Dean Murdock is running for reelection as a Saanich Councillor. He has proposed that Saanich require all new developments to sell or rent 10% of their units below the market value. This will have two side-effects:
- More development will happen in other municipalities, which don’t have affordable or sustainable transportation options.
- The price of new units in Saanich will rise.
Some of the rise in prices will come out of developer profits, but some of the increase will also be passed on to purchasers. Since new developments tend to be condos, townhouses and infill housing, they are mostly purchased by members of the middle-middle class. This is taking from the middle to give to the poor while the rich stay rich.
A better solution is to subsidize the creation of affordable housing units in both new and renovated development (like adding a non-market basement suite) using property tax refunds. The City of Victoria has been quite successful using property tax refunds to encourage restoration of heritage buildings.
The refunds should be paid for by raising the property tax rate for the municipality as a whole. Property tax is just about the only major policy level that local governments have, but it’s a good one because it’s progressive: mansions pay more than condos. The current owners’ houses have increased in value because of the scarcity of housing, so it’s time that they pay back the benefits of old policies.
Of course Murdoch can’t propose raising property tax to help the poor, because land owners are the only people who bother to vote in municipal elections. I’m not saying you shouldn’t vote for Murdoch, because this is better than Saanich’s current policy, fuck the poor. But is it not just to ask the middle to suffer for the good of the poor while taking nothing from the rich.