Toronto’s new policy to introduce more affordable housing met with mixed reactions – Toronto | The Canadian News

A new Toronto policy to introduce more affordable housing is generating mixed reactions, with critics saying it is not bold enough to tackle the city’s housing crisis and developers arguing it could be a disincentive for new projects.

A majority of Toronto’s city council voted Tuesday in favor of a policy framework that will make it mandatory for certain new developments near major transit stations to include rental housing units and affordable property beginning in 2022.

To begin, the proposed inclusive zoning policy will require developers to reserve between five and 10 percent of a new condo development that has at least 100 units for affordable housing. That requirement will gradually increase from eight to 22 percent by 2030.

ACORN, a national organization that advocates for low- and middle-income residents, said it viewed the framework as a positive thing, but called it “very shy.”

Alejandra Ruiz Vargas, president of ACORN’s East York branch in Toronto, said it doesn’t fit with what a city feasibility study found to be possible: that condo projects in stronger market areas might have to reserve at least 20 percent for affordable housing.

“Even though we had some victories… this was a great opportunity to create more affordable housing,” he said.

Coun. Mike Layton, who advocated for a higher affordable housing rate and full implementation of the policy to be moved aside by 2026, said he had “mixed emotions” about the framework that was passed.

“This was a huge step forward … but at the same time, I can’t help but think that we missed a little opportunity,” he said.

“Rather than go for a policy that we were told would keep developers in profit, that would push them to keep building, we added a second, more conservative rating on how high rates could go, which really held them back.”

Dave Wilkes, president and CEO of the Construction and Land Development Industry Association, said his association is “disappointed” with the policy and noted that it does not provide financial compensation to cover the cost of construction of the units of affordable housing.

“The City of Toronto’s current focus will transfer approximately $ 67,000 to the cost of a new condominium apartment, which means that market buyers will subsidize the cost of below-market units or make some projects economically unviable.” it said in a written statement.

“More affordable housing is a good idea, the City of Toronto’s approach is a bad plan.”

David Amborski, a professor at Ryerson University’s School of Urban and Regional Planning, also noted that Toronto’s policy lacked a partnership system between developers and the city.

“One of the concerns about the market is how the burden will be placed on the industry and passed on to the owners,” he said.

The city said the policy is believed to be the first of its kind in Ontario; It has been used in various jurisdictions in the United States and other parts of Canada.

Deputy Mayor Ana Bailao described him as “balanced, progressive and equitable.”

He said the phased implementation will give land values ​​”time to adjust” and noted that the policy will be reviewed one year after its implementation.

“If we see that the result is not being achieved as we expected, that if we can accelerate it as the defenders want, we should put incentives as the developers want, those are the things that we must be constantly looking at,” she said. “We need to evaluate it frequently. But we have to implement it immediately. “

The provincial government has the option to appeal the framework within 20 days. The Ministry of Municipal Affairs and Housing said it was aware of Toronto’s new framework and would continue to work with city partners to help build more homes faster.