Affordable Housing

Prince Edward County, Ontario, Canada.

Updated September 28, 2023

Page Contents:

Housing matters |
Affordable housing |
Alternative housing models |
Stakeholders

The social and economic health of a population is directly linked with the availability of adequate, affordable housing. In recent years housing prices have escalated and have outpaced local incomes. Much of the housing inventory has been purchased by second-home buyers, investors and retirees from large urban centres, pushing prices higher and decreasing the supply of affordable housing.

"[Interest rate hikes] will not be enough to bring the [housing] market down to where it belongs." "By any stretch of the imagination, this is not the end of the (housing) crisis. This is just the beginning”.

Benjamin Tal, Deputy Chief Economist at CIBC

Affordable housing matters

Housing is a basic need and access to safe, affordable housing is an important determining factor for a person’s health. (Ontario Public Health, Action on Housing Needs)
The housing shortage and high prices, coupled with increasing costs of living (utilities, taxes, etc.) have resulted in many young families, low-income earners and seniors being unable to afford to live in PEC.
Pressure from developers and investors is resulting in “gentrification” of neighbourhoods and displacement of current residents.
The dream of home ownership in PEC is becoming increasingly remote for first-time home buyers.
The PEC labour market is also affected. The Prince Edward County Chamber of Commerce survey at May 15, 2023 reported 32% of 1041 employees do not have sufficient housing for staff.
Lack of attainable and affordable housing is a deterrent to attracting doctors and health care workers.
The Hub Child Centre is the only early education and licensed daycare provider in our community. The centre has a waiting list of over 300 children for daycare programming that they are unable to service due to challenges recruiting early childhood educators due to a lack of affordable housing.

Initiatives to support affordable housing

County Housing Plan (May 2023)

The inaugural County Housing Plan in 2023 sets policy and targets for affordable housing to 2028. The plan was developed in partnership with 15 community agencies. It documents income, demographic trends and housing stock through the full range of the housing spectrum from emergency, supportive and subsidized housing to affordable rental housing stock and the services which support residents with housing insecurity.

County Housing Plan

Affordable Housing Developments: The Prince Edward County Affordable Housing Corporation was formed as part of the County Council’s strategic plan goal to build livable communities with affordable housing.

Worker Housing – there is a negotiation currently in process which if successful would provide for the PEC Affordable Housing Corporation to construct worker housing specific to the retail, hospitality, agricultural, and wine sectors in the County to accommodate their seasonal workers.

Supported Housing: People with disabilities and seniors need affordable housing which support them in being active and independent members of the community.

Health care professionals: Currently PEC is experiencing a shortage of health care professionals and lack of attainable housing is a deterrent to recruitment. Rental housing for new medical professionals is proposed as an incentive. These would be at market rates.

More New Housing Starts: Prince Edward County is projecting a 333% increase in housing starts across The County in the next six years compared the previous six years. That boom is putting pressure on municipal services, notably aging water infrastructure. The municipality is working on plans to spend $68 million on its water and wastewater system, with developers paying for much of the bill. (Reuters.com Red-hot and rural: Canadian towns grapple with big-city-like real estate boom, May 13, 2021)

Faster permitting process: Use of e-Permitting Software will automate and speed up the building permit process.

Municipal Financial Relief Grant. A new pilot in 2022 (May to July), low income residents could apply for grants on water/wastewater services or municipal property taxes.

By-Law Changes:

PEC Council approved amendments to the municipality’s comprehensive zoning by-law to support the development of affordable and attainable housing. (March 2022)
https://mailchi.mp/pecounty/notice-county-amends-zoning-by-law-to-encourage-affordable-and-attainable-housing
Pilot Project: PEC Council approved a pilot project to encourage the development of secondary suites to ease the housing and rental shortages. (February 2022) https://www.quintenews.com/2022/02/10/279983/
Bunk houses are now deemed a permitted use under Tourist Commercial zoning. Tourism-related businesses to be able to construct and rent apartment-style housing to their employees, in the form of housing known as bunk houses. (July 2022).
https://www.countylive.ca/bunk-houses-for-tourism-related-businesses-to-help-with-housing/
A new municipal capital facilities bylaw, a tool promoted by the province, encourages private sector and not-for-profit affordable housing development. https://www.countylive.ca/new-bylaw-could-encourage-affordable-housing/

Rural housing partnership aims to support planning and construction of affordable housing

