B.C. shoots down Prince George’s bid to opt-out of short-term rental ban

Last month, the City of Prince George voted to write to the provincial government, asking for its blessing to opt out of B.C.’s incoming restrictions on short-term rentals. It was swiftly denied.

Council wrote to Housing Minister Ravi Kahlon making the ask, saying the three per cent vacancy rate threshold to opt-out is “arbitrary” — Prince George’s vacancy rate sits at 2.8 per cent.

“Why three per cent, and why at this moment in time? Why not an average over a number of years?” Coun. Kyle Sampson said.

Sampson said at the time that the province shouldn’t be wading into municipal jurisdiction.

“[I] take it as a bit of a slight as a municipal councillor, saying, ‘Hey, stay in your lane and we’ll stay in ours.’ We want to be responsible for these types of decisions in our community,” Sampson said.

Sampson questioned why the province isn’t taking municipalities’ average vacancy rates instead, and explained that Prince George’s vacancy rate was 3.7 per cent in 2022, declining to 2.8 per cent last year.

“3.25, that’s over the amount if we’re doing averages, but we’re not. So, the arbitrary data required from the province in this instance is frustrating,” he explained.

But in a letter dated March 18, Kahlon quickly shot down the bid. Only cities with a vacancy rate of at least three per cent for both 2022 and 2023 are allowed to opt out.

Kahlon explained that the city’s data provided to the government as reasoning to opt out was “not statistically reliable,” and the data from the Canadian Mortage and Housing Corporation showed the vacancy rate across all homes — small apartments to single-family homes — showed reliable evidence that the city’s rate was 2.8 per cent.

“Unfortunately the data does not meet the criteria in the regulations to enable the city to request an exemption from the principal residence requirement,” Kahlon explained.

“It is important that we prioritize the goal of housing to the long-term housing market in communities where there are rental housing shortages.

“Short-term rentals can still occur in people’s principal residences, including up to one secondary or accessory dwelling unit, and we may well see growth in this type of accommodation.”

The refusal to approve Prince George’s request to opt out comes as other municipalities across B.C. vote to opt in to the short-term rental restrictions.

The Regional District of Okanagan Similkameen wants three areas to be included in the new rules. Those areas are Okanagan Falls, Skaha Lake, rural Summerland, and Okanagan Lake West.

Earlier this month, Tofino became the first district in the province to vote to restrict short-term rentals.

“Council requests that the District of Tofino be removed from the exempt list in the short-term rental accommodations regulation and obtain the principal residence requirement,” the council motion read.

B.C.’s new rental restrictions will take effect May 1.