New “Ontario’s Fair Housing Plan” Impact and Commentary

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We have reviewed the Press Release (https://news.ontario.ca/opo/en/2017/04/making-housing-more-affordable.html) and the Technical Backgrounder (https://news.ontario.ca/mof/en/2017/04/ontarios-fair-housing-plan.html) and present the following commentary on the impact of the new rules that take effect retroactive to April 21, 2017.

  1. 15% Non -Resident Speculation Tax

 

  1. Rent Control

 

  1. Leveraging the Value of Provincial Lands

 

  1. Vacant Home Property Tax

 

  1. Municipalities to impose a Higher Tax on Vacant Land Approved for Housing

 

  1. Housing Supply Team and Advisory Group

 

 

  1. Assignment of Agreements

 

  1. Working with the Real Estate profession to make sure consumers are fairly represented
    • Good idea…and how about adding that all those practicing in the trading of Real Estate in Ontario be a licensed professional. The new home industry currently can sell their product by “engaging a full time salaried employee” that doesn’t have to be licensed. This maybe a reasonable approach for the Custom Builder or a Builder of less than 10 houses a year in small town Ontario…but it should not be an acceptable practice for the tens of thousands of new homes sold by the Building Industry by unlicensed individuals with little or no knowledge of real estate law and no protection for the consumer.

 

  1. Updated Growth Plan
    • Carefully written premise trying to balance the demand for housing next to the policy directives of the Greenbelt, Transit Policy and Climate Change…the key word missing from this statement is “balance”. The Growth Plan is more about restricting than managing growth. Supply management is critical to stabilizing prices…and until the Province recognizes that the underlying cause of price pressures is limited supply as measured against continuing strong demand…prices will keep escalating until supply and production is balanced…this means a new housing target of 60,000 to 70,000 units per year be produced in the GTA to mitigate price pressure. The issues are about Plan Process and Production Management in the GTA…these various new tax measures tackle the consequence and not the cause and will have little effect on the long term price pressures for housing in the GTA.

Any questions, comments or clarifications please send to AndrewB@pmabrethour.com

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