Toronto Councillor Howard
Moscoe openly admitted that the Lawrence Heights social housing project is a
failed left wing experiment, and he received a standing ovation (and hugs) from
Toronto's left wing city council.
Of course he didn't phrase
it the way I just did because that would imply that left wing policies aren't
the utopian solutions that the NDP claim.
Moscoe instead stated that, "The theories on which Lawrence Heights
was based have turned out to be wrong — putting poor people into new houses in
a park like setting does not solve their economic problems."
So why the standing
ovation? Because the other part of
Moscoe's announcement is that Toronto intends to replace this failed social
housing experiment with a new one with higher density and less "park
like" setting. I can't help
wondering if the "theories" of this new high density plan will be
deemed a failure by some future left wing councillor 40 years from now.
If Toronto truly wants
competitive affordable housing I'd like to suggest a new theory. Sell off Toronto's massive stock of
crumbling, poorly maintained social housing to private companies. Lobby the Ontario government to change
the Landlord Tenant Act so that all the sections designed to punish landlords
and coddle bad tenants are removed, like the section that allows scammers to
live rent free from October to March (completely illegal to evict) and then
skip out ahead of the eviction notice and the sheriff in the spring with all
that rent unpaid and uncollectible.
If someone truly and
desperately needs their rent subsidized, the city should pay the landlord
directly.
This will solve three
problems:
1) It will get rid of all
the CUPE unionized employees who eat up huge chunks of the Toronto Community
Housing Authority budget while not getting much done to maintain the buildings
they are responsible for. That's a
lot of money that can go to rent subsidization.
2) It will eliminate the
social housing ghettoes like Regent Park and Lawrence Heights because people
will be able to live anywhere the government is willing to subsidize. No one building need be all subsidized
housing. Every building can have
just a few units. No one area need
be packed with the poor. The new
left wing theory is that if they let condo developers build a bunch of condos
in Regent Park and Lawrence Heights mixed in with the government housing, no
one will notice the neighborhood poverty.
I submit that a neighborhood with a disproportionate number of poor will
be a bad neighborhood, no matter how many jogging yuppies with ipods you try to
mix in with them.
3) Property
Maintenance. The city has utterly
failed to properly invest in their social housing experiments like Regent Park
(currently being ripped down after only 40 years) and Lawrence Heights.
I used to live in a
privately owned apartment building built in 1948, and my guests always marveled
that the building was so beautifully maintained. Even though he was crushed by rent control, the owner (whose
grand daughter lived on the sixth floor) did everything he could to keep it
clean and strong. That building is
still a going concern, and Mike Harris's vacancy decontrol interested new
owners who purchased it after the original owner passed away. They have since poured tens of
thousands of dollars of renovations into the building to bring it up to 21st
century code.
The city clearly cannot
maintain buildings as well private industry, and they should recognize that
it's not environmentally friendly to build social housing with great fanfare
and leave it to rot until it has to be bulldozed, trucked to landfill and the
whole process begun anew.
Finally, the most
important thing that Toronto can do (and has direct control over) is to stop
punishing renters with high property taxes. That's right, renters of apartment space pay four times the
property tax rate of condo owners in newer buildings with the same square
footage. That's because condos are
taxed as residential properties and rental apartments are taxed as commercial
properties. Most renters just
don't know this because the taxes are hidden in their bills. Toronto is the only jurisdiction in
Canada that continues to hurt the lowest income bracket of society with this
unfair tax.
Of course the left wing
city council refuses to lift it because they're concerned that the building
owners will just keep their rental rates the same and not pass on the savings
to renters, which is probably true.
What councillors ignore is that with this tax burden gone, businesses
will start building rental units again, which will increase the supply until
prices start to fall. It's time to
make being a landlord a profitable business.
The shortage of affordable
housing in Toronto was totally caused by failed left wing experiments in rent
control, landlord punishment and subsidized housing. It's time for the government to get out of the way and let
private industry provide housing.
They've done a great job with condos. And they've also done a great job providing office space in
Toronto, but that's because the city (other than David Miller's office building
for Corus Entertainment on the lakefront) has kept out of the commercial office
space market. Otherwise there
would be very few office towers on the Toronto skyline, and most of them would
be in desperate need of repair.
Mike Downtown
Note: I do not own or have
a share in any rental property. I
will not gain financially from any of the suggestions I have made in this
article. But if the changes are
made, who knows? Maybe I'll invest
in housing. That's the idea: to
get more investors into housing.