The OBIAA Advocacy Committee submitted the following as part of a Government Consultation:
OBIAA recognizes that additional housing is a pressing problem in the Golden Horseshoe and A Place to Grow is a strong start in addressing the challenges. To help further the discussion and propose complementary solutions, OBIAA has identified and is submitting additional significant opportunities for consideration as part of the proposed policies in A Place to Grow:
- Filling vacant second storey residential units
- Developing vacant lots
- Converting under-used office spaces
- Reducing red tape and prioritizing permitting approvals for downtown residential initiatives
As background, we have appended sections from OBIAA’s 2022 Provincial Budget Consultations.
1. Filling vacant second storey residential units
Our research suggests that vacant residential units above main street and commercial district businesses are an opportunity. A number of BIAs (e.g., Lindsay BIA) have identified that over 50% of their second storey residential/commercial space is vacant. OBIAA views this as an important opportunity to provide additional housing options, because the buildings, infrastructure and community already exist and would need only retrofits to provide excellent residential units.
Increasing residents in BIA and main street districts would have a significant economic effect on the economic health of the businesses in the area. The provincial government has made significant investment already in ensuring that Ontario’s main streets remain strong, and adding residential second storey units would increase density, create new customers, attract businesses and contribute to the vibrancy of these areas.
A number of BIAs have worked with their municipalities to implement Community Improvement Programs to incentivize the addition of residential units. Many municipalities have implemented a vacant building registry or a vacant unit levy that applies an additional fee to property owners with vacant properties. OBIAA recommends that a provincial strategy be created to help ensure these second storey spaces are turned into housing.
The first stage of developing that strategy would be to create inventories of the vacant spaces in BIAs and main streets areas, working with MPAC. This information could be shared with the municipalities and BIAs to identify the housing opportunities within their neighbourhoods to address the housing crisis. We would recommend that the municipalities are given the option to charge higher tax rates for chronically vacant, neglected and unused properties (including vacant land).
A number of second floor units sit empty because they need significant renovations to bring them up to code or to ensure they are accessible. Any provincial strategy would need grants or renovation loans/funds to retrofit second-storey units; this could include provincial matching of the CIP to renovate residential units.
2. Developing vacant lots
Many BIAs have at least one vacant lot that has sat empty and unused for numerous years with no plans for redevelopment. These vacant lots are often unkempt and detract from the safety and streetscape of main street neighbourhoods to the detriment of businesses and customers.
OBIAA suggests that vacant lot owners be given a grace period to fully utilize the lot. If no plans come to fruition, then the owners should be taxed on the property at a higher rate or processes be put in place to give the BIA and/or municipality the ability to use of the property as a park.
Vacant lot owners needs to be encouraged to develop residential units on these properties through loans, tax incentives, zoning considerations and other levers.
3. Converting under-used office spaces
During the pandemic, office buildings emptied out and many firms have decided to either downsize their office space or close as the trend for staff to work from home is not abating. Whole floors, if not buildings, are now empty with building owners struggling to find new business tenants and area businesses struggling to replace lost customers.
OBIAA recommends incentives be provided to building owners to convert empty office space into residential units, where possible. This conversion process is not easy nor inexpensive, nevertheless this could be a successful way to add new housing units in downtown and main street areas. Our main streets/downtowns could provide housing solutions, create population density and ensure healthy main street neighbourhoods.
4. Reducing red tape and prioritizing permitting approvals for downtown residential initiatives
Many residential developers avoid building residential units in downtowns because of additional challenges such as parking requirements, footprint issues, permits and zoning, etc. OBIAA recommends policies designed to reduce red tape and prioritize permits for downtown housing be included to encourage property owners and developers to invest in building new residential spaces.
Recognizing, too, that it is important to have a mix of different types of housing in each neighbourhood (i.e., not just low or high income). OBIAA recommends that policies be introduced to encourage that mix and attract different developers to our downtowns and help sustain communities that represent all ages, economic backgrounds and demographics.
We welcome opportunities to discuss, in further detail, our submission.
Background:
Appended sections from OBIAA’s 2022 Provincial Budget Consultations
Supporting work that has been completed and submitted from OBIAA’s 2022 Provincial Budget Consultations:
- Commercial to Residential Conversion on Main Street: While OBIAA supports intensification and building in the core, the unique character of the area must be maintained. Additionally, as commercial spaces are transitioning to residential, there will be a significant impact on the commercial assessment, negatively impacting the municipality and the business improvement areas budgets, while at the same time increased services will be required by the new residents (parks, public washrooms, garbage, etc.). In order to adequately support the increase in residential in our downtowns we recommend access to funding to support infrastructure improvements to support this (i.e. increase maintenance or improvements to garbage infrastructure, public washrooms, public spaces).
- Vacancies on Main Street: We applaud the province giving the Municipalities the ability to opt out of the Vacant Unit Rebate. Chronically vacant properties are a blight on our main streets. We are asking the province to revisit the vacancy tax rates providing the municipality the option to charge higher tax rates for chronically vacant properties (including vacant land).
- Return on Investment of Main Streets: In 2017-2018 OBIAA partnered with the Ministry of Municipal Affairs and Housing to create the Return on Investment of BIAs Report.
- OBIAA is requesting further funding to update and study the impacts of residential conversion.
- Main Streets have many vacant second floors that could be added to an affordable housing inventory, which could be identified in a ROI Part II project and report.
- While we support the AODA, many second floors are not compliant and grant funds to retrofit second floors, and above, are needed. Conversions must be a provincial priority.