COUNTY OF SIMCOE
To:
AFFORDABLE HOUSING ADVISORY COMMITTEE
Section:
Matters for Consideration
Item Number:
AHA 16-022
Meeting Date:
August 19, 2016
Subject:
Best Practices Information Sheet on Municipal Housing Tools and Incentives
Recommendation:
That the Best Practices Information Sheet on Municipal Housing Tools and Incentives to advance
affordable rental housing, as outlined in Item AHA 16-022, dated August 19, 2016 be approved for
promotion to the member municipalities and the Cities of Barrie and Orillia.
Executive Summary:
This Item provides information on best practices on municipal housing tools and incentives that have
been considered to be the optimal standard to advance affordable rental housing. The Best Practices
Information Sheet is for municipal levels of government within the County to partner with the private and
not-for-profit sectors in the creation of new affordable rental housing. Partner municipalities can
implement the tools and incentives identified in the optimal standard, or can use variations of the tools
and incentives that would work best in their respective areas.
The optimal standard was developed based on consultations that were completed in early spring of this
year with the Municipal Liaison Group, the Simcoe County Building Industry and Land Development
Association (BILD), and the Landlord Focus Group.
Background/Analysis/Options:
In 2015, the County completed a number of different consultations that included sixteen
municipal deputations, a meeting with the Landlord Focus Group, and a meeting with BILD. The
consultations provided the opportunity to have open dialogue about Our Community 10-Year Affordable
Housing and Homelessness Prevention Strategy (Strategy) as it relates to meeting targets identified for
each local area.
Item AHA 15-026 (September 18, 2015) provided feedback received from the municipal deputations
following Item AHA 15-020 (August 21, 2015) in regards to preliminary targets and implementation
planning for Our Community 10-Year Affordable Housing and Homelessness Prevention Strategy
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Affordable Housing Advisory Committee AHA 16-022
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(Strategy). Item AHA 15-029 (October 16, 2015) provided an update from the initial meeting with the
Simcoe County Building Industry and Land Development Association (BILD), and Item AHA 15-032
(November 27, 2015) provided an update regarding the initial meeting with the Landlord Focus Group.
Each of these previous Items identified challenges and opportunities to stimulate new rental
development within the County, based on feedback from the above sectors, as summarized below:
Challenges:
 Expensive land prices, rising government imposed fees and charges (i.e. development
charges), and high servicing costs appear to be the primary barriers to developing affordable
housing.
 Proximity to transit is desirable, but can be a challenge with limited transit services in some
areas.
 Zoning challenges include parkland dedication and parking requirements (below grade parking
is exceptionally costly).
 Challenges of Not-In-My-Back-Yard (NIMBY) attitudes can result in proceedings with Ontario
Municipal Board (OMB); the timeline delay, legal fees and expenses, are costly to both
municipalities and developers, presenting added risk for developers and impacting unit
affordability.
 Lengthy development approval processes – this can vary between municipalities.
 Financial institutions tend to be less likely to lend money to affordable housing projects due to
the lower profit margins associated. This is not only with regard to purchasing or developing
new units, but can affect resale of affordable housing properties as well.
 New rental development is required within all municipalities, however, the cost of land/building is
exceptionally high and other approaches, such as rent supplements, would also need to be
utilized.
Opportunities:
 Waiver or deferral of development charges for affordable housing development or conversion.
 Conversion projects of existing unoccupied buildings, such as churches and schools, may
provide cost effective opportunities, particularly if they are located near transit systems and
community supports/amenities.
 Clearer definitions regarding what is “affordable” based on location, income levels, types of
housing and occupancy would be helpful in more easily identifying or tracking affordable
projects that can be counted towards the County’s target.
 Identifying existing sites that are pre-zoned or zone target sites appropriately to reduce
additional planning approvals that may be required; this facilitates faster development timelines
and minimizes risk for development partners.
 Developers and builders are enticed by incentives, a combination of financial and policy
incentives is often effective. Examples include, but are not limited to, waiving of development
application fees, complete waiver of development charges, property tax exemptions, surplus
municipally owned land sold for a nominal price, fast-tracked development approval processes,
dedicated funds from the Province’s Investment in Affordable Housing (IAH) program, and
reduction in parking requirements.
Optimal Standard:
The challenges and opportunities identified helped inform County staff in the development of a draft
standard for municipal housing tools and incentives to advance affordable rental housing. The draft
standard was then presented and revised in accordance with the feedback that was received in the
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engagement with the Municipal Liaison Group, the Simcoe County Building, Industry and Land
Development Association (BILD), and the Landlord Focus Group.
Since the consultations with these groups, the Ministry of Municipal Affairs and Housing (MMAH),
through Bill 204, is seeking to amend the Planning Act to include the promotion of inclusionary zoning.
As a Service Manager, County staff has included the promotion of inclusionary zoning in the optimal
standard, in order to align with provincial policy direction.
