FMTA and OHRC responsible for loss of affordable housing (by A. Skitter)
It is with saddness that I write this. It is not written with malice.
Last week I sold one of my affordable rental homes. It was a large 3 bedroom semi with 4 bathrooms. It was well kept and the rent was only $1210 per month, about $150 below market value.
I owned it for almost 21 years; it was a poor investment, but during that time it provided decent affordable housing to lower income families. The house is now sold, it is owner occupied and has been removed from the rental market.
It was sold largely due to the comments made by Dan with the FMTA. Dan, I first “met” you on your website “Toronto Tenants Unite”. I had hoped we could met and discuss the real issues facing both tenants and landlords. Despite my invitations, I was met with personal attacks and my invitatons were never accepted or even responded to.
Over the (years?) I have tried to explain the issues Landlords, in Toronto in particuliar, are facing. I have shown you that the annual funds I pay to the City of Toronto have RISEN by 12% in 2009 (despite the city’s claims that taxes for multi res properties have only gone up by 1.33%).
You responded by saying rents should be frozen.
I have explained the unfairness of the RTA and LTB towards Ontario Landlords (and given almost countless examples).
Yet you seem to never focus on a balanced position, instead its ALWAYS about the bad Landlord, NEVER about the tenants accepting some responsibilty.
I can see that Tenant Taxation is on the horizon.
From my position it seems you do NOT want to keep tenants rents low or require the city to do their job. I can only guess why you wish this tax on tenants.
A few weeks ago, I suffered the final blow. Barbara Hall has dealt a devastating ruling to Landlords who provide affordable housing.
You must know that the responsibilities (“duty to accomodate” and screening restrictions) now placed on private landlords makes investment in affordable housing simply too risky.
Yet you cheered the recomendations.
You and I both know that the current Ontario Human Rights Comission Housing recomendations are so open ended that an Ontario Landlord can be dragged before the OHRC on nearly any accusation.
You also know that the OHRC states the LL will be forced to accomodate the tenant to the point of “financial hardship” (OHRC words) [Bankruptcy]
I simply can not risk 20 years of back breaking labor, (real tears) and all the sacrifices I have made in that time.
We both know that small LL’s in Ontario now survive only by the grace of their tenants; who may at any time seek free legal counsel, and make ficticious claims at the LTB or OHRC and bankrupt the LL.
The system is only presently surviving because most LL’s are not aware of the risks they are taking.
I have said on numerous occassions that private Landlords do NOT have to provide affordable housing.
Dan, your group is pushing too far. It is driving responsible private LL’s from affordable housing; hurting the very people you are charged to protect.
What do you think will happen to the price of gasoline (rents) when the small private gas stations (LL’s) go out of business?
I have removed that large home from the affordable housing supply. My principle residence (a modest home in a middle class area) has been also been sold.
The equity has been combined and a sprawling bungalow in a very exclusive area has been purchased as my principle residence. This home is NOW the investment the affordable rental property once was.
I will legitimately make 20% of my property taxes, utilities, home repairs and all related housing costs, tax deductible with two home offices. In addition, a large investment loan will be placed on the home, allowing me to legally deduct thousands on dollars of taxable income yearly. This tax will no longer be available to our govts to squander.
The capital gains from the home will be tax free. This is a blue chip, premium location and I am surrounded by multi million dollar mansions. I have watched this area over the years and noted the annual appreciation is far above the typical housing appreciation. And it will all be tax free, no worries, no tenant’s phone calls, no stress, no OHRC, no worrying about the lastest abuse of LL’s rights……just a beautiful home in a premium neighbourhood on a winding tree lined street.
This home has become my new investment.
The 21 year rental property that was providing affordable housing is gone.
A couple of years ago, I would never have considered such an investment change. Dan, you have played a significant role in my decision.
I now realize that:
-The Provincial and Municipal Govts (especially Toronto), are intentionally downloading their housing problems on to private Landlords.
-Tenant groups do not seem interested in a long term sustainable balance between tenants and landlords (helping to ensure investment in affordable housing)
-The OHRC, the RTA and the LTB are likely to become even more landlord unfriendly
-the costs of owning and maintaining affordable rental properties (property tax, garbage fees, water rate hikes, utility costs, smart metering, tenant taxation, HST, insurance, repairs, labor, ect) will continue to rise faster than allowable rent increases.
-Toronto is in financial trouble and will look to more taxes.
I have said BOTH tenants and LL’s rights need to be properly protected. Landlords in Ontario are being abused. The risk is too great. If the situation does not gain some balance, I will continue to sell off my remaining affordable housing.
Private Landlords do NOT have to invest in affordable housing (there ARE better, less risky investments).
Balance is needed or more affordable housing will be lost.
