Analysis of rental data reveals 87 of 177 rental projects approved through Ottawa’s Apartment Construction Loan Program exceed what a typical renter household can actually afford to pay
When the $86-million low-interest loan for SoHo Italia apartment tower in Ottawa was announced in the summer of 2020, the federal government press release led with the line: “Every Canadian deserves a safe and affordable place to call home.”
Today, according to CMHC, all 250 units in the new building – which the SoHo’s website touts as “the finest luxury rentals in the city” – meet the loan program’s definition of affordability.
What it considers “affordable” is out of whack with reality, said Steve Pomeroy, who runs his own housing policy research company, Focus Consulting Inc., and has analyzed the ACLP extensively.
Compared with the monthly wages of 512 occupations provided by Statscan, the government’s threshold for affordability would be out of reach for 270 jobs, from cashiers to daycare workers to transport truck drivers.
“Nobody would pursue the financing,” said Dan Dixon, senior vice-president of corporate affairs for Minto Group, a major Canadian housing developer that has borrowed through the program.
Its president, Bruce Greenberg, said the tower would not have been feasible with stricter affordability measures under the current program – and, given the rising costs of construction, could not be built again today under those same rules.
The original article contains 1,638 words, the summary contains 200 words. Saved 88%. I’m a bot and I’m open source!
This is the best summary I could come up with:
When the $86-million low-interest loan for SoHo Italia apartment tower in Ottawa was announced in the summer of 2020, the federal government press release led with the line: “Every Canadian deserves a safe and affordable place to call home.”
Today, according to CMHC, all 250 units in the new building – which the SoHo’s website touts as “the finest luxury rentals in the city” – meet the loan program’s definition of affordability.
What it considers “affordable” is out of whack with reality, said Steve Pomeroy, who runs his own housing policy research company, Focus Consulting Inc., and has analyzed the ACLP extensively.
Compared with the monthly wages of 512 occupations provided by Statscan, the government’s threshold for affordability would be out of reach for 270 jobs, from cashiers to daycare workers to transport truck drivers.
“Nobody would pursue the financing,” said Dan Dixon, senior vice-president of corporate affairs for Minto Group, a major Canadian housing developer that has borrowed through the program.
Its president, Bruce Greenberg, said the tower would not have been feasible with stricter affordability measures under the current program – and, given the rising costs of construction, could not be built again today under those same rules.
The original article contains 1,638 words, the summary contains 200 words. Saved 88%. I’m a bot and I’m open source!
Can I just have the bare-bones experience with some sound proofing, and reliable elevators?