The Canadian Federation of Apartment Associations-Fédération Canadienne des Associations de Proprietaires Immobiliers (CFAA-FCAPI) consists of 13 associations across Canada including the Professional Property Managers Association. The 13 associations represent the owners and managers of close to one million rental units. The main political goals of the CFAA-FCAPI are:
Over the last 20 or 30 years, many negative federal tax changes have reduced
private investment in rental housing. Unfair tax treatment has a negative impact
on private investment. Lack of private investment leads to increased public
investment. Currently, public investment tends to be directed largely to the
building of social housing, which is extremely costly and not affordable in
practice.
Moreover, by competing with the private sector, public spending crowds out much
of the private investment that would still take place. Since three new social
housing units may stop two private units from being built or restored, the
public spending is even less cost-effective than it appears.
Economist Stephen Mayo compared the US and German experiences with housing
policies in a 1988 article in the Journal of Urban Economics. He found that a
dollar of spending on social housing produces 37 cents of additional housing,
whereas if spent on housing allowances the same dollar would have led to 85 to
90 cents of additional housing.
CFAA-FCAPI supports federal funding for housing allowances, which are much more
cost-effective, can be spread among far more needy tenants, provide maximum
choice, allow residents to stay where they are, and directly and immediately
address affordability problems.
In our view, CFAA-FCAPI policies would lead to a better situation for residents,
property owners & managers and taxpayers. Residents would gain more housing, and
would see more choice and better maintenance and services through private
competition. Property owners/managers would see better after-tax returns, more
investment opportunities, and a greater ability to buy or sell as their
investment goals change. Taxpayers would save money because the cost of helping
residents directly with their affordability problems is far less than the cost
of the government subsidizing the building of new social housing.
CFAA-FCAPI will be asking its member associations to help in promoting good
sense in Canada's housing policies. Please help us, in order to help yourself as
a property owner/manager, and to help residents and taxpayers see the benefits
of sound housing policies.
---------------------------
For more information contact John Dickie at
jdickie@dickieandlyman.com