(Quebec) The Legault government wants to allow mayors to sell developers the right to build higher than permitted zoning in exchange for compensation intended for non-profit housing, an idea proposed by the mayor of Longueuil, Catherine Fournier.
What there is to know
- Mayor Catherine Fournier wants to have the right to “sell” to developers the right to build higher than what the zoning allows.
- This contribution would be dedicated to the purchase of private housing for the benefit of NPOs which offer affordable housing.
- The elected official believes that this measure could revive the construction of private housing in Longueuil, since buildings with more floors are more profitable.
“I welcome the proposal from the mayor of Longueuil to grant an additional compensation option in exchange for the use of incentive zoning,” said the Minister of Municipal Affairs Andrée Laforest in an exchange with The Press.
This new idea was proposed to him by Mme Fournier, who is looking for a way to finance his housing strategy.
“We want to be able to allow the developer to pay a financial contribution to the City in exchange for a zoning bonus, and for this financial contribution to be specifically dedicated to a non-profit housing fund,” explains the mayor of Longueuil. , Catherine Fournier.
She wants to “share the profits” that developers could generate by building higher, which leads to economies of scale and greater profitability.
Housing crisis
Longueuil, like many cities in the Montreal metropolitan region, is facing a housing crisis. And simply building more social housing is not the solution, says Mayor Fournier, citing researcher Steve Pomeroy of Carleton University.
While we build one social or affordable housing unit, we will lose 17 on the private market in the Montreal metropolitan region.
Catherine Fournier, mayor of Longueuil
The mayor presented her solution in December: supporting NPOs to buy private housing “at risk” of speculation. She wants to avoid what is happening right now: in the poor neighborhoods of her city, “very affordable apartment buildings with tenants on social assistance” are being renovated, and rents can increase to $1,600 per month, she gives as an example.
The City therefore wants to use its right of pre-emption to get its hands on these buildings, and then resell them to NPOs at cost. They could renovate them while maintaining lower rent costs.
No money
The problem: these organizations are unable to complete their financial arrangements and need financial assistance. They therefore turn to the City. “But we don’t have any money! », exclaims Mme Fournier. And unlike what other municipalities have done, it does not “want to impose royalties on developers, because we do not want to harm the construction market.”
His administration aims to build a minimum of 30,000 housing units of all types by 2041 “in order to meet growing demographic needs, while aiming to return to a balanced vacancy threshold.” She therefore wants to encourage the erection of private housing.
And it is here that Mme Fournier believes he can kill two birds with one stone. She says the developers she has met are interested in her idea, as are community groups. The City could both support non-profit housing, allow the construction of private housing and encourage densification.
Construction incentive
“It becomes an incentive for construction. Promoters calculate their profit per door. With all the fixed costs, as soon as you add floors, it’s a much bigger profit. Your profitability per door is greater. Even if you have to share a portion of the additional profit with the City, it’s still interesting,” she says.
PHOTO BERNARD BRAULT, LA PRESSE ARCHIVES
The Longueuil metro sector has zoning that allows the construction of 24-story buildings.
The mayor would have no “discomfort” in authorizing, for example, a 35-story tower in the Longueuil metro sector, which has a 24-story zoning. And on a smaller scale, she sees no problem in authorizing buildings of five or six floors in places where only three or four floors are authorized.
For the moment, cities can authorize additional floors through “incentive zoning”, but it is limited, particularly when social housing is included in the building.
She wants to make it more flexible by authorizing it when a “financial contribution intended for a non-profit housing fund” is paid by the developer.
Catherine Fournier hopes that Quebec will be able to quickly accede to her innovative request in a municipal bill. She met the Minister of Municipal Affairs, Andrée Laforest, on this subject less than a month ago.
And the minister opens the door wide for him. “I am happy with the interest generated by this new power among municipalities. Moreover, we invite all cities to adopt these regulations,” explains M.me Laforest.
Mme Fournier is betting big on this power. She wants 20% of non-profit rental housing on her territory. Currently, there are 4,666 off-market housing units in Longueuil, or 4.2% of the real estate stock. To reach the 20% target, nearly 17,500 housing units would have to be added.