Quote:
Originally Posted by jeicow
Won’t the developers just pass on the cost of subsidizing the affordable units to the other purchasers, thereby pushing the average rental market rates higher? Isn’t that counter intuitive? It’s a great policy is theory, but it would make far more sense for municipalities and their partners to fund the at-cost construction of affordable units to avoid inadvertently pushing market rates up further. The market based approach you propose only means that the market gets more expensive.
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It definitely depends on how many affordable housing units you ask for in ratio to market rate ones. 100 units with 30 affordable? Yeah, that’ll up the prices. 100 units with 5 affordable? Not really going to make a big difference. But applying that small amount consistently to all developments would help with affordable supply.
Also an option would be the city paying market rates (with some sort of reasonable bulk discount) to acquire a set number of units and then offering them out.
A third option, of course, is the city building it’s own partially market rate buildings, getting the revenue from that. I just know that fully affordable city run stuff tends to get repairs put off and slowly fall apart (I’m sure Hamilton is better about it than Thunder Bay, but… Thunder Bay’s go full horror story), so I’d like the people in affordable units to have the better living standards that comes from a mixed building.