1. Currently, all levels of government have policies and incentives in place to help meet the
demand for affordable housing; however these programs are often ad hoc, lacking transparency,
clear goals, and adequate funding, thus undermining the incentives themselves. At present,
the primary funding mechanism for increasing affordable housing supply is allocated through
the Initiative in Affordable Housing (IAH) program and administered at the municipal level.
The program requires provinces to match federal contributions and to date it has been largely
inadequate in addressing current supply and demand of affordable rental housing. Furthermore,
municipalities are under increased pressure to provide affordable housing, yet they lack
the appropriate revenue sources to incentivize private developers in the creation of these
units. Therefore, two sets of recommendations are proposed: amendments to the existing
administrative structure and a toolkit of financial incentives across all levels of government.
ADMINISTRATIVE REFORMS:
1. The creation of a Federal Ministry of Urban Development – specifically responsible for
addressing national housing issues and other urban issues.
2. The Provincial mandate of an Affordable Housing Administrator – to serve as the
principal point of contact for private & non-profit developers, and other investors engaged in
affordable housing provision within a municipality.
TOOLKIT OF FINANCIAL INCENTIVES:
1. Reform the IAH program – Federal government commitment for funding IAH in perpetuity,
as well as modify existing program components.
2. Implement an Affordable Housing Tax Credit – offering tax credits to both non-profit
and private sector developers that create affordable housing units.
3. Implement a corporate income tax deduction – at the provincial level providing a tax
rate reduction on eligible rental income for developers producing affordable rental housing.
4. Encourage municipalities to use funding tools available – existing municipal funding
tools include: Development fee exemptions, Property tax reductions, Municipal Capital
Facilities, fast-tracking the planning approval process, and unlocking opportunities to dedicate
city owned lands towards the development of affordable housing.
Ministry of Urban
Development
Corporate Tax
Reductions
IAH
Reform
AHTC
Program
Existing
Incentives
Private & Non-
Profit Developers
Affordable Housing
Administrator
TOOLS FOR INCENTIVIZING PRIVATE DEVELOPERS
CREATING AFFORDABLE HOUSING
For more information, please contact aharrison@ryerson.ca