Consultation on Increasing Housing Supply in Ontario: A guide for Ontario s co-op housing sector

Transcription

1 Consultation on Increasing Housing Supply in Ontario: A guide for Ontario s co-op housing sector The Government of Ontario is currently holding a consultation: Increasing Housing Supply in Ontario. CHF Canada is calling on all of our co-op housing supporters in Ontario to participate by the deadline, January 25, Background Ontario families are feeling the squeeze in the housing market. Current estimates show that close to half of all Ontario s renters spend 30% of their income on rent. More than 185,000 households are on a municipal waiting list for subsidized housing. The demand for affordable housing for all Ontarians will continue to grow in the coming years. The lack of affordable housing has been directly linked to a rise in income inequality, which threatens our economic growth, according to research from the International Monetary Fund. Poor housing options also make it difficult for businesses to attract people with the right talent. Toronto Mayor John Tory highlighted the shortage of affordable and rental housing as one of the most serious disadvantages for Toronto in its Amazon HQ2 bid, and in attracting other Silicon Valley businesses. It s time to look at housing as the solution, not the problem. Investing in housing is an opportunity to make life better for people all across the province. To fully implement housing as a solution, action needs to be taken across the entire spectrum of housing. Co-ops offer unique benefits found in no other rental housing. Residents have an improved sense of community, acquire new work skills and have better relations with friends and family. The 2017 Auditor General s Report noted that co-op and non-profit housing provide the best value for public investment, given the long-term affordability. To solve the housing shortage, the government must effectively work with both the private and non-profit housing sectors. Consultation Unfortunately, the government s consultation document doesn t focus on the needs of Ontarians desperate for quality affordable housing: This consultation does not cover initiatives specifically related to community housing (e.g. social and supportive housing). But that doesn t mean we can t make our voices heard! The government is overlooking a strong partner in achieving housing affordability. The consultation attempts to create a separation that shouldn t exist. We encourage co-op supporters to take part. Share your thoughts on increasing housing supply that benefit all Ontarians. To help you respond, we created this guide. It takes you through each section of the survey with the co-op sector s point of view and our recommendations. 1

2 Our key messages 1. Efforts to increase Ontario s housing supply must include more community based co-op and non-profit housing, supportive and Indigenous housing. 2. Co-op and non-profit housing provide the best value for public investment given their long-term affordability. 3. Proper land use planning should promote intensification as opposed to sprawl and should include a healthy mix of housing options. 4. Deregulation of the planning process will not lead to an increase in affordability for Ontario families. 5. A more streamlined and cost-effective process for development approvals would help non-profit and co-op housing providers get more projects off the ground. 6. Changes to the Residential Tenancies Act are not going to meaningfully increase Ontario s housing supply. Participating in consultation: Increasing Housing Supply in Ontario It s best to answer in your own words. Co-op boards can formulate a response on behalf of the co-op; individual members are encouraged to also participate. There are a total of five sections. We limited this guide to discussion of the questions relevant to co-op housing development. It will take between ten and twenty minutes to complete, depending on the length of your answers. To participate online: To participate by housingsupply@ontario.ca Read the Increasing Housing Supply in Ontario: Government Consultation document. Deadline January 25,

3 SURVEY GUIDE INTRODUCTORY QUESTION Speaking from your own perspective, select your top criteria when looking for a home to buy or rent. Select Price or rent this answer makes the best case for affordable housing. SECTION 1: SPEED It takes too long for development projects to get approved. How can we streamline development approval processes, while balancing competing interests and the broader public interest? Deregulation alone will not increase the supply of affordable housing. However, non-profit and co-op housing developers would benefit from both streamlined processes and adequate ministry staffing. Streamline costly studies (environmental, parking, noise, etc.) to make it more affordable for the non-profit and co-op housing sector to develop new homes. Provide proper staffing in provincial ministries (Environment, Transportation, etc.) for realistic turnaround of approvals. This would help affordable housing projects develop more quickly with less risk of cost overruns. SECTION 2: MIX There are too many restrictions on what can be built to get the right mix of housing where it is needed. We need to rethink the way we plan cities. In the last two decades, Ontario has largely relied on the private sector to develop housing. These developments often don t include modest affordable housing units and the right mix of unit sizes to meet the community s needs. Creating affordable housing requires partnerships with government, private sector and the community housing sector. 3

