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<p paraeid="{36ee6314-9ebe-4e3b-8dec-ce5231001ad1}{244}" paraid="721311586">Residential, commercial and mixed-use\u{202F}development projects are eligible for tax exemptions in the\u{202F}City Centre, with different requirements for <a href="https://www.kelowna.ca/sites/files/1/docs/community/Planning/tax_area_1_and_tax_area_2.pdf">Tax Area 1 and Tax Area 2</a>. Residential, commercial and mixed-use projects are also eligible for tax exemptions if they’re within Tax Area 3 in Rutland Urban Centre. All projects must be consistent with the future land use designation for the parcel, as set out in Kelowna’s Official Community Plan, and meet the requirements of the <a href="https://www.kelowna.ca/city-hall/city-government/bylaws-policies/revitalization-tax-exemption-program-bylaw-no-12561">Revitalization Tax Exemption Bylaw.</a></p>\r\n
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\t\t<li style="clear: both;"><span data-contrast="auto" xml:lang="EN-CA"><span data-contrast="auto" xml:lang="EN-CA"><span data-contrast="auto" xml:lang="EN-CA">Providing a</span><span data-contrast="auto" xml:lang="EN-CA"> 50</span><span data-contrast="auto" xml:lang="EN-CA"> per cent </span><span data-contrast="auto" xml:lang="EN-CA">r</span><span data-contrast="auto" xml:lang="EN-CA">evitalization</span> <span data-contrast="auto" xml:lang="EN-CA">a</span><span data-contrast="auto" xml:lang="EN-CA">mount on the parcel </span><span data-contrast="auto" xml:lang="EN-CA">that </span><span data-contrast="auto" xml:lang="EN-CA">can be attributed to a commercial land use, for a project with a floor area of less than 3,716 m2 (40,000 sq. f</span><span data-contrast="auto" xml:lang="EN-CA">t.)</span></span></span></li>\r\n
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"value" => "<p><span data-contrast="auto" xml:lang="EN-CA">For all</span><span data-contrast="auto" xml:lang="EN-CA"> active incentive\u{202F}areas</span><span data-contrast="auto" xml:lang="EN-CA">,</span><span data-contrast="auto" xml:lang="EN-CA">\u{202F}the project must have a construction value of $300,000 or greater, determined by the building permit issued for the project.</span> </p>\r\n"
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<p paraeid="{6bff3720-bf00-429e-ad02-c66c03b850d9}{75}" paraid="965524048"><span data-contrast="auto" xml:lang="EN-CA">The program provides the exemption on the “revitalization amount</span><span data-contrast="auto" xml:lang="EN-CA">.</span><span data-contrast="auto" xml:lang="EN-CA">”</span><span data-contrast="auto" xml:lang="EN-CA"> This is defined in the </span><a href="/city-hall/city-government/bylaws-policies/revitalization-tax-exemption-program-bylaw-no-12561" target="_blank"><span data-contrast="none" xml:lang="EN-CA"><span data-ccp-charstyle="Hyperlink">Revitalization Tax Exemption Bylaw</span></span></a><span data-contrast="auto" xml:lang="EN-CA">\u{202F}as </span><span data-contrast="auto" xml:lang="EN-CA">“</span><span data-contrast="auto" xml:lang="EN-CA">the municipal portion of property tax calculated in relation to the increase in the assessed value of improvements on the property resulting from the construction or alterations as outlined in section 6 of this\u{202F}</span><span data-contrast="auto" xml:lang="EN-CA">bylaw</span><span data-contrast="auto" xml:lang="EN-CA">.</span><span data-contrast="auto" xml:lang="EN-CA">” </span> </p>\r\n
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\r\n
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<p paraeid="{6bff3720-bf00-429e-ad02-c66c03b850d9}{131}" paraid="1851971956"><span data-contrast="auto" xml:lang="EN-CA">For example, if you build a four</span><span data-contrast="auto" xml:lang="EN-CA">-</span><span data-contrast="auto" xml:lang="EN-CA">storey building on a lot that was previously vacant</span><span data-contrast="auto" xml:lang="EN-CA">,</span><span data-contrast="auto" xml:lang="EN-CA"> you </span>would receive a municipal tax exemption for 10 years on the value of the new building (the improvements).\u{202F}<span data-contrast="auto" xml:lang="EN-CA">The tax exemption does</span><span data-contrast="auto" xml:lang="EN-CA">n</span><span data-contrast="auto" xml:lang="EN-CA">’</span><span data-contrast="auto" xml:lang="EN-CA">t </span><span data-contrast="auto" xml:lang="EN-CA">extend</span><span data-contrast="auto" xml:lang="EN-CA"> to the land value.</span> </p>\r\n
