In a time where buyers and sellers are demanding more housing inventory, governments are finally starting to respond. But the winds of change blow slowly.
There was a significant development on this front in Regina yesterday when Dream broke ground on the new Coopertown development.
First proposed in 2013 it is finally becoming a reality. The new subdivision will house 36,000 people when completed.
The key to unlocking this development ,as well as others in Regina’s northwest, was a civic decision to change direction and invest in a lift station, infrastructure needed for Coopertown and other planned projects to proceed.
At the heart of the issue is development fees.
Originally conceived by the City of Toronto, municipalities across the country have adopted the model that allow local government to double-dip:
- Developers pre-pay for infrastructure and pass that on in the form of land costs which, it is estimated, add between 25 and 30 per cent to mortgages needed to secure the property, often putting home ownership out of reach for first-time buyers.
Then the local government levies property tax against the house to pay for infrastructure again.
