RECESSION PRESENTS HOUSING OPPORTUNITY
May 01, 2009
The recently released $3.3 billion “A Plan For Alberta” emphasizes the desperate need for homes for the homeless. The debate over the $3.3 billion Alberta plan’s costing for 8,000 new housing units is because financial costing methods and numbers reflect more social industry financial wants from an era of budgetary surpluses than today’s real needs.
The $100 million allocated to affordable housing in the 2009 Alberta budget ($400 million total over the next three years) certainly is insufficient to meet the social industry’s identified ask using the current non-profit approach. However, governments engaging private sector developers in the process can meet the most important need for housing units in Alberta – affordable private sector entry-level independent living rental housing for singles and families.
Over the past thirty years cities have torn down or closed down 90% of all private sector singles entry-level housing, with no replacements. Multi-unit entry-level rental development has practically flat-lined over the same period as scarce existing rental stock has been converted to condominiums. Cities like Edmonton are practically devoid of entry-level singles and couples housing, while homeless shelters and homeless counts of couch surfers proliferate.
However, recessionary times present us with an opportunity to help struggling low income workers access affordable housing. Multi-unit condo housing builders are re-thinking the market and looking to partner with government on affordable multi-unit rental homes. One example is developer ProCura’s proposed 238 unit singles and small family rental project on jasper Ave., with rents at 10% below market rate for 20 years.
The emphasis should be on helping those who are couch surfing or staying with family and friends, who neither need nor want elaborate social services’ hand holding, just the dignity of their own affordable independent living rental accommodations, currently unobtainable on their minimum wage entry-level jobs.
What do you think?