Grey Highlands council is going to look at the possibility of adding fees for new homes over 2,500 square feet.
At its meeting on Dec. 18, council passed a resolution brought forward by Coun. Joel Loughead to have staff bring back a report about possible surcharges being tacked on to larger-sized homes.
The resolution requesting the report passed in a 5-2 vote with Mayor Paul McQueen and Coun. Dan Wickens opposed.
Loughead said the effort had two primary goals:
- Disincentivize the construction of excessively sized luxury/secondary homes
- Create a revenue stream to put into a municipal affordable housing projects reserve
“There has been an increase in, what you might call, monster homes in Grey Highlands,” Loughead said.
He said larger homes require more energy and resources to build and maintain. He suggested the proceeds from such a surcharge could be directed into an affordable housing reserve to encourage and facilitate additional dwelling units, affordable rentals and other housing programs.
Loughead acknowledged that the municipality would have to research the surcharge idea to determine if such a plan was feasible or even allowed by the province.
“This is a very rough draft and idea. We need to hear back from staff,” said Loughead. “This is just a starting point.”
His brief note on his resolution envisioned the following surcharges:
- $3 per square foot for homes between 2,500 and 2,999 square feet
- $6 per square foot for homes between 3,000 and 3,499 square feet
- $9 per square foot for homes between 3,500 and 3,999 square feet
- $12 per square for homes between 4,000 and 4,499 square feet and so on
“We have to start thinking creatively. We have to be bold in our actions,” said Loughead.
The resolution set off a lengthy and spirited discussion around the council table. Multiple members of council expressed concern that a 1,500 square foot home with a basement would be 3,000 square feet and thus subject to the surcharge.
“I have some serious concerns with this,” said Coun. Tom Allwood, who noted that larger “monster” homes weren’t being built in settlement areas where affordable and attainable units were needed and did add to the municipality’s coffers through their larger accessed values. Allwood said he was concerned developers proposing 1,500-square-foot homes would be “punished” by the surcharges.
Deputy Mayor Dane Nielsen expressed concern that the money collected from such surcharges wouldn’t make much of a dent in the need for affordable/attainable housing, noting that there was a big difference between collecting money for such a purpose and actually building units.
“If the goal is to have Grey Highlands start building affordable units, then the fee has to be substantial,” he said
Nielsen also noted that housing is a Grey County responsibility and suggested the surcharge idea might be better if it was applied across the county.
Ultimately, the majority of council chose to vote in favour of Loughead resolution, which did not make any commitments to such surcharges and asked for a staff report on the feasibility of such a possibility.
