Affordable housing
Strathcona County is to receive nearly 12 million dollars from the provincial government, part of which is to be used for affordable housing. While we certainly appreciate the support, I do not think that we can spend the money without thinking through the whole issue of affordable housing. The Province defines "affordable" as ten percent less than current market value. This does not seem a very useful definition in a community where the average price of a suburban fully detached bungalow is 450 thousand dollars. Ten percent below this market is still well beyond the means of many if not most.
A better definition would be that used by banks and other lending institutions: the all inclusive cost of housing should be no more than thirty percent of net after-tax income. This translates into about 400 dollars per month for someone receiving the old age pension and supplement. I cannot recall the last time I saw any accommodation at this price anywhere in the county. If the entire 12 million dollars were distributed to the population of Strathcona, each person would receive around $150,00, a trivial amount compared to the magnitude of the problem.
Government could control the market by imposing rent controls or other regulations. I find this offensive as it singles out one group of investors and requires that they subsidize, from their own pockets the solution to a problem which is not entirely of their making.
Government could enter the market by going into the housing business. The construction of low cost rental accommodation, subsidized from general tax revenues is a method favoured in many countries. This type of housing is operated at a net loss to benefit some members of the community, much as is public transit. Like transit, it is rarely popular among those who pay the bills without seeing any direct advantage to themselves.
Currently, our only strategy has been a vague and undirected encouragement of residential development; however, the private sector has been extremely reluctant to build low cost housing, preferring quite naturally to concentrate on high-end, high-margin product that does nothing to address the crisis.
We can have affordable housing if we wish, but it won't be without sacrifice. It will require a combination of regulation and innovative funding from both the public and private sector. Affordable housing brings with it the benefits of a more caring and heterogeneous society with a place for all regardless of age or social condition. It is up to us as a society to decide whether this is important or not and at what price.
Alan Dunn
Councillor, Ward 6
780-464-8206
dunn@strathcona.ab.ca
Last updated: Tuesday, March 16, 2010
Page ID: 2062