Amid a growing housing crisis, developers of the Morgan Maples modular home park in Chemainus have asked North Cowichan council for early consideration of a rezoning application. They are seeking to convert the property at 3499 Henry Rd. from leasehold to bare land strata, citing financing challenges that have prevented home sales. Six modular homes have been built as part of Phase 1, but none have been sold.
The development is owned by 1251719 B.C. Ltd.
Sean Carroll, a shareholder in the company who was involved in planning and engineering for the project, is now leading the rezoning effort.
The company explained in a letter to council that they were initially unaware of how difficult it is to finance a home in a pad lease modular park. They have since learned that many banks and lenders do not offer conventional mortgages for homes on leased land, meaning buyers are limited to chattel mortgages which require higher down payments and interest rates.
Currently, buyers at Morgan Maples can purchase a home but not the land. They would be required to pay a $650 monthly pad rental fee on top of mortgage payments. Because modular homes are classified similarly to recreational vehicles, financing is structured like a car loan — with shorter amortization periods and higher interest rates. Developers argue these financial constraints have made the homes unaffordable for their target market.
“When you compare it to what a detached home costs in the Duncan area — which is six or seven hundred thousand dollars or more — we’re trying to provide something more accessible,” said Carroll. “But the financing structure is holding people back, and that’s frustrating.”
The project was originally approved in 2022 as a pad rental modular home park, with the goal of providing an affordable alternative to traditional homeownership. The modular homes are priced at approximately $500,000, excluding land costs.
To improve affordability and mortgage accessibility, the developers are seeking a zoning change to allow buyers to own both their home and the land it sits on.
Mortgage broker Matthew Blake, who works with homebuyers on Vancouver Island, submitted a letter to North Cowichan council in support of the rezoning request.
“Chattel mortgages typically carry higher interest rates, shorter loan terms, and require larger down payments due to perceived lender risk,” wrote Blake. “Bare land strata ownership, however, qualifies buyers for traditional mortgage financing with lower rates, longer amortization periods, and smaller down payment requirements — making homeownership more attainable for local residents.”
Carroll acknowledges that, while buyers would pay more up front to purchase both the lot and home, the long-term financial benefits would outweigh the initial costs.
“Instead of paying a mortgage and then an additional pad rental fee indefinitely, everything is rolled into one mortgage, and they’re building equity,” said Carroll.
In a bare land strata, each homeowner would own their home and lot but share responsibility for common areas such as roads, utilities and green spaces. A strata corporation would manage shared areas and enforce strata rules.
The developers argue that rezoning would also benefit North Cowichan by expanding homeownership opportunities and supporting provincial housing targets aimed at solving the housing crisis. Under B.C.’s Bill 44, local governments are required to amend zoning bylaws to expand housing options, and North Cowichan has been assigned a target of 1,233 new homes over five years.
Phase 1 plans for Morgan Maples include 20 homes, six of which are already built, with additional builds planned for Phase 2.
The developers point out that a zoning change would also result in approximately $200,000 in park dedication fees being paid to the municipality.
In their letter to council, the developers have included letters of support from four local modular home manufacturers, two mortgage brokers, a chartered accountant and the Cowichan Housing Association.
“We already have all the approvals in place to build exactly what we’re building,” said Carroll. “The only thing we’re asking for is the ability for buyers to own their lots so they can get proper financing. Nothing else is changing — same density, same servicing, same number of lots.”
The request is now before the municipality for consideration.
