Builder suggests leasing to cut costs
A 600-plus-unit project proposed for Thorold
The proponent behind a 39.84hectare residential development in Thorold’s Rolling Meadows area, with a potential for more than 600 mixed-use residential homes, suggested land leasing may be the key to making those homes more affordable.
In a presentation during Tuesday’s Thorold city council meeting, representatives from Bousfields Inc., the development planner, and Parkbridge Lifestyle Communities, the property owner, showed their plan for the development to be built along the future extension of Upper’s Lane.
Prices were a concern for councillors advocating for more affordable options, instead of “million-dollar homes” that have recently been proposed in Thorold and other surrounding municipalities.
One concept Parkbridge is working on is land leasing, which they said, would make homes more affordable and accessible to people struggling to enter the housing market.
Emma West, a planner with Bousfields Inc., said land leasing would allow for more people, including young families and retirees, to afford a home well below the standard cost through paying a fee to lease the land the home is built on.
“It’s a form of home ownership that means Parkbridge leases the land to the homeowner, and it helps to support more affordable ownership,” she said.
“This type of land lease development is attractive to a wide range of people, including active retirees and young families. That’s because it costs less than freehold and helps bridge the gap between freehold and rental.”
Coun. Tim O’hare voiced concern about the lack of affordable housing options, which he noted was brought up during the last meeting.
“I didn’t hear anything different tonight, so I’m just going to re-ask
the questions, and one of them that comes up in council is affordable housing,” he said.
“Time and again, these communities are built, and we don’t need million-dollar homes anymore.”
O’hare said he understood housing prices through the land lease agreements would allow for cheaper mortgages, but was concerned for those on fixed incomes, unable to find affordable housing.
“This is a project where the house prices are going to be lower, but they’re still going to be well out of range for a whole group of individuals,” he said.
“Once again, I’ll ask, is there any way … to donate a parcel of land to an organization, like Habitat for Humanity, or build low-rise affordable housing to provide those needs in our community?”
Parkbridge development vicepresident Jeff Marshall said the firm has been exploring options, but it is still “early days.”
“We’re setting up the framework for residential development, but I’m happy to explore more options, talking about Habitat for Humanity,” he said.
Marshall said on average, people see more affordable pricing compared to freehold or purchasing a home in a typical residential setting.
“You’re generally going to find purchase prices are going to be 25 per cent to 30 per cent less than freehold houses, because essentially you’re not buying the land,” he said.
“The way that gets paid for is through a monthly land lease payment, but the benefit is if you’re struggling as a first-time homebuyer … it’s going to be 30 per cent less.”
Marshall said land leasing is a form of home ownership akin to condominiums.
“This is just another avenue,” he said.
“I’m not here to tell you land leases are for everybody, but for certain people at certain stages in their life, this is something that makes a lot of sense.”
Marshall said land leases have been commonplace in the United States and in Europe, but need to become commonplace in Canada to fight the housing crisis.
“This is just an evolution and it’s just being in-market acceptance,” he said.
“It’s an evolution in a form of home ownership which should be growing in this country and especially in this housing crisis.”
Bousfields Inc., the development planner, is involved with Rudanco Hospitality Corp. in another large housing proposal elsewhere in the Rolling Acres area, a development on 23 hectares of land at the southwest corner of Lundy’s Lane and Thorold Townline Road.
That property is home to the closed L8 club and Express Inn motel.
That proposed subdivision includes 46 detached homes, 264 townhouses and 1,753 apartment units and 4,555 square metres of commercial space.