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He cited rising interest rates, changes in tenancy laws and uncertainty surrounding the approval process — a sense that even if projects tick off all the boxes it still might not make it past municipal councils because someone decides it’s not affordable enough — as reasons.

Some municipalities that have seen increasing growth and density may also face a backlash from residents wary of any new development, even if it’s rentals or affordable housing.

“Even rental projects are seen as something people don’t necessarily want in their communities,” said Stovell.

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Over the past year, his company Reliance Properties had put three-quarters of about 1,000 rental units in the pipeline on hold due to various uncertainties in the market.

Heidari, who has only done single-family homes and a condo in the past, said he wanted to build a rental building in White Rock because of the need. For the same density bonus, he could have gotten away with doing one-third rental and two-thirds market condos, but wanted to do 100 per cent rentals to fill the niche.

“For me, this is business, but I also want to make sure I fulfill and build what is needed in the city.”

He argued that sticking to the allowed density of 2.8 FAR won’t make a huge impact on the project’s size, but would force him to make the units smaller. Heidari plans to go back to council with a revised plan within the maximum density, but the delay would mean extra time and cost.

“You would think with the current shortage of rental buildings that municipalities would help speed up the process of development applications,” he said. “But I have to see it to believe it.”

Photo by Jason Payne / PNG

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