Issue:
The City of St. Catharines has amended its Community Improvement Plan (CIP) to allow it to revoke projects that have not entered into an agreement after one year. However, delays in construction are frequently outside the control of developers, meaning that builders may lose incentives they were granted through no fault of their own.
Why It Matters:
St. Catharines has a housing shortage, which makes it difficult to attract young workers and newcomers who will grow the workforce. Higher rents drive wages upwards as the cost of living increases. There is an urgent need for more affordable housing and more rental units in Niagara.
Facts & Context:
A rental vacancy rate of 5-10% is considered optimal, 3% is considered the minimum for a healthy rental market, and 1-2% is a crisis. The overall Niagara rate is 3.6%, and parts of St. Catharines are as low as 2%. A 2024 Nanos survey found 89% of Niagara residents agree that first-time buyers and young people are less likely to afford a home today than five years ago. Obstacles to new housing construction include high construction and financing costs, expensive land, the availability of credit, and more – none of which are within the control of developers. CIP programs exist to incentivize development where needed, but the current legislation allows these to be withdrawn, jeopardizing projects.
Policy Position:
CIP incentives should not be withdrawn for circumstances outside the control of a developer. Council’s ability to do so, even if not exercised, has a chilling effect on development.
2024-ongoing
