Struggling with a housing shortage on a scale never seen in 15 years, Rimouski aims to turn its crisis into an opportunity. In its plan to combat the housing shortage presented Thursday, the municipality of Bas-Saint-Laurent proposes to explore development models “more respectful of our ecosystems and the climate”.
Rimouski recognizes it: a “perfect storm” is blowing over the city and it spares no one. Tenants are struggling to find a roof over their heads, buyers are struggling to find a property to buy and developers are facing an economic context that is inflating their construction and borrowing costs.
The city of Bas-Saint-Laurent estimates that it will have to build 2,500 housing units to relieve the current shortage, which has seen the vacancy rate plummet to 0.2%, according to the most recent data from the Canada Mortgage and Housing Corporation ( CMHC) – well below the equilibrium rate, calculated at 3%.
To get out of this turmoil, the municipality is equipping itself with a regulatory, budgetary and fiscal arsenal to develop a greener, more affordable and denser city. “The accelerated construction of many new homes is an opportunity to direct the development of the city towards a model that is more respectful of our ecosystems and the climate. The City therefore has a major challenge here, […] but also a great opportunity,” the administration writes in its plan.
No more thoughtless construction: Rimouski now intends to build more mixed and denser neighborhoods, “by choosing growth with low climate impact” inspired by the best practices adopted in Quebec.
“Scattering activities and residences means generating more motorized transport and impacting nature, continues the City, while building and renovating buildings where services are already provided, streets already cleared of snow, public transport already in service, is an economical and ecological choice that pays off very well. »
A 12-point strategy
The municipality articulates its plan in 12 actions, which include in particular a revision of the regulatory framework and financial incentives to facilitate “soft densification” in neighborhoods already inhabited.
Rimouski is thus committed to identifying land capable of accommodating a tiny house project inspired by the Petit quartier de Sherbrooke, a housing cooperative that has not yet been seen in Quebec, which relies on living together and the collectivization of services to create a neighborhood on a human scale.
The revision of the regulatory framework must also relax the limits that hinder the construction of accessory dwelling units, that is, dwellings built on land already occupied by a single-family home.
The regulatory amendments also intend to further restrict the conversion of principal residences for tourist purposes. The City has identified around thirty dwellings intended for short-term accommodation on its territory. Even if Rimouski recognizes that the impact of Airbnb and other rental platforms remains “low” on the current shortage, it still intends to tighten the screw.
Plenty of room for affordable housing
Rimouski also takes note of construction costs and rising interest rates. The City wants to calm the turbulence that is dampening the ardor of developers, while containing their voracity by offering various incentives to build affordable housing.
The plan thus gives an important place to affordable and social housing.
The City thus plans to protect itself from its new right of first refusal to multiply acquisitions. Rimouski will prioritize land located in its city center to build social and affordable housing or to promote residential densification where services already exist.
The municipality estimates that 350 Rimouski households are waiting on a list waiting to obtain housing accessible to their low income. The City has approximately 2,300 housing units in its boxes, including 218 for social purposes.
To serve as a spark plug for other affordable and social housing projects, Rimouski wants their initiators to benefit from a property tax credit that can be spread over not five years, as the current maximum provides, but over 35 years. This support would automatically apply to construction sites of 20 units or more that the City deems viable. Rimouski would assess the granting of this credit on a case-by-case basis for projects with fewer than 20 units.
Tax truce and request to Quebec
The action plan also provides for an increased contribution from the Government of Quebec. Rimouski wants to adopt a resolution this year asking for a “substantial increase in funding for social housing”. Rimouski also intends to convince the Ministry of Municipal Affairs and Housing to introduce lower taxation for dwellings with six or more units.
Rimouski also wants to grant a tax break to developers who rely on densification and the construction of reasonably priced housing. It intends to grant them a property tax credit of up to $1,500 per unit located in a new building with at least eight dwellings.
To be eligible for this credit, however, the units must offer rents that do not exceed the median rental cost of the market by more than 15%. Rimouski caps this credit at $150,000 per project, per lot and per promoter. The envelope granted represents the maximum imposed by law, ie 1% of the annual budget. For 2023, that’s just over a million dollars.
Mayor Guy Caron does not hide a certain urgency to change the reputation of his city. “It is common knowledge in Quebec that Rimouski is experiencing a housing shortage. We know that we are attractive and that we are an interesting welcoming land. The problem, on the other hand, is that people are reluctant to come, thinking that they will never find accommodation. We want to send the message that we are taking the problem head-on that we are giving ourselves the means to solve it. »