A recently enacted provincial housing law may result in higher property taxes for Mississauga homeowners, Mayor Bonnie Crombie said on Wednesday.
Bill 23, also known as the More Homes Built Faster Act, “will be a major knock to your wallet,” according to Bonnie Crombie, who noted that the typical property tax might increase by five to ten percent, or around $300 to $600.
The Act lowers and waives the fees that developers must pay to build affordable housing, non-profit housing, and units that are subject to inclusionary zoning. Although eliminating fees would promote the construction of additional homes, Bonnie Crombie said that nothing in the law ensures that they won’t be passed on to homeowners.
“Under Bill 23, developer gains will be financed by property taxes. Although we can understand and agree with the province’s intention to promote affordability, it cannot be accomplished at the expense of cities and our taxpayers “said Bonnie Crombie.
“Neither our citizens nor our property taxes deserve this,”
She said that the Region of Peel is likely to enact a rise that is “equivalent to or more than the one we’re facing here at the city,” meaning one home may have an average total hike of between $600 and $1,200. She also said that property taxes might climb further.
According to Bonnie Crombie, the housing bill may cost the City of Mississauga up to $885 million in development fees over ten years.
“That would be the equivalent of losing 20% of our capital budget. The figures are horrifying. They are also perplexing and quite worrying “said Bonnie Crombie.
Municipalities have raised concerns about Bill 23’s potential effects on their budget. According to the Ontario Association of Municipalities, their members might lose $5 billion as a result of the law. Toronto Mayor John Tory issued a warning on Wednesday, stating that “we will ramp up our campaign against this legislation” if the Ontario government does not come up with a plan to assist municipalities in covering the shortfall caused by the legislation.
The Minister of Municipal Affairs and Housing for Ontario, Steve Clark, addressed a letter to Tory in which he claimed that Bill 23 had “made the City of Toronto whole” with regard to its effects. A third-party examination of the city’s finances would be conducted by the province, he added on Wednesday, to see if Toronto will have a revenue deficit as a result of the housing law.
Even though Clark hasn’t announced whether other municipalities would go through the same audit, Bonnie Crombie said she’d be happy for the province to. She clarified that it is untrue that towns have sizable reserves on hand.
“If given the chance, I would be happy to amend the record and run our statistics by the province. In Mississauga, we are economically prudent. I would also want a similar pledge that Mississauga will be reimbursed for any damages caused by Bill 23 “added Bonnie Crombie.
“We want to cooperate with the government to address affordability issues and increase housing production. Just agreeing on the best course of action will do.”
Bonnie Crombie said that in addition to the effects of Bill 23, Mississauga will have a $52 million shortfall in 2023 as a result of the COVID-19 epidemic.
It will be a very difficult year, she said, and we may need to consider cutting back on programming or services or postponing capital purchases, as well as our capital budget and goals.