Councillors here support the development of a new long-term federal plan to fix Canada’s housing crunch.
On April 14, councillors passed a resolution endorsing the Federation of Canadian Municipalities’ (FCM) campaign “Fixing Canada’s Housing Crunch” and calling on the federal government to increase housing options for Canadians and to work with all orders of government to develop a long-term plan for Canada’s housing future.
Centre Wellington Mayor Joanne Ross-Zuj explained the FCM is requesting coordinated action to prevent housing issues from being off-loaded onto local governments.
Ross-Zuj said “lots has gone on this year in regard to this recommendation.” She added “we don’t often get this type of appeal to pass this at the local level.”
In regards to the housing crunch, Ross-Zuj agreed that Wellington County handles the housing and social services aspects.
“But it is still our ratepayers’ tax dollars that go into this. We have the potential of losing $1.7 billion of funding into the programs we have. That’s quite a download from the federal government,” she said.
She added there is pressure from across the country to get an answer to the question – “if the federal government withdraws funding from these programs – who pays?”
Ross-Zuj said, “It could end up in our backyards before we know it.” She said the FCM is looking for a united front to deal with this issue.
“It is interesting to note that one out of four people pays more than 30% of their income for housing. That is a lot of money from your work week to pay for your shelter.”
The mayor said, “We feel very strongly at FCM that everyone deserves to have a roof over their head in this country.”
She hopes action will come out of this, “because it will affect us locally – and across the country.”
The resolution before council noted “a stable and secure housing system that creates and maintains jobs and allows for a range of living options is essential to attracting new workers, meeting the needs of families and supporting seniors and our most vulnerable citizens.”
In addition, the estimated mortgage debt held by Canadians now stands at just over $1.1 trillion.
Reading the resolution, the mayor said “housing costs and, as the Bank of Canada notes, household debt, are undermining Canadians’ personal financial security, while putting our national economy at risk.”
Concerns were also raised regarding the availability of affordable and/or subsidized housing in areas which are experiencing strong economic activity.
Wellington County as service manager is responsible for providing and subsidizing housing and as a result owns and directly operates 1,189 rent-geared-to-income housing units located throughout Arthur, Guelph, Erin, Palmerston, Elora, Fergus, Mount Forest and Harriston.
The county also owns and manages 55 affordable housing units located in Fergus, where rent is set at 80% of market.
Centre Wellington council supported the FCM campaign and Wellington County’s work on housing.
While council as a whole supported the move, councillor Fred Morris said “is it not a fact that developers have sort of forced the government into the position of taking over affordable rental properties.”
He said developers appear to have focussed more on the construction of condominiums over rental units – which has contributed significantly to the shortfall of rental properties.
He then asked whether Centre Wellington had any incentives to create rental units – particularly in the downtown cores of Fergus and Elora, especially units which are currently vacant.
Planner Brett Salmon agreed that the downtown cores are targeted as intensification areas.
“But whether it is ownership or rental, that is something we don’t have much control over,” said Salmon.
He also believed there are a number of factors behind the builder’s switch from rentals to condos.
Salmon pointed to rent controls and tax policy also being factors in the change.
Morris said, “I am not 100% convinced that governments and governments alone can solve this issue of affordable housing.”
He said government might have a mandate to address the roadblocks – but developers and property owners can also contribute to the solution.
Ross-Zuj agreed.
While there are numerous stakeholders, the mayor said the programs potentially in jeopardy include those used as incentives for private property owners to include affordable housing.
“We cannot have these programs abandoned,” Ross-Zuj said.
