• Allowing municipalities,…

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019-0184

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32586

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• Allowing municipalities, the power to prescribe the interest rates for DC deferrals will likely discourage developers from constructing purpose built rental. The option seems attractive at first and would help the improve a developers proforma however, if municipalities impose interest rates in the double digits this could make it more difficult to build rental. The deferral of DC’s is a step in the right direction but if not executed correctly will not have the desired effect.
• Municipalities already have a lot of power and unfortunately in many cities’ powers are often used to prevent development from occurring, especially with respect to rental (i.e. Burlington, Oakville). High interest rates could be used as a tool to feed NYMBISM. This will be especially true in cities who are anti-growth, development and rental housing.
• The supply of rental housing is already at all time low and it is evident the province is trying to step in and correct this but, as the regulations stand today this might not be enough to encourage new builds.