Council expressed concerns about house flipping of attainable and affordable housing
District of Muskoka Council expressed concern about lack of legislation for potential house flipping of attainable and affordable housing during the Development Charges Background Study update, in the August 8, 2024, meeting.
In the update to the meeting last May, Peter Simcisko of Watson and Associates Economists Limited indicated that by 2034 they anticipate growth of 12,000 people to the District and 5900 additional dwelling units, which will also have an impact on services.
He advised that the impact of costs to municipal services, such as ambulance, long-term care, waste, transit, highway, and water, will result in a total of $774.1 million worth of capital needs over the next 10 to 27 years.
He added that recoverable Costs are estimated at $256,681,175, with 24.3% for water, 54% to wastewater, and 17% to roads.
According to his report, exemptions and discounts will apply to school boards, non-profits, universities receiving government funding, industry building expansion, enlargement of existing residential units, and affordable and attainable residential units.
Chair, Jeff Lehman, inquired about whether there would be any anti-flip provisions in the new By-law for people that may take advantage of attainable and affordable housing opportunities to buy low with the discounts and sell high.
Councillor, Mike Peppard, expressed the importance of having regulations in place, such as providing proof of income, to reserve attainable and affordable housing for those that need it.
Staff advised there’s no requirement to check the income of people purchasing or renting units. They said, “We can’t increase development charges higher for some group and offer discounts for others.”
They indicated that the province hasn’t provided municipalities with anti-flip provisions, and there currently aren’t any to prevent people from selling a property higher than what they purchased it for however, the sector is working on options to keep housing affordable and attainable.
They added that they are aware of the issue and considering provisions that can be implemented, and will update Council when they gather more information, including what other municipalities are doing about it.
Lehman suggested that they want to be able to maintain affordable housing as legislation emerges and suggested that “affordable policies will be reflected in the By-law.”
Simcisko advised they will work with staff on adjustments to the upcoming new By-law and bring options forward when they seek Council’s approval of it on September 16th.
He added that the next steps include consideration to public and Council feedback and to make adjustments where needed, and to replace the current By-law on January 1st.