The Rural Ontario Institute (ROI), Eastern Ontario Wardens’ Caucus (EOWC) and IT firm Itergy have partnered up to mitigate the housing shortfall being felt in eastern Ontario’s rural communities through the creation of a digital resource that will support municipalities in the planning and construction of new affordable housing. Marcia Wallace CAO, Prince Edward County is the EOWC project co-lead. This rural housing partnership project is funded through the Canada Mortgage and Housing Corporation (CMHC) Housing Supply Challenge, with rollout of the tool expected for the Spring of 2023.
The affordable housing portal will include:

demographic trends (population, growth, age and income);
average home and market rental information;
available zoned land;
building costs (development charges and parkland fees);
available incentives like municipal grants or loans;
housing assets and amenities;
and local organizations available for collaboration.

Updates on affordable housing developments (October 19, 2022)

PEC Affordable Housing Corporation has several housing sites in various stages of negotiation and development. Affordability, our aging population, accessibility and increasing the number of smaller and single-person households are priorities. Rents will be at least 20% below the average market rate prescribed by CMHC.

There are multiple projects at various stages of due diligence with many taking place at the same time.

The projected total number of units to be developed over the next 36-48 months is 1,150 – 1,400 units. This would be triple the number of long term rental units in the County and a total estimated investment of $250,000,000 – $300,000,000.

1. Wellington Arena Project ~ Construction is scheduled for early 2023 (tenders are just about to be issued). This will be a 36 unit building with 18 – 1BR, 17-2BR and 1-3BR. In addition on the same property will be 4 – 3BR townhomes. All units will be 100% affordable. Occupancy is projected for June 2024. This building will be a first for PEC in that the parking lot will have EV electric parking docks for those people who have electric or hybrid vehicles. As well, the building will have solar powered energy incorporated within the building.

2. Disraeli Street Project – Construction is scheduled for early 2023 with occupancy projected for fall 2023. This will be a 12 (possibly 15 unit) multi-residential building consisting of at least 6 bachelor and 6 1-BR. This project is in partnership with MBQ where 50% of the units will be for Indigenous youth between the ages of 18-35 who are employed full-time in the County. This building will be a first for PEC as the construction will be modular thereby allowing for a 9 month total construction. At the same time there will be road redevelopment on this street for service extension etc. All units will be 100% affordable.

3. P3 Partnership # 1 – The Housing Corporation is finalizing a private public partnership with a developer on land that is being purchased by the developer and closes on October 31st. The site plan for this property is the development of 210 affordable units consisting of Bachelor, 1 and 2 bedroom units. The development is centrally located in the County close to all amenities and will provide for affordable and supportive housing with supporting community agencies having offices on the main floor of the building. Construction is scheduled to commence in late 2023. Upon completion, the Housing Corporation will manage the property maintenance and tenancy management.

4. P3 Partnership # 2 – The Housing Corporation is finalizing a public private partnership with the same developer in # 3 above on a different piece of property, again centrally located in the County. Similar to # 3, the purchase of the property closes on October 31st. The site plan for this property is the development of 120 affordable units consisting of 1 and 2 bedroom units. Construction is also scheduled to commence in late 2023 to take advantage of synergies with trades on the property development in # 3. Upon completion, the Housing Corporation will manage the property maintenance and tenancy management.

5. The Housing Corporation is completing its due diligence on a vacant property in the County and the site plan is the development of a tiny home community with approximately 20-25 tiny homes. These tiny homes will be owned by the Housing Corporation and rented at affordable at a level below the affordable rate for a bachelor (i.e. $400.00 per month). The due diligence and approval to proceed will be taken forward to the new Council in December 2022.

6. The Housing Corporation is working through the due diligence of 3 municipal surplus properties that have been identified. The site plan for the three properties is the development of 120 affordable housing units of all unit types. Once due diligence and council approval has been obtained the projected timeline for construction to begin is the summer of 2023.

7. The County Council approved staff to proceed with submission of an Expression of Interest on the Queen Elizabeth School property. The Province is expected to announce the declaration of this property as surplus within the next 30 days in between councils. If the County was successful with this, the property would be transferred to the Housing Corporation and the site plan would be the development of 500 – 750 affordable housing units. This would be a 5 year project in a three level staged approach.

8. The County Council accepted the recommendation for the H.J McFarland Home. Specifically, if the new construction of the new home proceeds, the current long term care home would be transferred to the Housing Corporation for refurbishment of the existing building and adding a further storey for affordable housing with initial estimates of 120 units.

