It is a combination of funding for projects and policy changes that aim to make housing more affordable. So what was Toronto looking for and what did it get? And what will the budget mean for one of the least accessible cities in the country?
More offer
Much of the $ 10 billion investment is focused on boosting housing, which is key to Toronto.
The city is looking to expand funding for a project it is working on with the federal government: the Rapid Housing Initiative (RHI).
This wish came true. The budget proposes expanding the program, which creates new affordable rental housing for marginalized people living or at risk of homelessness, at a cost of $ 1.5 billion over two years.
“This is an important initiative. Only in Toronto, between Phase 1 and Phase 2 [of the RHI]we have about 1,000 units, “said Count Ana Bailão, deputy mayor and chair of the planning and housing committee.
“Again, these deeply supportive housing units are very important as part of housing continuity.”
Coun. Ana Bailão, chair of the Toronto City Council Housing Committee, welcomes the expansion of the Rapid Housing Initiative. (Mike Smee / CBC)
Most of the $ 10 billion budget commitment is $ 4 billion dedicated to what the government calls the “Housing Acceleration Fund.” The money will go to municipalities like Toronto to speed up housing growth by cutting red tape, and the federal government estimates it can build 100,000 new units in five years.
In terms of accelerating growth, Bailão says the city has ongoing projects for which it would like to work financially with the Canada Mortgage and Housing Corporation (CMHC) – most notably the Housing Now initiative, which activates sites owned by city for the development of affordable housing in mixed-income, mixed-use, transit-oriented communities.
“I think all government mandates need to work together because if they really want to build 100,000 units … we have 15,000 here in the pipeline that need funding and we need to make sure there is funding,” Bailão said.
The low-rise apartments and new developments at the eastern end of Toronto are pictured here. (Evan Mitsui / CBC)
There were no specific commitments to address maintaining the supply of affordable rental units by tackling the practice of “renovations” – where landlords buy houses or lower-income buildings and evict tenants so that apartments can be renovated and at much higher rent prices.
However, the Trinto government is committed to reviewing the role of big business in the market and the impact on Canadian tenants and homeowners.
“While we’re talking about increasing supply, we also need to focus on minimizing day-to-month and monthly losses on affordable real estate,” said Douglas Kwan, director of defense and legal services at the Advocacy Center for Tenants Ontario.
Kwan said he welcomed the criticism, but wanted to see more help for tenants on that budget.
Douglas Kwan, director of defense and legal services at the Advocacy Center for Tenants Ontario, says the center “hopes for more investment in non-commercial rental housing, especially from the Housing Acceleration Fund.” (CBC)
“We were hoping for more investment in non-market rental housing, especially from the Housing Acceleration Fund,” he said.
“So the fact that there is now a greater focus on affordable housing and rental is welcome, but it is not enough.”
New measures
It is not just the offer that the federal government is committed to address in the budget. also announced a series of new measures that it says will address the affordable affordability of housing.
The government plans to introduce a two-year ban on the purchase of residential real estate by individuals and companies who are not citizens or permanent residents, with some exceptions.
But how much of an impact this will have on Toronto’s affordability is unclear. According to a report by Statistics Canada, less than 5 percent of homes in Toronto and Vancouver were owned by non-residents.
A sign for sale in the Toronto Beaches neighborhood is pictured on Budget Day in Canada. Since the current Liberal government took office in 2015, the average house price in Canada has doubled to a staggering $ 816,720 – the highest average ever recorded. (Evan Mitsui / CBC)
“While I think this is going to be the most publicized piece, it’s not really an effective policy goal,” said Kevin Crigger, chairman of the Toronto Regional Real Estate Board.
“It’s really the offer that will ultimately alleviate the concerns about affordability and availability.”
Another measure in Thursday’s budget is the Tax-Free First Home Savings Bank. Those who contribute will be entitled to a tax deduction and will not be taxed on profits
But the maximum contribution is $ 8,000 per year, up to a maximum of $ 40,000, which will not bring you much in the greater Toronto area.
“Certainly, any incentive to add affordability is a positive first step,” Crigger said.
“But I think this is a program that could be improved to reflect regional differences and ultimately a much fairer program for people across the country.”
So what next?
The question among many proponents is how quickly some of these measures can be implemented in large cities like Toronto and how much coordination can exist between different levels of government. “For this city, what is needed is significant amounts of money and funding that can be spent quickly,” said Matti Siemiatycki, director of the Institute of Infrastructure and professor of geography and design at the University of Toronto. “We are in this crisis. We need all the hands on deck, and we need this real coordination and we need a sense of urgency to support it.”