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"value" => "<p><span data-contrast="auto" xml:lang="EN-CA">Generally, the tax exemption will begin the year after the project is constructed and occupancy has occurred. However, BC Assessment has a September deadline for new buildings to be assessed. For example, </span><span data-contrast="auto" xml:lang="EN-CA">a project </span><span data-contrast="auto" xml:lang="EN-CA">that </span><span data-contrast="auto" xml:lang="EN-CA">completes construction in December</span> <span data-contrast="auto" xml:lang="EN-CA">20</span><span data-contrast="auto" xml:lang="EN-CA">20 </span><span data-contrast="auto" xml:lang="EN-CA">will have missed BC Assessment’s deadline for new projects. Therefore, the building will be assessed in </span><span data-contrast="auto" xml:lang="EN-CA">20</span><span data-contrast="auto" xml:lang="EN-CA">21 and </span><span data-contrast="auto" xml:lang="EN-CA">the </span><span data-contrast="auto" xml:lang="EN-CA">10</span><span data-contrast="auto" xml:lang="EN-CA">-year exemption </span><span data-contrast="auto" xml:lang="EN-CA">will start </span><span data-contrast="auto" xml:lang="EN-CA">in </span><span data-contrast="auto" xml:lang="EN-CA">2022</span><span data-contrast="auto" xml:lang="EN-CA">.</span> </p>\r\n"
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<p paraeid="{6bff3720-bf00-429e-ad02-c66c03b850d9}{233}" paraid="1846026818">At minimum, you should have a Development Permit Application submitted before you apply. If a rezoning application is also involved, it should have progressed to 3rd Reading before making a Revitalization Tax Exemption application. In all cases, an application must be made before construction begins. Consult with the Policy and Planning Department with any questions. </p>\r\n
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\r\n
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<p paraeid="{72799583-7de3-4a6d-b5e2-28833b61dd44}{14}" paraid="1813512206"><span data-contrast="auto" xml:lang="EN-US">To apply, </span><span data-contrast="auto" xml:lang="EN-US">download the relevant </span><a href="https://www.kelowna.ca/sites/files/1/docs/revitalization_tax_exemption_application_form.pdf" rel="noreferrer noopener" target="_blank"><span data-contrast="none" xml:lang="EN-US"><span data-ccp-charstyle="Hyperlink">Revitalization Tax Exemption Application Form\u{202F}</span></span></a><span data-contrast="auto" xml:lang="EN-US">and the </span><span data-contrast="none" xml:lang="EN-US"><span data-ccp-charstyle="Hyperlink"><a href="https://www.kelowna.ca/sites/files/1/docs/revitalization_tax_exemption_application_checklist.pdf" rel="noreferrer noopener" target="_blank">Revitalization Tax Exemption Checklist</a> </span></span><span data-contrast="auto" xml:lang="EN-US">to ensure you have all the required information.</span> </p>\r\n
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"value" => "<p><span data-contrast="auto" xml:lang="EN-CA">I</span><span data-contrast="auto" xml:lang="EN-CA">ncentives</span><span data-contrast="auto" xml:lang="EN-CA"> in the form of\u{202F}tax exemptions </span><span data-contrast="auto" xml:lang="EN-CA">are </span><span data-contrast="auto" xml:lang="EN-CA">available for projects within the\u{202F}City Centre and Rutland Urban Centres\u{202F}as part of the </span><a href="city-hall/city-government/bylaws-policies/revitalization-tax-exemption-program-bylaw-no-12561" target="_blank"><span data-contrast="none" xml:lang="EN-CA"><span data-ccp-charstyle="Hyperlink">Revitalization Tax Exemption Bylaw N</span></span>o. 12561</a><span data-contrast="auto" xml:lang="EN-CA">. These incentives are in place to encourage new investment as part of our overall strategy to build vibrant urban centres. Below are some frequently asked questions for the Revitalization Tax Incentive </span><span data-contrast="auto" xml:lang="EN-CA">P</span><span data-contrast="auto" xml:lang="EN-CA">rogram</span><span data-contrast="auto" xml:lang="EN-CA"> for\u{202F}City Centre and Rutland Urban Centres.</span></p>\r\n"
