Home Builder: Let's Get Affordable Housing Right

By NextHome Staff
March 28, 2018
Government needs to put incentives, programs and partnership frameworks in placeI believe that the health, prosperity and quality of life in the GTA depends on access to quality housing for households of all income levels. Affordable housing gives safety and stability to people with low to mid incomes who are often single parents, seniors, recent immigrants and people with disabilities.To address the needs of the growing concerns of this issue, the provincial government amended the Promoting Affordable Housing Act, adding inclusionary zoning as a new planning tool for municipalities. If done in partnership with the building industry, inclusionary zoning could ensure that affordable housing gets built in a way that promotes socio-economically diverse neighbourhoods.
The new legislation that passed in 2017 gives local government the option to establish policies that would require housing applications to include a certain percentage of affordable units within a development.
The government consulted with municipalities, developers, housing advocates and other interested parties on a framework for inclusionary zoning in Ontario. The government received a broad range of comments and suggestions during the consultation.The intent of inclusionary zoning is to encourage development of affordable units that would not otherwise be built. For inclusionary zoning to be successful, the building industry needs to be supported by incentives and partnerships. We need to strike a balance between creating affordable housing and encouraging developers to build it.The provincial government is also contemplating pre-zoning properties that would make the approval system more efficient, giving residents a voice in how their community should grow.The Urban Land Institute, a U.S. think tank on land use and real estate, published a report in 2016 that provides an in-depth study of how a growing number of cities have adopted inclusionary zoning policies to help increase affordable housing without impacting the overall affordability of housing for everyone.For example, New York City has voluntary inclusionary zoning and made the program attractive for developers through tax incentives in exchange for including affordable units in their building, or another building within a kilometre of the community district.Closer to home, the City of Mississauga introduced their affordable housing strategy, titled Making Room for the Middle, that introduces a flexible approach. The city brought the industry to the table to work in partnership to identify a list of tools to help build units sooner by pre-zoning land, decreasing development charges and updating official plans.The Building Industry and Land Development Association (BILD) and its members are committed in working collaboratively with our municipal partners to support the delivery of affordable housing as demonstrated by our active participation in these initiatives and discussions across the GTA.We need to find ways to balance the need for affordable housing to keep all homes in the GTA affordable for people to purchase. Development is expensive and if the building industry is to include more affordable units in a development, the government needs to put the incentives, programs and partnership frameworks in place that will make projects viable without undermining housing affordability.David Wilkes is president and CEO of BILD (Building Industry and Land Development Association), and can be found on: Twitter.com/BILDGTA , Facebook.com/BILDGTA , YouTube.com/BILDGTA and BILD’s official online blog: BILDBlogs.ca

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