City offers developers a deal
By STEPHEN LLEWELLYN
llewellyn.stephen@dailygleaner.com
Published Tuesday December 11th, 2007
Appeared on page A5
The city is offering local developers a 12.5 per cent discount that could be worth tens of thousands of dollars on the purchase of city land to spur new affordable housing projects.
Council passed a motion Monday night to change its policy on land sales.
Coun. Mike O'Brien, chairman of the city's ad hoc committee on affordable housing, said to get the discount developers must agree to make one in four units in a development affordable.
"What we are trying to do here is wave a carrot in front of them," he said.
"Private developers are just too busy right now building houses and apartments and renting them that they haven't got time to really take a deep breath and step back and take on an affordable housing project."
He said the policy change is an important first step that sends a signal to developers that council is serious about affordable housing.
On a piece of land worth $200,000, which would not be unusual for an apartment building project, the discount would be worth $25,000, said O'Brien.
The city is also compiling a list of properties it owns deemed suitable for affordable housing.
"There are a lot of people here in the community that have a dire need for affordable housing," said O'Brien. "This is just a way to say, look, we are listening, we care, we are trying to do our best."
He said Fredericton has the highest housing costs in New Brunswick.
A person would have to earn twice the minimum wage to afford a two-bedroom apartment without paying more than 30 per cent of their income which is the definition of affordable, said O'Brien.
He said the city wants small affordable housing projects that blend in with the community.
That is why the policy suggests eight units, he said.
"That seems to be the magic number," said O'Brien. "If it is eight units, two have to be affordable.
Coun. Scott McConaghy supported the proposal.
"It is good for the city and good for affordable housing," he said.
Coun. Bruce Grandy said the issue of affordable housing has been discussed for a long time and something must be done to get developers interested.
"We need to start somewhere," he said.
Grandy said Fredericton is a great city with lots of development going on but there are some people who need help.
But Coun. Cathy MacLaggan didn't support the proposal. She said she would rather see a policy that required all the units in a project to be classified affordable.
MacLaggan said only requiring one in four units to be affordable may have an unintended effect of hurting projects proposed by affordable housing groups.
But the motion passed with only MacLaggan voting against it.
Mayor Brad Woodside said he knows that the issue is contentious but he feels the new policy is heading in the right direction.
Council also directed staff to work with the provincial Department of Family and Community Services to explore other ways to increase the construction of affordable housing, including policies that may involve a cost-sharing component with the city.