Ana Bailan on Toronto’s affordable housing strategy

Hosting: Cahill Residential Programa non-profit organization that supports affordable housing initiatives that meet the needs of the Jewish community in the GTA, the night delved into who affordable housing is for in Toronto, the different models of affordable housing development, and the current forces restricting housing production in general.

Amid the housing crisis, access to affordable housing in Toronto continues to be a central issue for many Torontonians as governments, non-profit organizations and the private sector work to implement effective housing solutions. But there is still much to be done.

Housing Affordability Needs in Toronto

There are about 12,000 homeless people in the city on any given night, according to the nonprofit social service agency. Fred Victor. But increasingly, members of the “middle class” are turning to affordable housing options under the weight of the housing affordability crisis.

“Accessibility is a continuum. Someone making $19,000 has a different level of affordability than a family making $60,000, but that doesn’t mean they both don’t have affordability issues in a city as expensive as Toronto,” Bailan said. “Unfortunately, what we’re dealing with today is a continuum that goes from shelters and supportive housing to actually having to create opportunities for families who make $100,000 or $120,000 a year.”

Given the wide range of individuals and families struggling with the housing crisis, Bailan emphasized the need for a broader range of affordable housing development models.

Using creative development models

Bailan shared some of the creative affordable housing models she and her team at Dream Unlimited have used in their developments. For example, in their West Don Lands project, developed in partnership with Tricon Residential and Kilmer Group, one in four units is affordable. The complex is located on private lands and Dream owns all of the properties, half of which was obtained through a City of Toronto lottery and the other half through underlying agreements with seven non-profit organizations.

In another multifaceted model, their affordable development in Ottawa lays the foundation for federal land purchased by Dream through the National Capital Commission (NCC) that will provide 41% affordable housing. In this model, Dream partnered with a nonprofit organization that would own 20% of the completed building and manage 100% of the affordable units using financing from Dream that would be delivered over 20 years. Through a partnership with a non-profit organization, they were able to reduce rent to 59% of the average market rate. Dream owns another 21% of the affordable units, and the rest will be market rate.

“It’s a great model because this nonprofit has just over 300 properties, and with this project we’re going to add over 130 properties to their portfolio, creating a huge opportunity,” Bailan said. “For nonprofits, one of the challenges is the cost of upfront development, which is what we did, so it was a huge help for them.”

She also touched on the long-awaited Quayside complex, which they will build on land owned by the city, but the mortgage will be held by a non-profit organization that will also manage the building.

“In the current environment, every object is an object, and every opportunity is an opportunity,” Bailan said. “The most important ingredients to creating affordable housing are partnerships, comprehensive programs and flexibility.”

Improved government coordination and construction cost recovery

But Bailan also emphasized the fact that creative solutions are needed at all levels. “The biggest thing that I think is still missing is coordination between governments,” Bailan said. “They all recognized that this is a crisis that they need to deal with, but by coordinating all the programs and taking a very focused approach, I think we still have a long way to go.”

Another factor she believes is putting additional pressure on affordable housing is the cost of construction. “The whole concept that growth pays for growth needs to be rethought because I don’t think we can continue to put the costs of infrastructure and the costs of growth on the shoulders of new homeowners and new renters,” Bailan said. “I think it’s time for this infrastructure to start being paid for through more progressive forms of taxation beyond development fees.”

The night’s discussion set the stage for a fascinating question-and-answer session that highlighted a range of current issues, from Toronto’s stagnant condo market to NIMBYism and inadequate zoning reform. But the common thread was the need for more creative policies and models for affordable housing development.

“There are solutions along the continuum that All governments have to deal with this problem and I think doing it a little differently in my opinion,” Bailan said. “We’re not going to look for a way out of this situation and we’re not going to fund our way out of this situation.”

Brenda Izen, Kehilla member and director of Izen Architecture Inc.

Naama Blonder and Ana Baylan

From left to right: David Gash, Adam Cohen, Brenda Eisen, Ana Bailao, Naama Blonder and Lisa Lipowitz.

Ana Bailan

Photo taken Shutterb Team