9. The Housing Corporation is currently in negotiation regarding another operation/property; however, details cannot be released at this time. Once negotiations have been completed and approvals in place a further announcement can be made. This discussion involves 60 units centrally located in the County.

These affordable housing projects include a requirement for local employment and apprenticeships.

In addition, the LoveSong Seniors Co-Housing and Community Hub Coliving Group took over the former Pinecrest Memorial Elementary School property in October 2020. The group aims to create a multi-phase seniors cohousing project.

Alternative Housing Models

New construction will not be able to keep pace with demand, and high building costs result in housing prices that are not within an affordable range for many. By creating a multitude of housing opportunities, the supply of housing available within the County can more effectively respond to local housing needs and changes in demand. However, provincial regulations determine many of the steps that municipalities can take regarding housing.

Alternative housing models include repurposing existing structures, homeshare, house-matching, cohousing, bunk houses, secondary suites & units, workaway, shelter pods and sleeping cabins.

Homeshare and house-matching systems can match accommodations with tenants, vet tenants, and deal with administration. This would potentially remove barriers to availing surplus accommodation, and provide benefits for both homeowners and tenants. Examples of homesharing are between seniors and students or seasonal workers. See Homeshare Canada, including a pilot for Hastings Prince Edward.

Cohousing or studio housing combines the autonomy of compact self contained private dwellings with the benefits of shared, spacious community amenities. Some have a special focus (e.g., for seniors) but many are intergenerational with a mix of family types and ages. This is the concept behind LoveSong Seniors Co-Housing and Community Hub. See Canadian Cohousing Network.

Abbeyfield Houses provide affordable accommodation and companionship for lonely elders within their own local community. This is achieved by converting and maintaining houses in which, typically, a small group of residents live together with a house manager. Rooms are usually private, but housekeeping and meals are provided by a small staff in the common living space. Each house is a non-profit, registered charity. House ownership and support are undertaken by community volunteers. Abbeyfield is a non-denominational and inclusive organization.

Secondary suites add gentle density at lower building costs, accommodate tenants or multi-generation families, and generate income for homeowners. PEC has encouraged secondary suites through bylaw changes and financial incentives. See "Are garden suites part of the housing crisis solution?"

Backyard units: Airbnb Inc. has a new startup, known as Samara, that plans to sell factory-produced studio and one-bedroom units to homeowners to add to their backyards. This is being tested in California, spurred by surging home prices and ballooning rents.

Workaway connects workawayers with hosts who could benefit from the socialization, household help, and/or the income. A Workawayer is a traveller who wants to give back to the communities and places they visit. Open to helping hosts and using the experience to learn and immerse in the local culture.

Bunk houses for the purpose of housing seasonal, temporary tourism workers are now deemed a permitted use under PEC's Tourist Commercial zoning.

Tiny homes have the potential to provide alternative affordable housing. PEC Affordable Housing Corp. is in the planning stages for a tiny home community. In some communities, Habitat for Humanity provides students the opportunity to gain real-life work experience building tiny homes under the instruction of industry professionals.

Shelter pods and sleeping cabins provide emergency accommodation in some communities.

Stakeholder recommendations

In November of 2021, Prince Edward Learning Centre conducted a survey of 105 PEC residents and former residents who were affected by lack of housing options.

Below is a summary of their recommendations:

increase the number of long-term rental accommodations
quality full-time employment with benefits
universal basic income policy around housing as a right
increase ODSP income
water utility costs are very high; consider grey-water recycling in new developments
more wheelchair-accessible housing
more supported housing for those living with disabilities
more housing options for singles and seniors
increase number of affordable senior apartments/communities allowing them to downsize and free up homes on the market
explore co-housing options for seniors
explore house-matching programs for seniors and seasonal workers or students
incentivize secondary unit development in existing and new developments
explore dorm-style accommodations for seasonal employees
more transitional housing for victims of domestic violence
increase investment in affordable housing
reduce NIMBYism
more (long-term) rental units as a share of new developments
incentives/mandates for affordable housing as part of new developments
incentives to build apartments and condos
engage the stakeholder in community benefits suggestions for new developments
create rental housing in current vacant buildings (commercial, govt buildings, schools etc)
more geared to income housing.
fast-track higher-density (mid-rise) development
fast-track affordable housing developments
programs to help first-time home buyers
re-evaluate short-term accommodations (STA) density
tax STAs at a higher rate
restrictions on number of whole home STAs
require whole home property owners to occupy the property a percentage of the year
attract more hotel development to relieve pressure on STAs