4 a) How can we make the planning and development system more effective to build the kind of housing people want, and can afford, in the right places with the right supports (e.g., schools, transit and other amenities, etc.)? Partner with co-ops to spark the development of permanent affordable housing for Ontarians. With no built-in profit margin, every dollar goes to keeping rents affordable for the long-term. Consecutive studies from the Canadian Mortgage and Housing Corporation (CMHC) have shown that co-op housing costs about 14 % less than other affordable housing models. Create an environment that supports the development of non-profit and co-op housing: o o o Take an affordable housing first approach to surplus properties: sell below market value to non-profit and co-op developers. Use planning tools such as inclusionary zoning to ensure the continued development of affordable housing in growing housing markets. Encourage new community housing development through upfront project funding. b) How can we bring new types of housing to existing neighbourhoods while maintaining the qualities that make these communities desirable places to live? Commit to community consultation and promoting intensification and smart growth to avoid sprawl. Affordable housing is an important part of building inclusive communities. Studies show that it leads to better health outcomes, employment opportunities, and social mobility. Use public education events outlining the benefits of mixed-income communities to avoid NIMBY (Not in My Back Yard) sentiments. c) How can we balance the need for more housing with the need for employment and industrial lands? There is enough land available for housing without using industrial or employment lands. Speculation is the main driver of inflation in the housing market, not lack of land. SECTION 3: COST Development costs are too high because of high land prices and government-imposed fees and charges. How can we lower the cost of developing new housing while ensuring that funds are available for growth-related infrastructure (e.g., water and sewer systems, fire and police services, schools, roads, and transit)? 4

5 Government policies that focus on expanding supply without including different income groups will not effectively increase the affordable housing stock. The non-profit and co-op housing sector play an important role in filling this gap. Co-ops are a non-governmental, costeffective means of providing good-quality, long-term affordable housing. Consecutive CMHC studies found that, compared to other models of affordable housing, co-ops cost 14% less to operate. In addition, co-ops offer a mix of market-value units with rent-geared-to-income units for those who need it most. It s important that the government works with the sector to address the supply shortage. Exempt non-profit and co-op housing providers from development charges and other government-imposed costs. Savings from these charges could be re-invested into more affordable housing. Allocate revenues from the land transfer tax to build the long-term affordable housing that the private sector can t deliver. Reduce costs for municipalities by focusing on efficient, complete communities with diverse housing forms. This avoids inefficient sprawl which, over time, costs municipalities more to service. SECTION 4: RENT It is too hard to be a landlord in Ontario, and tenants need to be protected. The lack of affordable housing supply creates a situation where bad landlords can take advantage of tenants; tenants are vulnerable to being stuck in housing where their rights are violated. In tight rental markets, landlords have an incentive to find reasons to evict tenants since they can raise the rents whenever units turn over. Amendments to the Residential Tenancies Act are not going to meaningfully increase Ontario s housing supply. Focus on increasing affordable housing by partnering with the co-op housing sector. Provide social supports for households that need assistance to maintain successful tenancies. 5

6 SECTION 5: INNOVATIONS Other concerns, opportunities and innovations to increase housing supply. More attention must be paid to creating innovative forms of affordable housing from across the spectrum, including co-op housing. For over 50 years the co-op housing sector has been building strong communities where Ontarians can afford a place to call home. Co-ops come in all shapes and sizes, ranging from townhouses to large apartment buildings. What makes the co-op model unique is that it serves as a halfway between renting and homeownership. The co-op model also gives its members a voice in creating the environment in which they live, resulting in better maintained buildings, reduced social isolation and better job outcomes. Partner with the co-op housing sector to create innovative affordable housing. Promote the community land trust model. Community land trusts are private non-profit organizations that purchase land and use it for the benefit of the local community. This approach is a way for the government to remove properties from the speculative market and to allow the non-profit sector to develop affordable housing for middle- and low-income families. Commit to community consultation and promoting intensification and smart growth to avoid sprawl. Affordable housing is an important part of building inclusive communities. Studies show that it leads to better health outcomes, employment opportunities, and social mobility. Use public education events outlining the benefits of mixed-income communities to avoid NIMBY (Not In My Back Yard) sentiments. January,