Once people started to get on board with the idea that more affordable rental housing was needed, another issue came to light. Existing rental units with low rents were disappearing and quickly. According to one study, Canada lost 11 affordable rental units for every one that was built1.
People doing the maths also realized that by buying up existing rental homes, funding would go farther: it costs less to purchase and renovate existing housing than it does to build new units. As well, buying existing units takes less time than building new ones. And it can help sitting tenants to avoid homelessness.
Could existing housing with modest rents be purchased by non-profits to preserve the housing and keep it affordable? Following are accounts from Boston, Toronto and Nova Scotia, where acquisition programs are in play.
Boston
The account from Boston makes buying up existing affordable rental housing sound easy. The City launched a buying program in 2016 and reached its goal of 1,000 units six years early. Now the City has approved a revolving fund, to assist non-profit housing providers that are purchasing existing private market rental housing. Read more in SmartCitiesDive: Boston Ramps Up Affordable Housing Preservation Efforts With New Revolving Fund
Toronto
Like Boston, Toronto’s Council also tried a program to preserve existing rental stock. A 2020 pilot supported purchases of licensed rooming houses. Toronto’s Council then launched MURA (the Multi-Unit Residential Acquisition Program) in 2021, which supports the preservation of rooming houses and self-contained units.
The staff reports to Toronto’s Council reveal the vast number of decisions that went in to the design of MURA. Here are a few examples:
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- Eligible purchasers include community land trusts, and non-profit and co-operative housing providers.
- One fifth of the approved funding is dedicated to Indigenous housing providers2.
MURA‘s program description is posted by the City of Toronto: New Multi-Unit Residential Acquisition (MURA) Program to Protect Existing Affordable Rental Homes
Whenever Toronto’s Council launches a housing program, it usually invites the provincial and federal governments to chip in financially. With MURA, both the provincial and federal governments have stepped up3.
The extra funding is welcome. It also means more reports to Council, which are required to officially accept the funding and approve how it will be distributed4.
Is MURA measuring up? For people who track the numbers it’s hard to figure what’s actually happening. Here’s a request for more clarity: PH18.7 – Multi-Unit Residential Acquisition (MURA) Program Update
Nova Scotia
The story from Nova Scotia comes from the web-site of one non-profit housing provider: the Housing Trust of Nova Scotia. The organization is dedicated to creating a supply of non-profit housing that will be permanently affordable.
The Housing Trust of Nova Scotia traces its beginnings to 2005. In 2021, it finally became a housing provider when it acquired 295 existing rental homes on five properties in Halifax and Dartmouth. Federal, provincial and municipal governments contributed to the purchase.
The Housing Trust of Nova Scotia’s mandate isn’t restricted to acquiring existing affordable rental homes. It is also adding new affordable rental homes as part of a strategy to attract care professionals (doctors, nurses, social workers, etc.) to work and live in smaller communities. These are modular homes that are built with the financial support of the provincial government.
You can check out these initiatives here
For those who are living outside Toronto, Boston or Nova Scotia, here’s one idea to take away from these reports. The next time there’s an announcement about a housing initiative, it’s worthwhile to dig a bit more and “check against delivery5” Digging deeper could lead to a greater appreciation of what is or isn’t going on. As well, it could be the impetus to get involved.
Footnotes
- The loss of stock is attributed to rent increases, demolitions and conversion to short term rentals. The report about the extent of housing loss is posted at CHEC: Filling the hole in the bucket: Loss of existing affordable rentals massively undermining new affordable supply
- This allocation acknowledges the high levels of homelessness among Indigenous people in Toronto. It also acknowledges the City’s commitment to implement the recommendations of the Truth and Reconciliation Commission, which recovered experiences of life and death in Canada’s Residential School system.
- For insight on why this might be, check out Canadians’ views about housing and homelessness in this survey from Abacus: 67% of Canadians Recognize Homelessness as a Housing Issue Needing Immediate Action
- Here’s an example: Multi-Unit Residential Acquisition (MURA) Program Update
- Here’s the definition published WordReference: Check against delivery
