Federal money for housing is tied to new city rules to allow more housing units per lot
Source From: CBC News
Maison Garden Suites is an Ontario company that helps guide homeowners through the design and approval process for secondary backyard dwelling structures. To address a province-wide housing shortage, Ontario municipalities are increasingly allowing so-called laneway or garden suites to be built.(Submitted by Maisonsuites.com)
London's neighoburhoods could start taking on a very different look in the years to come with plans to allow up to four dwelling units on a single lot, a requirement for tapping into an accelerator fund for new housing.
With the Forest City facing a housing crunch, London on Wednesday became the first city in Canada to be pledged money from a federal housing fund created back in 2021 to spur housing construction. London's share from the $4 billion fund will be $74 million, an amount expected to build about 2,000 new homes.
The money came in part because in August city council moved to allow up to four dwelling units on a single property (up from three). The change was suggested in a letter to council by federal Housing Minister Sean Fraser.
Mike Wallce is the director of the London Home Builder's Institute, which represents the city's developers.
He said there are a lot of questions about exactly how the money will be allocated.
What is clear is that a London residential lot — whether it's existing or a new build — can now be home to more people as the city looks to boost housing supply.
Wallace said it will change the kind of properties many developers will build.
"Maybe the basement has a separate entrance, and a rough-in for a bathroom so a new home owner can get into the marketplace and still have a unit in the basement that they're able to supplement they're revenue and help pay the mortgage," he said.
1 separate unit allowed
Of the four allowable dwelling units, one can be separate from the main building.
Jared Zaifman is the executive director of the London Home Builder's Association, a group that represents not only builders, but also contractors and suppliers.
Zaifman said London contractors now regularly field calls from homeowners in older neighbourhoods looking into the logistics of adding so-called laneway homes or coach houses to their properties.
"Realistically this is responding to the needs of our community," said Zaifman. "We just don't have enough housing supply right now."
And while the trend helps with London's housing crunch, it does have the potential to create conflict at city hall.
As a former city councillor, Zaifman has seen first-hand the kind of pushback that can happen when infill developments are proposed in established neighourhoods. While London's population is expected to reach 650,000 by 2051, that will mean changes to older neighbourhoods.
"I think the NIMBY voices have only gotten stronger since my time on council," said Zaifman. "It will be a challenge for council to have to navigate, but we're hearing language from the federal housing minister that they expect to be seeing more of this."
Company pops up to meet the need
Design and construction companies are already picking up on the trend. Maison Garden Suites, a company with co-founders based in Waterloo and Hamilton, helps homeowners navigate the design and approval process of secondary backyard and sideyard dwellings.
Kanwar Gill is the company's co-founder. He said most of his clients are real estate investors looking to add a rental income, or families out to provide space for another family member, often an older parent.
Since starting in January, the company has been doing a lot of work in and around the GTA, but Gill said his client base is expanding.
London, Ont., skyline photo taken on June 1, 2017. (David Donnelly/CBC)
"I have a call with a London client in about 30 minutes," he said Thursday.
Gill and his co-founder started in the tech industry but switched to backyard dwelling design as more municipalities began to make them legal.
"We noticed the housing crisis was becoming bigger," said Gill. "We're getting almost 10 inquiries a day right now."
Generally less than 800 square feet in size, the self-contained dwellings in backyards or laneways generally include a bedroom, living spaces and a kitchen. Some municipalities allow the structures to have basements and second floors.
Gill said getting the buildings through the design and permit stage can cost up to $15,000, depending on the size and the permits the city requires. As for constructuion, Gill said that typically costs about $300 to $600 per squire square foot.
"Our plan is just to keep expanding to municipalities as they allow these to be built," he said. "It's only a handful right now but over next few years the demand is just going to grow."
Comments