Rural Housing Program FAQ

The Capital Regional District (CRD) is designing a Rural Housing Program through the development of a Pilot Project that will take place on the Southern Gulf Islands (SGI) and Salt Spring Island (SSI) Electoral Areas (EAs). Background information has been gathered and workshops are being held with local government and the housing sector.

The Capital Regional District has prioritized increasing the supply of affordable housing throughout the region. The RHP pilot aims to provide housing solutions that are appropriate for its rural communities, outside of the urban core. The RHP also addresses requests from the Southern Gulf Islands Community Economic Sustainability Commission(External link) (SGI CESC) and the SSI Local Community Commission(External link) (SSI LCC) for the CRD to support economic sustainability by addressing local housing needs.

Like elsewhere, rural communities in the CRD struggle with a lack of housing options. In the islands, the housing crisis is exacerbated by environmental limits, servicing constraints, a complex regulatory environment, higher building costs, and a lack of funding for small scale housing projects. Solutions to the housing crisis in small communities may look different as they cannot rely on a model of density increases at the scale of more urban, purpose-built, multi-unit affordable housing projects.

The Rural Housing Program (RHP) will prototype various housing solutions that are better suited to the rural context and to enable CRD responsiveness to the housing crisis across the capital region. The pilot program will 

• Develop a framework to provide financial assistance for homeowners to build secondary suites and cottages in exchange for commitments to affordable rents for a period of time;
• Invest pre-development and infrastructure funding in affordable housing projects;
• Support inter-agency coordination and provide additional capacity and guidance to non-profit housing providers.

Additionally, the CRD collaborates with the SGI Community Resource Centre(External link) to support the Housing Now(External link) program. This initiative, funded by the Salt Spring Island Local Community Commission, the Southern Gulf Islands Community Economic Sustainability Commission, and the Southern Gulf Islands Tourism Partnership, aims to match renters with various types of long-term housing options available from residents of the islands.

The coordination on SSI and SGI has some funding provided by the SGI Tourism Partnership(External link) (SGITP), which receives funding from the province through the Municipal and Regional District Tax (MRDT) of 2%,  applied to sales of short-term accommodation within Salt Spring and the Southern Gulf Islands. This financial support allows the CRD to employ dedicated staff to manage the program, seek out further partnerships, and provide strategic advice to help project proponents with the complex regulatory environment.

Funding to deliver the incentives and grants envisioned by the pilot program will be considered by the CRD Board as part of the 2025 Financial Plan. The RHP is also seeking other funding and partnerships to ensure its success. 

Funding will be used to: 

• Develop a framework to provide financial assistance for homeowners to build secondary suites and cottages in exchange for commitments to affordable rents for a period of time;
• Invest pre-development and infrastructure funding in affordable housing projects;
• Support inter-agency coordination and provide additional capacity and guidance to non-profit housing providers.

The project team has been engaging with stakeholders and housing providers, and will conduct further community engagement in the fall. They will ask homeowners, renters and individuals in the housing sector in SGI and SSI to share their thoughts on the Rural Housing Program through surveys and public meetings, as well as will continue consulting with stakeholders and housing providers directly.  The details and criteria of the proposed options and funding model will be shaped by community input about the pilot program.

New funding to support secondary suites and cottages as well as pre-development funding are subject to CRD Board approval through the 2025 budget process. The pilot program on SSI and SGI will test various initiatives that could be implemented across the region’s other rural communities.

Please subscribe to the Rural Housing Program to receive updates as the project progresses.