To try to stimulate residential construction, which is slowing down, the City of Montreal is suspending for two years part of the contributions that developers must pay for social housing, a measure which can represent a saving of $3,000 to $4,000 per door. for a big project.
These changes to the controversial Regulation for a mixed metropolis (RMM – also called regulation 20-20-20), announced Thursday, are presented as a “ break » that the City gives to real estate developers in a difficult economic context, thus offering them a “window of opportunity” to carry out their housing projects at a lower cost.
“The changes we are making to the RMM to accelerate the construction of social and affordable housing are to tell people: it’s lighter, it’s the right time, it’s the window of opportunity, we’re accelerating , let’s step on the gas, let’s go! », Underlined the head of housing on the executive committee, Benoit Dorais, at a press conference.
PHOTO FRANÇOIS ROY, LA PRESSE ARCHIVES
The head of housing on the executive committee of the City of Montreal, Benoit Dorais
Respite is offered to developers who build outside the “affordability zones” designated by the City, in higher density sectors near public transportation routes, in particular.
The City also excludes projects with 20 housing units or less from the application of the RMM for the next two years.
According to Benoit Dorais, these changes also have the potential to encourage developers to transfer land to the City for the construction of social and affordable housing within their real estate projects, which is ultimately the goal of the RMM.
Abolition requested
Despite the announced changes, the opposition at city hall continues to demand the outright abolition of the RMM, to which it blames the slowdown in construction in Montreal.
Three years after its implementation, the results are very clear: zero affordable housing built, only one social housing project and funds that are not even sufficient to build a single project. And today, the City of Montreal recognizes that the implementation of its regulations entails additional costs, which obviously slows down residential construction.
Julien Hénault-Ratelle, opposition spokesperson for housing
In fact, the RMM enabled the construction of a single project of 86 social housing units in three years. The City also mentions “commitments” in buildings amounting to 660 social housing units, awaiting government funding, a balance sheet which has not changed since last fall.
The vast majority of developers chose to pay a penalty rather than build social housing or transfer land to the City. Contributions paid reach 27.5 million, while an additional 11.2 million are expected.
The relief for developers comes from the fact that the City will increase the amounts paid to developers who transfer land in order to reflect the increase in property values. The City had to, at the same time, increase the financial contributions paid by developers within the framework of the RMM. It is this last measure which is postponed for two years.
We also announced the simplification of the parameters of the affordable component of the MMR to align with new programs from different levels of government.
What is the MMR?
All builders of residential projects with more than 20 housing units must enter into an agreement with the City of Montreal to contribute to the social and affordable housing stock in three ways: the construction of social housing on the project site, the sale of land at a discount to the City or a financial contribution.
They must include 20% social housing, either by building these housing units, which will then be transferred to the City on a turnkey basis, or by offering vacant land, or by paying a monetary fee.
They must also provide 10% to 20% affordable housing in certain areas called affordable housing zones. Outside of affordable zones, only projects larger than 4,500 m² are subject to affordable housing requirements, through a financial contribution.
Projects with 50 housing units or more must provide 5% (in the city center) to 10% (outside the city center) of units intended for families.