Posted: Tuesday, January 16, 2007, 3:40 PM
Original on Alberta Liberal Caucus Website
BACKGROUNDER - Because Everybody Needs a Home
A Sustainable and Affordable Housing Plan for Alberta
Goal: to create 10,000 new affordable housing units within 5 years.
Guiding principles:
- Every Albertan needs a home;
- Solutions begin with the political will to legislate solutions with broad impact;
- Solutions balance the rights and responsibilities of renters and landlords, encourage home ownership and empower municipalities.
Highlights
- Institute legislative changes that facilitate the creation of secondary suites; include a $5000 grant program to homeowners to offset initial costs.
- Engage in provincial land donations and swaps with municipalities; encourage private land donations for affordable housing through tax incentives; and have donated land held in perpetuity by community land trusts.
- Encourage home ownership for moderate income earners by offering financial assistance.
- For renters – attach rental allowances and supplements to the renter rather than the unit; extend low- or no-interest loans to low-income earners to cover the costs of security deposits and the first month’s rent.
Development Background of the Alberta Liberal Caucus Affordable Housing Policy:
- Recent growth in Alberta has resulted in significant strains on housing supply and costs in most communities. In the city of Calgary, rental vacancies in the fall of 2006 were at 0.6%; the most current CMHC figure is 0.1%.
- On October 11, 2006 Dave Taylor, MLA for Calgary Currie, hosted a town hall meeting focused on solutions with the goal of developing Alberta Liberal policy that would address and resolve the crisis both now and for the future. Panelists, stakeholders and the general public were invited to present solution-based ideas.
- Town Hall panelists were City of Calgary Affordable Housing Team member Alderman Joe Ceci, Calgary Homeless Foundation past chair John Currie, Calgary Housing Action Initiative coordinator Grant Neufeld, and Boardwalk Rental Communities Director of Community Development David McIlveen. CTV Calgary reporter Kirk Heuser acted as moderator.
- Taylor compiled the ideas presented and discussed on October 11 into a draft document, “Toward an Alberta Affordable Housing Strategy.” This draft was circulated widely among stakeholders and the public for further input. Due to the critical need to generate solutions, the deadline for input was December 15, 2006 with a promise that the final document would be ready by mid-January.
The Specifics:
Creating Affordable Housing
Secondary Suites
The Alberta Liberal Caucus would change provincial legislation to allow the creation of secondary suites in detached, semi-detached, and duplex dwellings. We would also offer grants of up to $5000 to homeowners who create new secondary suites.
Give Cities and Towns the Ability to Plan (Inclusionary Zoning)
By amending the Municipal Government Act, we will give cities and towns the power to include – if they choose – minimum percentages of affordable housing in any new developments or redevelopments in their community.
Land Transfers
Purchasing land can account for up to 20-40% of the cost of affordable housing construction. To reduce this cost, the Alberta Liberal Caucus plan will swap or donate land to local land trusts to hold in perpetuity for affordable housing. Tax breaks will be used to encourage owners of desirable land to contribute their property for affordable housing.
Incentives for Builders
Our plan would encourage local governments to reduce or eliminate property taxes on affordable rental units for a set number of years by providing corresponding grants to municipalities to make up for the lost revenue.
We would provide Density Bonuses that allow developers to build more affordable units per site to offset the costs incurred from inclusionary zoning. This allows them to build housing at a lower cost per unit.
The Alberta Liberal plan would encourage municipalities to eliminate development fee levies, fast-track building permits and waive permit fees.
Provide Matching Provincial Funding to Federal Initiatives
Our plan would continue the current Canada-Alberta Affordable Housing Agreement. We would match funding with the federal government’s Affordable Housing Trust and the Off-Reserve Aboriginal Housing Trust.
Encourage Home Ownership
The Alberta Liberal Caucus would extend financial assistance to moderate income earners who wish to buy their own home, and partner with the private sector and community housing agencies to accomplish this goal. Our policy would not only help up to 5000 families achieve home ownership – it would free up their previous dwellings for new renters.
Protecting Renters
Portable Housing Allowances and Rent Supplements
The Alberta Liberal plan would connect allowances and supplements to the renter, not the unit. Portable housing allowances and rent supplements give renters more flexibility in tight market conditions, making a wider range of rental spaces affordable to them.
Microcredit for Low-Income Renters
An Alberta Liberal government would extend low- or no-interest loans to qualifying low-income earners to cover the cost of the security deposit and first month’s rent. This initial cash outlay is the biggest impediment to working homeless people in search of affordable homes.
It is important to note that the portable housing allowances, rent supplements and microcredit offered to Albertans using social assistance will not result in a reduction of their other benefits (AISH, SFI, etc.).
Enhance Tenant Protection
When vacancy rates are very low, tenants need additional protection. Our plan establishes a vacancy rate trigger of 3%. When implemented, this trigger:
Institutes a temporary rent regulation measure that limits rent increases for 12 months to a maximum of 10%. The law would expire in 365 days from the date of proclamation.
Places a two-year moratorium on conversions of rental properties to condominiums – except those developers who agree to replace any rental units lost due to condo conversions with new rental properties.
Our plan also limits rent increases to once per year, regardless of vacancy rates.
Expand the Residential Tenancy Dispute Resolution Service
This pilot project, currently operating in Edmonton, is intended to reduce costs, wait times and the burden on the courts to resolve landlord-tenant disputes. The project comes up for review later this year; if it proves to have achieved its purpose, we will expand the service to other Alberta communities.
Government Structure
The government has accepted the Alberta Liberal Caucus’ recommendation to move responsibility for housing to Alberta Municipal Affairs. To insure that the housing issue receives the attention it needs, we would appoint a Deputy Minister within Municipal Affairs, responsible for housing.
Budgetary Implications
This plan will cost approximately $150 million per year; approximately $122 million in new spending, the rest from existing programs.
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