CORPIQ proposes 32 solutions to the housing crisis

Montreal, September 6, 2022 - The Corporation des propriétaires immobiliers du Québec (CORPIQ) is making public its brief prepared for the upcoming hearings of the Communauté métropolitaine de Montréal (CMM) in connection with its housing policy. This document reflects the thoughts of the organization to solve the housing deficit in all regions of Quebec and to better support rental landlords. A few weeks before the provincial election, the solutions recommended by CORPIQ are also a contribution to the political debate on housing. This vision is declined in four (4) components: Develop, Finance, Unblock and Protect our rental stock.

Develop

Quebec is at a crossroads in terms of housing: the housing stock that has been affordable until now may not be affordable soon if the imbalance between supply and demand continues. The need for affordable housing is still high and projects are suffering from financing difficulties. While everyone is promising housing, the Canada Mortgage and Housing Corporation (CMHC) is raising the bar by estimating that 620,000 more units than expected would have to be built within a 10-year horizon to return to a well-balanced market. "More than ever, Quebec will have to make a concerted effort through a new integrated housing strategy and the designation of a Minister of Housing seems unavoidable for the next government. Governmental and ministerial action must be maximized to confront this housing crisis. To regain balance in the real estate market, housing must be at the heart of the priorities," explained Mr. Marc-André Plante, Director of Public Affairs and Government Relations of CORPIQ.

 

Financing

It is important to distinguish between the role of the government and that of the rental landlord. The landlord finances, through his or her taxes, the government’s mission to provide so-called "social" housing. Despite the good faith of many landlords in Quebec, the burden of responsibility for providing housing to all the most vulnerable clienteles cannot be placed on the shoulders of private landlords. More than ever, the government must do its part in the current context. "It is with this in mind that we are urgently recommending that the various governments fund and revive the construction of social and affordable housing. Also, additional resources must be added to the rent supplement program (PSL) to help the most vulnerable tenants in our society. Finally, it is imperative that a plan to eradicate the hundreds of boarded-up HLMs be put in place to adequately fund the needs of municipal housing offices," said Plante.

 

Unblocking

To regain a balance in the Quebec real estate market, a series of measures will be necessary to achieve CMHC's objectives. Doubling the number of housings starts over 10 years is a huge challenge, especially in the context of a labour shortage and policies at the national and local levels that work against this objective. The more constraints there are, the more difficult it will be to solve this housing crisis. For CORPIQ, a national policy of soft densification of the territory should be thought of and put forward without delay. It is necessary to relax the rules to stimulate development and interest private investment. "Currently, 116 municipalities in Quebec have a higher tax rate for buildings of 6 units or more, whereas we want to densify and optimize our territory. It is necessary to review this fiscal policy and instead implement incentives for the development of the real estate market. Thus, the environment for landlords must be more favourable," says CORPIQ's spokesperson.

 

Protecting Quebec's rental housing stock

A joint survey by CORPIQ and the APCHQ revealed in 2016 that 17% of Quebec's rental housing stock needed major work, including 106,500 units in Greater Montreal. While everyone agrees on the importance of upgrading the stock and the need to keep it in good condition for the future, the question of incentives remains. In Quebec, these are almost non-existent: economically, renovation has become a cost and is no longer an investment. For a landlord, the return on investment extends over 50 years, whereas the life span of renovations rarely exceeds 15 years.  This explains the withdrawal of hundreds of units each year and the fragility of the current supply. "Improving the supply and avoiding the withdrawal of housing from the market is paramount. It is also an opportunity to improve energy efficiency and reduce heating costs for tenants by providing the right incentives for landlords to regain the level of motivation of the 1980s when maintenance of the stock was highly valued. In short, there is an urgent need to modernize our laws and regulations," concluded Mr. Marc-André Plante, Director of Public Affairs and Government Relations of CORPIQ.

 

To read CORPIQ's brief : https://www.corpiq.com/DATA/TEXTEDOC/memoire-situation-habitation-final.pdf

 

 

About CORPIQ

A non-profit organization bringing together 30,000 landlords and managers who own nearly 500,000 rental units and condos, CORPIQ is the largest association to offer services to landlords and to defend their interests, for over 40 years. It serves all regions from four offices with a total of 70 employees. Quebec landlords provide housing to 1.4 million renter households, seven out of ten of which own a duplex or triplex. They are an essential link in the housing ecosystem and in the social structure of Quebec, since they often act as first responders to increasingly serious social problems.

Information and interview requests:

Marc-André Plante

Director, Public Affairs and Government Relations

Phone: 514-249-1691

Email: maplante@corpiq.com