In Canada, in 2014, there were 391,000 jobs in housing. In that same year there were 189,329 housing starts. This translates to 2 jobs in the housing industry per housing start. The housing industry is one of the largest employers in Canada. Housing as an industry is comprised of large corporations and small independent developers. The smaller independent developers collectively are responsible for a significant percentage of the development of housing in this country. A good number of these types of developers are actively engaged in infill development. This segment of the industry is responsible for creating jobs and supporting the local economy.
I assert that general consensus from municipalities, planners, and the building and design industry is that infill housing development can be one of the effective strategies in developing sustainable cities. By developing infill properties the number of units on a site is often increased. Developing higher densities in established neighbourhoods helps stem urban sprawl and reduces green field development. Existing infrastructure is used more efficiently. Core area residents are much more likely to walk, use the transit system or bike to work reducing auto-mobile traffic.
These revitalized properties increase the tax
base of older neighbourhoods. New developments in older neighbourhoods replace
ageing sub-standard housing stock with new much needed housing. Cities and
municipalities continually talk about encouraging development in core areas and
within historic neighbourhoods often offering tax incentives to spur such
development.
Much
of this urban densification can be achieved by the development of small
projects on individual lots in older neighbourhoods, such as the six unit
development illustrated here.
These
types of projects tend to be completed by small developers or even one time
developers who develop a larger project as a part of their own home build and
investment plan. For a small developer the risk of buying a property and
rezoning it to suit an increased number of units on the site can be great.
Given that the City of Winnipeg has recently increased the fees for the rezoning
of such properties the risk has become even greater.
The City
of Winnipeg as of April 1, 2016 has increased the base application fee for the
rezoning of a property from $1,484 to $11,250. This is not a typo. The
fee has in fact increased 7 ½ times. This fee
would apply to the simple rezoning of a 50’ x 100’ lot in an existing
neighbourhood or a 500’x 500’ lot in a greenfield development. There is a
nominal fee to adjust for the size of the lot based on acreage; however the
base fee remains the same. The rezoning of a large tract of land from RR to RMF
for a residential development of 100 units would translate to a mere cost of $112.50
per unit. To rezone a property from R1 to R2, for a development of 2-6 residential
units, would translate to $1875 to $5625 per unit. This fee increase clearly
favours large scale green field development and discourages urban infill
development.
My
expectation of local government is that they be committed to replacing housing
stock in ageing neighbourhoods. Private development is essential to cost
effectively produce this much needed housing stock. Administration must create
an environment that is conducive to small developers participating in the revitalization
of older neighbourhoods and must provide incentive for small developers and
first time developers to be active in this industry.
