Ottawa mayor says housing bill will have ‘dramatic financial impact’

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In a letter sent to Ontario’s housing minister on Friday, Mayor Mark Sutcliffe asked him to think about the “dramatic financial impact” your housing bill would have on the city of Ottawa before it passes.

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A politely worded letter shared with city councilors included astonishing numbers from the city’s treasurer regarding the calculated impact of Bill 23, the “Build More Homes, Faster” Act on the city’s coffers. was included.

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A change that would require phasing in new development costs over five years would save a total of $130 million over that period, “creating an infrastructure funding gap,” Sutcliffe wrote.

A development fee is a one-time fee charged by the city to a developer and used to fund infrastructure that supports growth.

An analysis sent to city councilors by Chief Financial Officer Wendy Stephanson expands on the numbers in Sutcliffe’s letter, saying that Bill 23, if passed as proposed, “will have a significant impact on local government finances.” said.

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Some of the other development cost-related changes have quantified impacts, with economic hits of $1M to $5M per year.

Measure 23 also provides discounts to rates that can be imposed on the development of affordable rental and owned housing, not-yet-fully-defined “attainable housing,” market-rent units, and so-called “moderately-enhanced” units. We propose to require local governments to provide , the state proposes to allow three units per residential lot.

Stefansson said the financial implications of these changes still need to be analyzed or are not yet fully understood.

In the letter, Mr. Sutcliffe thanked Mr. Steve Clark for his meeting with Municipal Affairs and Housing Minister Steve Clark in Toronto’s Queen’s Park on Tuesday. He will improve the quality of life for people in Ottawa and all Ontario,” he said, but said he wanted to reiterate his concerns about Bill 23.

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“The areas where I believe the bill could improve are protecting the environment, providing affordable housing, protecting historic property, and losing fees to local governments needed to build infrastructure in growth areas. ,” writes Sutcliffe.

Sharing Stephenson’s figures with Clarke, Sutcliffe writes: Before moving forward with the bill, about the changes. “

Bill 23 was introduced on October 25, the day after Ontario’s local elections. It has now completed public consultation through the legislative committee process and is on the verge of becoming law through a vote.

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Ottawa’s new council has not yet met, and the predecessor council did not formally address Bill 23 in a single meeting after the law’s publication. Then-Mayor Jim Watson said he thought it appropriate to turn the matter over to the new council to send a message to the state about its concerns about Bill 23.

City staff are sticking to Ottawa’s response to the law, completing an extensive analysis, sharing it with city council members and using it in last week’s written submission to the state.

Concerns have been raised by Ontario’s elected officials, civil society groups, and local governments about the costs to taxpayers, the environment, heritage, and others of the state’s approach to increasing housing through Bill 23. increase. Head towards the passage.

The Ontario Municipal Association told the province that “there is no evidence that the fundamental elements of the bill will improve housing affordability” and that “the bill could make the development industry more profitable at the expense of taxpayers.” and the natural environment. “