What is Affordable Housing
“Affordable housing” does not only refer to rental housing that is subsidized by the government. According to CMHC, this is a broad term that can include housing provided by private, public and non-profit sectors. It also includes all forms of housing: rental, ownership and co-operative ownership, as well as temporary and permanent housing. Ultimately, affordable housing is a term that ensures the household or individual in the housing unit is not spending more than 30% of their before-tax income on their shelter costs, no matter who the housing is provided by or what type of housing they are accessing. People who are spending more than 30% of their income on shelter are considered to be in core housing need, while those who are spending more than 50% on shelter are considered to be in severe housing need.
Definitional Consistency
In November 2021, the City of Toronto updated its definitions of affordable rental housing and affordable rents, as well as affordable ownership housing to ensure an income-based definition of affordable housing is used, and that this supports a full range of housing options across the city. The following definition for affordable rental housing was approved: “housing where the total monthly shelter cost (including utilities) is at or below the lesser of one times the average City of Toronto rent by dwelling unit type as reported by CMHC, or 30% of the before-tax monthly income of renter households in the City of Toronto”. This aims to ensure that all development that receives city incentives for being “affordable” are actually affordable to the average resident by using income to define affordability rather than market rents.
Should Corporations Define a Social Good?
Corporations do not use the current federal definition of affordable housing, which is housing costs that are less than 30% of a household’s before-tax income. They also do not use equitable benchmarks, such as rent-geared-to-income (RGI). Residents have expressed this issue in our surveys as “corporate greed”. As of September 2022, some corporations are appealing to the Ontario Land Tribunal (OLT) to block implementation of the City of Toronto’s new affordable housing bylaw through Official Plan Amendment 558 – Updating the Definitions of Affordable Rental and Ownership Housing (Case No. OLT-21-001844). This will affect affordability requirements and by-laws for new units being built across the city.
This appeal could impact nearly half of residents in Toronto and South Etobicoke who rent. 74% of respondents in the SEHA survey spend more than 30% of their total income on rent. As the cost-of-living skyrockets, including rent, more people in the community are struggling to thrive and meet all of their living needs. Affordable housing options matter – and so does the definition of affordability. When corporations and institutions use their power to define “affordable” options in a way that benefits them, this presents a risk for those who are in need of affordable solutions.
One of the three main recommendations from SEHA’s study has been to redefine housing affordability, using accurate benchmarks and a thriving framework. Through our work, we’ve often noticed that common definitions of affordability either 1) do not go beyond the basic needs of food and shelter to include transportation, personal care, social participation, and healthcare, or 2) are used in an entirely different way by developers and corporations when pricing homes and units. Engaging with these issues with groups like the Lakeshore Affordable Housing Advocacy & Action Group is one way to push back collectively on these efforts and ensure that the voice of those who are in most need of affordable solutions is heard.
Please stay connected https://linktr.ee/southetobicokeha
Written by
Research Assistant Natalie Pilla
