Whole article seems geared towards Impact's current ambition.
Interesting that Olivia Chow uses the same words to describe the situation as Cooper.
By Michael Cooper, Contributor
Michael Cooper is president and chief responsible officer of Dream Unlimited.
Link: https://www.thestar.com/opinion/contributors/deferring-development-charges-will-help-get-affordable-housing-built/article_4e1bbcee-9b9a-11ef-8743-075a0d4e5ce0.html
For some time now, politicians have been acknowledging the crisis in housing and the urgent need to build more homes. But here’s the hard truth: At a time when we need new housing more than ever in Toronto, we are building less of it.
Major construction projects are approaching a standstill. Cranes are being moved into storage. Even as demand for housing continues to increase, developers are struggling to make the economics of new projects work.
A new proposal from the city of Toronto could help change that — especially if the provincial and federal governments pitch in and do their part.
City staff recently unveiled an ambitious plan to help build 20,000 new rental units over the next several years. That’s a big number — and it would include a significant number of affordable units.
The plan aspires to kick-start new construction by deferring development charges — and, in some cases, waiving property taxes — for purpose-built rental buildings that include at least 20 per cent affordable housing units.
To its credit, the city would bear the entire burden of supporting construction of the first 7,000 new units. It would then work with the federal and provincial governments to get the remaining 13,000 units off the ground.
But the city staff’s plan — which must still be approved by council — comes at a time when it’s needed most. A wide range of factors have contributed to the slowdown in new rental construction in Toronto.
For instance, development charges have increased at an unsustainable rate, hampering the feasibility of major projects. Soaring inflation and interest rates in 2022 upended traditional financing models. And governments at all levels over the years made the choice to stop or reduce their support for new housing initiatives.
The result? New housing starts in Toronto are at a 30-year low at a time when everyone acknowledges the need for more homes.
Our company — Dream Unlimited — has over the past several years become one of the largest builders of rental and affordable housing in Canada. We have projects underway in several cities across the country. But of late, we’ve been stymied in our efforts to build at home in Toronto.
To be clear: We have projects that are shovel ready, including projects that include affordable housing units. They are zoned. They are approved. But right now, the numbers just don’t add up.
Toronto’s plan to defer development charges would help get these projects off the ground, increasing the number of affordable units available to families. Further housing growth could be achieved if governments resolved to drive policy changes that create favourable conditions for all types of apartment and condo construction.
Our local and national housing challenges won’t be solved overnight. But governments should be commended for recognizing and responding to the crisis.
The federal government, in particular, has been taking meaningful action, creating innovative new financing solutions to support a range of new construction, especially affordable housing. It also waived the HST on purpose-built rental housing which directly led to new housing starts across the country (including by our company).
The federal government’s support of the city’s proposed housing plan would go a long way to spurring even more new construction. The province, too, has a key role to play and needs to step up.
The development of any new major construction project is always accompanied by financial risk. Even with the support of government, developers will be risking significant capital in a time of uncertainty and challenge.
But the city’s new proposal — along with recent initiatives from the federal and provincial government — would create the conditions to rekindle construction and begin to address our growing crisis in housing.