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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