Victoria council has approved a request from the Greater Victoria Housing Society (GVHS) to use monies in the City's Housing Reserve Fund to help bolster an affordable rental complex earmarked for hotel and hospitality workers.
Planned for 2558 Quadra Street and known throughout the application process as 'Forest Heights,' the five-storey, 40-unit project will assist the GVHS in redeveloping what are currently 19 below-market units in an aging three-storey build.
Project supporter Destination Greater Victoria (DGV; formerly Tourism Victoria) stated in a release issued today, that the use of Housing Reserve Funds for the application "is in accordance with DGV’s 2022-2026 contract with the City of Victoria to allocate Online Accommodation Platform (OAP) Municipal Regional District Tax (MRDT) revenue for affordable housing purposes."
DGV also says it "commends Victoria City Council for approving funding for an affordable workforce housing project aimed at addressing the critical issue of suitable and affordable housing for hotel and hospitality workers in the region."
The release from DGV further notes:
Since 2018, funds collected from OAP MRDT have been placed in the City of Victoria Housing Reserve Fund, specifically earmarked for the creation of affordable workforce housing for hotel and hospitality workers. The OAP MRDT related to affordable housing is part of the BC Provincial Sales Tax Legislation and operates under a provincial regulatory framework co-managed by Destination BC and The Ministry of Finance.
Destination Greater Victoria (DGV) is the official destination management organization for the region. While workforce housing development isn't core to DGV’s work, DGV and its partners can contribute to addressing the issue of workforce housing.
In the last several months, a partnership has been forged among the City of Victoria, Destination Greater Victoria, and the Greater Victoria Housing Society (GVHS) to fund this below-market purpose-built rental project. Contributing $2.5 million in OAP MRDT funds to the project will close the project’s existing equity gap and enable the project, which has already received zoning approvals, to move forward. In return for this funding contribution, the Greater Victoria Housing Society will prioritize housing units within the building for hotel and hospitality workers.
The pressing need for affordable housing has been a long-standing concern in Greater Victoria, particularly for the hardworking individuals who power the local hotel and hospitality industry. The lack of affordable housing options not only poses significant challenges for workers but also impacts the overall operations of many businesses within the sector.
The approval of this funding to support an important housing project represents a small, but important step towards resolving the housing crisis faced by hotel and hospitality workers in Greater Victoria and underscores the power of partnerships and community collaboration in addressing pressing societal challenges.
Paul Nursey, DGV CEO, says housing specifically supporting tourism workers will make a stronger case for retaining talent in a city with a significant housing under-supply.
"This decision demonstrates our commitment to the well-being of those who make Greater Victoria a sought-after destination," Nursey said. "We are proud to be part of this collaborative effort that will not only provide much-needed housing but also enhance the overall quality of life for our dedicated hotel and hospitality workers."
GVHS Executive Director Virginia Holden, meanwhile, thanked the City for its support of the project, and called the initiative a "win-win" on the housing front.
"This project is a win-win for affordable housing in our region. The funding allows us to close a funding gap and proceed with building affordable housing on an existing site, and allows us to support the hospitality industry, which is so essential to our local economy," Holden said. "We thank our partners and the City of Victoria for their support in allowing this development to move forward and bring these needed affordable rental homes into reality.” C
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