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'Win for the city': Move toward inclusionary zoning aims to increase affordable housing in Cambridge

The city will seek permission from province to expand the zoning beyond just the areas closest to major transit stations.
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The City of Cambridge currently offers incentives like waived fees, deferred development charges, and tax increment grants to entice developers to build affordable housing units.

The city will move forward with exploring inclusionary zoning as one way of increasing affordable housing stock in Cambridge.

The decision came at a recent council meeting during which staff presented a report about the matter, outlining next steps and asking council for the go ahead to conduct a housing needs assessment, inclusionary zoning work plan and stakeholder engagement strategy in 2022.

Elaine Brunn Shaw, the city's chief planner, explained how this type of zoning could be used by Cambridge to enhance affordable housing.  

"It is intended to apply to a certain size development of 10 or more units in areas known as major transit station areas," she said, adding, "these generally fall within 500 metres to 800 metres of a designated station along the light rail transit (LRT) route."

However, the recommendation council passed goes beyond identifying and outlining just the areas under the Provincial Policy Statement and Planning Act.

The city is also planning on approaching the province to request it reinstate the Planning Act provisions that enable a municipality to apply inclusionary zoning in Cambridge on the whole, or at minimum, along major transit bus routes.   

"The study done by the Region of Waterloo on our possible sites has shown that major transit station areas in Cambridge would not qualify for inclusionary zoning under the present provincial economic criteria," said Coun. Pam Wolf, who read the motion. 

Both staff and council recognize the great need for affordable housing, she added. According to data provided by the region, 3,700 individuals are on the wait list for housing. "Inclusionary zoning is an excellent tool we can use for addressing the affordable housing crisis."

But Wolf said for the tool to be effective, the city needs to be able to use it wherever it's appropriate.

"This is why we're asking the provincial government to broaden its criteria for the use of inclusionary zoning. Affordable housing could then be part of all major residential developments wherever they occur in the city."

Coun. Jan Liggett had questions around the longevity of affordable housing acquired through this zoning.

She asked staff if agreements with developers building on land falling under inclusionary zoning category would be temporary, as they are now for affordable housing built in the region.

"Is that what this is? Would it still be a temporary arrangement?" said Liggett. 

Brunn Shaw said the city's financial incentive programs for affordable housing uses 20 year agreements, adding that owners are required to submit annual reports that help the city ensure the units remain affordable for that time period.

"We have 20 years right now; the study looked at 25 years," she said. "In future, we will revisit that time limit."

Liggett then sought Brunn Shaw's opinion on whether she foresaw developers rushing to build before the inclusionary zoning policy is in place. 

"It would seem to me if I was property owner and I wanted to make sure I got the biggest bang for my buck, I'd be looking to build ASAP," said Liggett.  

Brunn Shaw said the city does try to entice developers to include affordable housing opportunities by offering incentives, such as waiving planning and building permit application fees, deferring development charges, and providing tax increment grants for up 20 years.

"Some developers have indicated it's not part of their regular business model to include affordable housing in their projects," she said, adding, "There is an opportunity to try and spark partnerships." 

Satisfied with that, Liggett said she was excited by this move.

"There's a lot of good in here and it's something I'm just so happy to hear about," she said. 

Other councillors were similarly eager about the opportunity. 

"It's a valuable initiative," said Coun. Scott Hamilton. "It works in tandem with most LRT developments, so that a lot of those riders who might be in these higher density areas near the LRT have easier access. With affordable housing and LRT routes on the rise, I think it's a win for the city."