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Ontario developer coalition asks governments for tax breaks to pass on to homebuyers

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TORONTO – A coalition of Ontario developers has written to three levels of government to ask for a reduction in taxes on new housing, saying it will pass on those savings dollar for dollar to homebuyers.

The new group, called the Coalition Against New-Home Taxes, or CANT, is composed of 18 developers who collectively plan to build 100,000 new housing units over the next 10 years.

The coalition wants to see federal and provincial governments remove the harmonized sales tax on all new housing, as they have done for rental housing construction. It would also like the province and the City of Toronto to eliminate the land-transfer tax on new construction homes.

The coalition would also like to see municipalities reduce development charges to 2009 rates, adjusted for inflation.

“We came to the realization that something’s got to change and we started thinking about creative ways to bring government to the table to have an honest conversation and find solutions together,” Matt Young, president of Republic Developments who is spearheading the coalition, said in an interview.

“And so we felt that one way to do that would be to sign a pledge that says for every dollar of taxes cut, this group of developers would cut their prices dollar for dollar to ensure that savings are passed on to homebuyers.”

The group includes Alterra, Harlo Capital and Stafford Developments, among others.

In 2009, taxes accounted for about 12 per cent of the cost of an average condominium in Toronto, the group said. Now, taxes account for about 29 per cent for the same home. Development charges alone are up 1,200 per cent over the past 15 years, they say.

“Now because of higher interest rates, the system has broken,” the coalition said in its letter sent Wednesday to the federal government, the province and the City of Toronto.

“For years, all levels of government have raised revenue off the growing cost of housing. If left uncorrected, high taxes on new homes will put further strain on housing supply in the coming years.”

The letter warns of job losses in the home construction industry and a hurting economy should nothing change.

“To solve the affordability crisis today, your governments must take bold action to make homes cheaper to build and cheaper to buy,” the coalition said.

“We will accept any accountability measures the government wants to implement in order to ensure that savings get passed on to Canadians and homebuyers,” Young said.

His company, which is building or planning to build numerous condominiums in Toronto, has seen a marked slowdown in sales beginning last fall.

“Housing is unviable today,” he said. “You can’t sell it low enough to get sales and still make money and if you can’t make money or can’t meet a certain margin, banks won’t finance your projects, which means all projects for the most part are pretty much stalled.”

Ottawa and Ontario have taken numerous legislative steps to try to kick-start the construction of badly needed housing projects. A combination of soaring home prices over the past decade – especially during the pandemic – and a steep increase in interest rates has stalled many projects.

Recently released data from the Canada Mortgage and Housing Corporation show housing starts across Ontario in June are down 44 per cent compared to one year ago.

Material and labour costs have also increased significantly in recent years.

“There’s no shortage of people who want to buy homes, but there’s a shortage of people who can afford the homes that are available,” Young said.

Municipalities across Ontario are not sold on the proposal from the developer group if it means reducing development charges. The province passed a law in 2022 that cut development charges developers had to pay municipalities for infrastructure such as roads, sewers and water.

The Association of Municipalities of Ontario estimated the changes would leave municipalities with a $10-billion hole over 10 years. The province later walked many of those changes back, but the association says they still represent a $2-billion hole over the same time frame.

“The reason that the development charges are going up is for precisely the reasons that the developers have outlined, all of these input costs are going up,” said Lindsay Jones, the association’s director of policy.

“The answer cannot just be cutting development charges without a new source of funding to fund infrastructure because with that you’re not going to be able to get more houses built.”

Despite that difference, municipalities are encouraged to be at the table with developers in an effort to find a solution to put a dent in the housing affordability crisis, Jones said.

“It is really unique that everybody has the same conception of the problem and is committed to that same goal of achieving housing affordability and that’s an opportunity that we see that we can really kind of collectively take advantage of,” she said.

This report by The Canadian Press was first published Aug. 1, 2024.

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Suspicious deaths of two N.S. men were the result of homicide, suicide: RCMP

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Nova Scotia RCMP say their investigation into two suspicious deaths earlier this month has concluded that one man died by homicide and the other by suicide.

The bodies of two men, aged 40 and 73, were found in a home in Windsor, N.S., on Sept. 3.

Police say the province’s medical examiner determined the 40-year-old man was killed and the 73-year-old man killed himself.

They say the two men were members of the same family.

No arrests or charges are anticipated, and the names of the deceased will not be released.

RCMP say they will not be releasing any further details out of respect for the family.

This report by The Canadian Press was first published Sept. 16, 2024.

The Canadian Press. All rights reserved.



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Turning the tide: Quebec premier visits Cree Nation displaced by hydro project in 70s

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For the first time in their history, members of the Cree community of Nemaska received a visit from a sitting Quebec premier on Sunday and were able to share first-hand the story of how they were displaced by a hydroelectric project in the 1970s.

François Legault was greeted in Nemaska by men and women who arrived by canoe to re-enact the founding of their new village in the Eeyou Istchee James Bay region, in northern Quebec, 47 years ago. The community was forced in the early 1970s to move from its original location because members were told it would be flooded as part of the Nottaway-Broadback-Rupert hydro project.

The reservoir was ultimately constructed elsewhere, but by then the members of the village had already left for other places, abandoning their homes and many of their belongings in the process.

George Wapachee, co-author of the book “Going Home,” said community members were “relocated for nothing.”

“We didn’t know what the rights were, or who to turn to,” he said in an interview. “That turned us into refugees and we were forced to abandon the life we knew.”

