Report on housing costs examines role for municipalities in easing affordability

Municipalities across Canada face housing development constraints in their communities that could be eased through more co-operation between all levels of government, says a report by a local governance think tank.

Municipalities across Canada face housing development constraints in their communities that could be eased through more co-operation between all levels of government, says a report by a local governance think tank.

The report from the Institute on Municipal Finance and Governance at the University of Toronto examined what researchers say would be the ideal role for local governments to approve and develop more social, rental and affordable housing that is increasingly needed.

The report, which is part of a two-year project looking at the role of municipalities in climate change, economic development, law enforcement and housing, suggested a series of municipal housing reforms and called for more collaboration with the federal and provincial governments.

It says municipal governments across Canada play active roles in housing policy, especially in the prevention of homelessness, through land-use planning but they face financial constraints.

"They rely heavily on property taxes, and are prohibited from levying income or other more progressive taxes," says the report. "Partly for this reason, most provinces play a large role in major capital projects, such as social housing."

Social housing units in B.C. are owned and operated by a Crown corporation and similar agencies exist in Saskatchewan, Nova Scotia and Manitoba, says the report. In Quebec, Alberta and Ontario, social housing costs are shared by municipal governments and housing agencies owned by municipalities, which receive varying levels of provincial and federal funding.