About PAEH…

About PAEH

The Peel Alliance to End Homelessness (PAEH) is a community collaborative of housing and homelessness service providers, working collaboratively to improve coordination of the homelessness system of care in Peel Region. We serve one of Canada’s most vulnerable populations, from a region with Canada’s sixth-largest city, that is desperate for real improvements in housing affordability. PAEH members are unwilling to accept the costs of homelessness to our communities and to individuals.

Summary

Thank you for the opportunity to provide feedback on the proposed inclusionary zoning regulations. We commend the provincial government’s choice to introduce the necessary legislation and supporting regulations to allow municipalities to implement inclusionary zoning policies. They have proven to be a useful tool in harnessing strong demand for new development to produce affordable housing. PAEH applauds the mandatory nature of the proposed regulations, in addition to the moderate discretion given to municipalities. We believe the provided framework balances the need for clear provincial standards with the local flexibility necessary for the success of inclusionary zoning programs. However, we believe the draft regulations do not align with existing successful jurisdictions with respect to their narrow applicability, and by requiring financial subsidies from municipalities.

Upon reviewing the proposed regulations, we offer the following recommendations:

•Permit the use of cash-in-lieu when a development is small and realistically precludes the inclusion of affordable units. •Open the opportunity to introduce enhanced provision.

•Replace the unit set-aside maximum with a higher minimum to match other successful jurisdictions. •Remove the exclusion for residential rental units and units smaller than 20 units. •Require rental housing developed through inclusionary zoning be kept affordable permanently. •Including an explicit requirement to consult local communities in the development of both of Official Plan policies, and inclusionary zoning by-laws. •Exploring supporting incentives and financial programs for municipalities to achieve deeper affordability. •Remove the requirement for municipalities to provide financial subsidies

Recommendations

Cash-In-Lieu

We are advocates for inclusive integrated communities and applaud the prioritization of this notion in the proposed regulations. However, we believe the need for affordable housing is dire, and required in rental units and most importantly for those at-risk-of or experiencing homelessness. While inclusionary zoning has been shown to produce a shallow subsidy sufficient to create below-market housing, it doesn’t create the deep subsidy needed to support those with the greatest need. In addition to permitting equitable contributions to be gathered from small developments, the use of a cash-in-lieu option would provide a much-needed source of funding that local municipalities can direct towards those in the greatest housing need that would not otherwise be served by inclusionary developments.

PAEH recommends,

•Permitting the use of cash-in-lieu only when a development is small and realistically precludes the inclusion of affordable units. oGuidelines based in best practice could be offered province-wide and site-specific factors could be assessed by municipalities.

Increased Applicability

PAEH applauds the mandatory nature of the proposed regulations. To achieve the greatest output of affordable units, lasting affordability, and truly integrated communities, the obligation to produce affordable housing should apply as universally as possible. The proposed regulations set the units set-aside at a maximum of 5%, and 10% for high density transit-station areas. This is a very modest amount, as set-aside amounts in other successful programs have typically been from 10% to 20%, and often set as minimums not maximums. We believe establishing a modest and static set-aside maximum requirement for all developments, when there exists the option to tailor them to circumstances (i.e. a lower set-aside for rent rather than ownership, or a higher set-aside when off-site units are used) can only lead to modest development of affordable housing. Furthermore, this prohibits the opportunity for enhanced provision, either through a larger number of affordable units and/or units at a deeper level of affordability. An often-cited component critical to lasting housing affordability through inclusionary zoning is partnerships between public agencies and non-profit organizations. These can be fostered through enhanced provision opportunities.

PAEH recommends,

•Opening the opportunity to negotiate compensation specific to the added costs associated with enhanced provision. •Replacing the unit set-aside maximum with a higher minimum to match other successful jurisdictions.

The proposed regulations indicate the affordable housing obligation will not apply to new residential rental units, or developments smaller than 20 units. Together, these would represent a significant proportion of the total housing production. Furthermore, the regulations also stipulate that homeownership units are kept affordable for a period of 20-30 years. It is helpful that within this period the units cannot be sold in the open market, as this would remove the inclusionary benefits. However, there exists a sizeable lack of rental units in Ontario, and dire demand in Peel Region. Therefore, ideally residential rental units would not be excluded, and their affordability would be set permanently, ensuring units are only made available to income-eligible households.

PAEH recommends,

•Removing the exclusion for residential rental units and units smaller than 20 units

oCan be used in tandem with cash-in-lieu where implementing inclusionary zoning may be unfeasible •Ensuring rental housing developed with inclusionary zoning be kept affordable in perpetuity

Administration and Provincial Incentives

PAEH commends the clear provincial guidelines for Official Plan policies, and inclusionary zoning by-laws as a means of establishing municipal goals, objectives, and measures. We would see these regulations expanded to include an explicit requirement to consult local communities in the development of both of Official Plan policies, and inclusionary zoning by-laws. The benefit of allowing local flexibility can be best met by ensuring all relevant stakeholders, including members of the public and non-profit housing providers, have the opportunity to provide input. The administration, monitoring, and reporting of inclusionary zoning would require investment from municipalities. In a resource-scarce environment, this new financial burden, in addition to the delayed realization of National Housing Strategy funding, may cause existing housing provision and affordability measures to suffer. A desperate demand for a deeper level of affordability is faced by Ontarian households today. Therefore, we encourage the province to explore incentives and financial programs it can offer to municipalities and development partners to attain a targeted, deeper level of affordability that inclusionary zoning cannot address.

PAEH recommends,

•Including an explicit requirement to consult local communities in the development of both of Official Plan policies, and inclusionary zoning by-laws •Exploring supporting incentives and financial programs for municipalities to achieve deeper affordability

Financial Subsidies

Under the proposed regulations municipalities will be required to cover 40% of the affordability gap for newly created affordable units. There exists ample evidence, including the 2017 CMHC report on inclusionary zoning practices, that clearly conclude conventional financial subsidies are not needed for effective inclusionary zoning programs. This drafted requirement, in conjunction with the proposed local flexibility, will leave local governments with little incentive to impose inclusionary zoning as universally as possible, and will ultimately lead to a missed opportunity for the creation of affordable units.

PAEH recommends,

•Removing the requirement for municipalities to provide conventional financial subsidies

Closing

Thank you again for the opportunity to comment on this important policy. This is an important opportunity to help address the housing crisis in Ontario. The monitoring of new housing units in Peel illustrates that low and moderate-income households are in need of swift and drastic intervention to obtain affordable housing. The recent federal National Housing Strategy is indication of the current opportunity to realize housing as a human right, and the end of homelessness in Canada. We are hopeful that continued collaboration between all levels of government and community stakeholders can lead to meaningful change, and are pleased to offer our continued support for all initiatives that increase the supply of affordable housing.

Sincerely,

Sharon Douglas

Chair, Peel Alliance to End Homelessness

[Original Comment ID: 212313]