The More Homes Built Faster…

The More Homes Built Faster Act claims to build 1.5 million homes in the next 10 years. However, none of this housing is going to be affordable. In fact, the legislation drastically weakens the potential of the cities to build any new affordable housing.

Inclusionary Zoning (IZ) is an important policy tool that empowers cities to impose affordability requirements on a certain percentage of units in new housing developments. The potential of IZ was already diluted in 2019 when its application was restricted to only within 800 metres of major transit station areas. The proposed changes will:

1) Require developers to set aside only 5% of the units in any new development as affordable;
2) Cap the time units will remain affordable to 25 years; and
3) Raise the definition of affordable housing to 80% of average market rent.

Ontario should follow the lead of the Canadian government which passed Bill C-97 (National Strategy Housing Act) on June 21 2019, stating “It is declared to be the housing policy of the Government of Canada to recognize that the right to adequate housing is a fundamental human right affirmed in international law; and to recognize that housing is essential to the inherent dignity and well-being of the person and to building sustainable and inclusive communities.”

We have an affordable housing crisis in my region of Waterloo, with over 7,500 families on the affordable housing waiting list, over 1,000 homeless people and an estimated 21 unsanctioned encampments around the region. The City of Kitchener passed a Housing for All Strategy in 2020 which identified the need for over 9,300 affordable rental housing units. Other municipalities are also concerned about affordability and the increasing number of homeless people in encampments.

Contrary to these regulations, affordable, as defined by the affordability subcommittee of Kitchener’s Housing Strategy Advisory Committee, is 30% of a full-time minimum wage. With an after-tax monthly income of $2,000, the most they should pay for rent is $600.

Bill 23 sets a threshold of what is affordable at 80% of market value for a period of 25 years. In Kitchener, the average market rent is $1,700, so the cut-off for affordability would be $1,360 rent. A so-called “affordable” unit would eat up almost 70% of the minimum wage earner’s monthly income. Moreover, the 80% rule only applies in the major transit station areas, so developers only need to build outside the 800-metre limit to avoid having to designate any units as affordable.

In short, in our region, the math for the inclusionary zoning policy does not work for minimum wage earners, the target population for creating affordable housing. In addition, the region needs to increase the maximum percentage of affordable units, re-define affordable, and remove the time limit.

Bill 23 and the regulations do nothing to reduce the number of people who live in sub-standard housing. They need affordable housing that does not eat up 70% of their income. If there is no change in the inclusionary zoning regulations, our cities will deteriorate as people continue to go into debt and live in conditions that are detrimental to their physical and mental health.

“The true measure of any society can be found in how it treats its most vulnerable members."
— Mahatma Gandhi