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Mitzie Hunter creating new city affordable housing corporation to deliver more new affordable housing, more quickly than proposals of any other candidates
DOWNLOAD THE TAHC BACKGROUNDER
Thousands of purpose-built below-market rate rental apartments and affordable ownership units to be built on city-owned land, mayoral candidate says
Toronto – Mitzie Hunter, mayoral candidate, will create a new city-owned affordable housing corporation to deliver more new affordable housing, more quickly.
The new corporation will be charged with building thousands of purpose-built, below-market rate rental apartments and affordable ownership units on city-owned land.
“We are in a housing crisis and that’s why we need to unlock public lands for affordable housing,” says Hunter.
“We need to do things differently. We need to Fix the Six. That means we need more affordable housing, more quickly. It starts with leveraging City properties to develop as much affordable housing as possible. We can control the delivery of affordable homes for real results.”
Hunter has issued a five-point plan to deliver more affordable housing, more quickly.This plan will:
1. Unlock public lands to build more new affordable housing;
2. End the multiplex ban;
3. Add rental apartments on major streets and near campuses;
4. Speed up building approvals and construction; and
5. Protect renters and save current affordable housing.
The centrepiece of Hunters plan is a new Toronto Affordable Housing Corporation (TAHC). In its first phase, which is projected to last six years, the TAHC will:
• Build 108 new developments on City owned land. These will be between 10 and 20 storeys and be suitable for small and medium sized lots in every part of the City. Other candidates’ proposals rely on massive buildings of 40 storeys or more.
• Deliver nearly 22,700 units providing housing for approximately 53,650 people.
o 16,556 of these units will be purpose built rental units.
o Unlike every other candidate’s proposal, the majority of these – 68 per cent -- will be affordable units with rents at or below the Average Market Rent (AMR) reported by the CMHC.
o In total there will be 11,236 affordable rental apartments. This is the most of any candidate.
o 5,660 units will be offered at AMR
o 3,468 units will be offered at 80 per cent of AMR
o 2,108 units will be set at 40 per cent of AMR.
o 34 per cent of all rental units will be below AMR which is the highest share of any candidate.
• The minority of all units will be market rental units. These 5,320 units will be subject to annual rent control limits.
• Unlike any other candidate proposal, the TAHC will help make home ownership more affordable. Every building will include affordable ownership units.
• TAHC will offer 6,136 “shared equity” units. This is 27 per cent of all units.
• Shared equity units will be sold at 50 per cent of market value with 50 per cent retained by the TAHC.
• When a unit is re-sold, 50 per cent of the appreciated value is retained by the TAHC to reinvest in future projects.
• The TAHC buildings will also be the most family friendly of any candidate’s proposal. More than 55 per cent of all units are two and three bedrooms. Other proposals have no more than 40 per cent.
• All TAHC building will include on-site retail and on-site community space for satellite libraries and public health offices and childcare for larger developments.
• A total of 17 acres of new public parks and greenspace across 68 TAHC developments will be created.
• The City will provide 10 per cent of the cost of each development with the balance funded by CMHC provided mortgages.
• The City will also provide contingency operating funds for each project during construction.
• City funding will come equally from reserves such as the City Building Fund and the operating budget.
• The City’s net cost over the first two years will be $166 Million.
• Rent from residential and retail tenants, maintenance fees and the proceeds from the sale of Shared Equity units will cover all operating and financing expenses.
• By the end of Phase 1 total earnings will have been greater than the original City contributions and the amount financed from CMHC.
• The TAHC will use its surplus revenue to fund further Phases to build more affordable housing projects on an on-going basis.
In developing her plan, Hunter drew on her experience as CAO of Toronto Community Housing prior to being MPP for Scarborough-Guildwood and a senior cabinet minister.
“We are in a housing crisis,” says Hunter. “Buying a home in Toronto is now out of reach for all but the wealthiest. We need to fix this.
“But that won’t happen with the same faces from the same places, unsuccessfully doing the same things they have always done, with a complete lack of results for the people of this city.
The other leading candidates who have released housing plans all continue the failed status quo approach. Their buildings are all too big for most neighbourhoods. The majority of units they create are market rentals or unaffordable condos. The majority ofunits are one bedroom and not fit for families and nobody offers anything to people looking to buy an affordable home.
In contrast, Hunter’s plan builds more affordable housing units for renters and buyers alike than any other plan in family friendly buildings that can fit into every part of the city.
“The only way out of this mess is to add more affordable housing to meet demand and lower price escalation for renters and buyers alike. My plan does this.”
Hunter’s housing plan is the most detailed, practical and comprehensive plan issued by any mayoral candidate. It is fully costed and part of her budget plan to be issued before voting begins in June.
“We can do this, we must do it, and if we are to have a city that works for everyone, everywhere, we must grow the supply of affordable housing for both renters and buyers. Let's grab control of the levers as a city and get it done. My plan does this.”
