue generated by the program would be reduced to $24,500.00.

ALTERNATIVES:

Option 1 (eliminate Type 1 secondary suite permits and no fee change to Type 2 permits)

1. THAT the report dated September 29, 2023, from the Director of Development Services Division titled “Secondary Suite Type 1 and Type 2 Permits” be received for information.
2. AND THAT the Committee recommend to Council:

i. Secondary Suites Permit Bylaw No. 601, 2005 is amended as follows:

a. Deleting section 2.1 in its entirety and replacing it with the following:

i. In this bylaw, a Type 2 Permit is a permit issued before September 1, 2007, for a secondary suite that does not comply with the B.C. Building Code.

b. Deleting section 3.1 in its entirety and renumbering the remaining sections and subsections sequentially.

c. Deleting section 4.1 in its entirety and renumbering the remaining sub-sections sequentially.

d. Deleting section 5.1 in its entirety and renumbering the remaining subsections sequentially.

e. Deleting section 6.1 in its entirety and replacing it with the following:

i. Every Type 2 secondary suite permit holder must post a copy of the permit at a conspicuous location in the suite.

ii. Fees and Charges Bylaw No. 958, 2016 is amended as follows:

a. Deleting the following row from the Development Services table:

b. Deleting the following row from the Development Services table:

c. Adding the following row to the Development Services table:

iii. Municipal Ticket Information Bylaw No. 643, 2007 is amended as follows:

a. Deleting the following item under Columns 1, 2, 3 and 4 of Schedule 2 in its entirety:

b. Deleting the following item under Columns 1, 2, 3 and 4 of Schedule 18:

c. Adding the following item under Columns 1, 2, 3 and 4 of Schedule 18:

Option 2 (no change)

THAT the report dated September 29, 2023, from the Director of Development Services Division titled “Secondary Suite Type 1 and Type 2 Permits” be received for information.

CONCLUSION:

The Secondary Suite Permit Bylaw has not undergone a comprehensive review since it was adopted in 2006. Secondary suites were once considered an innovative form of rental housing and municipalities underwent substantive community engagement to gauge a community’s support for secondary suites. Now, secondary suites are very common in all municipalities across the region. Secondary suites play an important role in helping homebuyers to offset the cost of mortgages, keeping families close, and providing additional rental housing for the people in the community.

Given the current housing crisis across the region, one of the ways the Town could help and support homebuyers afford homes in the community is by making some small changes, such as eliminating Type 1 secondary suite permits. Incentivizing homeowners with Type 2 permits to bring their secondary suites up to current BCBC by doubling the renewal fee may be received with some push back given the current cost of living. Therefore, an alternative option is provided for Council’s consideration should there not be a desire to proceed with a fee change to Type 2 secondary suite permits at this time.

ATTACHMENTS:

Attachment A: Secondary Suite Permit Bylaw No. 601, 2005 Attachment B: Fees and Charges Bylaw No. 958, 2016 Attachment C: Municipal Ticket Information Bylaw No. 643, 2007.