Coquitlam housing policy ‘misses the mark by a wide margin,’ councillor says

How many studio units does Coquitlam need? How many three-bedroom units? And just how big should a bedroom be?

Those questions were at the centre of a lengthy debate Monday as Coquitlam took the first step in revising the city’s housing unit mix policy.

The policy, which needs to go through a public hearing before approval, aims to have one-bedroom and studio units make up no more than 60 percent of a new project. Two- and three-bedroom units would have to account for a minimum of 40 percent.

“I think this misses the mark by a wide margin,” said Coun. Robert Mazzarolo, suggesting the policy should essentially be reversed.

Mazzarolo contended two- and three-bedroom units should comprise 60 percent of a new development.

The policy limits studio units to 30 percent of the unit total in a new project. Mazzarolo suggested the threshold should be less than 10 percent, noting many studio and one-bedroom units are currently “sitting unsold” as the provincial government considers converting those condos into affordable housing.

“Don’t let the wool be pulled over your eyes. . . . This is a bailout,” Mazzarolo said, noting senior levels of government would be paying above market prices for the condos.

The talk about buying condos is likely connected to the federal government protecting both themselves and the banks, contended Coun. Dennis Marsden.

“The federal government does not want to see CMHC on the hook for a bunch of losses that would be triggered by the fact the market crashed dramatically and that interest rates are rising,” he said. “The one group that throughout all of this hasn’t been held to account have been the banks and their regulations.”

While he said the policy is “trending in the right way,” Coun. Steve Kim voiced concern about bedroom sizes.

The policy allows for a bedroom as small as 86 square feet, which “seems a little tight,” according to Kim, who suggested something more in the range of 100 square feet.

Mayor Richard Stewart offered a different perspective, suggesting council would effectively be imposing higher costs on residents “for their own good.”

A larger bedroom would add to costs, Stewart noted.

“It’s not your bedroom and it’s not your paycheque that’s going to pay for the extra square feet,” he said.

Most bedrooms are larger than 86 square feet. However, the third bedroom in a three-bedroom unit is sometimes quite small, according to city staff.

In some ways, livability is in the eye of the beholder, the mayor said. He added that a developer would struggle to get a loan on a project that consisted only of 86 square foot bedrooms.

“The bank’s going to laugh at him and kick him out because they’re not stupid. They know that that’s not going to sell.”

While she supported advancing the policy to a public hearing, Coun. Teri Towner voiced her concerns about balancing affordability with livability.

Towner talked about residents who move into a new home and realize their stroller doesn’t fit through the doorway and a bassinet won’t fit in the bedroom.

Moving forward, council should consider housing policies in other countries while taking into account livability and isolation, said Coun. Trish Mandewo.

If the city offers fewer and smaller bedrooms, “We are really squeezing people out because the livability is not going to be there,” Mandewo said.

Based on both the 2021 Census data and building permits, “the most notable housing gap is seen in three or more bedroom units,” according to a city staff report.

Developers are generally less inclined to build three-bedrooms as they generate lower returns per square foot, while studios and one-bedroom units tend to be: “more appealing to investor-owners,” the report stated.

That distinction was key to Coun. Brent Asmundson.

“What are we really supplying? Are we supplying investor market, or are we supplying what people want to buy?” he asked.

Based on the city’s 2022 housing needs report, Coquitlam needs a total of 18,335 new units of housing by 2031.

Meeting that target means adding 554 three-bedroom units per year. The report projected the city is short of that goal, adding approximately 399 three-bedroom units per year.

Council voted 8-1 to advance the policy with Mazzarolo opposed.