MPP Chris Glover –
The St. Lawrence neighbourhood is a model community. It’s a healthy mix of co-operative, social, and commercial housing knitted together along David Crombie Park. St. Lawrence Market, the community centre and local schools serve as hubs where community members meet, play, shop and become friends.
Housing co-ops in the community provide permanently affordable housing for their members, who are not tenants but share ownership of the co-op while living there. While some residents are subsidized, others pay the full cost of operating their units, which, because co-ops are not-for-profit, is substantially less than for-profit housing. Co-ops are democratically run.
So why did we stop building model communities like this?
Many co-ops in the St. Lawrence neighbourhood date back to the 1970s, when they were spearheaded by then Conservative Mayor David Crombie. The most recent – the Performing Arts Lodge and Older Women’s Network Co-op – date back to the NDP government in the early 1990s.
Since then, almost no affordable housing has been built in the St. Lawrence neighbourhood or anywhere else in Ontario. The ideology changed. Neoliberalism became dominant, typified by the Gordon Gecko quote, “Greed is good!”
In 1995, Conservative Premier Mike Harris was elected and immediately cancelled projects for 17,000 units of affordable housing. He then downloaded social housing to municipalities, which do not have the tax base to even maintain downloaded burdens, let alone to build new housing.
Federally, Liberal Prime Minister Jean Chretien cancelled the National Housing Strategy that was funding construction of co-ops, social and supportive housing. Instead, Chretien introduced legislation to foster Real Estate Investment Trusts (REITs), which provide tax subsidies to corporations looking to invest in real estate.
The combination of cancelling affordable housing projects and unleashing REITs has been devastating. REITs gobble up billions of dollars of housing. Just one of these corporations, Core Development Group, has announced its intention to buy $1.5 billion worth of housing in Ontario. Tax-subsidized REITs have massively inflated housing costs to the point that most young people may never be able to afford to buy a home, and 50,000 Ontarians leave Ontario each year – many because of housing costs.
A recent University of Waterloo study shows that corporate landlords, including REITs, charge 44 percent higher rents than other landlords and increase rents an average of five percent every three months. They buy up housing in low-income neighbourhoods, they evict tenants, and then massively raise rents. In part because of REITs, the city reports that Toronto is losing 15 units of affordable housing for every one that is built.
Today in Ontario, one in five renters pays more than half of their income in rent, 80,000 people are homeless, and the province has 1400 encampments.
The Ford government came to power promising to address the housing supply shortage to make housing affordable. But the government has given billions of tax dollars to developers, made secret deals to pave over the Greenbelt and demolish heritage properties like the Foundry, and sold taxpayer-owned properties like the Hearn Generating Station to their friends.
The result of all these actions is that housing costs and rents have increased by 40 percent in the past seven years, and Ontario has the second-lowest level of housing starts of any province. Most recently, the Conservatives introduced Bill 5, enabling them to override all municipal and provincial laws – all in the name of building housing.
But all is not doom and gloom. Mayor Olivia Chow and Toronto City Council are leveraging the value of public land to build affordable housing, including a 600-unit co-op on Eglinton Avenue. Existing co-ops are looking to expand, and churches are starting to build affordable housing on their lands. The federal government has restarted the National Housing Strategy – although some of its budget is being filtered through public-private partnerships in which corporations finance and control projects in exchange for a 30 percent taxpayer subsidy.
To make housing truly affordable, we need to look in our own backyard and stop the corporate subsidies, the favours to political friends, and the overriding of current laws. We need to push governments to start building communities like St. Lawrence again – so everyone has a home they can afford.
First elected to the Legislative Assembly in 2018, Chris Glover is the Member of Provincial Parliament (MPP) for Spadina-Fort York. He is the NDP’s shadow minister for Sport, Technology and Innovation, and for Democratic Reform. A former Toronto District School Board Trustee, Glover has also served on the Toronto Board of Health and been an adjunct professor at York University.
1 Comment
REIT’s are not inherently bad, it’s how the funds invested in them are weaponized that make the outcome good or bad.
True, strategies to date have been to maximize profit using elemental means — bully-buy low and sell or lease high.
That’s not a function of the REIT structure that’s a function of the in investment strategy of the REIT management.
The current opportunity for REIT investment with some 40,000 condo units hanging fire is fairly obvious and entirely benign.
We did it back in 1989 when the market collapsed and we can do it again.
We need to broaden the demand base and provide greater rigour to the supply base.
The marketplace itself not only allows us to do that but supports the effort, indeed demands it.
Remember builders and developers are not autonomous creatures they are entirely constructs of their bankers and equity finance groups.
And right now those good people are showing too much naked flank in real estate investment as the demand curve subsidence strips away protective layers.