I recently attended a Sooke council meeting where the mayor and council were deciding who should be allowed a property tax waiver for the ensuing year. Most were regarding service clubs, community churches, etc.
I wanted to understand why one landowner was asking Sooke to waive their property taxes in the amount of $217,000. I was surprised that for such a substantial sum, the property owner did not attend to explain why they should not pay any property tax. The property I am referring to is the new 170-unit housing complex on Drennan Street owned by the M’akola Housing Society.
A Google search shows the project has received $6.9 million from the federal government, through the Affordable Housing Fund; $28 million from the provincial government, through BC Housing; $1.5 million from M’akola Housing Society; and $765,000 from the Capital Regional District through the Regional Housing Trust Fund.
The M’akola Housing Society website states it was originally founded in 1984 to help Indigenous families living off-reserve secure affordable, appropriate housing. M’akola’s Housing is now providing housing in various communities throughout B.C. and manages nearly 2,000 homes and serves more than 5,000 family members, a very laudable cause indeed.
According to an April 2024 CMHC news release, the Drennan development contains a mix of one-, two- and three-bedroom rental homes. Of the 170 rental units, 34 homes have been specifically reserved for people with very low incomes and will be rented at the shelter rate of $500 a month, ensuring they are affordable to those receiving social assistance, persons with disabilities, or a basic seniors’ pension. The remaining units will range from $1,200 to $1,525 for a one-bedroom, $1,460 for a two-bedroom, and $1,620 to $2,080 for a three-bedroom.
The District of Sooke has a policy that allows for a tax exemption where an organization can show the lack of an exemption would seriously impair services to the community or impose significant hardship. When I raised the issue at the meeting, the mayor replied she understood it would be difficult to provide low-cost housing if they did not receive a tax break
Unfortunately, no one from the M’akola Housing Society attended and no financial information was provided, so I have to make some assumptions. I am assuming that the M’akola Housing Society was gifted the federal, provincial and CRD funds. If so, then 34 units at $500 per month would bring in $17,000 per month, and the other 136 units at $1,200 to $2,080 monthly should provide between $163,200 and $ 275,808 monthly income, if all units are rented. So my question is if M’akola is taking in approximately $1.5-$3.5 million a year in rental income, why would they need assistance?
I inquired about this as Sooke council approved a 10.53% property tax lift for 2024, the highest annual municipal tax increase in the district’s history. In the end, this request was granted, with only one councillor opposed.
Norman Amirault
Sooke
