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Edmonton's New Housing Tax Scheme is Grossly Unfair

Edmonton City Hall new housing tax proposal to provide low income housing shows how skewed and unfair their social minds work. In the Edmonton Sun by BROOKES MERRITT : Critics Dump on affordable housing tax.

If the city bean counters think charging land developers and home builders an extra tax to fund affordable housing projects is a good idea, then they don't understand economics very well, says an Edmonton development group.

"We'd have to recoup our costs somehow ... we'd have to raise prices on other new projects," said Michael Mooney, executive director of Edmonton's Urban Development Institute, which represents land developers like Carma, Genstar, Christenson Developments and Landrex.

"We strongly support building more affordable housing, but the city's latest proposed policy is going to drive more people into the other communities where housing prices won't be so inflated."

Called the Cornerstone Plan, the proposal would force builders and developers - and by extension future new home buyers - to pay $86 million in levies over three years, to be put towards affordable housing.

Developers would be forced to pay a cash tax of 5% of the value of all proposed lots.

Builders would have to sell 5% of all new condo, row house and apartment developments to the city at 20% less than market value.

The city would rent the units to low-income earners.

The policy will be discussed at City Hall Tuesday, where committee chair Coun. Bryan Anderson will also demand it be reworked.

"The city shouldn't be acting as a landlord, nor using private money to tackle a social issue," Anderson said.

He said the proposed policy is further flawed because it deals only with new suburban units that would cost about $500,000 each.

"Even after a 20% markdown, that's still out of range for low-income earners."

Anderson will urge his fellow councillors to have the city manager name a working group of councillors, home builders, land developers and city administrators to revisit the issue in the new year.

"We'll best address this issue by all sitting down at the same table and figuring out the best way to use provincial and federal dollars to buy affordable units, then turn them over to a non-profit to manage."

What are they thinking??? Social responsibility is everyones responsibility, not just a select few developers and new homeowners. This is just another example of the skewed line of thought I have encountered in conversations with some city council members.

What is more fair?

Take the provincial government money earmarked for social housing and combine it with a percentage of city municipal tax money (paid int by all city residents and corporations). Social housing is everyones responsibility.

Use the money to subsidize the rents of those that need affordble housing.

It sounsd simple because it is simple. Keep it simple stupid! Having the city of Edmonton become a landlord with rental units scattered all over the city is the most scatterbrained idea I have heard in a long time. Being a landlord is an extremely difficult task made even more difficult when you combine it with the social needs of drug addicts, alcoholics and mental issues that some low income renters have.

Think over very carefully whom you are impacting and what the ramifications are before making any rash decisions.

If the city of Edmonton wants oto be an affordable housing landlord listen up. Do not buy $300,000 to $500,000 condos at a 20% discount scattered all over hells half acre. Management will be hell when problems arrise...and they most certainly will. Buy existing apartment buildings close to services at rock bottom prices. I saw a 50 unit 1960's building yesterday selling for less than $170,000 a unit in downtown Edmonton. Can you say "easy to manage???"

I do not run for political office because I always think how can I save money... not how can I spend money.


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Edmonton Revenue Property Investors Association

The ERPIA monthly real estate club meeting will be held on the second Tuesday of the month at The Edmonton Petroleum Club Edmonton Alberta. Topics will include landlord issues, tenants, financing, investments, market trends, buy, sell, rent and open forum. All are welcome. $10 at the door. Sign up at www.meetup.com/revenue to receive meeting notifications.

Resale housing market maintains stability???

Edmonton, November 5, 2007: Edmonton’s housing market maintained stable through October with small changes in average prices for most types of residential property. Multiple Listing Service® inventory dropped slightly to 9,577 residential properties available on October 31.

Single family dwellings listed on the Multiple Listing Service® sold on average* for $397,198 in the Edmonton area in October. This is down just 0.6% from last month. Condominiums on MLS® sold on average for $262,875 (down 2.9%) and duplex/rowhouses were up 18.7% and sold for $367,964 on average (just 55 units sold). Increased duplex/rowhouse sales drove the average residential sales price (which includes all types of residential property) up 1% from last month at $347,668.
Coutesy of Realtors Association of Edmonton

Houses dropped .6% last month that would be 7.2% yr and condos dropped 2.9% last month thats 34% yr. Of course these stat are for 1 month Oct 2007 but prices have been dropping since July. Don't worry prices will start climbing again in the spring because the economy is so strong we keep hearing. Maybe...maybe not. Lots of houses and condos are still being built and 9000+ units are still unsold with 3745 new listings and only 1276 sales. The all telling 44 days to sell screams "buyers market".
Speculators that bought in the first quarter of 2007 are panicking and can't even unload there units with no money down deals. An awful lot of inventory needs to be sold before prices may once again start escallating.
Renters and side liners are gleefully relishing the downturn in hopes of getting in at the bottom. Speculators are getting disgruntled at how fast the tide has turned.
What do you think? Comments welcome.

Edmonton's 1% vacancy rate fact or fiction ?

With all the headlines out there like: (Edmonton Sun Saturday Nov 3 2007 'Rental market getting Retarded') Think the rental market is tight now? Just wait until next year.

That’s when the apartment vacancy rate in Edmonton is forecasted to dip below the current 1% – making it that much harder for already frustrated renters to find a place to live.

“It’s just getting retarded,” said Jasmine, who asked her last name not be printed.

Jasmine said she’s already spent more than six months trying to find a decent place for her and her fiance to rent with no luck.

For now, the couple has been living with her brother and mother in a three-bedroom government-subsidized housing unit.

They have been scouring the city for anything – but have found nothing in their price range, around $1,100.

“I graduated from college but I’m still working two to three jobs just to supplement the rent payments,” she said. Read the full article here.

One might think there is nowhere to live in Edmonton. There are plenty of apartments and houses to rent in Edmonton. Too bad media writers do not consult Edmonton landlords before writing articles. Especially ones as poorly titled as the Sun Article. Even a quick look in the Edmonton Journal classifieds would be enough to convince anyone of the great diversity of rental housing available in Edmonton.

The number of people looking for housing has drastically fallen off compared to summer 2007. Only the hard to house ie: with pets and smokers are having a hard time.

Landlords are mitigating their losses by being selective in renting to people that will be causing less damage to rental units.

Your comments are welcome.