-30-Contact:
Charmain Emerson
charmain@culturedcommunications.ca
Remarks by Mitzie Hunter announcing affordable housing policy, May 9, 2023:
• During this campaign I have steadily unrolled policy planks that form my campaign platform.
• Mental health and addiction.
• Homelessness and housing stability.
• Youth mental wellness and homelessness.
• TTC safety so people can feel safe and be safe.
• Getting Toronto moving again by reversing TTC service cuts, rolling back fare increases, and free fares for seniors and Wheel Trans users.
• Laying out my TTC construction priorities including the Waterfront LRT, North York Scarborough subway, Eglinton East LRT extension. A transitional dedicated busway in Scarborough until the subway extension is built.
• Ontario Place… and my four tests for redevelopment which the current private spa proposal does not pass.
• The Ontario Science Centre and opposing the Provincial plan to demolish it.
• I am committed to issuing a full costing in a budget before voting starts in June.
• I am putting forward my plan in a steady, deliberate and principled way so that when people vote for me they know exactly what they are getting if they elect me as their mayor.
• Yesterday I presented my centrepiece policy which is affordable housing.
• We are in a housing crisis. Buying a home in Toronto is now out of reach for all but the wealthiest.
• The way things are going, a teacher or a nurse who is starting out can no longer afford to buy or rent an affordable home in the city.
• That is unacceptable. We need to do better. That is why I have released a five-point affordable housing plan.
• A five-point plan for more affordable housing, more quickly.
• My detailed and practical five-point plan will:
o Unlock public lands for more new affordable housing
o End the multiplex ban
o Add rental apartments on major streets and near campuses
o Speed up building approvals and construction
o Protect renters and save current affordable housing.
• Today I am announcing more details about one of the main elements of my plan which is creating a Toronto Affordable Housing Corporation.
• Today I am announcing more details about one of the main elements of my plan which is creating a Toronto Affordable Housing Corporation.
• We will use this new corporation as a tool to unlock public lands for affordable housing.
• On my first day as Mayor, I will issue a proclamation stating that “there is no such thing as surplus City land.”
• I will do this to make it clear to all that there is no greater priority than leveraging City properties to develop as much affordable housing as possible.
• And we have a lot to work with. The City owns over 8,400 propertiesacross 28,000 acres of land.
• We can control the delivery of affordable homes for real results.
• This new Toronto Affordable Housing Corporation will be responsible for the development on public land of purpose-built, below-market rate rental apartments and affordable ownership units.
• In its first phase which is projected to last six years the TAHC will build 108 new developments on City owned land.
• These will be between 10 and 20 storeys so they can be suitable for small and medium sized lots in every part of the City.
• In Phase One it will have a target of delivering nearly 22,700 units providing housing for about 53,650 people.
• My plan will deliver 11,236 affordable rental units. This is the most of any currently announced plan including Housing Now.
• Every other candidate believes a majority of the units they propose must be full market rate rentals or full market price condos. That is the failed approach that we know has not and cannot work.
• Ana Bailao has announced a plan that is 20 per cent affordable housing.
• Yesterday Olivia Chow announced a plan that was 30 per centaffordable housing.
• Brad Bradford called for 33 per cent affordable housing.
• Josh Matlow called for 45 per cent affordable housing.
• Only my plan has a majority of units that are affordable. That means 77 per cent of the units I propose are affordable rental units or affordable home ownership units.
• I am the only candidate who will provide affordable ownership opportunities by building more than 6,100 “shared equity” purchase units. This is nearly 30 per cent of all the units I propose to build.
• These shared equity units will be sold at 50 per cent of market value… with 50 per cent retained by the TAHC.
• When a unit is re-sold, 50 per cent of the appreciated value is retained by the TAHC to reinvest in future projects.
• It is not only a way to get people in the housing market, it is a way to make a market with rising prices help to fund more affordable housing.
• The funds from selling these units and the rents from the rental units will be enough to cover all expenses, and this is important, by the end of Phase One the total retained earnings of TAHC will be greater than the original City contributions and the amount financed through CMHC.
• This surplus will allow the TAHC to invest in more affordable housing projects on an on-going basis.
• In contrast, the other candidates for mayor will all build less affordable housing and with the plans of Anna Bailao and Brad Bradford they create enormous profit for developers but do not create any on-going ability for the City to fund new projects going forward.
• Ana Bailao and Brad Bradford believe in the same failed private-developer-led approach that is Housing Now. That is not good enough.
• It is not good enough because it has not worked so far. Since being announced in January 2019 it has delivered precisely zero units of housing.
• There is absolutely no reason to believe – especially in the current interest rate climate -- that privately financed projects will proceed any time soon. The numbers simply do not work for the developers.
• Former Councillor Bailao worked for a large developer and Councillor Bradford is very familiar with that industry. They both know the challenges that exist.
• Another big problem is that many of the condos that get built with their approach end up being bought by condo investors who rent them as unaffordable non-rent-controlled units.
