With the vacancy rate for rental housing in Huntsville at three per cent or less and an estimated 20 per cent or more of its households renting, the municipality is a prime candidate for a provincial development charge rebate program.
The Province announced the program on December 20, 2017 and indicated it would be inviting eligible municipalities to submit an expression of interest for the program. Huntsville along with the municipalities of Bracebridge and Gravenhurst qualify for the rebate, which would be administrated by the District of Muskoka.
The provincial program will rebate development charges to the tune of $125 million over the next five years to developers of multi-residential units for rent at market rates. But how those funds will be allocated among the various qualifying municipalities, including places like the City of Toronto, is still not clear.
“Through discussions with staff from the Ministry of Housing, we understand that the allocations may be based on several factors including: vacancy rate, demographic need, local plans, and what Huntsville has done to incentivize market rental housing,” according to a report compiled by Town Manager of Finance/Treasurer Julia McKenzie.
She also noted in her report that the program would not replace existing District or Town affordable housing programs; it would also not apply to the following:
- Single and semi-detached homes, duplexes/triplexes and retirement homes;
- Units already receiving provincial capital subsidies;
- Luxury market rental units, where starting rents exceed 175 per cent of Average Market Rents (AMR); and
- Market rental development receiving a deferral of, or exemption from, the payment of development charges.
McKenzie’s report also notes that “The Fair Housing Plan Program is intended to be flexible so it can be tailored to the needs of the individual municipality. The Ministry has provided the following broad set of criteria to develop individual programs:
- Development location must be consistent with the Provincial Policy Statement (PPS);
- Programs must align with other provincial priorities and lead to new additional public good (i.e. rental housing, family-sized units, senior-friendly, close to transit and transit hubs);
- Developments and units receiving provincial rebates remain rental for a minimum of 10 years; and
- Non-luxury rental units, where starting rents do not exceed 175 per cent of AMR as published by Canada Mortgage and Housing Corporation, however municipalities have the ability to set a lower threshold based on local circumstances and housing policies.”
The rebate would apply on the local portion of development charges.
“It’s probably a reasonably astute way to set it up,” commented Huntsville Councillor Jason FitzGerald at Monday’s council meeting. “We get the money and the developer is reimbursed by the District with provincial funds.”
Huntsville Mayor Scott Aitchison said it sounds like a great program. “Let’s broadcast that as loudly as we can. If there’s any developer watching tonight, build us some rental housing please and at market rents, that’s okay…,” he said at Monday night’s telecast council meeting. You can find their live streams here.
Aitchison said it’s tough to find rental housing, let alone affordable housing in Huntsville, and the need will increase as the community grows.
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