Based on the consultations that were done, the optimal standard of municipal tools and incentives
include the following:
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100% Development Charge Relief (for example a grant for development charges with a
commitment of a minimum of 10 years affordable housing)
100% Property Tax Incentives (for example exemption of property taxes as long as affordable
housing is maintained)
100% Waived Planning and Building Fees
Reduced/Waived Parkland Dedication Requirements
Reduced Parking Requirements (where required)
Dedicated Project Manager/Fast Track Approval System
Pre-zoned Areas (Flexible Zoning)
Surplus Land (Pre-Approved)
Economical Built Forms (smaller types of residential units and lot sizes)
Capital Funding (for example a forgivable loan for providing affordable housing for a defined
period of time)
Promotion of Inclusionary Zoning
The optimal standard is recommended in the effort to make new affordable rental housing projects
viable within the County, as a method to have municipal partners work in collaboration with both the
private and not-for-profit sectors. Municipal partners can implement the tools and incentives identified in
the optimal standard that would work best in their respective areas. It is recommended that the optimal
standard be promoted for consideration by member municipalities and the Cities of Barrie and Orillia as
a means to incentivize the development of affordable rental housing. A draft Municipal Housing Tools
and Incentives Best Practices Information Sheet outlining the optimal standard is attached as Schedule
1 to Item AHA 16-022. Following approval of this Item, the Information Sheet will be formatted by the
County’s corporate communications department prior to distribution. There may also be situations in
which municipal partners feel that customized variations of the tools and incentives are better suited to
their unique circumstances.
In addition to the optimal standard, there were comments that were provided by the Municipal Liaison
Group, BILD, and the Landlord Focus Group.
Municipal Liaison Group:
The Municipal Liaison Group expressed different levels of support for each of the municipal tools and
incentives outlined in the optimal standard. It was expressed that depending on the landscape and
needs of each local area, as well as the type of housing applications that are received, the type of
municipal tools and incentives could then be considered.
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Simcoe County Building, Industry and Land Development Association (BILD):
BILD provided comment that in addition to what is outlined in the optimal standard, other financial
incentives should be provided and include:
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Financial incentives to offset all government imposed fees and charges associated with
affordable housing;
Financial incentives to offset the costs associated to the construction (including design, labour
and materials) of affordable housing and;
Funding programs for ongoing rent subsidies that would provide relief for the County’s
residents that are in need.
Even with the additional incentives included within the optimal standard, BILD expressed that it would
not be enough to offset costs associated to new rental development in private development projects, as
there are other considerations, such as banking requirements and ancillary administration that were
challenging to capture through the discussion of municipal tools and incentives.
Further to this, BILD recommended that the County of Simcoe consider creating a fee exemption
application form related to affordable housing development.
Landlord Focus Group:
In support of financial incentives, the Landlord Focus Group expressed concern that the current cost to
build is not feasible and that additional financial resources are required to help assist the not-for-profit
sector in developing affordable housing. Additional capital funding provided by the County was
suggested to facilitate the not-for-profit sector in securing adequate funds to help advance affordable
housing. It was also expressed that greater advocacy is required to open dialogue about alternative
financing for not-for-profit-housing providers to support the early stages of development of affordable
housing.
Financial and Resource Implications:
There are no direct financial implications relating to this Item. Consideration of additional affordable
housing incentives to be used by the County and related costs will be addressed in a future item.
Relationship to Corporate Strategies:
Item AHA 16-022 supports Council’s Strategic Direction:
Growth Related Service Delivery: Create and strengthen partnerships with key stakeholders to support
communities through the delivery of sustainable services.
Specifically, the Social and Community Services strategic initiative:
 Develop and implement a long-term affordable housing and homelessness prevention strategy.
Item AHA 16-022 is also consistent with Our Community 10-Year Affordable Housing and
Homelessness Prevention Strategy.
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Reference Documents:
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Item AHA 15-020 (August 21, 2015) Update Regarding Municipal Deputations
Item AHA 15-026 (September 18, 2015) Affordable Housing Targets
Item AHA 15-029 (October 16, 2015) Update Regarding an Affordable Housing Meeting with
Simcoe County Building Industry and Land Development Associations (BILD)
Item AHA 15-032 (November 27, 2015) Update Regarding a Landlord Focus Group held with
regard to Our Community 10-Year Affordable Housing and Homelessness Prevention Strategy
Attachments:
Schedule 1 – Draft Municipal Housing Tools and Incentives Best Practices Information Sheet
Schedule 1.pdf
Prepared By:
Jessica Low, Project Consultant
Approvals:
Date
John Connell, Acting Implementation Manager
Arfona Zwiers, Director, Social Housing
Greg Bishop, General Manager, Social and Community Services Division
Trevor Wilcox, General Manager, Corporate Performance
Mark Aitken, Chief Administrative Officer
June 3, 2016
June 6, 2016
June 6, 2016
June 10, 2016
June 10, 2016