Vancouver city council has voted to set maximum residential rental rates for developers seeking municipal incentives. The move ultimately aims to boost the city’s affordable housing stock.

The changes made on December 3 mean that initial rents cannot exceed:

• $1,433 per month for a studio unit
• $1,517 per month for a one-bedroom unit
• $2,061 per month for a two-bedroom unit

These apply to developers building under the city’s Rental 100 program. The policy, targeting moderate-income households, features several incentives for developers including development cost levy waivers, parking requirement reductions and additional density above what existing zoning allows.The program aims to ensure that 100 per cent of the units in participating developments are rentals that can be offered at affordable monthly rates.

A report from Vancouver’s Chief Housing Officer Mukhtar Latif states more than 50 per cent of households in Vancouver are rentals. The city holds more than one quarter (27 per cent) of B.C.’s entire rental housing stock.

It goes on to say that the Mayor’s Task Force on Housing Affordability pinned down a target household income range of $21,500 to $86,500 for Vancouver’s affordable housing initiatives. For housing to be considered affordable, no more than 30 per cent of gross household income should be set aside for payments. For the target range, this translates to about $525 to $2,150 per month — well below the average rents paid in the city.

The report also stresses the need for future growth in Vancouver’s purpose-built rental housing: “An increased supply of rental housing is needed to meet growing demand, help mitigate rent increases, provide affordable housing for moderate income households and create a sustainable affordable market rental housing stock.”