Policy options for maintaining good-quality, socially mixed, inclusive neighbourhoods: summary - draft

In 2005, the University of Toronto and St. Christopher House came together to form a Community University Research Alliance (CURA), with funding from the Social Sciences and Humanities Research Council. The purpose of the Alliance was to study the changes occurring in Toronto’s West-Central neighbourhoods, and identify and promote policies and programs that will maintain these neighbourhoods (and neighbourhoods like them) as good-quality, socially mixed places to live that help maintain the diversity of Toronto as a whole.

We have identified ten measures that we believe can make a significant difference in a short period of time. Other, longer-term measures are also warranted. These ten, however, are feasible and can be quickly implemented. Together, they would help:

1.      Decrease the displacement of existing residents

2.      Maintain the affordability of the existing rental housing

3.      Add new rental housing

4.      Maintain a mix of local retail shops and services

Below is the summary of the ten policy options we've identified, and the thorough report on these options is attached to be downloaded. We are interested in hearing from you about these ideas. Do you support the recommendations? Do you have other ideas that should be included? Let us know by emailing your comments to Rick Eagan, Community Development at St. Christopher House - rickea@stchrishouse.org.  

ACTION 1: Expand the Residential Rehabilitation Assistance Program (RRAP)

This is a useful federal program that allows homeowners and landlords to improve the quality of affordable rental housing. However, there is not enough money to support all the eligible projects every year. Also, requirements for creating second suites are too expensive and the criteria are too narrow. Therefore:

§         Federal funding for the Residential Rehabilitation Assistance Program (RRAP) should be increased by $20 million a year for the City of Toronto.

§         The Second Suite component of RRAP should be expanded to meet the housing needs of all low-income tenants and the maximum loan amount should be increased to $40,000. A secondary suite fast-track approval system should be instituted to streamline the process.

ACTION 2: Reinstate Energy Efficiency Program for Low-Income Households

The current federal government cancelled a very effective and successful program that helped low-income families make improvements to their housing to reduce their use of energy (and their energy costs). This program needs to be brought back. Therefore:

§         EnerGuide for Low-Income Households (EGLIH) directly targeted energy poverty and the needs of low-income households while making effective use of existing staff resources. The EGLIH should be reinstated and strengthened with an increase in maximum grants to $5,000 per unit and a more effective screening process to help the program focus on households with the most pressing needs.

ACTION 3: End Vacancy Decontrol

Vacancy decontrol means that whenever a tenant leaves a rental unit, the landlord can increase the rent on that unit. In Toronto, where the turnover in tenants is fairly frequent, this has led to a rapid rise in rents. Premier McGuinty promised before he was elected to end vacancy decontrol, and we would like him to make good on that promise. Therefore:

§         The provincial government should eliminate vacancy decontrol from the Ontario Residential Tenancies Act to halt the rapid rise in rents in Toronto.

ACTION 4: Implement a Made-In-Toronto Approach to Inclusionary Zoning

Inclusionary zoning is a requirement that anyone who creates a certain amount of new housing in the city must include some affordable housing as a condition of getting property zoned for the development. This policy tool has been effective in the United States and elsewhere in getting new affordable housing built. This policy action requires provincial approval. Therefore:

§         The provincial government should allow an interpretation of “zoning with conditions” in the City of Toronto Act that includes the provision of affordable housing as a condition of zoning for residential developments.

§         The City of Toronto should implement a mandatory inclusionary zoning regime that works with developers to include 20% affordable housing in all new residential developments of 10 or more units, coupled with appropriate incentives for creating affordable housing.

ACTION 5: Remove Zoning and Regulatory Barriers to Affordable Housing

Developers and non-profit organizations that create affordable housing face several barriers, such as excessive parking requirements (even though many people in affordable housing do not own cars) and other regulations. The City should be encouraging more affordable housing, not putting barriers in the way. Therefore:

§         The City of Toronto should reduce the minimum parking requirement for affordable housing to 0.03 spaces per unit on a citywide basis, at least until a specific study of appropriate parking requirements for affordable housing has been completed.

§         The City of Toronto should offer appropriate flexibility in zoning regulations to stimulate the creation of new affordable housing.

ACTION 6: Prevent Conversions of Small Rental Buildings

The City of Toronto has successfully prevented the conversion of large rental apartment buildings to condominiums, but policy tools to prevent conversions are not available for small buildings with fewer than 6 units. Therefore:

§         The City of Toronto should develop incentives to preserve the existing stock of affordable housing in buildings of six or fewer units.

ACTION 7: Protect and Promote Good-Quality Rooming Houses

Rooming houses are the least expensive form of housing available and are therefore a critical part of the overall affordable housing equation. The City commissioned a 2004 study of rooming houses, which included 37 recommendations to maintain and improve the rooming house stock. It’s time to implement those recommendations. Therefore:

§         The City of Toronto should implement the recommendations of its own study on rooming houses.

ACTION 8: Use Taxation Powers to Fund Affordable Housing Directly

An increase of 1% in the tax rate, dedicated to the creation of affordable housing, would generate $31.2 million a year. Instituting a housing levy would decrease Toronto’s dependence on senior government funding (which tends to be inconsistent) and guarantee an annual budget to address affordable housing needs in the city. Another option is for the City to use its new powers under the City of Toronto Act to institute a land transfer tax and dedicate a portion of this revenue for affordable housing. Therefore:

§         The City of Toronto should institute a housing levy of 1% of property tax to generate $30.5 million a year to directly fund the creation of new affordable housing.

§         The City of Toronto should explore dedicating all or a portion of the proceeds of the land transfer tax for affordable housing production.

ACTION 9: Support Small Neighbourhood Businesses

Small, independent businesses find it hard to survive in a gentrifying neighbourhood, as rents rise and larger chains and franchises move in. The City of Toronto currently provides no direct financial assistance to small businesses. The U.S. Small Business Administration’s 504 Loan Program provides access to long-term, low-downpayment financing for major fixed-asset financing projects, such as buying real estate, constructing buildings, or purchasing major equipment. The City of Toronto should develop a similar program targeted at small businesses in gentrifying neighbourhoods. Therefore:

§         That the City of Toronto, with the aid of the federal and provincial governments, develop a program to support small businesses in gentrifying neighbourhoods, which includes low-interest loans for major fixed-asset financing projects.

ACTION 10: Build Community Capacity

Policy tools are effective only when those who can benefit from them are informed about their significance and how to realize their benefits. This means offering support that allows people to apply for and participate in government programs. This task of support will likely fall to the non-profit sector, which will need additional funding to carry out this task. Therefore:

§         That the public and private sectors invest in building the capacity of non-profit organizations to help implement new programs to promote inclusive neighbourhoods in Toronto.