Plans to implement business licensing for short-term rental and bed and breakfast businesses in the Cowichan Valley Regional District’s electoral areas, in an effort to help deal with the housing crisis, are moving forward.
In a tight vote at the CVRD board meeting on June 26, staff were directed to prepare a bylaw to allow the licensing, and that an Alternative Approval Process be held to determine if the electorate is in favour of adopting a service-establishment bylaw, as is required under the Local Government Act, to set up a business-licensing system for STRs and B&Bs.
An AAP requires that 10 per cent or more of eligible voters must sign and submit response forms in opposition to the initiative to stop the the licensing process from proceeding.
The plan is to have the costs of the new business-licensing system covered by the STRs and B&Bs as part of the licensing process. The CVRD’s budget for 2024 already includes a full-time bylaw officer position for one year whose primary focus is on the enforcement of uncompliant STRs.
If the business-licence bylaw is approved, this bylaw officer will also be responsible to act as the CVRD’s official who will oversee business licence applications for both STR and B&B businesses.
The move to require B&Bs and STRs in the electoral areas to have business licences is in response to the province’s new Bill 35, which was implemented last December in an effort to help combat the ongoing housing crisis in B.C. by regulating STR listings of less than 90 days.
In the new legislation, there is a provision allowing regional districts to enact bylaws to regulate STR and B&B businesses, requiring operators to apply for a business licence.
The bill also requires that short-term rental platform service providers must record and maintain any short-term rental information provided to them, and disclose that information to the Minister of Housing.
This requirement will prevent STR and B&B operators with no business licence from advertising on platforms such as Airbnb and VRBO (Vacation Rentals By Owner), which many rely on.
According to the province, there are currently 28,000 STR listings in British Columbia, which is an increase of 20 per cent in the last year.
As a result, more than 16,000 entire homes, meaning units listed for the majority of the year, have been pulled out of the housing market.
A staff report by Ian MacDonald, the CVRD’s manager of building inspection and bylaw enforcement, said that under the current CVRD zoning bylaws there are less than 100 properties zoned to allow for STR accommodations, but most allow for B&B businesses.
In contrast, MacDonald said information collected in conjunction with the development of the Cowichan Workforce Housing Strategy indicates there are now more than 1,000 STRs operating in the region.
“In order to combat the current housing crisis, local governments are seeking tools to assist with enforcement strategies in order to gain compliance with illegal STRs with the goal of adding long-term rental stock back to the market,” he said.
Ian Morrison, the CVRD’s director for Cowichan Lake/Skutz Falls, said at the electoral areas services committee meeting on June 19 that there has been some resistance to the establishment of the business licences, but he’s been hearing nothing but positive comments from people.
He said people have told him that if STRs and B&Bs are going to be operating in the area, they want to know that they’re operating correctly, and with the CVRD working with the province on the initiative, it’s a win-win situation.
“I’m fully in support of this because the short-term rental crisis has really exacerbated the housing crisis in my area, and the Cowichan Lake area has been historically a place where people have been able to move their families and to be able to put a roof over their heads,” Morrison said. “Those days are long gone by and I’d like to see them return.”
Alison Nicholson, director for Cowichan Station/Sahtlam/Glenora, was among a number of directors at the meeting on June 26 who wanted the issue sent back to the electoral area services committee for further discussion.
She said she doesn’t believe she has enough information on the issue to vote for it at this time, but did vote for the process to move forward after a lengthy discussion at the board table.
“I think it will end up being a long-term tax burden on our citizens and I’m very sensitive to that,” Nicholson said.
“I also don’t think that B&Bs that have been run legitimately should be penalized by adding the extra burden of licensing costs.”
Kate Segall, director for Mill Bay/Malahat, said the licensing program will allow for the province to help the CVRD enforce the new regulations.
“We need to get some housing back available for renters,” she said.
