Archive for June 2012 | Monthly archive page
The City of Vancouver Mayor’s Task Force on Housing Affordability has released an interim report titled Bold Ideas Towards an Affordable City. The report explores strategies aimed at addressing affordability for low to moderate income households in Vancouver – households earning between $21,500 and $86,500 annually.
The Task Force has developed 4 recommendations:
- Increase the supply and diversity of affordable housing
- Enhance the City’s and the community’s capacity to deliver affordable rental and social housing
- Protect existing social and affordable rental housing and explore opportunities to renew and expand the stock
- Streamline and create more certainty and clarity in the regulatory process and improve public engagement
Numerous strategies are discussed, including boosting density in traditional single-family neighbourhoods and around transportation nodes and arterial streets; creating a City-owned housing authority to leverage city-owned land; and forming a community land trust and a pension-fund-backed financing agency. The report even introduces the idea of creating a small number of rental units on industrial lands.
Full Report: The City of Vancouver Mayor’s Task Force on Housing Affordability: Bold Ideas Towards and Affordable City
In this research paper by the University of Calgary School of Public Policy, the authors examine the costs and benefits of various tax measures designed to promote greater private sector involvement in the provision of affordable housing. While also examining various regulatory initiatives, the report’s proposals focus on harnessing the “energy and efficiency-promoting competition of the private sector”. The authors conclude that a low-income tax credit combined with tax measures aimed at promoting investment in multi-unit rental projects would best balance effective policy with the realities of constrained municipal budgets.
University of Calgary, School of Public Policy, September 2010
Authors: Marion Steel and Peter Tomlinson
Research: Increasing the affordability of rental housing in Canada: An assessment of alternative supply-side measures
New Westminster City Councillor and SFU Urban Studies student Jonathan Cote has authored a report on the economics of rental housing in the Metro Vancouver region. He argues that addressing the crisis facing purpose-built rental housing in the region is critical for the region’s social and economic well-being. Presently, the development economics of purpose-built rental housing projects simply cannot compete with market condo developments. The report presents 5 recommendations designed to bridge the financial gap that forms a barrier to the development of new purpose-built rental projects:
1. Rental Land Banking
2. Density Transfer Programs
3. Eliminate minimum parking requirements
4. Reduction of Development Fees and Levies
5. Density Bonus Program
The report’s recommendations lie within the purview of municipal governments and demonstrate that municipalities possess the tools to address the economics of rental housing development. Mr. Cote notes that each of these recommendations on their own cannot sufficiently alter the economics of rental housing developments and must be implemented as a whole if they are to be effective.
Full Report: Worth Saving: Changing the Economics of Rental Housing
Georgia Straight Article: New Westminster’s Jonathan Cote suggests strategies to improve rental housing in the Lower Mainland
A cursory but interesting analysis of the correlation between homeownership rates and economic productivity. The author, Richard Florida, looks for correlations between home ownership rates and innovation, high-tech industry and productivity in U.S. metropolitan centres. He found no discernible pattern or correlation between home ownership rates and these variables. As well, home ownership rates had no correlation, or in some cases a negative correlation, with per capita economic output. His conclusion: lower ownership rates 55% – 60% (or conversely higher rental rates of between 40-45%) support a thriving economy.
The June issue of FOCUS Magazine features a great article by Simon Nattrass on the challenges of finding affordable rental housing in the City of Victoria and the stress that those who struggle with unaffordable housing are forced to endure. The article also highlights the many hurdles faced when it comes to creating new affordable housing options and the challenge of getting politicians to admit that middle-income households in BC are facing an affordability crisis.
“It’s estimated that of the nearly 25,000 renters within the City of Victoria, almost half deal with the same struggle and uncertainty that goes along with living in lower-cost rental housing.”
Thank you to the Tenant Resource & Advisory Centre for submitting this article.
Article: An element of desperation: Victoria a great place to live. But who can afford to live here?
Full issue: Focus Magazine June
On May 4th, 2012, a NDP motion by MP Réjean Genest (Shefford) was passed that calls for federal support for Canadian municipalities in their efforts to combat homelessness while also recognizing the need to invest in purpose-built rental housing construction in communities all across Canada.
The Motion:
M-331 — May 4, 2012 — Deferred recorded division on the motion of Mr. Genest (Shefford), seconded by Ms. Morin (Saint-Hyacinthe—Bagot), — That, in the opinion of the House, the government should: (a) keep with Canada’s obligation to respect, protect and fulfill the right to housing under the UN International Covenant on Economic, Social and Cultural Rights; (b) support efforts by Canadian municipalities to combat homelessness; and (c) adopt measures to expand the stock of affordable rental housing, with a view to providing economic benefits to local housing construction businesses.