Social housing, densification, protection of natural environments… Cities have a new tool at their fingertips to buy land without it costing them too much: the right of pre-emption. Rimouski and Saint-Hyacinthe were recently the first to take advantage of it.
“It’s a very, very good tool, which has proven itself in Europe, in France,” says Marc-André LeChasseur, a lawyer specializing in municipal law. For cities, he says, it’s downright a ” must “.
Until very recently, only Montreal enjoyed this “superpower”. Now it is within reach of all municipalities.
The mechanism is relatively simple: the right of “pre-emption” is a first buyer’s right that allows municipalities to acquire key buildings on their territory.
In Rimouski, for example, the mayor, Guy Caron, wants to use it for densification. “It could allow us to target a quadrilateral where we would like to densify more,” he explains in an interview. “It’s one more tool in our toolbox. We don’t have many to coordinate the development of our city. »
For example, if a private purchase offer is made on an immovable covered by the right of first refusal, the City can raise its hand and acquire it at the price offered by the other buyer within 60 days.
Thanks to these new rules of the game, cities are less likely to checkout, continues Mr. Caron. “The temptation is often there for sellers to raise prices above market value because the City has greater financial capacity. »
The right of first buyer in a given area applies for a period of ten years. But in theory, nothing would prevent a city from renewing it.
This allows municipalities to buy buildings at a price that corresponds to their value as opposed to a price negotiated by a court in the context of an expropriation for example, underlines Me The hunter.
The cities obtained the right of first refusal in June when the CAQ government adopted Bill 37. But before using it, they must have a regulation adopted by the municipal council. What Rimouski did on October 17.
The by-law aims in particular to specify on which portion of the territory, the City could “pre-empt”. To give itself as much leeway as possible initially, Rimouski has made its entire territory subject to its regulations.
Contrary to what one might suspect, this did not give rise to strong resistance from property developers. In Rimouski, as in Sainte-Hyacinthe, the mayors say they have not faced such pressure.
A means of action without financial leverage
The elected Maskoutains adopted their regulations on preemption the same evening as Rimouski, in mid-October. Mayor André Beauregard sees it, among other things, as a way to fight the housing crisis by reserving key buildings for social or affordable housing.
Mr. Beauregard regrets, however, that cities do not have the means to buy a lot of land. “It’s going to have to come with subsidies,” he says. “There are not many cities that can embark on the creation of social housing in very large numbers without the collaboration of the government. »
One thing is certain: this new power is popular in the municipal world. At the beginning of October, the Union of Municipalities of Quebec (UMQ) organized an online webinar on the subject which attracted a hundred people.
The UMQ had lobbied the government on a sustained basis to give this power to its members. “In a context of housing crisis and the fight against climate change, every month counts,” she pleaded in a brief in June. “By acting now, vulnerable households will spend a few months less in unsuitable housing, natural environments will be preserved and community facilities (e.g. municipal swimming pools) will be set up in places better served by public transport. and active. »
If the UMQ speaks of climate change, it is because the right of first refusal can also allow cities to protect natural environments, by acquiring land to make parks, for example.
This is one of the reasons why Longueuil also wishes to take advantage of this option, explains the mayor, Catherine Fournier. “The housing crisis and the protection of natural environments are our two priorities, so it is certain that, for us, the interest of the right of first refusal is all the more present. Thus, the adoption should be done “by the end of the year or the beginning of 2023”.
However, unlike Rimouski and Saint-Hyacinthe, Longueuil does not intend to apply the right of first refusal to its entire territory, but rather plans to limit it to a specific sector. “We will stick to pre-empting buildings that we are sure we can acquire, from a financial point of view”, specifies Mme Fournier.
To have a structuring effect, this new power will have to be accompanied by money, she underlines. “It gives us the means of action, but not the financial means. […] It will have an effect, and it should be welcomed. But not as structuring as we would like. »
This is evidenced, according to her, by the limited use that Montreal has made of this power in the past, the metropolis having only used it a dozen times. An opinion shared by Mr.e LeChasseur, who blames Montreal’s weak balance sheet on money. “Cities buy few buildings, but at least they will be able to buy them at market value, which is an advantage. »