Wilmot Township looking at affordable housing incentive policy

Partners would be tax-free for 20 years

By Lee Griffi, Local Journalism Initiative Reporter

Wilmot Township council has approved a new policy that will exempt property taxes on newly built affordable housing units.

A news release said the move is a significant step in the township’s efforts to address housing affordability for residents. The policy offers a 20-year property tax exemption for affordable housing projects led by non-profit and cooperative housing providers. It aligns with the Region of Waterloo’s existing property tax exemption framework and supports the provincial goal of accelerating housing construction across Ontario.

“We know that real solutions require collaboration. This exemption creates the conditions for our non-profit partners, and potentially for-profit builders, to deliver housing that meets the needs of some residents right here in New Hamburg, Baden, New Dundee and beyond,” said Mayor Natasha Salonen. “It’s one part of a bigger picture where Wilmot is stepping up.”

She added the move is about taking meaningful, concrete steps to tackle the housing crisis in the community.

“This policy is one way we can say we see the need and we’re acting on it. No single policy will fix the housing crisis, but this is a concrete step in the right direction and a sign that Wilmot is ready to partner on real solutions.”

Not all members of council support the initiative, including Coun. Kris Wilkinson who said those living in affordable housing units could be negatively affected.

“If you live in a tax-exempt dwelling, you are not eligible for an Ontario Trillium grant and I think it can range anywhere between $1,200 and $1,400. If we are looking at an individual living in a dwelling that is subsidized and already geared towards low rent, are they necessarily reaping the rewards, or is potentially putting (that money) in their pocket a better use?”

Wilkinson said taking the benefit away from some people could be described as doing them a disservice.

“It’s something I struggle with but my guess would be any time you take money out of someone’s pocket, it can hurt them quite a bit in terms of their budget and how they spend money in the community.”

He is also worried about who ends up footing the bill when tax breaks are given.

“I am very conscious of the fact that taking away any potential tax assessment will eventually be passed on to the greater public. This is not a massive amount, but if this does end up becoming a regular application and we see 10, 15, 20 of these, what does that do to residents paying taxes? I think there are a few things at play here and for those reasons I’m opposed.”

Reference was made in a report to Maple Heights Seniors Residence in New Dundee, a 24-unit geared-to-income development that will see its $12,000 township property tax bill disappear in 2026. CAO Harold O’Krafka said residents there are already not eligible for the Ontario Trillium Benefit because the region has exempted both regional and education taxes, which disqualifies them under provincial rules.

“They aren’t receiving that $1,200 now and reducing the township’s portion of the tax won’t change that. What it will do is lower their overall housing costs directly. While we continue to advocate for the province to modernize these rules, this is one small step we can take locally to help make life more affordable.” 

Part of the hope with the new policy is rent will be reduced since property taxes aren’t being paid. Wilkinson said his concern is there is no oversight to ensure that actually happens.

The township isn’t sure how many affordable housing units are available in Wilmot, something O’Krafka said staff is working on.

“As part of developing Wilmot’s new official plan, we will be conducting a housing needs study. This study will look at how much affordable housing is currently available, what types of housing will be needed in the future and how we can plan for a range of housing options to meet our community’s needs,” O’Krafka said. 

He explained the new policy came out of seeing what other communities are doing, working with staff and talking with developers who are willing to build housing that meets real local needs, not just the high end of the market.

“This policy is the result of those conversations. It’s rooted in the idea that growth should benefit everyone, not just a few.” 

Coun. Harvir Sidhu also voted against the motion but it passed by a 3-2 margin. Coun. Lillianne Dunstall was not at the meeting.

The township has identified housing affordability as a top priority in Wilmot’s 2024-2027 strategic plan. The new policy builds on previous council actions, including the exemption of regional development charges for a new 160-bed long-term care home being constructed by Tri-County Mennonite Homes.

The township said it expects the new policy will help unlock new opportunities for affordable- and supportive-housing development across Wilmot.