- The document summarizes issues around housing affordability and the greenbelt in Ontario. It provides background on the greenbelt legislation and changes made to the planning act under Premier Wynne. It also discusses challenges around housing supply and costs, and argues that many policies impact housing, not just one alone. The document suggests looking at economic opportunities in rural areas, affordable energy, and properly assessing housing valuations to address affordability issues.

1. GREENBELT - ONTARIO
By: Paul Young CPA, CGA
Date: May 1, 2018

2. PAUL YOUNG - BIO
• CPA, CGA
• Academia (PF1, FA4 and MS2)
• SME – Emerging Technology
• SME - Financial Planning and Analysis
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Financial Solutions
• SME – Supply Chain Management
Contact information:
Paul_Young_CGA@Hotmail.com

3. INTRODUCTION
 Wynne refuses to look at all aspects of housing including modernizing the greenbelt act -
https://www.thestar.com/news/queenspark/2017/03/29/greenbelt-wont-be-loosened-to-
ease-housing-prices-says-wynne.html
 Rural Ontario has been hit hard with electrical policies of Wynne -
http://nationalpost.com/news/canada/portrait-of-five-ontario-hydro-bills-how-a-rural-
couple-pays-500-a-month-and-toronto-brothers-pay-100
 Greenbelt – CPC - http://toronto.citynews.ca/2018/04/30/doug-ford-says-open-greenbelt-
development/
 Wynne did make changes to Municipal Planning Board -
https://www.fraserinstitute.org/blogs/more-power-for-ontario-municipalities-means-more-
responsibility-to-build-housing

4. AGENDA
 What is the greenbelt legislation
 Changes to Municipal Act
 Blog – Housing Issues
 Systemic issues / Housing
 Social Housing
 Poverty

5. WHAT IS THE GREENBELT LEGISLATION
 The Greenbelt Act, 2005 enables the creation of a Greenbelt Plan to protect about 1.8 million
acres of environmentally sensitive and agricultural land in the Golden Horseshoe from urban
development and sprawl. It includes and builds on about 800,000 acres of land within the
Niagara Escarpment Plan and the Oak Ridges Moraine Conservation Plan.
 The legislation authorizes the government to designate a Greenbelt Area and establish a
Greenbelt Plan. It sets out the main elements and objectives for the Greenbelt, which are
addressed in the Plan. It also requires planning decisions to conform to the Greenbelt Plan.
Source - http://www.mah.gov.on.ca/Page195.aspx

6. CHANGES TO PLANNING ACT
On May 30, 2017, the Province of Ontario did what
previous governments were unable (or unwilling) to do
for over 30 years – dramatically reform the Ontario
Municipal Board and the manner in which land use
planning is practiced across the province. The Province
tabled Bill 139, the Building Better Communities and
Conserving Watersheds Act, 2017 for its 1st Reading in
the provincial legislature. Bill 139 builds on the
Province’s review of the scope and effectiveness of the
Ontario Municipal Board initiated in 2014.
Source - http://www.urbanstrategies.com/news/bill-139-
new-planning-regime-horizon/
• Wynne’s government introduced
changes to planning act as part of
urban planning
• Restrictions on building in the
greenbelt were lifted.
• Ford wants to revisit the Greenbelt
act as way to make housing more
affordable.

7. BLOG – HOUSING ISSUES
 There are many issues in play with housing costs:
 Supply and demand – We have issues in large cities with availability of land
 Costs to build – permits, materials, labour, etc.
 People moving to cities as there are either limited opportunities or no
opportunities for them to earn an income.
What should be done:
 Hydro rates need to be affordable
 It is also not one policy that impacts housing, but many policies.
 We need to encourage more economic activity in rural areas as way to
open opportunities for people to enter the workforce
 We need to enforce proper market valuation including inflation, wage
growth, GDP growth, etc. We need to get away from ridiculous bids and
asks when it comes to property
 We need to clean up brown sites as part of land management
 We need to implement transit systems that are integrated as way to move
people to both work and home
 We need to take a hard look at immigration to ensure we align it with skills
gaps
 We need to look at social housing including audits and oversights.

