The Hamilton Wentworth District School Board (HWDSB) is considering an unprecedented move to help end homelessness. The school board is discussing reducing education development charges for some affordable housing builds.
In municipalities like Hamilton, when someone builds they have to pay local school boards a fee. Boards make millions of dollars from these charges and use the money to acquire land for new school sites.
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Affordable housing providers have a problem with the fact that it’s a flat rate. There’s no difference in the charge, whether the developer is building a mansion or a small apartment.
What the HWDSB is considering has never been done before. Lowering education development charges for new affordable high-density housing.
“This is untested. And this is unchartered territory.”
HWDSB trustee Todd White said, “There is risk. There’s risk on how the ministry will react. There’s risk on whether there could be cost to the board.”
Right now the HWDSB’s education development charge is $1,573 per residential unit. But with the current bylaw expiring on Jul. 5, the flat-rate fee is set to go up and could increase to $2,040 per residential unit. The increase is so the HWDSB can recoup $143 million over the next 15 years to buy land for new schools.
Trustee Todd White says the board could bring fees down for affordable units to between $200 to $500 and then generate that income by charging other developers more.
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Monday evening, White moved a motion asking staff to calculate whether that model is feasible. It passed seven to two.
Community housing providers say reducing education development charges will make building projects more feasible.
“It would have a very positive impact on our projects because every time we can reduce costs it gets us closer to project viability.”
Indwell is one of eight community housing providers in the Hamilton is Home coalition advocating for the change.
Graham Cubitt, the charity’s director of projects and development is also the coalition’s chair. He says fairness is complicated but affordable housing developers have fewer mechanisms to raise money than market developers or home buyers who may be able to incur additional charges.
“There are trade-offs, and tension in this equation we 100% acknowledge that but that’s why we want to work closely with board staff and their consultants to come up with the right solution for Hamilton,” Cubitt said.
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The trustee CHCH News spoke with says if the HWDSB can create a successful model it could potentially be replicated across Ontario.