New initiative to boost purpose built rental development

by Justin da Rosa29 Nov 2017
Ontario is encouraging developers to build purpose-built rental housing by offering millions in rebates.

The province is offering rebates for development charges on new, purpose built rental housing, it announced Wednesday.

“We believe everyone deserves a place they can call home. Building more rental housing not only helps individuals and families find places to live, it creates strong, vibrant communities,” Peter Milczyn, Minister of Housing and Minister Responsible for the Poverty Reduction Strategy, said.

The rebates are meant to encourage construction in the rental market.

The province will rebate up to $125 million in development charges over five years for purpose-built rental developments in areas with low vacancy rates and high proportion of renters.

According to the Ministry of Housing, only 6% of housing built over the last two decades was aimed at the rental market.

“Providing rebates for development charges for new purpose-built rental housing is one of 16 comprehensive measures under Ontario's Fair Housing Plan to bring stability to the real estate market, protect renters and homeowners' investments, increase housing supply, and help more people find a home that fits their budget,” the province said in a release.

COMMENTS

  • by Lucas P 11/29/2017 12:19:10 PM

    Ummmm....maybe if you didn't cap the profits landlords could make, you wouldn't have to give out these millions (OF OUR MONEY) to encourage developers to build rental buildings instead of condos!

  • by PeterC 11/29/2017 12:34:30 PM

    This is confusing. The government is going to hand out money, to increase rental stock - but they just passed legislation to empower tenants (even more than before) against Landlords and effectively cap what they can earn (while their expenses are not capped). If Wynn and her buddies just kept their hands off of matters 1) rental stock would increase on its own - because it might be profitable 2) the increased stock would cause competition amongst landlords and keep a lid on increasing rents 3) the interim buying/investing activity needed to increase stock would have generated more tax revenue ... I’ve been a Liberal supporter for a long time but it appears they’e chosen a ridiculous Economic Death Spiral.

  • by K W 11/29/2017 12:54:16 PM

    Exactly Lucas P. This Liberal Ontario government wont let the free market find its own balance in housing but instead wants to add its own inefficiencies and ass backwards policies to attempt to by votes from the ignorant. All that has happened with their housing policy to date is created more imbalances that will require more intervention in the future unless removed.

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