Hello Ward 8 Neighbours,
City Council voted in favour of two new initiatives designed to protect the city’s housing supply.
For more details, please continue reading below…
On January 25, city councillors approved a new vacant homes tax to discourage speculators and open empty units for rentals amid the current housing crunch.
According to a 2022 staff report, the cost to launch the initiative will check in at around $2.6 million, including the hiring of 16 full-time employees.
Annual costs to the program are expected to be offset by newly created revenues, according to the study.
Vancouver was the first major Canadian city to introduce an empty homes tax in 2017, where it was intended to crack down on foreign investment and property speculation. According to Global News, Vancouver says the tax has cut down 25 per cent of vacant properties since its launch.
Toronto and Ottawa introduced their own vacant home tax in 2022, while other GTHA communities like Mississauga are considering implementing similar taxes.
Councillors have formally approved a bylaw to regulate short-term rental properties, primarily Airbnbs.
In addition to the vacant home tax, Councillors also approved a bylaw to regulate short-term rental properties, such as AirBnB.
The new regulations would limit short-term rentals to a property owner’s principal residence with a business licence to guard against housing stock being converted to accommodation for tourists.
It also includes a cap with no one rental going for more than 28 nights consecutively.
It is estimated that there are close to 900 short-term rentals in Hamilton, with the majority in the downtown area.
Global News reports that 60 per cent of those 900 unites, or 600 were reported to be unoccupied in early 2022, with a number of entire dwellings being rented out for use on platforms like Airbnb.
City staff estimate the cost of administering the STR licensing program will be about $286,000 annually.
The deadline for all STR operators (hosts) to register and receive an STR licence is May 31.
Questions or concerns?
If you have any questions or concerns, you can contact our office here.
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