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"value" => "<p><span data-contrast="auto" xml:lang="EN-CA">Projects must be an affordable rental building with five or more units, and units must be secured by a housing agreement with the City of Kelowna or BC Housing. Dwellings qualifying for funding must be reasonably expected to start construction in the year the grant is awarded and have not yet received a Building Permit. Also, projects must be located within the Core Area, the Glenmore Valley Village Centre or the University South Village Centre. For more info on eligibility</span><span data-contrast="auto" xml:lang="EN-CA">,</span><span data-contrast="auto" xml:lang="EN-CA"> please review\u{202F}the </span><a href="https://www.kelowna.ca/sites/files/1/docs/city-hall/policies/council_policy_no.335_rental_housing_grant_eligibility.pdf" rel="noreferrer noopener" target="_blank"><span data-contrast="none" xml:lang="EN-CA"><span data-ccp-charstyle="Hyperlink">Council Policy on Rental Housing Grants Eligibility</span></span></a><span data-contrast="auto" xml:lang="EN-CA">.</span> </p>\r\n"
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<p><strong>** New for 2024 only: the pool of funding has been increased to $3.3 million.</strong></p>\r\n
\r\n
<p><span data-contrast="auto" xml:lang="EN-CA">Currently the pool of funding available is $300,000. The grants are provided in the form of DCC Credits on a per</span><span data-contrast="auto" xml:lang="EN-CA">-</span><span data-contrast="auto" xml:lang="EN-CA">unit basis. The grant amounts are determined by the number of applications that the City receives</span><span data-contrast="auto" xml:lang="EN-CA">,</span><span data-contrast="auto" xml:lang="EN-CA"> with up to $8,000 for three</span><span data-contrast="auto" xml:lang="EN-CA">-</span><span data-contrast="auto" xml:lang="EN-CA"> or more-bedroom units, $4,000 for two</span><span data-contrast="auto" xml:lang="EN-CA">-</span><span data-contrast="auto" xml:lang="EN-CA">bedroom units</span> <span data-contrast="auto" xml:lang="EN-CA">and $2,000 for bachelor or one</span><span data-contrast="auto" xml:lang="EN-CA">-</span><span data-contrast="auto" xml:lang="EN-CA">bedroom units available.</span> </p>\r\n
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<p><strong>**New for 2024 only: Grant funding will not be linked to bedroom composition of units.</strong></p>\r\n
\r\n
<p><span data-contrast="auto" xml:lang="EN-CA">The grant program was updated in 2016\u{202F}to more accurately\u{202F}reflect the cost of developing larger units and to support the creation of family-friendly rental units based on the low vacancy rate for three</span><span data-contrast="auto" xml:lang="EN-CA">-</span><span data-contrast="auto" xml:lang="EN-CA">bedroom units in Kelowna.</span> </p>\r\n
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<p paraeid="{72799583-7de3-4a6d-b5e2-28833b61dd44}{230}" paraid="1273604239"><span data-contrast="auto" xml:lang="EN-CA">To be eligible for the grant funding, affordable rental projects must be located within the Core Area, Glenmore Valley Village Centre or the University South Village Centre as defined by the OCP Bylaw No. 10500 and meet one of the following requirements:</span> </p>\r\n
</div>\r\n
\r\n
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<ul>\r\n
\t<li style="clear: both;"><span data-contrast="auto" xml:lang="EN-CA">Non-market rental housing units where a non-profit housing provider is the </span><span data-contrast="auto" xml:lang="EN-CA">applicant</span> </li>\r\n
\t<li style="clear: both;"><span data-contrast="auto" xml:lang="EN-CA">Non-market rental housing units where a long-term operating agreement (15 years or more) is in place between a for-profit developer and a non-profit housing provider for a minimum of 10 per cent of the total units within any individual rental housing project. Only the units that are managed by a non-profit are eligible for the grant</span><span data-contrast="auto" xml:lang="EN-CA">.</span> </li>\r\n
\t<li style="clear: both;"><span data-contrast="auto" xml:lang="EN-CA">Non-market rental housing units where a long-term operating agreement is in place between a for-profit developer and the Provincial Rental Housing Corporation (BC Housing)</span> </li>\r\n
