PCs to Propose Common-Sense Amendments to Prevent Chill on Housing Investment
WINNIPEG — Manitoba PCs will propose common-sense amendments to the NDP’s Bill 12, which establishes new rules to give the provincial government extraordinary power over private buildings, and raises serious questions about property rights and future housing developments.
Under the Housing and Renewal Corporation Amendment Act, property owners and investors would have to seek government approval to sell their property if the province invests 15% of construction costs to create social housing units. After consulting the developers and investors, there are growing fears that this NDP legislation could discourage investment in social housing. Investment and real estate experts fear that this bill will reduce investment in multi-family dwellings in Winnipeg and across Manitoba, reducing the housing stock and driving up home and condominium prices.
“If the NDP want to increase social housing stock, they should provide incentives, not penalties,” said Portage la Prairie MLA Jeff Bereza, PC Critic for Housing, Addictions and Homelessness. “This bill needlessly meddles in the real estate market and will discourage investors from creating new housing units.”
Some of the concerns identified with the NDP bill that PC amendments will aim to rectify include the following:
- The original 15% threshold is too small of a funding percentage for this type of broad prohibition.
- Without an end date, owners and investors would have less incentive to make investments to maintain and upgrade their properties.
- There should be a built-in mechanism to deal with extenuating circumstances like death of an owner or bankruptcy.
“Manitoba needs more housing, not less,” said Bereza. “Without amendments, this flawed NDP legislation could throw a chill over the real estate and investment sectors, reducing the number of housing units in the province, and driving up prices. Wab Kinew continues to make life less affordable for Manitobans.”
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