• We know this because this is exactly what has been happening for the past 10 to 20 years.
• Finally, their approach does nothing to help people BUY affordable units
• And under their approach, City-ownership ends. The land is never again an asset that the City can use, improve, borrow against.
• Nothing. Why? It has been privatized.
• And the small number of affordable units that we get are not even permanent. There is often a time limit on how long they remain affordable.
• The TAHC keeps the majority of units and all of the land owned by the City.
• The proposals of Olivia Chow and Josh Matlow also keep land in the City’s hands.
• But in far too many ways they fall into the same traps as Bailao and Bradford do.
• Like Ana and Brad, Olivia and Josh will build building where the majority of units – 60 per cent -- are small one bedroom boxes and these are usually in very tall buildings.
• Councillor Matlow’s plan calls for 500 units which means a building of at least 40 storeys.
• Their plans are not good enough because:
• Only a minority of units created are affordable.
• Both Josh and Olivia are both proposing plans with a majority of their units being “market rent” units which… because they are market rent will be unaffordable for most people. My plan has less than one-quarter market rent units.
• Their approach does nothing to help people BUY affordable units.
• And their plans are majority single units unsuited for families.
• Finally, their approach does nothing to help people BUY affordable units.
• And with all due respect to Olivia Chow, and I do respect her, it has been reported that Olivia’s plan depends on $300 million from the federal government. But it is not clear that her proposal qualifies.
• To qualify for the CMHC Funding a proposal has to increase the supply of Housing in the municipality by 10%. We checked when planning our proposal.
• And it is not obvious that Olivia’s eight-year plan meets the conditions.
• As for Mark Saunders, it remains unclear what he is proposing when it comes to affordable housing.
• In contrast, I am crystal clear.
• I will deliver, more… quicker, than other candidates.
We need to Fix the Six, so here are six reasons why my plan delivers, and the other candidates fail to deliver:
• One… I am not afraid to show a detailed plan with every assumption listed and multi-year projections clearly shown. Where is the detail from the others that will allow Torontonians to have confidence in their plans?
• Two… My plan creates truly mixed communities, with retail and day care.
• Three… My plan means buildings that fit everywhere....not just huge towers.
• Four… My plan has more units for families.
• Five… My plan has more affordable units… and
• Six… My plan is the only one offering hope to those who want to own.
• Only my plan will Fix the Six.
My plan represents a complete change in how to get it done so we, the people of Toronto, can control the delivery of affordable homes for real results.
• We have to do things differently, same old same old isn't working everyone knows that. Let's choose to do better.
• You can find all the details on the Toronto Affordable Housing Corporation, how it works and how it will deliver for people, in the 23-page background document I issued on Monday.
• My plan is the most detailed, practical, and comprehensive plan issued by any mayoral candidate.
• My plan draws on my experience as CAO of Toronto Community Housing prior to being MPP for Scarborough-Guildwood and a senior cabinet minister.
• Detailed, practical, comprehensive. My plan gets the job done.
• My plan is fully-costed with a net cost of $166 million over the next two years. I am committed to present a detailed and credible budget before voting starts in June.
• We can do this, and we must do it, and if we are to have a city that works for everyone, everywhere, we must grow the supply of affordable housing for renters and owners alike, and not just hope creating the conditions for that is enough.
• The verdict is in - it hasn't worked. And everybody knows it. So let's grab control of the levers as a city and get it done.
• The City has to be the quarterback when it comes to affordable housing. We can’t leave it to the developers.
• The City has to lead when it comes to affordable housing. We can’t leave it to the developers.
• The City has to be the designer, the project champion and ultimately the building owner, to deliver more, new affordable housing, more quickly, for the people who need it most.
• Toronto is at a turning point, we can’t let it become a breaking point… I want to turn Toronto around for the better.
• But that won’t happened with the same faces from the same places, unsuccessfully doing the same things they have always done, with a complete lack of results for the people of this city.
• That isn't good enough and must change. Otherwise, the city will keep going backwards.
• But we can choose instead to get going right way to actually buildaffordable housing.
• Everybody knows it's a priority for our city. It is my priority too.
• The Toronto we want is where young people who grow up here can afford to live here.
• Where we can all get to where we need to go– safely.
• Where we all get the services we need – no matter who we are or where we live.
• With fixed housing, fixed transit, fixed services.
• This campaign is about Toronto. It’s about time. Time for change. Time for action.
• Join me… because it’s time to Fix the Six together.
• It’s time we bring more people on the outside to the inside of City Hall. That’s who I am and what I’ve done.
• In Scarborough. In business. At Toronto housing. And as cabinet minister in really tough portfolios.
• Fresh eyes. New solutions.
• Same faces from the same place will not fix the mess we are in.
• We need to Fix the Six.
• Let’s choose to do better.
• That’s why I am running for mayor.
• I’m running for mayor, because I want to lead Toronto’s revival as a city that works for everyone, everywhere.
