laneway housing Archives

#TOpoli May 12, 2017

Toronto to end commercial tax rebate, adopt rent control

Next week’s executive committee meeting is gearing up to discuss sweeping changes to housing in Toronto.

Mayor John Tory recently proposed phasing out the vacant commercial and industrial tax rebate program that gives businesses that are sitting empty a tax rebate. The tax rebate program, which has been in place since 2001 offers unoccupied commercial properties a 30 per cent tax rebate and industrial properties get 35 per cent. The program requires owners to try and rent the space, but does not provide a time limit on how long a business owner can receive the rebate. A city report revealed the program has given more than $367 million in subsidies to property owners, much-needed revenue that could be better spent elsewhere.

The proposal that will be discussed at next week’s meeting recommends the city lower the tax incentive to 15 per cent, beginning on July 1, 2017 to June 20, 2018, and then permanently shut down the rebate program on July 1, 2018. The report also recommended the rebate expenditures be reinvested in job growth programs and the poverty reduction strategy. This decision has been widely embraced by the city because poverty reduction is in dire need of funds in Toronto, and promoting businesses to stay empty is bad business after all. The rebate program has been criticized in the past because it allowed property owners to sit on their vacant stores while the value of the location increased. This has left several stores empty and little available business real estate in Toronto.

The executive committee also plans to focus on rental affordability in Toronto. Recently the province has put forward a bill on rental control, and has indicated that municipalities will be able to implement it at will. City council is moving forward with this initiative and will discuss how to implement rental control with a specific provision to have the rent control tied to the unit and not the tenant. There will also be an update on inclusionary zoning and laneway suites in Toronto.

The city is taking sweeping steps to respond to the high-pressure housing crisis in Toronto. By removing the tax rebate to empty businesses, it incentivizes business owners to fill their storefronts and reallocates much-needed funds to poverty reduction. Moving forward with rent control, inclusionary zoning and changing the regulations around laneway housing are all necessary to make Toronto a more liveable city. The outcome of the meeting will be interesting indeed, and will set up for a sure-to-be exciting May City Council.

What's Hot April 11, 2017

Laneway suites as sustainable housing solution in Toronto

Laneway housing has been all the buzz in Toronto as a way to create more housing in high-density areas. With an eminent housing crisis and very low availability for housing in the city, stakeholders are desperate to find a solution, and find new places to put homes could be the answer. So what exactly is laneway housing?

Think of it as a basement suite, but on top of your existing property. A laneway house is an additional suite on the same property as an already existing house. It is typically built on top of a garage or at the back of the house near a lane or alley. It would function similarly to a basement suite in the sense that it relies on services on the main house, but would be above ground instead. According to Cofounder & Architect of Lanescape, Craig Race, “There are a lot of cities with framework for laneway housing, with Vancouver as a leader for this. The laneway suite gets all of its servicing and mail delivery from the main house, they are always on the same property and must work in tandem with the main property. Through a pretty intense public consultation process, we are trying to build something suitable for Toronto as well.”

Previous city councillor Adam Giambrone killed laneway housing in 2006 when a report condemned the practice because homes would to be provided with external services such as water and hydro from the laneways rather than the main house on the property, and this was seen as untenable by the city. As a result, the city over-regulated laneway housing and made it extremely difficult to build at all. The process to build a laneway suite is covered in red tape and can take months to approve. “It is a difficult process and very expensive. It is necessary to go through the Committee of Adjustment or the Ontario Municipal Board, which is a long process and takes a lot of expertise,” Race says. “It is very prohibitive for homeowners today.”

Since then, laneway suites (as opposed to independent houses) have grown in popularity in urban centres across North America, and would rely on the main house for water and electricity. “When the city looked at this before, it was assumed that the laneway would need to provide services, but the services could be provided at the front of the home. It is just a matter of taking it underground.” Race explains. “You would take it from your basement and dig a rear trench to the laneway house.” Once the trench is constructed, the laneway suite would use the same water and electricity as the main home.

In conjunction with Evergreen, Lanescape has been involved in public consultations across the city educating people on the importance of laneway housing. The involved parties have been actively engaging with city councillors, meeting with technical staff who will be affected by the changes and hosting presentations for the public to be involved. The public consultation process ramped up after Ontario Minister of Housing Chris Ballard announced last fall that every municipality should begin developing legislation for laneway housing across the province.

Allowing laneway suites would ultimately be a positive development for Toronto because it responds to the need for housing in high-density neighbourhoods and is also a sustainable approach to housing. “Laneway suites and sustainable living go hand in hand. They allow for visible density because people can co-habitat on existing structures and makes better use of what we have,” Race says. “These structures are designed to be environmentally conscious. There is also a point to be made about the health component of living above ground, and not in a basement.”

In order to develop a cohesive report to present to council in the spring, Lanescape is accepting responses to a public survey as a part of their consultation process. From there, the report will be delivered to city council and they will begin debating to see if laneway suites can become a part of the housing development landscape in the city.

If you are interested in supporting laneway housing, take the survey and help push forward the agenda for more affordable housing initiatives in Toronto.

Sustainability November 17, 2016

Land Transfer Tax Refund for first-time homebuyers is a small change

Instead of implementing grand-sweeping changes in the hot housing market, Ontario will commit to helping first-time homebuyers who are struggling voraciously to purchase homes in Toronto.

Ontario will double the maximum Land Transfer Tax Refund to $4,000 for eligible first-time homebuyers as of January 1, 2017. This means there would be no Land Transfer Tax on the first $368,000 paid for a first-time home. This will help people who were unable to purchase a home due to rising property costs and taxes.

Along with lowering the rates for first-time homebuyers, Ontario has decided to raise the rates of one- or two-bedroom single-family residences over $2 million to 2.5 per cent. This would mean that home buyers in the over $2 million market would pay an extra $5000 on average, which is affordable for the many buyers in the upper echelon. The funds raised from the rate increases would be used to fund the first-time homebuyer’s initiative. The refund was announced as a part of the 2016 Ontario Economic Outlook and Fiscal Review.

The Land Transfer Tax Refund has been met with mixed reviews, many citing it as a soft approach to a larger issue. The housing market in Toronto has been in the hot zone for several months and creating more opportunities for first-time buyers does little to cool the market in the larger metropolitan centre. Though Vancouver’s foreign buyer’s incentive was a bit high-handed, the Land Transfer Tax Refund is the complete opposite and accomplishes very little.

The Land Transfer Tax will benefit first-time homeowners outside of Toronto due to inflated prices within the city boundaries. The average price for first-time homes outside of Greater Vancouver and Toronto is $361,000. Alternatively in Toronto, prices were 19 per cent higher than last year’s.

Though the refund will do little to help the heated markets in Toronto, any little bit to aid first-time homebuyers to compete in Toronto’s housing market is welcome. Even if the homebuyer will spend more than $365,000 to purchase in the city, a rebate on the Land Transfer Tax will help homeowners to save money initially and use it to keep up with hefty mortgage payments thereafter.

Helping first-time homebuyers and increasing taxes for wealthier homeowners is a smart move, but broader strokes from Ontario may be the only way to cool the Toronto housing market. Providing affordable housing and hitting density targets is also an important step, like looking into zoning bylaws at a municipal level and allowing for laneway housing. Housing is one of the most difficult files in Ontario’s fiscal review and the housing sector awaits with bated breath what future options the ministry considers.