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\r\n
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<p paraeid="{150c9733-4804-439c-a2bf-8b16adfe3edf}{10}" paraid="2118970684"><span data-contrast="auto" xml:lang="EN-CA">Micro-suite units </span><span data-contrast="auto" xml:lang="EN-CA">won’t</span><span data-contrast="auto" xml:lang="EN-CA"> be eligible to receive the rental housing grants as they</span><span data-contrast="auto" xml:lang="EN-CA">’</span><span data-contrast="auto" xml:lang="EN-CA">re not required to pay development cost-charges.\u{202F}</span> </p>\r\n
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<p paraeid="{150c9733-4804-439c-a2bf-8b16adfe3edf}{36}" paraid="203742704"><strong>**New for 2024 only: <s>the application deadline is August 9, 2024</s> application deadline extended to August 20, 2024. </strong></p>\r\n
\r\n
<p paraeid="{150c9733-4804-439c-a2bf-8b16adfe3edf}{36}" paraid="203742704">Applicants must fill out the <a href="/sites/files/1/docs/homes-building/rhg_haf_application_form.pdf">application form</a> and submit it to the Policy and Planning department. You will need to provide basic information about your project, including site information, unit mix/sizes and the ownership of the land. </p>\r\n
\r\n
<p paraeid="{150c9733-4804-439c-a2bf-8b16adfe3edf}{36}" paraid="203742704"><span data-contrast="auto" xml:lang="EN-US">Each year</span><span data-contrast="auto" xml:lang="EN-US">,</span><span data-contrast="auto" xml:lang="EN-US"> the deadline for applications is in the </span><span data-contrast="auto" xml:lang="EN-US">f</span><span data-contrast="auto" xml:lang="EN-US">all (end of October)</span><span data-contrast="auto" xml:lang="EN-US">, </span><span data-contrast="auto" xml:lang="EN-US">with the funding being provided in the following calendar year. Please contact Policy & Planning for further details.</span> </p>\r\n
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<p paraeid="{72799583-7de3-4a6d-b5e2-28833b61dd44}{58}" paraid="1262910451">We offer incentives to housing in strategic ways to ensure that the type of housing (e.g.: rental, ownership) and the location of new housing achieve our long-term and overall community objectives. For example, our <a href="https://www.kelowna.ca/sites/files/1/docs/homes-building/20_year_servicing_plan_2011.pdf">Development Cost Charges</a> are structured to reflect the larger infrastructure burden of development outside of Kelowna's core. That structure acts as an incentive for development within the core area of Kelowna. </p>\r\n
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\r\n
<div style="clear:both;">\r\n
<p>To encourage rental housing in Kelowna, we have two incentive programs in place: a rental housing grants program and a tax exemption program. Below are some frequently asked questions for the rental housing incentive programs. </p>\r\n
\r\n
<div style="clear:both;">\r\n
<h3 paraeid="{72799583-7de3-4a6d-b5e2-28833b61dd44}{58}" paraid="1262910451">Rental Housing Grants Program</h3>\r\n
</div>\r\n
\r\n
<div style="clear:both;">\r\n
<p>We offer developers of non-market purpose-built rental housing the opportunity to obtain grant funding as a measure to offset Development Cost Charges. Approved grants are applied against the Development Cost Charges at time of Building Permit.</p>\r\n
\r\n
<p><strong>**New for 2024 application intake only – On May 27, 2024, <a href="https://kelownapublishing.escribemeetings.com/filestream.ashx?DocumentId=46896">Council authorized</a> temporary enhancements to the Rental Housing Grants Program:</strong></p>\r\n
\r\n
<ul>\r\n
\t<li>Increasing the available pool of funding from $300,000 to $3.3 million for 2024 intake only</li>\r\n
\t<li>Maximum possible grant funding increased to cover the entire DCC amount per project. Grant funding will not be linked to bedroom composition of units.</li>\r\n
\t<li>Application must be submitted by <s>August 9, 2024</s> and Building Permit must be issued by December 31, 2025 - <strong>application deadline extended to August 20, 2024</strong></li>\r\n
</ul>\r\n
