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Category: What's New in 2010

Increasing the Supply of Affordable Housing

Municipal Governments Have Adopted a Variety of Strategies to Increase the Supply of Affordable Housing.
For nearly 13 per cent of the population, adequate, suitable and affordable housing is either out of reach financially or attainable only by cutting back on other necessities.

Creating affordable housing – and ensuring it remains affordable into the future – is an ongoing challenge that has given rise to innovative approaches from entrepreneurs, the not-for-profit sector and all levels of government. Municipal governments, for example, have adopted a variety of strategies to increase the supply of affordable housing, some of which are outlined below.
Adopting affordable housing policies:

Many Canadian municipalities have adopted policies requiring that a certain percentage of new construction be affordable housing.

Establishing housing trust funds:

Some municipalities have created a trust fund to support affordable housing. The Resort Municipality of Whistler, British Columbia, for example, created the Employee Housing Service Charge Fund to provide affordable housing for resident employees and their families.

Providing land for affordable housing:

Many municipalities support the construction of affordable housing by donating land, selling it below market value or leasing it at a nominal fee to non-profit or faith-based organizations.
Changing zoning regulations and allowing variances:
Zoning changes to permit smaller lot sizes, reduced setbacks from lot lines, infill housing, secondary suites or garden suites can increase the supply of affordable housing in a community.

Allowing density bonusing:

Density bonusing is a tool used by municipalities to allow developers to build at a higher level of density (that is, greater floor area or number of units per hectare), in exchange for including affordable housing units in the development.

Accelerating the approval process:

Municipalities can encourage developers to provide affordable housing by streamlining the approval process or fast-tracking proposals that include affordable housing units. Reducing the time and cost of the application process results in savings that can be passed on to homebuyers.

Reducing or waving municipal fees:

Some municipalities offer developers relief from development cost charges, such as planning fees, parkland levies, and reductions or waivers of property taxes, in return for including affordable housing in their developments.
CMHC’s team of experts offers first-hand knowledge of approaches that have been implemented by private companies, the not-for-profit sector and municipalities to develop affordable housing in communities across Canada. To learn more about people and projects assisted by CMHC, visit http://www.cmhc.ca/affordablehousing

(Source: Canada Mortgage and Housing Corporation)

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