Affordable Rentals in Hamilton

Last year Council received a report on rentals in Hamilton showing very low vacancy rates.  The rate was even 0% in Stoney Creek.  Over the past year the rate has risen slightly, but CMHC is calling this a blip and expects the rate to drop even lower in the coming year.  All of this points to a lack of available rental units including affordable rentals throughout the City.  So how do we fix this?

Downtown

People are rushing to live downtown pushing up revenues for the City

In the downtown over the past several years Council has waived a large portion of development charges associated with new residential and commercial development.  The savings can be as much as $20 – $30,000 per new unit constructed.  With incentives like that coupled with a resurgence in our downtown it’s easy to see why so many developers are working downtown building new condos and apartments.   People are rushing to live downtown pushing up revenues for the City and helping take the burden off of the Mountain and surrounding wards that have for so long had to make up for the lower tax revenues from the downtown.

Projects like 150 Main St West are turning formerly abandoned properties into homes driving up our residential tax base.

Reproduce a Winning Strategy

The creation of these rentals will bring in new tax revenues for the City and replenish the City’s dwindling stock of rental units.

Initially this strategy took a while to take off.  Developers were hesitant at first to jump in even with these incentives, but after a few projects got started and proved to be successful we saw an explosion of activity.  My proposal is that we identify target areas of the City in all wards and waive all or a significant amount of development charges for the construction of multi-storey residential rentals.  The creation of these rentals will bring in new tax revenues for the City and replenish the City’s dwindling stock of rental units.  My proposal would also limit the amount of time that developers could put in their application and place further limits on how long the development charge holiday would remain in effect.  For example, we might suggest that for the DC exemption to apply construction must begin within 24 months.

This would encourage a quick start to projects that could employ thousands of people throughout the City giving us an immediate economic shot in the arm.

What The Developers Think

During the campaign I have spoken to thousands of people across the mountain including developers both large and small.  I first proposed the idea to a developer to gauge their reaction.  Would something like this actually cause you to develop a rental property?  Or would it simply be a wasted effort.  The response I got from the developers I spoke to was very positive.  One that didn’t normally build rentals even told me they would start right away if something like that were to be put in place.

What the Building Trades Think

This type of development could drastically cut that (unemployment) rate and put a lot of people back to work.

After receiving positive comments from the developers I decided to put the same question to the Building Trades.  At a recent meeting I had with many of their members I again proposed the idea.  Would this type of DC holiday encourage job growth.  The response from those I spoke to was again very positive.  During this meeting I was told that we have an unemployment rate of 30% for members of the skilled trades.  This type of development could drastically cut that rate and put a lot of people back to work.  The economic spin offs to the rest of the City would also be huge.

Growth Targets

In order for Hamilton to meet its growth targets in the coming years we’ll need to ensure we are building up and not out.  The city is constrained in its ability to grow outwards and must now grow through intensification along our nodes and corridors.  My proposal means we can achieve both growth of our population and revenues, and increase the availability of quality rental units.

Immediate Action

Within my first 60 days in office I will propose a motion at Council that will direct staff to report back to either the Planning or General Issues committee identifying the areas that would most benefit from this kind of development charge holiday and would seek to implement this by 2017.  I know that with the relationships I already have on Council this motion will be well received and I am confident that working with my future Council colleagues we can get this done.