Affordable housing is crucial to the economic and social vitality of every municipality. Without it, people cannot afford to live here, which means they will look for jobs in places they can afford. Young people, especially, will move to places they can afford better.
Collingwood is especially vulnerable to housing issues.* Given that the growth trend in our area is in low-paying (minimum wage), and part-time employment, finding affordable housing has become increasingly difficult for many people. Simcoe County itself estimates that a “single individual on Ontario Works would need to spend 108% of his/her monthly income to afford to live in the County.”
And as the Simcoe County housing strategy continues:
The Southern Georgian Bay area, while home to a thriving tourism industry, is also experiencing an aging population, high market rental rates, and a higher incidence of low income in private households.
Skyrocketing real estate costs contribute to the devaluation of a community. They push up taxes, living costs, rent, and utility bills. It takes a mature, wise and compassionate council to find ways to counter rising taxes and keep their community affordable. **
As the Ministry of Municipal Affairs and Housing notes on its website,
Decent housing is more than shelter; it provides stability, security and dignity. It plays a key role in reducing poverty and building strong, inclusive communities.
But housing is a complex, challenging issue for municipalities and municipal politicians. Solutions are often very expensive; more than a small community can afford.
Councils have no direct control over real estate values (a problem compounded by the out-of-control Municipal Property Assessment Corp – MPAC – which raises property values across the province by computer formula, from its ivory tower offices, without conversations with local officials).
Municipalities also lack the legal muscle to demand private-sector development of lower-cost housing and much-needed rental properties like apartments (few young people can afford to buy homes, especially in a community that offers predominantly low wage job opportunities, so a supply of affordable rentals is critical).
On top of that, jurisdiction for affordable housing usually lies with a higher-tier government. In Collingwood’s case, it falls under the authority of Simcoe County. There are already 4,113 social housing units in Simcoe County, including approximately 3,035 rent-geared-to-income units. The County provides rent subsidies to 28 housing providers for 2,878 non-profit units, 60% rent-geared-to-income and 40% market rent. The county has already invested $3.4 million in maintaining its housing assets.
Before we go further, let’s dismiss some emotional – and inaccurate – impressions. Affordable housing doesn’t mean subsidized housing (although subsidized housing is also affordable). It represents a range of housing types. As the Federation of Canadian Municipalities (FCM) defines it, it’s an economic condition:
Affordable housing generally means a housing unit that can be owned or rented by a household with shelter costs that are less than 30 per cent of its gross income.
Last Tuesday, Simcoe County Council heard a presentation on the county’s long-term plan for affordable housing. Given its importance, it’s unfortunate neither of our own council reps were there to hear it.
I, however, had the fortune of being there for what proved an eye opener.
Continue reading “The high cost of affordability”
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