The City wants residents to have their say on affordable housing—in particular the possibility of imposing inclusionary zoning on new housing projects. Inclusionary zoning would force developers to include a specified proportion of affordable units in their developments. The definition of affordable is as follows:
In the case of ownership housing, the PPS defines affordability as the least expensive of:
a) housing for which the purchase price results in annual accommodation costs which do not exceed 30 percent of gross annual household income for low and moderate income households
b) housing for which the purchase price is at least 10 percent below the average purchase price of a resale unit in the City of Hamilton;
In the case of rental housing, affordability is defined as the least expensive of:
a) a unit for which the rent does not exceed 30 percent of gross annual household income for low and moderate income households
b) a unit for which the rent is at or below the average market rent of a unit in the City of Hamilton.
For the purposes of this definition, “low and moderate income households” means households with incomes in the lowest 60% of the income distribution for the City of Hamilton.
In 2022, based on Hamilton household income deciles, affordable ownership housing should be priced through the income-based approach at a maximum of $505,455 for the lowest 60% of the income distribution.
In 2021, affordable rental housing should be priced through the market-based approach at a maximum rent of $1,190 on average for all unit types, $915 for bachelor units, $1,095 for one bedroom units, $1,271 for two-bedroom units, and $1,479 for units with three bedrooms or more in 2021.
All of these 2021 definitions have been completely outstripped by market forces. But it is necessary to conduct a housing needs assessment before inclusionary zoning can be implemented.
Inclusionary zoning can only be imposed on units being built in Major Transit Station Areas (MYSA). In the case of Hamilton that would include any housing built along the proposed LRT route, and any units built within 500 to 800 meters of the West Harbour, Downtown and the future Centennial GO stations.
Residents interested in reading the report and providing input can access the site here.
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