Proposed programs for vacant properties would benefit owners, encourage action: city report

Two proposed programs could reduce fees charged to vacant building owners who are actively working to fix or demolish their properties.

“Adopting the proposed bylaw changes and vacant building programs will encourage current and future owners to fix or redevelop vacant properties,” a city staff report states.

A vacant building exemption program would allow a property owner to be completely exempt from the vacant buildings bylaw, including its fees, though all other city bylaws and enforcement measures would still apply.

To be eligible for an exemption, the owner must have an active development permit for a project to fix or demolish the property and secure all required building permits. Failing to meet terms of the program itself would trigger new fees.

A separate renovation fee waiver program would eliminate charges up to a maximum amount based on each project. The amount would match the value of recent municipal grants awarded to support the project and/or the cost of construction permits. After occupancy or demolition, a waiver could also apply to outstanding previous vacant building fees.

City staff currently plan to enact the programs on July 1, if council approves the plan.

The number of vacant buildings in Winnipeg has grown in recent years, sparking calls to crack down on their owners and encourage the repair or removal of the properties.

There were 788 vacant buildings in Winnipeg, as of October, up from 543 in 2021.

Coun. Evan Duncan, chairman of the property and development committee, said he hopes the changes help property owners avoid fees they would otherwise add to the price of the homes they build at such sites through higher rent and purchase prices.

“We want to see as many funded projects come forward that ultimately will reduce the cost to future tenants…. We want to keep things affordable,” said Duncan (Charleswood-Tuxedo-Westwood).

Since the fee relief would be offered only to property owners who are actively working on their structures, Duncan said the new programs would not make it easier for others to leave their properties empty.

“If we still have neglectful property owners, those folks are still going to be subject to penalty,” he said.

It’s not clear how much money the city could lose in fee revenues, since the charges are based on the details of each individual property, such as its value, the report notes.

“At the end of the day, to get more affordable units, I think that trumps the small amount of revenue loss,” said Duncan.

The city’s current empty building fee is charged at a flat rate of two per cent of a property’s value after it has been vacant for three years.

City council will soon consider a separate proposal that would charge the fee at one per cent of the property’s value after one year of vacancy and rise by an additional one per cent each year, up to a maximum of five per cent.

The new fee exemption programs could increase workload and put licensing and bylaw enforcement service levels at risk, which could lead the public service to seek a budget increase for 2027, the report notes.

The property and property development committee voted in favour of the proposal Thursday, though it still awaits a final city council vote.

joyanne.pursaga@freepress.mb.ca

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