Tax breaks needed to create more rental housing, says study
Report blames tax changes and lack of social housing programs for current problems
Shane Bigham Sep 21, 2010 17:51:51 PM
CALGARY (NEWS1130) - Tax breaks and incentives for landlords. That's how you stimulate the development of new rental housing units, according to a new study from the University of Calgary.
In part, the study blames tax changes in the 80s and the shutdown of social housing programs by the federal government in the 90s for the affordability problem seen in Vancouver and in major markets across the country.
Co-author Marion Steele says tax breaks for landlords would stimulate development of new rental units.
"A program like this has been in effect in the U.S. for almost 25 years. All of their affordable housing, virtually, comes from that program," she says.
She says only federal politicians can make implement a similar program.
Meanwhile, a new report released by the Carnegie Community Action Project suggests it's almost impossible for people on welfare to afford housing in Vancouver's Downtown Eastside.
Wendy Pedersen with the project says the amount of affordable hotel rooms for those on social assistance has gone down dramatically.
"This year only 12 per cent of those privately-owned hotel rooms are renting for what people on welfare and seniors on pensions can afford," she says.
The group says only 29 per cent of hotel rooms are affordable. It wants more social housing designated for the Downtown Eastside.
