KIM BURTON-SCHRAM
LOCAL JOURNALISM INITIATIVE REPORTER
SDG Counties Council has adopted the new optional Affordable Rental Housing Subclass for multi-residential or new multi-residential properties for the 2026 tax year. This new subclass may provide up to a 35 per cent tax reduction for qualifying rental properties that meet the assessment specifics outlined by the Municipal Property Assessment Corporation (MPAC).
To qualify for the tax reduction, multi-residential properties must be self-contained residential units, must meet the criteria of an affordable rental residential unit and, for new multi-residential developments, needs to have been built or converted from non-residential use with the building permit issued after the bylaw for the subclass has been enacted within the municipality.
Owners of multi-residential buildings partner with government programs to provide affordable units to income-qualified tenants. These buildings offer units with rents below market rates for the area in which the building exists. In return, these owners benefit from incentives such as lower interest building loans, rent supplements or, in this case, potential property tax reductions. Affordable housing is supposed to be for those tenants who don’t earn enough to afford market rate rents, but who earn too much to be eligible for government assistance. Municipalities implement Ontario’s Provincial Policy Statement through their own planning & zoning, and are expected to provide a suitable mix of housing options.
The new Affordable Rental Housing Subclass is aimed at encouraging the development and increasing the availability of affordable housing for tenants. However, should the municipality choose to offer tax reductions to property owners with multi-residential units, single-residential, detached homeowners would see an increase in their property tax rate to balance the discount being offered to encourage multi-residential housing development.
It is important to keep in mind that even though the Affordable Rental Housing Subclass has been adopted, SDG Counties is not obligated to provide any tax reduction, with Council having the authority to make that decision. While SDG Councillors are committed to addressing the housing crisis and are keen to ensure the quality of service offered at a rental housing facility is maintained, Councillors voiced their concerns about shifting an additional tax burden on residential property owners.
L’article Affordable Rental Housing Subclass approved est apparu en premier sur Cornwall Seaway News.
