'Don't delay': Housing activists urge York Region to move now on vacant homes tax

York Region housing advocates question regional council's decision to delay implementing vacant homes tax

yorkregion.com
May 23, 2023

Housing advocates are questioning York Region council's decision to delay a proposed vacant homes tax.

“In a crisis you put all options on the table knowing many measures may be necessary,” said Yvonne Kelly, with the Affordable Housing Coalition of York Region.

“We’re in the midst of a housing crisis in York Region --- that this body declared --- so why would the vacant housing tax be deferred for another year?”

The region had been moving forward with a tax on vacant homes as a tool to help return vacant or underused housing back to the market, but council put the brakes on earlier this month after new developments in the province and housing market.

A staff report recommended delaying, suggesting the province’s newly launched vacant homes tax working group, new federal legislation on foreign buyers, and higher interest rates may all have an impact on the region’s vacant homes situation.

At the same time, staff noted Toronto’s initial foray into a vacant homes tax netted fewer homes than anticipated.

If that were to happen in York Region, the process could end up costing more to administer than revenue earned, said chief administrative officer Bruce Macgregor.

“This is a very complicated subject and we’re watching the Toronto experience very closely,” Macgregor said.

That delay is a mistake, said Kelly and Sean Meagher, with Ontario for All, who addressed a council meeting May 18.

With the average selling price in York more than $1 million, home ownership has become unattainable for many, Kelly said.

Rental vacancies are among the lowest in Canada and rents among the highest, she said.

From 2008 to 2018, the region’s subsidized housing wait-list grew by 176 per cent with more than 16,000 households on the wait-list.

Kelly questioned why the region would defer a decision on the vacant homes tax when the public is firmly behind it --- public consultation showed 71.5 per cent of respondents’ support it --- and similar measures are already underway in Vancouver, Toronto, Hamilton and Ottawa.

“The only reasonable conclusion that one could come to is that there’s not enough political will at the regional level to tax property owners and companies who are sitting on vacant properties for speculative purposes,” Kelly said.

“The sooner we take action on this, the more housing we can save and the fewer lives will be completely disrupted or destroyed.”

Prior to the election, the majority of regional council members favoured the move, Meagher said.

Now there’s “a fair amount of concern” in the community over councillors delaying the decision due to “shifting environments,” he said.

“It’s unlikely, in the current environment, that there will ever be a time when there aren’t shifting contexts ... We can’t really anticipate a time when everything’s calm, everything’s stable and we’re making choices in a totally change-free environment.”

Meagher urged council to push forward with the proposed tax in time to make it part of the 2024 budget.

Newmarket Mayor John Taylor also expressed urgency.

“The ground is shifting beneath us, but I think it’s safe to say that the ground is shifting in Peel just marginally more than us, and they’re moving forward with the vacant homes tax.”

Taylor was referring to a Ford government announcement earlier in the day that the province will break up Peel Region into three standalone municipalities.

Taylor put forward an amendment to council's resolution delaying the tax --- requesting staff report back in the fall of 2023 to ensure time to implement it --- and it was passed by a majority of council.