The District of Lake Country, BC, is contemplating a tax break incentive to spur the development of purpose-built rental housing, mirroring strategies employed by other municipalities like Kelowna. Despite a population increase, Lake Country hasn’t seen any purpose-built rental construction since 2016, despite a pressing need due to rising property costs. With a median dwelling value now exceeding $1 million, many potential residents are priced out of homeownership, necessitating rental options. Lake Country is exploring models from Kelowna and Victoria, considering a 10-year tax exemption for new purpose-built rentals, similar to Kelowna’s successful program dating back to 2014.
Purpose-built rentals offer stable tenure and are more family-friendly, yet they’re costlier for developers. The proposed tax break aims to incentivize developers to invest in this crucial housing segment. Lake Country council will deliberate on this tax incentive bylaw at its upcoming meeting on May 21.
