The Ontario Government says the City of Hamilton will have to exempt “affordable residential units” from at least some municipal development charges if a new unit rents for the following amounts or less:
$1,017 per month for a bachelor unit;
$1,326 for a one-bedroom unit;
$1,543 for a two-bedroom unit; and
$1,670 per month for a three-or-more-bedroom unit.
[The amounts are not inclusive, only base-rent.]
If a new home is sold for $370,100 or less, it is defined as an affordable residential unit.
The new regulation came into effect on June 1, 2024.
Based on the standard definition, that rent (+ utilities) is affordable if it costs less than 30 per cent of pre-tax household income, these guideline rents are affordable at incomes of:
$40,680 for a bachelor
$53,040 for a one-bedroom
$61,720 for a two-bedroom and
$66,800 for a three-bedroom,
but only if the utilities were not extra.
Today’s minimum wage, for a full-time job (2,000 hours a year) would pay $33,100, well short of a supposedly affordable bachelor.
So basically my municipal taxes go up to subsidise money grasping developers increase profits on a affordable homes, while raking in even more building McMansions in the Greenbelt. Not a bad trade for beer in the corner store for a tea totaller. Like the licence fee break for non-drivers.
Thanks Dougie.