Moratorium for the rental housing market

andre-girard-meme-noelaAlarmed by the deterioration of the rental housing market, of Saguenay property owners request that either a moratorium on the construction of subsidized rental buildings as low-rent housing and housing cooperatives.

They propose instead that citizens have easier access to private dwellings, while having the opportunity to receive financial assistance from the Office municipal d’habitation de Saguenay, as is the case for about 800 homes on the territory of Saguenay.

Noela Roy and brother and sister Linda and André Girard, own, individually one hundred homes on the territory of Saguenay. From the outset, they argue not to be at war against the support for social housing, but would like a turn be undertaken to halt construction of such housing largely subsidized as called Sonia Côté, coordinator Lodge Caring me.

“For his housing project Perseverance, it wants the government to invest $ 3.9 million to build 24 units, which amounts to $ 162 500 a door. If you finance $ 3.9 million over 25 years to the current interest rate, it costs $ 21,450 per month, or $ 893 per unit. I just finished the construction of six homes for $ 420,000, which amounts to $ 70,000 the unit, “says André Girard.

He went on to say that in addition to very expensive, social housing developers require that land be courtesy of the City in addition to an exemption of long-term taxes.

Now the private property owners argue that the real context of Saguenay is very different from that of Quebec and Montreal as the vacancy rate rose from 1.4% in 1992 to 7.1% in 2016, resulted in 400 units are currently empty, says Linda Girard.

Last December, Mr. Girard claims to have had to endure seven units quarantine it owns while his sister was struggling with six empty homes on 51 situations they have never lived in a dozen years. In the latest edition of his newspaper, the Corporation of Quebec homeowners (CORPIQ) reveals that he must go back to 15 years before finding a vacancy rate as high across the province.

The result is that more and more owners have no choice but to lower housing prices to cope with the pressure of market characterized by the development of condominiums. The value of the housing stock has a downward trend. Banks finance more difficult projects, says Girard.

According to him, there is currently a break because poverty is increasing in the region. Work is scarce and young people fleeing the area. Adds over the market building huge homes for the elderly that leave more empty houses.

Given the overall situation, the three owners feel it is illogical to demand the construction of subsidized housing.

HLM Management

Another solution would be to improve the management of existing public housing. “Another reality that exists is that a woman living alone with her ​​four children in a five and a half OMH can not be moved when her children grew up and left home,” claims Ms. Roy.

The three owners conclude that it will be increasingly difficult to support the cause of social housing in a context where the tax accounts of private owners climb year after year. They argue that the new assessment roll applicable in 2016 with data going back to July 2014 is well past due to the real estate market down.

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