York Region considers developer incentives for affordable housing

York Region is struggling to achieve affordable housing targets, with the majority of homes unaffordable

Newmarkettoday.ca
Jan. 15, 2023
Joseph Quigley

York Region is considering incentives to get private developers to build affordable housing.

N. Barry Lyons Consulting Limited presented to the region’s housing affordability task force today to showcase ways the region could incentivize more affordable housing development. It is part of regional efforts to introduce several new housing-related plans this year, including an affordable housing implementation plan.

With the presentation highlighting everything from offering financial benefits or land to private developers to changing zoning policy, York Region chairman and CEO Wayne Emmerson said the municipality needs to settle on something that could get a good return.

“We can’t eat the whole pie at once,” he said. “We got to pick out a couple of areas that we can actually do a win. Get a win on this thing, once and for all."

York Region has struggled to get affordable housing developed in recent years. It has missed its target of 35 per cent of new units meeting affordability criteria for the past five years, with only 11 per cent of new units meeting that threshold in 2022.

As housing prices have continued to rise, it is only the wealthiest in York Region now who can afford home ownership.

A chart presented by director of planning policy and data Sandra Malcic showcased how on average, York Region home ownership is unattainable to the lowest earning 70 per cent of households.

Households "are increasingly relying on the rental market for housing in York Region,” Malcic said.

Consultant Nick Michael said there is ultimately no business case for the private sector to develop affordably. He noted that low-rise development can often be easier to do and attract less community pushback.

To address this, municipalities can and have created programs subsidizing affordable housing units. Michael cited cases like Peel Region’s subsidy program having an annual budget of $10 million and securing more than 100 units of affordable units annually, at about $60,000 to $215,000 per unit.

“It’s becoming increasingly common for municipalities to incent both low and moderate-income housing and both non-profit and for-profit developers,” he said. “We have to find a way to provide enough subsidy, enough capital, to entice private sector developers."
Other options could be from policy, Michael said, by reducing burdens on developers in the planning process. The federal initiative for pre-approved designs could also help with this, he said.

Advocacy is another pillar, with the region needing direct funding from upper levels of government, he noted.

“The fact is that the housing crisis is complex, the development process is complex, and an array of solutions are needed to address this complexity,” Michael said.

Newmarket Mayor John Taylor first raised the need to prioritize some methods and to get an idea of what outcomes they could produce.

“Every little bit matters, every bit helps, but every bit takes time, energy, focus,” he said.

Taylor further suggested that the region should have at least one “moonshot" to focus on in the plan. He suggested identifying six or eight sites across the region to build a model for affordable senior housing on a break-even basis.

Regional staff plan to work on an affordable housing implementation plan based on input. This year, the region also plans to create a community housing master plan and a homelessness system service plan to be presented to the council together jointly.