A "message" from Message - Impact on Homeowner and his Taxes on Public Housing
The people who should be most concerned about the lack of Rental Accommodation and the high cost of available housing are those who are home owners. Current home owners bear the brunt of municipal taxation, and stand a good chance of even higher tax bills as governments bring more subsidized housing on stream.
Government controlled and built housing dose not compete in the market place. The subsidization for the most part comes from homeowners, who now pay Municipal, Provincial and Federal taxes to keep governments operating.
Homeowners should get involved in the move to encourage private industry to provide the supply side of the housing picture. The demand side is here, and high demand without proper supply has only one effect – driving up the prices of the available supply. Encouragement to the private sector to invest in housing can create a supply to match the demand.
In the United States there are groups which provide private affordable housing; “privately owned low-rent housing for low-income families, the elderly, and people with disabilities. Private affordable housing developments are owned and operated by private owners, not the government. Funding for private affordable housing comes, in part, from government programs.”
“In some cases, private housing developers get tax credits from the government to create, rehabilitate, or preserve low-income rental housing. The tax credits reduce debt, so the developers can charge lower rents and still cover their costs. Housing developers who get these tax credits must make a certain percentage of their units affordable to low-income households for a certain number of years. The largest tax credit program for affordable rental housing in Massachusetts is the federal Low Income Housing Tax Credit program (LIHTC).” For more details go to the (Source)
As a final thought: competition in the market place will keep prices at a reasonable level Increased private programs mean more housing, which relates in more homeowners paying taxes, instead of less homeowners paying more taxes. When more privately projects are built, it would go a long way in relieving the necessity for public funded housing projects.
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Hugh Message, Macdonald Realty 1st Pioneer, 22424 Fraser Highway, Langley, BC - 604-530-4111
www.HughMessage.com