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<p paraeid="{150c9733-4804-439c-a2bf-8b16adfe3edf}{132}" paraid="49429605"><span data-contrast="auto" xml:lang="EN-CA">The program provides a 100</span><span data-contrast="auto" xml:lang="EN-CA"> per cent </span><span data-contrast="auto" xml:lang="EN-CA">municipal tax exemption on the “revitalization amount</span><span data-contrast="auto" xml:lang="EN-CA">.</span><span data-contrast="auto" xml:lang="EN-CA">”</span><span data-contrast="auto" xml:lang="EN-CA"> This is defined in the </span><a href="https://www.kelowna.ca/city-hall/city-government/bylaws-policies/revitalization-tax-exemption-program-bylaw-no-12561" rel="noreferrer noopener" target="_blank"><span data-contrast="none" xml:lang="EN-CA"><span data-ccp-charstyle="Hyperlink">Revitalization Tax Exemption Bylaw</span></span></a> <span data-contrast="auto" xml:lang="EN-CA">as </span><span data-contrast="auto" xml:lang="EN-CA">“</span><span data-contrast="auto" xml:lang="EN-CA">the municipal portion of property tax calculated in relation to the increase in the assessed value of improvements on the property resulting from the construction or alterations as outlined in section 6 of this bylaw</span><span data-contrast="auto" xml:lang="EN-CA">.</span><span data-contrast="auto" xml:lang="EN-CA">” </span> </p>\r\n
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\r\n
<div style="clear:both;">\r\n
<p paraeid="{150c9733-4804-439c-a2bf-8b16adfe3edf}{190}" paraid="605075127"><span data-contrast="auto" xml:lang="EN-CA">For example, if you build a </span><span data-contrast="auto" xml:lang="EN-CA">four-storey</span><span data-contrast="auto" xml:lang="EN-CA"> apartment\u{202F}building on a lot that was previously vacant</span><span data-contrast="auto" xml:lang="EN-CA">,</span><span data-contrast="auto" xml:lang="EN-CA"> you </span>would receive a municipal tax exemption for 10 years on the value of the new building (the improvements).\u{202F}<span data-contrast="auto" xml:lang="EN-CA">T</span><span data-contrast="auto" xml:lang="EN-CA">he </span><span data-contrast="auto" xml:lang="EN-CA">tax</span><span data-contrast="auto" xml:lang="EN-CA"> exemption does</span><span data-contrast="auto" xml:lang="EN-CA">n</span><span data-contrast="auto" xml:lang="EN-CA">’</span><span data-contrast="auto" xml:lang="EN-CA">t </span><span data-contrast="auto" xml:lang="EN-CA">extend</span><span data-contrast="auto" xml:lang="EN-CA"> to the land value.</span> </p>\r\n
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"value" => "<p><span data-contrast="auto" xml:lang="EN-CA">Generally, the tax exemption will begin the year after the project is constructed and occupancy has occurred. However, BC Assessment has a September deadline for new buildings to be assessed. For example, a project that completes construction in December 2020 will have missed BC Assessment’s deadline for new projects. Therefore, the building will be assessed in 2021 and the 10-year exemption will start in 2022.</span> </p>\r\n"
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<p paraeid="{150c9733-4804-439c-a2bf-8b16adfe3edf}{252}" paraid="96677247"><span data-contrast="auto" xml:lang="EN-US">You should submit your rental housing tax exemption application after you have submitted a complete development permit application and your project has established some timelines for construction and occupancy.</span> </p>\r\n
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\r\n
<div style="clear:both;">\r\n
<p paraeid="{a8ed218f-b195-4bec-a7a8-c13777047800}{3}" paraid="465034016"><span data-contrast="auto" xml:lang="EN-US">To apply, </span><span data-contrast="auto" xml:lang="EN-US">download the relevant </span><span data-contrast="none" xml:lang="EN-US"><span data-ccp-charstyle="Hyperlink"><a href="https://www.kelowna.ca/sites/files/1/docs/revitalization_tax_exemption_application_form.pdf" rel="noreferrer noopener" target="_blank">Revitalization Tax Exemption Application Form</a> </span></span><span data-contrast="auto" xml:lang="EN-US">and the <a href="/sites/files/1/docs/rte_application_checklist.pdf" target="_blank">Revitalization Tax Exemption Checklist</a> to ensure you have all the required information. </span></p>\r\n
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