Toronto's Ambitious Plan for 65,000 Rent-Controlled Homes

In a bold move, the City of Toronto has set its sights on constructing 65,000 rent-controlled homes over the next seven years, primarily aimed at providing affordable housing. While the initiative is commendable, it faces significant hurdles that may impact its feasibility.

The foremost challenge lies in funding, with only 4,455 homes currently secured due to estimated costs of up to $31.5 billion for the remaining 60,545 units. The plan relies on contributions from the federal and Ontario governments, creating uncertainty about financial support.

Another notable aspect of the plan is the city's intention to take on the role of building contractor and manager, marking a return of the government to the housing construction arena. While Mayor Olivia Chow suggests potential partnerships with Indigenous housing providers, non-profits, and commercial developers, the city must navigate complexities in becoming its own builder-developer.

Land availability poses a third hurdle, emphasizing the need for immediate access to federal and provincial land to support the project's ambitious goals.

The timeline for producing 11,000 units annually for the next six years adds another layer of complexity. Furthermore, the bureaucratic red tape that currently hinders private-sector builders in Toronto could impede the city's progress. With the average approval timeline for projects at 32 months in 2022, streamlining processes becomes imperative.

The private sector, despite facing its own challenges, is actively building rental units. However, bureaucratic delays, coupled with difficulties in finding skilled professionals, contribute to slower housing production.

The article argues that a more effective strategy to boost housing would involve reducing taxes, fees, levies, and development charges on new residential construction. Citing a study by the Canadian Centre for Economic Analysis, the author highlights that these costs account for 31% of a new home's total cost.

While acknowledging positive steps by the federal and Ontario governments, such as removing the GST and HST on purpose-built rental housing, the article contends that involving competent private-sector builders is crucial. The expertise and experience they bring to the table could expedite the construction of rent-controlled homes.

Obviously, we see the emphasis on the urgency of addressing the generational housing supply and affordability crisis in Toronto. It calls for a pragmatic approach that leverages the strengths of both the public and private sectors to overcome the challenges and meet the ambitious housing goals set by the city.