Sooke council has decided not to grant a permissive tax exemption to M'akola Housing Society for its property at 2170 Charters Road citing concerns about the potential impact on district finances and the need for affordable housing.
 
The permissive tax exemption bylaw, adopted in 2020, initially aimed to provide property tax exemptions for eligible businesses from 2021 through 2025.
 
However, organizations must annually confirm their eligibility, leading to discussions of changes this year.
 
Two notable changes were discussed at Monday's council meeting.
 
One fundamental change involved the Steps to the Future Childcare Society, located at 6038 Sooke Road, which underwent a change in ownership and removed from the bylaw.
 
The other significant change revolved around M'akola Housing Society's application for a permissive tax exemption for 75 units at their Charters Road property.
 
District staff urged councillors to carefully assess the application, emphasizing its multifaceted nature and alignment with the district's permissive tax exemption policy.
 
M'akola Housing Society holds agreements with BC Housing for 75 units and a capital funding agreement with Canada Mortgage and Housing Corporation, aiming to provide affordable housing for individuals with low to moderate income levels.
 
Society CEO Kevin Albers said if the tax exemption is not granted, the result would be increased rents and decreased staff levels.
 
Eligible residents are those who have low to moderate income at the time of occupancy.
 
Units range from bachelor to three-bedroom, with monthly rents ranging from $375 to $2,055.
 
"Although the overall per-unit-per-month impact would be modest, it does represent a significant amount for our low to moderate income residents," Albers said.
 
Without the tax exemption, M'akola Housing Society would pay $58,000 in municipal property taxes next year.
 
Coun. Tony St-Pierre expressed concerns about the sustainability of granting exemptions to every affordable housing project, emphasizing the need for assistance from higher levels of government.
 
"I don't think it's sustainable to give exemptions to every affordable housing project," St-Pierre said.
 
Coun. Megan McMath acknowledged the work done by the M'akola Housing Society.
 
She pointed out the certainty of an influx of people into the community.
 
She questioned where the financial burden would be if the tax break weren't granted.
 
Coun. Jeff Bateman said the official community plan (OCP) encourages housing affordability and raised concerns that the council's decision might discourage future non-profit development.
 
Council's decision resulted in a 4-3 vote against granting the permissive tax exemption.
 
Those in favour of denying the exemption were St-Pierre, Beddows, Dana Lajeunesse, and Kevin Pearson.
 
Those opposed were Mayor Maja Tait, Bateman, and McMath.
 
Kevin Liard.