submissions to government, we have made the case for a new deal for the city and asked
governments to address the problems of Toronto’s crumbling infrastructure. In particular,
we have called for a five-year capital plan to support transportation, affordable housing
and development of Toronto’s waterfront. This report is concerned solely with affordable
rental and ownership housing as a key factor in creating a city that is competitive with
other North American centres and offers a compelling quality of life.
Toronto’s supply of affordable housing is inadequate. The same is true in a number of
other cities. Ultimately, the supply of affordable housing affects the success of all
businesses. Along with other infrastructure components, it helps to determine whether or
not companies and employees locate in the city. A lack of affordable housing can lead to
a host of other, more serious social and economic problems.
Toronto is an expensive place to live. Approximately one-third of families in the Toronto
CMA are paying more than 30 per cent of their incomes for shelter. The average rental
price for Toronto apartments is beyond what many people can afford.
Governments have taken some small steps to address affordable housing challenges – but
action to date is inadequate. The Toronto Board of Trade believes that the shortage of
affordable housing is a problem that can be solved. The solutions require changes to
government policy and funding, largely through the tax system. Some of the
recommendations in this report can be implemented immediately, at little cost to
government. They include:
- Development and implementation of a national affordable housing strategy.
- An expanded mandate for the Canada Mortgage and Housing Corporation(CMHC).
- Simple changes to the federal tax system as it affects construction and operation of rental housing.
Recommendations that would be implemented over a five-year period, with higher
associated costs include:
- Tax changes to encourage businesses to invest in rental housing and to prevent the demolition of older affordable buildings.
- Greater equity in the property tax system between residential and rental housing.
- Measures to encourage reclamation of “brownfield” sites for use in housing.
- Introduction of a new tax credit and a tax exemption on Ontario Opportunity
Bonds to stimulate construction of affordable rental and ownership housing.
We encourage governments to work with the private sector to increase the supply of
affordable housing. Increasing the supply of affordable housing will help the business
community remain competitive and ensure that people can both live and work in Toronto.