Municipalities and social advocates say folding income into the definition of affordable housing is a good first step, but more needs to be done to protect pocketbooks — and local budgets.
The Ford government's Bill 134 would define an affordable home as having a rent or mortgage of 30 per cent of the 60th percentile of the household income in that municipality. For example, if the 60th percentile of one city's annual household income is $100,000, an affordable home will cost $30,000 a year, or $2,500 a month. In another city with a $50,000 60th-percentile income, an affordable mortgage or rent would be $1,250 a month.
Association of Municipalities of Ontario President Colin Best said the bill's changes will "better target" the scope of housing affected by the exemption from municipal development charges under Bill 23. But there are still questions about how the legislation will affect local budgets, including how the units will stay affordable over time, he said.
Municipalities have criticized the Ford government for its constant stream of housing legislation, which they say has resulted in administrative headaches and, ironically, slower construction, as workers try to understand how all the changes interact with their cities and towns.
Ontario Big City Mayors Chair Marianne Meed Ward asked the government to keep that in mind.
"As we have experienced over the past year and a half, a process like this will require a considerable amount of staff time that otherwise could be spent processing development applications," said Meed Ward, who is also the mayor of Burlington.
Bill 23 will still create a billion-dollar-a-year hole in municipalities' pockets, despite the government's promise to make them whole, Best added.
Meed Ward said the government should make sure builders pass on their savings to consumers, and that the new affordable homes aren't bought by investors who will jack up the price.
She also stressed the need for the right types of housing.
"In some municipalities, this may mean two-to-three-bedroom family-sized units, in some, units built to accommodate seniors. And in municipalities with post-secondary institutions, it may be affordable student housing," she said.
Best said he'd also like to see a definition for "attainable" housing — a term the PCs have used a lot recently, and which Bill 23 also exempts from development charges.
"Attainable housing is a new concept that is not well defined or understood," Best said.
Some advocates argued for a cheaper, two-tiered definition of affordable housing.
Ontario should bump the definition down to the 50th percentile, said Walied Khogali Ali of the Federation of South Toronto Residents' Associations. He also argued for another tier of "deeply affordable" housing at 30 per cent of the 30th percentile of income.
"In Toronto, where the 60th percentile of income approximates $92,000 annually, the definition of 'affordable' at 30 per cent of this income does not serve low to moderate-income households, effectively excluding a significant portion of our community," Khogali Ali said.
Toronto low-income households at the 30th percentile would have to spend over 85 per cent of their income on an "affordable" home, he said.
Sean Meagher of Ontario For All said the definition should be based on different income pools instead of all incomes. The rent for an affordable bachelor should be different than the rent for a three-bedroom, he said. The changes as written would discourage developers from building larger affordable homes, since smaller rentals would make them more money, he said.
Meagher added that the bill has no objective measures — the income definitions are based on the "opinion" of the municipal affairs and housing minister.
"Evidence-based public policy doesn’t allow politicians to decide what the key stats are," he said.
Best also took the opportunity to push the government to streamline Ontario Land Tribunal decisions, which deal with land planning disputes. It promised to consult on changes in the fall.
"We urge you to move quickly in consultation with municipalities to make these changes. Our sector needs every lever possible to support new housing," he said.
