On Rent Control

In yesterday’s Fall Economic Statement, Ontario Treasurer Vic Fedeli outlined that new housing units and previously unoccupied rental units would be exempt from the Wynne government’s rent control reforms.

The Fall Economic Statement is an outline of fiscal and policy changes and economic news a government seeks to outline before its budget, where overall fiscal policies and most spending plans are explained. 
The previous government under Premier Wynne implemented its ‘rent control’ reforms shortly before this year’s election which limited rent increases to 1.8% for 2018 and broadened tenant rights at the expense of landlords. Tenants and poverty groups applauded the reforms, while  landlords complained that the changes would make them more selective of tenants. Developers stated that rent control would redirect their attention to build units for sale, not rent, further augmenting southern Ontario’s housing and rental supply problem.
With vacancies at absolute rock bottom record lows, the competition for favourable rental housing space in downtown Toronto is relentless. Builders and renters are applauding the Ford Government’s dilution of rent control, saying it will result in more supply, but over the long term and not immediately. Poverty groups and tenant advocates say the move will cause rental costs to skyrocket and will result in evictions. While it is agreeable to have strong protections for tenants in place, rent control has been proven to restrict supply and reduce the quality of housing stock in most of the jurisdictions where it is implemented. 

On Toronto City Council

Yesterday, the Ontario Court of Appeal ruled that Bill 5, the Legislation passed by Premier Doug Ford’s government to reduce the size of City Council from a planned 47 seats to 25 is the law of the land.

Bill 5 was originally struck down by Judge Edward Belobaba who argued it violated voters’ Charter Rights. The Court of Appeal harshly criticized the Judge, effectively arguing he went out of bounds by striking down a perfectly legal and constitutional bill.

So What Impact Does Bill 5 Have On The Toronto Council?

Toronto’s upcoming municipal election will see a completely new Council. For the first time in decades, many incumbent Councillors will be facing off against other incumbents in the now larger wards. This will create genuinely competitive democratic races, as many incumbents in the old smaller wards were able to comfortably stay in office for decades using the advantages of incumbency. These 25 total wards now match the provincial and federal ridings for the first time. A Torontonian will now have 1 MP, 1 MPP, and 1 City Councillor all representing the same territory for the first time.
 Doug Ford
The new Council, with fewer Councillors, will be able to make decisions faster. Decision making will be streamlined by having fewer delegates competing for access to the bureaucracy. Toronto City Council is famous for its dysfunction, entitled politicians, and lack of real change. Journalists, academics, public policy experts, and residents have noted this for decades. A smaller Council will eliminate much of the squabbling and endless flip-flopping on major policy files, especially transit and housing, which is the now status-quo.  

What Is The Greenbelt And How Does It Affect You

Ontario PC Party Leader Doug Ford was recently caught in the headlines in Ontario’s heated election campaign after a video was released showing him discussing Ontario’s Greenbelt. Ford said that he wanted to open up large tracts of the Greenbelt to additional housing development to increase the supply of homes and reduce their sky-high prices. Ford mentioned discussing the plan with developers and that he would still keep the Greenbelt largely intact. The video sparked a heated debate and saw Ford take heavy criticism which prompted him to eventually retract his position and clarify that the Greenbelt would remain as is.

What Is The Ontario Greenbelt And Why Is It’s Significance?

The Greenbelt is an area of over 7,000 square kilometers of protected land that is essentially closed off from development and construction that surrounds the GTA. It is 11 times the size of the City of Toronto and contains woodland, agricultural space, important wetlands, and open green space. The Greenbelt was established by the present Ontario Liberal government in 2005, fulfilling a 2003 election campaign commitment. The Greenbelt was created to protect vulnerable and ecologically important spaces and to set a clear limit on the extent of urban and suburban sprawl and construction. Large construction companies and developers and their lobbyists accept the Greenbelt and it is generally seen as a popular, positive, and strategically important legislative accomplishment.

Is Protecting The Greenbelt The Reason For High Price Of Homes In The Greater Toronto Area?

The Greenbelt, in limiting construction and development, is sometimes blamed by groups and certain politicians as a factor in the high price of real estate. Tembo Financial is eager to dispel these minority concerns and to provide more objective background information:

  • The legislation which created the Greenbelt was pragmatic. It set aside large tracts of land adjacent to the Greenbelt and closer to urban and suburban areas for construction.
  • Experts have stressed that very small amounts of land that was set aside for development has actually been used. The Greenbelt does not need to modified or changed.
  • Most developers accept these facts and do not want to antagonize environmental groups or voters by encroaching on protected spaces. Doug Ford’s proposal had little broad public support.
  • Only 4% of Canadian land is arable (can be farmed). While we are the second largest country in the world, some of the best quality farmland in the country is in southern Ontario and protected by the Greenbelt.