Kamloops considers registry for illegal rental suites as reserves dwindle

Kamloops city council is looking for ways to make up for dwindling reserve funds, and they’re looking to landlords as an option.

There are 445 known legal secondary suites in the city, but there are 3,000 more rental suites that likely aren’t up to code. Council is considering whether to implement a registration for them, legal or otherwise, paired with an annual fee.

Councillors were split on whether they’ll follow through, but it was presented as one of several ways to make up for a depleted reserve fund.

Coun. Stephen Karpuk said it would help address safety concerns with suites that aren’t up to building code requirements, and he suggested it would help the city crack down on homeowners “skirting taxes.”

Most on council were reluctant to force landlords into a registry, concerned it could dissuade homeowners from building more rental suites.

“It seems like we can grab some extra cash from this, but it seems like one more reason for somebody not to build or register a suite, and continue those that are already there without reporting to city hall,” Coun. Mike O’Reilly said.

It would mostly target basements suites or similar shared suites within a home, rather than purpose-built rentals.

Just how much it could cost hasn’t been decided, but cities that have them range from $56 to $345 annually.

Similar to the city’s development cost charges (DCC) reserve, the affordable housing reserve has run out of cash. According to a staff report, the city has spent more of the affordable housing reserve than it was raking in for eight years.

It’s a funding pool intended for, as the name suggests, incentivizing developers and non-profits to build affordable housing units. The money has been used to offset losses from DCC exemptions, according to the report.

Staff said the city is not considering whether to require homeowners to update any illegal suites so they meet building and fire codes, nor would the registry mean any suites were “legalized” or “authorized” by the city.

While there are other cities with a similar policy in the province, the vast majority require registered suites meet building codes. Kelowna also has a similar registration, but it’s only in place for short-term rentals.

At the March 31 committee of the whole meeting, council asked staff to explore the idea further, but many councillors were reluctant to put it in place.

“I’m not looking for a witch hunt here. What I was looking to do was to create a pot of dollars that would offset DCCs so we could develop what we need. I don’t love the idea that we’re going to use this as a tool to create higher barriers to people providing housing units,” Coun. Katie Neustaeter said.

“I also think government reaches too deeply into people’s homes sometimes. I think it’s a fine line and a balance.”