The Chamber of Commerce of Metropolitan Montreal is calling for the suspension of the regulation on social, affordable and family housing due to its failures and its negative impact on construction starts.
The regulation is nothing other than a tax on new construction which fuels real estate inflation without having any effect on the shortage of social and affordable housing, maintains the Chamber of Commerce of Metropolitan Montreal (CCMM).
The organization representing the business community does not mince its words in its criticism.
“Two years after its adoption, the results of the Regulation for a mixed metropolis [RMM] is clear: the City’s approach is a failure. The data shows that the regulation had a microscopic impact on the construction of social housing – only 86 units in two years! –, while contributing to the decline in building permit applications for housing projects on the City’s territory,” said the President and CEO of the CCMM, Michel Leblanc, in a press release.
PHOTO MARTIN TREMBLAY, LA PRESSE ARCHIVES
The President and CEO of the Chamber of Commerce of Metropolitan Montreal, Michel Leblanc
The release of the CCMM coincides with the City of Montreal holding an assembly on Friday to discuss its proposal to update the Regulations for a mixed metropolis.
In addition to the suspension of the RMM, the CCMM suggests that Valérie Plante’s administration promote density in areas served by public transport, accelerate the issuance of construction permits and concentrate the City’s resources in specific sectors such as the racecourse or the Bridge-Bonaventure sector.
The opposition gets involved
The official opposition at city hall endorses the Chamber of Commerce’s criticism.
“Faced with the failure of the results of the results of the Regulation for a Mixed Metropolis (RMM), I ask the Plante administration to do the responsible thing and apply a moratorium on this regulation. Montreal families do not have the luxury of further suffering the effects of a public policy that produces no results,” said Julien Hénault-Ratelle, spokesperson for the official opposition on housing, in a written statement. .
“A necessary regulation”, supports the mayor
Mayor Valérie Plante defended her regulations on Friday on the sidelines of a press conference on the purchase of housing by an NPO in eastern Montreal.
“This regulation was absolutely necessary,” she said. It is a planning tool which aims to ensure that everyone who builds must provide affordable housing and social housing. Yes, there is a slowdown in construction starts. But if we had done it before, we would not be in a crisis situation. I’m doing it for future generations who can’t even find housing. »
“We are staying the course to ensure that Montrealers can find housing, regardless of whether they are at the bottom or the top of the ladder, for all social classes, not just the ultra-rich. »
What are the Regulations for a mixed metropolis?
The aim of the regulation is to encourage the construction of affordable and family social housing.
Concerning the social housing aspect, the City provides for three types of contribution from the developer. Sell 20% of the housing in your project to an NPO or a cooperative for social housing. Transfer land or a building for this purpose in exchange for a financial contribution from the City. Or make a financial contribution.
The City favors the first two options, while the developers choose the third, reveals the results of the first two years of the RMM.
The head of housing on the executive committee Benoit Dorais has another reading.
What the MMR provides is something that developers like to do because it gives them predictability. They are able to sell the social housing project off plan [20 % des logements]. The bank counts them as pre-sales. In addition, it ensures the developer a profit since he is not giving the units as gifts.
Benoit Dorais, vice-president of the executive committee and responsible for housing
PHOTO MARCO CAMPANOZZI, LA PRESSE ARCHIVES
Benoit Dorais, vice-president of the executive committee and responsible for housing
If the construction of turnkey housing is so low, according to Mr. Dorais, it is because of the replacement by the Quebec government of the Accès logis program with the Quebec Affordable Housing Program, which operates through calls for projects .
To correct the situation, the City has decided to increase the consideration it pays when transferring land (option 2) and to increase the financial contribution required from developers (option 3).
Currently, the City offers compensation ranging from $213 to $552 per buildable square meter, depending on the city’s sectors. The developer’s contribution is the difference between the current price and the price paid by the City.
“In the current market, the developer says that it is too low, that the City does not give him enough, that his contribution is too high and that it does not represent his fair share,” recognizes Mr. Dorais.
And for the financial contribution? he was asked. “In time, we give ourselves a hard time. There will be a delay of several months and we will spread the increase over time in three stages,” indicates Mr. Dorais.
These changes do not impress the CCMM.
“These proposed modifications will amplify the conceptual problem of the Regulation,” we read in its opinion. They increase the tax on the development of residential projects and have a negative effect on the supply of housing, while this is already in free fall. The City should instead remove these restrictive measures for housing development and think about solutions to facilitate the construction of residential units rather than adding new pitfalls. In this sense, the Chamber is categorically opposed to the increase in taxes imposed on real estate developers. »
With the collaboration of Isabelle Ducas, The Press