Most of the buildings to rental housing should be erected in the city centre of Gaspé, which explains the necessity of the measures applicable to the outlying areas.
December 13, 2019 19: 00
Rental housing: measures to accelerate the construction in the Gaspé
GASPÉ — The mayor of Gaspé, Daniel Côté, wants the private law 205, giving the City of Gaspé for ways to speed up the construction of rental housing, will result in the addition of 150 to 200 new units within five years, to address the shortage of homes in the municipality of 15 000 people.
The vacancy rate of housing in the Gaspé peninsula amounted to 1.2 %. Entry into force Wednesday, law 205 will give two types of benefits to entrepreneurs of real estate, a credit of municipal taxes for five years, or the development of municipal services such as water and sewer charges of the Town of Gaspé, in whole or in part.
“The details remain to be decided in city council. We want to be equitable in the projects, both in the party’s municipal infrastructure [water and sewer] as the portion that relates to the tax credit. The City can go for up to $ 500,000 in support per project, not to exceed a total of $ 2 million over the next five years,” says mayor Side.
Considering that the majority of the rental buildings will likely be erected in the city centre, the municipal administration has also included in the act 205 provisions to encourage the acquisition of homes in the sectors with indices of a root canal treatment on its territory. The municipal boundaries of Gaspé stretch over 120 kilometres.
“This advantage could take the form of a tax credit, such as the Welcome tax, or right to transfer, in the purchase of a house in the areas between l’anse-à-Valleau and Small-Cap, and then the Anse-au-Griffon Cap-des-Rosiers and Cap-aux-Os. We will look at whether a credit of municipal taxes would also have a positive effect. It has the right to go up to $ 10,000 per acquisition,” says Daniel Side.
The Town of Gaspé has made its way over the past few years, adding 125 units of social housing on its territory. She could not, however, intervene in the private sector without the passage of a law by the national Assembly.
“It is for bearing the additional cost of construction of 30 % here, according to the figure given by the real estate developers,” notes the mayor.
A brake on the economy
The assessment of the vacancy rate of housing is 1.2 % date of October 2017. “It’s a percentage, taking into account all sectors. In the city centre, it is 0 %. It is clear that it is lower than this [1.2 per cent] on the whole of the territory. The housing situation has not improved for the past two years,” says Mr. Côté.
“The economy is booming. There is a serious lack of workers. If all positions were filled, the economy would be even stronger. There are commercial challenges, as well as everywhere on the planet, because of online purchases. Currently, it is the lack of housing that creates mainly the shortage of labor,” says Daniel Side.
The Town of Gaspé is betting that the amounts granted in tax credits or infrastructure services shall be soon regagnées in real estate investment, improvement, leasehold, or through access to property for young people.
“These young families will invest in their properties. We regain our implementation, and the shops will invest to meet the new residents”, said Mr. Côté. The value of the land of Gaspé is $1.4 billion.
Since the end of 2016, the blade factory wind turbine LM Wind Power has hired 285 new employees and it now has 485 to satisfy its export contracts. Three shipyards are hiring 125 people to work at full speed. Commercial fisheries generate record revenues for the past five years, and tourism follows the same trend.
Prior to act 205, the City of Gaspé had put on sale 10 courses, at a cost of one dollar, on condition that the purchasers begin soon the construction of rental buildings. Seven lots were sold, but three developers withdrew due to the production time too short. Four buildings of three units are currently under construction.