Nemaska’s story illustrates the challenges Legault’s government faces as it looks to build new dams to meet the province’s power needs, which are anticipated to double by 2050. Legault has promised that any new projects will be developed in partnership with Indigenous people and have “social acceptability,” but experts say that’s easier said than done.

François Bouffard, an associate professor of electrical engineering at McGill University, said the earlier era of hydro projects were developed without any consideration for the Indigenous inhabitants living nearby.

“We live in a much different world now,” he said. “Any kind of hydro development, no matter where in Quebec, will require true consent and partnership from Indigenous communities.” Those groups likely want to be treated as stakeholders, he added.

Securing wider social acceptability for projects that significantly change the landscape — as hydro dams often do — is also “a big ask,” he said. The government, Bouchard added, will likely focus on boosting capacity in its existing dams, or building installations that run off river flow and don’t require flooding large swaths of land to create reservoirs.

Louis Beaumier, executive director of the Trottier Energy Institute at Polytechnique Montreal, said Legault’s visit to Nemaska represents a desire for reconciliation with Indigenous people who were traumatized by the way earlier projects were carried about.

Any new projects will need the consent of local First Nations, Beaumier said, adding that its easier to get their blessing for wind power projects compared to dams, because they’re less destructive to the environment and easier around which to structure a partnership agreement.

Beaumier added that he believes it will be nearly impossible to get the public — Indigenous or not — to agree to “the destruction of a river” for a new dam, noting that in recent decades people have come to recognize rivers as the “unique, irreplaceable riches” that they are.

Legault’s visit to northern Quebec came on Sept. 15, when the community gathers every year to remember the founding of the “New Nemaska,” on the shores of Lake Champion in the heart of the boreal forest, some 1,500 kilometres from Montreal. Nemaska Chief Clarence Jolly said the community invited Legault to a traditional feast on Sunday, and planned to present him with Wapachee’s book and tell him their stories.

The book, published in 2022 along with Susan Marshall, is filled with stories of Nemaska community members. Leaving behind sewing machines and hunting dogs, they were initially sent to two different villages, Wapachee said.

In their new homes, several of them were forced to live in “deplorable conditions,” and some were physically and verbally abused, he said. The new village of Nemaska was only built a few years later, in 1977.

“At this time, families were losing their children to prison-schools,” he said, in reference to the residential school system. “Imagine the burden of losing your community as well.”

Thomas Jolly, a former chief, said he was 15 years old when he was forced to leave his village with all his belongings in a single bag.

Meeting Legault was important “because have to recognize what happened and we have to talk about the repercussions that the relocation had on people,” he said, adding that those effects are still felt today.

Earlier Sunday, Legault was in the Cree community of Eastmain, where he participated in the official renaming of a hydro complex in honour of former premier Bernard Landry. At the event, Legault said he would follow the example of his late predecessor, who oversaw the signing of the historic “Paix des Braves” agreement between the Quebec government and the Cree in 2002.

He said there is “significant potential” in Eeyou Istchee James Bay, both in increasing the capacity of its large dams and in developing wind power projects.

“Obviously, we will do that with the Cree,” he said.

This report by The Canadian Press was first published Sept. 16, 2024.



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Quebec premier visits Cree community displaced by hydro project in 1970s

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NEMASKA – For the first time in their history, members of the Cree community of Nemaska received a visit from a sitting Quebec premier on Sunday and were able to share first-hand the story of how they were displaced by a hydroelectric project in the 1970s.

François Legault was greeted in Nemaska by men and women who arrived by canoe to re-enact the founding of their new village in the Eeyou Istchee James Bay region, in northern Quebec, 47 years ago. The community was forced in the early 1970s to move from their original location because they were told it would be flooded as part of the Nottaway-Broadback-Rupert hydro project.

The reservoir was ultimately constructed elsewhere, but by then the members of the village had already left for other places, abandoning their homes and many of their belongings in the process.

George Wapachee, co-author of the book “Going Home,” said community members were “relocated for nothing.”

“We didn’t know what the rights were, or who to turn to,” he said in an interview. “That turned us into refugees and we were forced to abandon the life we knew.”

The book, published in 2022 by Wapachee and Susan Marshall, is filled with stories of Cree community members. Leaving behind sewing machines and hunting dogs, they were initially sent to two different villages, 100 and 300 kilometres away, Wapachee said.

In their new homes, several of them were forced to live in “deplorable conditions,” and some were physically and verbally abused, he said. The new village of Nemaska was only built a few years later, in 1977.

“At this time, families were losing their children to prison-schools,” he said, in reference to the residential school system. “Imagine the burden of losing your community as well.”

Legault’s visit came on Sept. 15, when the community gathers every year to remember the founding of the “New Nemaska,” on the shores of Lake Champion in the heart of the boreal forest, some 1,500 kilometres from Montreal. Nemaska Chief Clarence Jolly said the community invited Legault to a traditional feast on Sunday, and planned to present him with Wapachee’s book and tell him their stories.

Thomas Jolly, a former chief, said he was 15 years old when he was forced to leave his village with all his belongings in a single bag.

Meeting Legault was important “because have to recognize what happened and we have to talk about the repercussions that the relocation had on people,” he said, adding that those effects are still felt today.

Earlier Sunday, Legault had been in the Cree community of Eastmain, where he participated in the official renaming of a hydro dam in honour of former premier Bernard Landry.

This report by The Canadian Press was first published Sept. 16, 2024.

The Canadian Press. All rights reserved.



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