Municipal land that Saanich offered to the province for up to 60 modular homes has been rejected due to the configuration of the property and the cost to upgrade it.
B.C. Housing evaluated the near-half-acre of land north of Saanich Fire Hall No. 1 on Vernon Avenue and determined it is not suitable for modular housing due to the steep slope, since placement of the modular units would require significant engineering and construction.
B.C. Housing has encouraged the district to identify other land for housing.
Saanich offered the land after a tent city was set up in Regina Park in April. It was shut down in September.
About 20 homeless campers from that encampment are now at a private property at 5090 West Saanich Rd. and are expected to leave today.
The provincial government is offering to build 2,000 modular homes with support services around B.C. It has said all it needs are applications and land from municipalities.
In the capital region, only Victoria has struck a deal.
Modules are built in factories and moved to building sites where they are assembled using a crane.