MICHAEL MAGNUSSON
PENTICTON – The Penticton & Wine Country Chamber of Commerce is hopeful that Penticton City Council will support the upcoming motion to send letters mirroring the Chamber’s to both the Minister of Housing and its Crown Corporation B.C. Housing ensuring that potential development does not displace residents in affordable rentals.
This past May, the provincial government introduced changes to short-term rental regulations that limits them to a person’s primary residence in cities with a population of 10,000 or greater and a rental vacancy rate of less than 3%. City Council had proposed, prior to the regulations taking effect, various options such as limiting short-term rentals to one per owner, restricting them to specific geographical areas, or limiting them to specific time periods for events like Gran Fondo and Ironman, but any request for flexibility was denied. As a result, Penticton saw approximately half of all short-term rentals removed from operation.
With demand redirected back to commercial accommodators, it was no surprise when the El Rancho Motel, currently providing affordable long-term rentals to approximately 100 individuals, began the process of rezoning its property to tourist commercial with the vision of building a hotel.
“While the Chamber supports this development and the benefits to our local economy, it has raised significant concerns regarding the displacement of current residents who rely on these affordable housing options,” says Jordan Knox, Chamber President.
In recent communications to Minister of Housing Ravi Kahlon and B.C. Housing’s CEO Vincent Tong which have not yet received a response, the Chamber underscores the unintended consequences that short-term rental regulatory changes are having, particularly in a tourist city. Ironically, the new regulations were meant to increase long-term rental availability and affordability, but in this case, we are seeing an affordable rental provider change their business model to capitalize on demand created by the provincial government. As such, the Chamber firmly believes it is the Ministry of Housing that bears the full responsibility of this scenario from occurring and in mitigating the outcome by providing alternative housing solutions for those affected.
The Chamber’s proposals to B.C. Housing include the provision of rental supplements for any displaced individuals originating from hotel development, as well as the expedited completion of phase one of the Skaha Assembly Redevelopment project in anticipation of the 2028 B.C. Summer Games. This proactive approach aims to mitigate the adverse effects on vulnerable populations who rely on below-market rentals while supporting the city’s economic growth and tourism industry.
“By getting in front of this, we wanted to ensure that the Ministry of Housing and its Crown Corporation B.C. Housing have enough time to replace the affordable rentals that are now put at risk from the changes to short-term rentals,” explains Executive Director Michael Magnusson. “And while we would welcome a new hotel so close to the Penticton Trade and Convention Centre, we need to have viable solutions that balance economic development with social responsibility.”
The Chamber is optimistic that City Council will agree and also call on the province to provide adequate measures to support those who may be affected by this development.
Michael Magnusson is the Executive Director of the Penticton & Wine Country Chamber of Commerce