Moose Jaw City Council voted in favour of a couple of changes to the City of Moose Jaw’s Replacement Incentive Housing Program (RHIP) on Monday night. 

The program gives tax incentives to encourage new housing construction in older areas of the city. Since its inception in 2003, there have been 94 successful applicants for the program. 

Previously, in order to be eligible for the incentive, construction must be “substantially completed” within one year of acquiring a building permit. The amendment to the RHIP would extend the timeline from one year to two years. 

Originally, the city administration’s recommendation was to waive the one-year timeframe subject to the builder having an active building permit. Economic Development Manager, Jim Dixon noted the issue is that, until they hire two building officials, there is no way of policing it. 

“We have no idea what's going on, so I think there are about 100 outstanding building permits in different stages, some of which might not even have been started,” Dixon said. 

City councilors also voiced their concerns that giving builders carte blanche when it comes to building permits could cause issues. 

“That sounds great on paper, I’m just concerned about what that’s going to look like,” said Coun. Heather Eby. 

City administration pointed out that applications were being turned away because they couldn’t meet the one-year timeframe requirement, yet the builders are meeting the intent of the program. 

While the motion, made by Mayor Clive Tolley, specified a two-year time period, city solicitor Andrew Svenson did note that under the building permit bylaw, permits expire after two years regardless. While there was redundancy, the city council approved the motion to make clear that there is a two-year timeline. 

“I think it's a two-part process. I do you believe you apply for this replacement housing incentive, you get a demolition permit and then you get a building permit,” said Coun. Jamey Logan.  

“So, these things are all part and parcel and I think it would all be tied together through the building permit process anyway. However, if everybody is more comfortable with having a two-year window on it then I'm fine with that.” 

Meanwhile, successful applicants who have completed construction receive a five-year tax exemption beginning Jan. 1 of the year following the completion. The issue is that the tax exemption was not transferable and assignable. This means that if someone wanted to sell their property within five years, the exemption would be lost. 

The amendment to the RHIP would close that loophole. It would allow the ownership of the property to change within the five-year exemption and the buyer of the property would continue to receive that exemption until the five years are completed. 

“In my opinion, that could spur development in the city and certainly infill housing potentially could take off. For years, we've put a stop sign up when people tried to sell that. In fact, we had someone come before council and we said no,” Logan said.