8. HOUSING MARKET
 http://www.cbc.ca/news/business/housing-canada-policy-market-1.4413882?cmp=news-digests-canada-and-world-morning
 Key Quotes “This week, as the federal Liberals roll out their latest plan to fix housing in Canada, they face a Sisyphean task, one they're unlikely to complete.
 While the new government strategy makes a welcome political gesture toward solving problems created by the high cost of housing, there is evidence that the problem is bigger, more
complicated and more intractable than any government can handle, even with this latest decade-long multi-billion-dollar plan.
 Have I not said for many years that it is not one policies, but many that drive the real estate market in Canada?
Here are few examples:
 Economic prospects – more and more jobs are moving to large urban areas as economic opportunities continue to dry up in rural areas -
http://nationalpost.com/news/canada/canadian-census-2016-big-cities-getting-bigger-as-smaller-cities-getting-smaller/. The issue is agenda 2030 is driving people to big cities at the
expense of rural areas - https://www.slideshare.net/paulyoungcga/agenda-2030-new-world-order-canada-november-2017
 Hydro Rates – Canada has some highest hydro rates, especially in rural areas - http://www.cbc.ca/news/canada/ottawa/rural-hydro-customers-fear-rate-cuts-wont-be-enough-
1.4008113. Local businesses have complained about the high hydro rates - http://blackburnnews.com/midwestern-ontario/midwestern-ontario-news/2016/09/15/mpp-worries-local-
grocery-stores-will-close-due-high-hydro-rates/
 Availability of Land – Large urban areas lack land for development. Many rural areas are impacted by green belt legislation - http://www.mah.gov.on.ca/Page13783.aspx
 Valuation of housing – There is not enough work done to assess valuation. The valuation should be driven by other factors like GDP growth, wage growth, inflation, etc. Wages have
grown little over the past 20 years and yet, housing has in some cases triple in value - https://www.slideshare.net/paulyoungcga/job-market-canada-october-2017
 Low Interest rates have led people to enter the market when they may not been able to in the past - https://www.nbc.ca/content/dam/bnc/en/rates-and-analysis/economic-
analysis/housing-affordability.pdf
 Cost of building houses also needs to be reviewed, i.e. building permits, materials, labour cost, etc. The initial cost of the property is what should be used for the valuation including tying
it to renovations as well as other areas (wage growth, inflation, GDP, etc.)
 Many people rent out their basement to pay for their cost of housing. Municipalities need to get tougher on apartment rentals. CRA also needs to ensure the rental income is being
properly reported on tax returns.
Areas done right:
 Mortgage Terms – The government did get this policy right in terms of not allowing 30-35 mortgages
 Mortgage down payment is another area the government go right in terms of curbing mortgage debt.
 Foreign ownership penalties were also done right as well. However, it should be noted the impact has been limited. Australia imposed something similar and the results still did little
reduce the cost of housing in their country - https://theconversation.com/foreign-ownership-of-housing-how-do-australia-and-new-zealand-compare-87089
 Source - https://www.slideshare.net/paulyoungcga/real-estate-canada-october-2017-82521307

9. SMOKE AND MIRRORS – SOCIAL HOUSING
Source - http://spacing.ca/national/2017/04/05/hulchanski-trudeaus-housing-spending-smoke-mirrors/

10. SOCIAL ASSISTANCE / POVERTY
 http://www.ctvnews.ca/canada/about-450k-children-in-families-reliant-on-social-assistance-report-
finds-1.3687153
 Justin Trudeau keeps speaking in the house that his government has reduced poverty rates in
Canada. The reality there is no data that supports Trudeau claim in terms poverty reduction. The
whole statement comes from the Liberal 2015 election campaign -
https://www.liberal.ca/realchange/fighting-poverty/.
 The reality is that since 2015 the low income has seen tax credits removed as part of the
government eliminating tax credits. Fraser Institute has said 61% of the bottom 20% are paying
more taxes since Trudeau took office - https://www.fraserinstitute.org/sites/default/files/effect-of-
federal-income-tax-changes-on-families-in-the-bottom-20-percent-of-earners.pdf
 Harper actually help wage growth - http://business.financialpost.com/opinion/william-watson-
turns-out-the-harper-government-was-actually-terri fic-for-wage-growth
 Source - https://www.slideshare.net/paulyoungcga/low-income-and-poverty-canada-november-
2017